Public Finances (Amendment of Law No. 1) (Jersey) Regulations 201-

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 23 October 2013:

Decision Reference: MD-TR-2013-0096
Decision Summary Title:	Public Finances (Amendment of Law No.1) Regulations 201-		Date of Decision Summary:	11 October 2013
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Public Finances (Amendment of Law No.1) Regulations 201-		Date of Written Report:	11 October 2013
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Regulation to increase maximum amount that the States may lend.
Decision(s): The Minister approved the following draft Public Finances (Amendment of Law No. 1)(Jersey) Regulations 201- to be lodged “au Greffe” as soon as practicable.
Reason(s) for Decision: To amend the Public Finances (Jersey) Law 2005 to enable the maximum amount which the States may lend to third parties from 15% to 60% of the estimated income the States derived from taxation during the previous financial year (as part of the 2014 Budget Proposition the States are being asked to approve that money be lent for housing purposes – if approved this necessitates an increase to the maximum amount which the States may lend). The primary purpose of this amendment is to enable the States of Jersey to support the Housing Transformation Programme financially through lending. Furthermore, any major lending will need to be debated and approved by the States Assembly before proceeding.
Resource Implications: There are no financial and manpower implications.
Action required: The Greffier of the States is requested to arrange to lodge ‘au Greffe’ the draft Regulations attached to this decision as soon as practicable for debate at the same States session as the Draft 2014 Budget Statement.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Public Finances (Amendment of Law No. 1) (Jersey) Regulations 201-

Jersey Crest

Public Finances (Amendment of Law No. 1) (Jersey) Regulations 201-

Report

As a consequence of the Draft Budget Statement 2014 the Minister for Treasury and Resources recommends that the maximum amount which the States may lend be increased to the equivalent of 60% of the estimated income derived from taxation during the previous financial year.

Under the existing terms of the Public Finances (Jersey) Law 2005 the States are authorised to lend money up to an amount equal to 15% of the estimated income derived from taxation during the previous financial year (based on net 2012 taxation receipts of £585.5 million this equates to £87,825,000).

The primary purpose of this amendment is to address the recommendation in the Draft Budget Statement 2014 to borrow up to a maximum £250 million in 2014 for housing purposes and then to lend up to this maximum sum for housing purposes to Housing Trusts / Associations / Companies or bodies with the same purpose registered in Jersey in order that they can provide housing for islanders.

The borrowing for housing purposes is being undertaken by the States in order to achieve preferential interest rates to ensure that more much needed housing can be provided. Detailed work has been undertaken which illustrates that substantial financial savings can be made if borrowing is secured directly by the States rather than by individual Housing Trusts / Associations / Companies or bodies. The Minister for Treasury and Resources is extremely keen to ensure that the States of Jersey achieves value for money for all financial initiatives whilst also ensuring that the relevant key financial safeguards are in place.

The Public Finances (Jersey) Law 2005 (the Law) sets the parameters within which States money may be lent to third parties - all lending requires approval by the States, although Regulations have also been approved by the Assembly, in accordance with the Law, which set prescribed limits within which the Minister for Treasury and Resources is able to lend. This proposed amendment does not alter the existing powers of the Minister for Treasury and Resources to lend; any change to the parameters within which the Minister could lend would need to be brought back to the Assembly for further consideration.

Should the States approve the proposals in the Budget Statement 2014 for the provision of lending for housing purposes the Minister for Treasury and Resources may in line with the existing provisions of the Law authorise specific loans for housing purposes in the name of and on behalf of the States without further recourse to the States up to the £250 million limit. The Minister is extremely keen to ensure that the correct checks and balances are in place before authorising any loan and intends to strengthen the existing provisions and will issue a Financial Direction specifying the procedures to be followed prior to any loan for housing purposes being made. The procedures adopted will involve full consultation with the Housing Minister and the Council of Ministers. As required by the Public Finances Law the Minister for Treasury and Resources will ensure that all approved lending is reported to the States in the six monthly Financial Update report.

The Minister for Treasury and Resources commends the Regulation to the States.

Financial and manpower statement

There are no direct financial or manpower implications for the States arising from an increase in the percentage rate highlighted in this Draft Regulation; however the approval of the Draft Regulation will mean that the States has the ability to lend greater funds in the future.

Explanatory Note

These Regulations increase the amount that the States may lend. The total lending permitted at any one time is currently 15% of the estimated income of the States derived from taxation during the previous financial year. The amendment increases the total to 60% of that estimated income.

◊	Draft – 23 October 2013	Page - 1

Jersey Crest

Public Finances (Amendment of Law No. 1) (Jersey) Regulations 201-

Made [date to be inserted]

Coming into force [date to be inserted]

THE STATES, in pursuance of Article 23(5) of the Public Finances (Jersey) Law 2005, have made the following Regulations –

1 Article 23 of the Public Finances (Jersey) Law 2005 amended

In Article 23(2) of the Public Finances (Jersey) Law 2005, for the expression “15%” there shall be substituted the expression “60%”.

2 Citation and commencement

These Regulations may be cited as the Public Finances (Amendment of Law No. 1) (Jersey) Regulations 201- and shall come into force 7 days after they are made.