Price Indicators (Jersey) Regulations 2008: Amendments: Law drafting instructions

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

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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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 12 May 2016:

Decision Reference: MD-E-2016-0017
Decision Summary Title :	Price Indicators (Jersey) Regulations 2008 - Amendments		Date of Decision Summary:	5th May 2016
Decision Summary Author:	Director of Trading Standards		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Price Indicators (Jersey) Regulations 2008 - Amendments		Date of Written Report:	4th May 2016
Written Report Author:	Director of Trading Standards		Written Report : Public or Exempt?	Public
Subject: Price Indicators (Jersey) Regulations 2008 – Amendments
Decision(s): The Minister authorised the Director of Trading Standards to provide drafting instructions to the Law Draftsman:- To make appropriate amendments to the Regulations to extend the circumstances under which traders can use the exceptions contained within Regulation 3(5) to indicate the selling price of newspapers, periodicals and books to include the importation of digital content prior to printing in the island. To further amend the Regulations to allow traders to indicate the selling price of excepted goods by a combination of the price marked on the goods and an indication of the selling price and appropriate notice to the consumer, for the purposes of Regulation 3(4)(b) and 3(5)(b).
Reason(s) for Decision: The Minister wishes to remove a barrier to trade and provide opportunities that would allow printing of national newspapers and other publications where the digital content is imported into the island and the pre-price within the digital content can’t be amended to reflect the GST inclusive price. The opportunity has also been taken to effect another amendment which will allow traders to indicate the selling price of excepted goods by a combination of the price marked on the goods and an indication of the selling price and appropriate notice to the consumer, thereby adding to the options available to retailers.
Resource Implications: There are no financial or manpower implications as a result of this decision.
Action required: The Director of Trading Standards to provide appropriate drafting instructions to the Law Draftsman.
Signature: Senator L J Farnham		Position: Minister for Economic Development, Tourism, Sport and Culture
Date Signed:		Date of Decision (If different from Date Signed)

Price Indicators (Jersey) Regulations 2008: Amendments: Law drafting instructions

Report to the Minister for Economic Development, Tourism, Sport and Culture

Price Indicators (Jersey) Regulations 2008

made under the Price and Charge Indicators (Jersey) Law 2008

Proposed Amendments to Regulation 3 – Price to be indicated

Background

Regulation 2 of the Price Indicators (Jersey) Regulations 2008 requires traders who offer goods for sale to consumers to ensure that the selling price is indicated in accordance with those Regulations. The selling price is the price inclusive of GST.

Regulation 3 requires prices to be in sterling and details how you indicate the selling price of goods, for example the price per kilogram or pound if sold from bulk or the price per stated unit.

‘Exceptions’ are included that allow traders to charge a different price to those pre-printed on the goods if they are;

a) pre-packaged food, newspapers, books or periodicals, and

b) the price was pre-printed on the goods before first importation into Jersey

Regulation 3(4)(b)(ii) and 3(5)(b)(ii) allow the selling price (which is inclusive of GST) to be the price marked on the goods with a combination of an amount or of the percentage of that price which is to be added to that price in order to determine the selling price.

Discussion

Consultation before the enabling Law and associated Regulations were debated highlighted the fact that it would be unfair to expect traders to absorb the GST element on certain pre-priced and imported zero VAT rated goods. Re-packaging food or individually removing and re-pricing each item was not economically viable. This could lead to traders reducing the range of goods they made available in Jersey.

Therefore exceptions were agreed which allowed traders to uplift the price without having to re-price or re-package these ‘excepted’ goods whilst still informing consumers on how they could determine the selling price (GST inclusive price).

The recent decision to print national newspapers in Jersey has been welcomed. The digital content will be supplied by a number of national newspapers, imported and printed locally in its original format. These national newspapers will therefore indicate the UK price.

The Regulations do not allow for traders to uplift these prices to accommodate GST as the exception only applies to newspapers ‘printed with a price marked on it before its importation into Jersey’.

An amendment to allow for the ‘digital importation’ of the excepted items listed in Regulation 3(5)(a) would not only enable traders to continue to price national newspapers in the same way, as they have been doing since the introduction of GST, but also remove barriers to trade and potentially open up opportunities for other media such as popular magazines and TV schedule guides to be printed in the same way on island.

In addition, it is now common practice for traders to indicate the selling price of excepted goods in a way that has not been accounted for in the Regulations.

Traders display the excepted goods (which are individually price marked) and indicate the selling price (inclusive of GST) on a shelf edge label with appropriate signage brining to the customers attention that the price charged is the price on the shelf and not the price on the pre-priced goods.

Trading Standards investigate pricing complaints and carry out pro-active inspections. When speaking to retailers and consumers, indicating the selling price on a shelf edge label with an appropriate notice appears to be a popular and well understood method of displaying the GST inclusive price for excepted goods. This method removes the need for consumers to carry out a calculation of the pack price plus a percentage for GST or pack price plus an amount, therefore making it easier to make an informed decision based on the display of the inclusive selling price.

Recommendation

It is recommended that the Minister authorises the Director of Trading Standards to instruct the Law Draftsman to:-

 draft an amendment to the Price and Charge Indicator (Jersey) Regulations 2008 to allow newspapers, periodicals or books imported into the island in a digital format but printed in the island to be added to the exceptions for the purposes of Regulation 3(5)

 draft a further amendment to allow traders to indicate the selling price of excepted goods by a combination of the price marked on the goods and an indication of the selling price and appropriate notice to the consumer, for the purposes of Regulation 3(4)(b) and 3(5)(b).

Director of Trading Standards

04th May 2016