Treasury's initial response to FPP annual report

05 November 2013

The Fiscal Policy Panel’s sixth annual report makes recommendations on Jersey’s fiscal policy and on additions to, or use of, the Stabilisation Fund and the Strategic Reserve.

These recommendations are based on the panel’s assessment of Jersey’s economy in light of the economic risks and uncertainties faced by the Island.

Responding to the report, Treasury and Resources Minister Senator Philip Ozouf said “I welcome this independent panel’s important report, which is published ahead of the major decisions on taxation, capital spending for 2014, and the funding of long-term capital projects for health, housing and liquid waste.

Work with departments

"I fully accept that States departments as a whole did not deliver the level of capital expenditure planned for last year. The Treasury has allocated funding to support schemes that will deliver service improvements for the Island. We need to invest in the Island while the economy needs support, and I shall continue to work with departments and Ministers to ensure projects start and are delivered on time.

“Looking ahead on capital spending, the 2014 Budget proposes ways of funding significant infrastructure investments. These projects are a new hospital, replacement of sewers and liquid waste infrastructure, and more and better housing for Islanders. In addition annual allocations for 2014 total £88 million. These schemes will provide essential services for Islanders and will be an important legacy."

Economic outlook

“Looking ahead on the economy, it is encouraging that the panel have revised their economic forecast for this year and that they expect the improvement to be maintained into 2014. It is also positive that the FPP support our plans for significant investment and fiscal stimulus this year and in 2014.

“The panel also warmly welcomed improvements both in the reporting of the implementation of their recommendations, which Treasury instigated this year, and in monitoring the progress of capital projects.

“I will be publishing a full response on the FPP’s recommendations before the 2014 Budget debate, which will be better informed as a result of this report. The panel is held in high regard and, having secured agreement for their powers to be statutory, it is vital that the States makes decisions that are based on sound economic advice.”