Approval to spend additional income from wireless telegraphy licence fees

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A decision made 16 December 2009 regarding: Approval to spend additional income from wireless telegraphy licence fees.

Decision Reference: MD-TR-2009-0197
Decision Summary Title:	Additional income for the Economic Development Dept & budget transfer to Home Affairs		Date of Decision Summary:	30th November 2009
Decision Summary Author:	Finance Director: Corporate Group		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Wireless Telegraphy Licence Fees		Date of Written Report:	23rd November 2009
Written Report Author:	Finance Director: Corporate Group		Written Report : Public or Exempt?	Public
Subject: Approval for the Economic Development Department to spend additional income from wireless telegraphy licence fees received in 2009 and transfer £200,000 in 2009 only to Home Affairs.
Decision(s): The Minister for Treasury and Resources approved the Minister for Economic Development’s request (MD-E-2009-0162) to spend £360,527 additional licence fee income on supporting pressures arising in response to the global financial crisis and to transfer £200,000 to Home Affairs in 2009 only, to support additional spend on Court and Case Costs (MD-E-2009-0215).
Reason(s) for Decision: Under Financial Direction 3.6 “Variations to Heads of Expenditure”, any spend against additional surplus income of more than 10% of estimated income and all transfers between heads of expenditure above £100,000, have to be approved by the Minister for Treasury and Resources.
Resource Implications: Economic Development Department’s 2009 cash limit to decrease by £200,000 and Home Affairs Department‘s 2009 cash limit to increase by the equivalent amount.
Action required: Finance Director, Corporate Group to action the necessary budget adjustments to reflect the decision.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Approval to spend additional income from wireless telegraphy licence fees

Treasury & Resources MINISTER

Wireless telegraphy licence fees & Transfer to home affairs

Purpose of Report

To seek permission to spend additional income of £360,527 received from Ofcom, in relation to wireless telegraphy licence fees.

Background

Ofcom in the UK collects the wireless telegraphy licence fees on behalf of Jersey.

Every five years they pass over to the Regulatory Services Department (Economic Development Department) the income they have collected over the previous five years, less their administration costs.

The remaining income is to cover the Regulatory Services Department costs of administering the scheme, including any necessary changes to Jersey legislation.

Comments

The timing and amount for the payment to Regulatory Services was not known when the 2009 Business Plan budget was agreed. Consequently, an income budget was not included.

The payment received by Regulatory Services in 2009 was £360,527.

In MD-E-2009-0162, the Minister for Economic Development seeks approval from the Minister for Treasury and Resources to spend this additional income on supporting pressures arising in response to the global financial crisis and its implications for Jersey:

£160,527 to fund initiatives to support the Finance Industry Sector (including MD-E-2009-0130 & MD-E-2009-0108).
£200,000 towards Tourism’s additional tactical marketing for the Autumn .

Subject to the approval of this request to spend the additional income, the Economic Development Department is forecasting a year end under-spend of £200,000.

Consequently, to support additional, un-funded spend on Court and Case Costs by the Home Affairs Department during 2009, the Council of Ministers has asked the Minister for Economic Development, to seek approval from the Treasury and Resources Minister to transfer £200,000 from Economic Development to the Home Affairs Department (see MD-E-2009-0215).

Recommendation

To support the States’ response to global financial crisis and its implication for Jersey and unavoidable cost pressures within the Home Affairs Department, it is recommended that the Treasury and Resources Minister approves the Minister for Economic Development’s request to spend its additional income of £360,527 and to transfer £200,000 budget to the Home Affairs Department to support additional Court and Case Costs in 2009.

Reason for Decision

Under Financial Direction 3.6 “Variations of Heads of Expenditure”:

Any spend against additional surplus income of more than 10% of estimated income, has to be approved by the Minister for Treasury and Resources.
All transfers between revenue heads of expenditure above £100,000 require the approval of the Minister for Treasury and Resources.

Finance Director: Corporate Group

27.11.09