Community Savings Ltd: Grant of £30,000 from Treasury and Resources

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A decision made 8 June 2012:

Decision Reference: MD-TR-2012-0050
Decision Summary Title:	Grant to Community Savings Ltd		Date of Decision Summary:	25th May 2012
Decision Summary Author:	Head of Financial Management, Accounting and Reporting		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Grant to Community Savings Ltd		Date of Written Report:	25th May 2012
Written Report Author:	Decision Support Officer		Written Report : Public or Exempt?	Public
Subject: Authorisation of a grant of £30,000 from the Treasury and Resources Department to Community Savings Ltd.
Decision(s): The Minister approved a grant of £30,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.
Reason(s) for decision: To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to award a grant of £30,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.
Resource Implications: This decision authorises a grant of £30,000 to be made from the Treasury and Resources revenue head of expenditure payable to Community Savings Ltd. This decision does not change the total amount of expenditure approved by the States.
Action required: Head of Financial Management, Accounting and Reporting to progress the grant of £30,000 to Community Savings Ltd.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Community Savings Ltd: Grant of £30,000 from Treasury and Resources

Treasury and Resources

Ministerial Decision Report

Grant to Community Savings Ltd

Purpose of Report

To enable the Minister to authorise a grant of £30,000 from the Treasury and Resources Department to Community Savings Ltd.

Background

Community Savings Ltd is a Jersey incorporated company established along the lines of a UK Credit Union, and specifically exempted as a deposit taking business as defined under the Banking Business (Jersey) Law 1991. The enterprise is a not for profit organisation, funded by charitable donations.

The principal objectives are:

i) To provide self-help opportunities to those in need of financial support

ii) To educate individuals, within common interest groups, on how to budget for their everyday requirements and manage their resources, both generally and specifically

iii) To provide a mentoring and support service to its members

iv) To provide a means of saving modest amounts on a regular basis for a particular purpose or as a general discipline

v) Once a suitable savings record has been established, to consider the provision of personal loans for necessities, on a secured or unsecured basis and at reasonable rates of interest

vi) To provide emergency funding, from central funds, by way of loans on a low or no interest rate basis or grants.

The concept of establishing Community Savings Ltd in Jersey started in 1996 following the UN Eradication of Poverty initiative. A great deal of hard work has already been undertaken, leading to the concept being finally approved by the Jersey Financial Services Commission in 2001. Since then but particularly since 2007, following being allowed to operate at the Parish of St. Helier’s premises at Seale Street, business has expanded by around 100% year on year.

3. Expansion Plans – Parish Hall satellite operations

Community Savings Ltd is now ready to expand operations into the other Parishes but is restricted by lack of finance. Their current projections indicate that objectives would take some years to roll out in their entirety, not allowing the undoubted benefits to become available as quickly as desirable to those suffering social or financial deprivation.

It is anticipated, however, that expansion would result in a marked reduction in poverty in the Island by the ready availability of self-help initiatives - particularly important in the present economic climate. It is hoped this would also increase the pride and community spirit of those participating and ultimately reduce the drain on the public purse.

The Comité des Connétables have been consulted and are supportive of the plans; indeed they believe it will fulfil a need they now find difficult to address. Community Savings Ltd have therefore commenced discussions within a number of Parishes in order to develop the initiative.

4. Recommendation

The Minister is recommended to approve a grant of £30,000 from the Treasury and Resources Department to Community Savings Ltd.

5. Reason for Decision

To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to award a grant of £30,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.

6. Resource Implications

This decision authorises a grant of £30,000 to be made from the Treasury and Resources revenue head of expenditure payable to Community Savings Ltd. This decision does not change the total amount of expenditure approved by the States.

Report author : Decision Support Officer	Document date : 25th May 2012
Quality Assurance / Review : Head of Financial Management, Accounting and Reporting	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2012-0050 - Grant to Community Savings Ltd - LJR\WR - Grant to Community Savings Ltd - LJR.doc
MD Sponsor: Treasurer of the States