TREASURY AND RESOURCES MINISTER
Approval of capital expenditure from
JERSEY AIRPORT Trading Fund
- Purpose of Report
To enable the Minister to approve the use of trading funds in accordance with the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005.
- Background
The Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 include the following at Article 22:
“Money standing to the credit of the trading fund of a States trading operation may also be used, with the approval of the Minister, for a capital project of the trading operation if –
(a) the amount approved by the States for the project as part of an annual business plan has proved to be insufficient; or
(b) the project arises from a contingency that could not have been reasonably foreseen at the time the estimates of the States trading operation were submitted to the Minister in accordance with Article 8 of the 2005 Law for inclusion as part of an annual business plan.”
There is a current situation where the Minister’s approval is requested under (a) relating to Jersey Airport.
Jersey Airport
The Airport is seeking to transfer £320,000 between two projects previously approved by the States: from the 2008 approved capital budget for Passenger Coaches (2) of £330,000 which was no longer required to fund a budget increase of £320,000 as an inflation provision on the Air Traffic Control Centre construction budget. A ministerial decision to this effect has already been signed by the Assistant Minister for Economic Development and is attached.
- Recommendation
That the Minister agrees to transfer £320,000 between two projects previously approved by the States: from the 2008 approved capital budget for Passenger Coaches (2) of £330,000 which was no longer required to fund a budget increase of £320,000 as an inflation provision on the Air Traffic Control Centre construction budget.
- Reason for Decision
The Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 require the Minister to approve capital expenditure from Trading Funds where previous amounts approved by the States have been insufficient.
States Treasury Head of Decision Support
10 June, 2008 for decision 16 th June 2008