Government of Jersey

Information about the publication of Ministerial Decisions

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A decision made (13.02.08) to allocate a percentage of lottery profits for 2007-2008 to the Association of Jersey Charities.

Decision Reference: MD-E-2008-0048
Decision Summary Title :	Allocation of a percentage of lottery profits for 2007-2008 to the Association of Jersey Charities		Date of Decision Summary:	7th March 2008
Decision Summary Author:	David Evans		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	2007 CI Lottery Profits to AJC RP		Date of Written Report:	6th March 2008
Written Report Author:	Dr. Jason Lane		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Allocation of a percentage of lottery profits for 2007-2008 to the Association of Jersey Charities.
Decision(s): The Minister approved the draft report and proposition requesting that the States endorse a proposal to award 80% of the Channel Island Lottery profits for 2007-2008 to the Association of Jersey Charities, with the remaining 20% of these profits being transferred to the Lottery Accumulated Fund. This report and proposition is to be lodged au Greffe as soon as possible.
Reason(s) for Decision: The payment to the Association of Jersey Charities of the bulk of lottery profits and the retention of 20% to the Lottery Accumulated Fund accords with agreed annual practice as regards Channel Island Lottery profits.
Resource Implications: There are no financial, property, ICT or human resources issues arising
Action required: Officers to undertake the necessary arrangements and to advise the States Greffe and Publications Editor to request that it be lodged ‘au Greffe’ as soon as possible.
Signature: Senator P.F.C.Ozouf		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Association of Jersey Charities - allocation of percentage of lottery profits for 2007-2008

PROPOSITION

THE STATES are asked to decide whether they are of opinion -

to agree, in accordance with the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, that all monies standing to the credit of the Channel Islands Lottery (Jersey) Fund which have not already been set aside by the Minister (representing 80% of the total Jersey portion of the profits of the Channel Islands Lottery from 2007 and 2008) should be paid to the Association of Jersey Charities for the benefit of the community and the charitable needs of the Island.

MINISTER FOR ECONOMIC DEVELOPMENT

Note: The Treasury and Resources Minister’s comments are to follow.

REPORT

The decision making process for allocating funds from the Channel Island Lottery is that the Minister has responsibility for establishing a reserve, but the States is responsible for the distribution of remaining funds that constitute the lottery’s ‘profit’. Accordingly the Minister for Economic Development, pursuant to his powers under Regulation 4(5) of the Channel Islands Lottery Regulations 1975 and in consultation with the Association of Jersey Charities, has agreed to set aside as a reserve, 20% of the Jersey surplus for 2007 and 2008.

The remaining 80% profit, according to the provisions of that Regulation shall be applied in such manner and for such purposes of public benefit as the States shall from time to time by Act direct. It is the Minister’s recommendation to the States that these funds be granted to the Association of Jersey Charities, with the 2007 surplus to be made immediately available and the 2008 surplus to be provided once the States Treasury has finalised the 2008 year-end accounts. This recommendation follows that agreed by the States in 2006 when £358,616 (80% of the total) was granted to the Association.

The Association now represents over 200 member charities and undertakes a valuable function by considering and allocating funding to the best prepared and worthy projects put forward by its members. In doing so, the Association continues to fulfil a vital social need.

The proposed transfer of 20% of the Jersey profits from 2007 and 2008 to the Accumulated Fund is to maintain a contingency for the Association of Jersey Charities should sales of the Channel Island Lottery decline. Scratch cards sales for 2007 showed a modest decline over the previous year, with Jersey sales showing a 4.08% downward turn. The Christmas Draw however, continues to attract significant public interest and support and 2007 saw the best result in the Lottery’s history, with the top prize breaking the half million pound barrier. This represented an increase of 133,000 tickets (17.34%) on Jersey sales over the previous year.

Despite the introduction of an increased scratch card jackpot of £20,000 from £10,000 in 2007, there remains little doubt that an extension of the National Lottery to Jersey, offering larger cash prizes, would affect the profitability of the CI Lottery. The Minister’s policy, therefore, remains to introduce the National Lottery during the next licensing period (2008/9) but to retain the CI Lottery Christmas Draw and other Draws as may be determined. These proposed changes will undoubtedly lead to a period of consolidation and importantly, the widening of the criteria for receiving good causes funding. The Minister has, therefore, consulted with and gained the agreement of the Association to use his powers under Regulation 4(5) to retain a reserve for the exclusive future benefit of the Association of Jersey Charities.

There are no other financial or manpower implications for the States arising from this proposition.