Economic Stimulus Plan: Budget allocation to Economic Development Department relating to grant award to Jersey Finance Limited

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A decision made 21 June 2010 regarding: Economic Stimulus Plan: Budget allocation to Economic Development Department relating to grant award to Jersey Finance Limited.

Decision Reference: MD-TR-2010-0099
Decision Summary Title:	Fiscal Stimulus Budget Allocation –Economic Development Department		Date of Decision Summary:	15th June 2010
Decision Summary Author:	Interim Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of fiscal stimulus funding to the Economic Development Department for the project to support the finance industry		Date of Written Report:	15th June 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Economic Development Department in respect of a grant award to Jersey Finance Limited.
Decision(s): The Minister approved: · the allocation of £230,000 to the Economic Development Department which will be transferred to the department’s 2011 revenue budget to enable onward payment of a grant to Jersey Finance Limited. The grant payments in 2011 will be made in tranches which are considered appropriate by the Economic Development Department, and together will be a maximum of £230,000, based on the actual costs of Jersey Finance Limited operating the overseas office. This commitment to the second year of funding will enable Jersey Finance Limited to open its third overseas office before the end of 2010 with the funds already allocated by way of public ministerial decision of the Minister for Treasury and Resources (reference MD-TR-2010-0032). The third office is part of the fiscal stimulus project to support the finance industry through the economic downturn; and · the inclusion of a further (maximum) amount of £230,000 within the provisional programme (an “amber light”) to be held in reserve to fund the costs of the third office in 2012, on the understanding that the Economic Development department will work with Jersey Finance Limited, and others, to secure a longer term funding solution beyond 2011. The Minister further instructed the Finance Industry Support project group to report on spend of all stimulus monies, and project progress/performance, on a monthly basis in accordance with guidelines set by the Treasury, and return any unspent monies on completion of the project.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The finance industry support programme meets the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The establishment of Jersey Finance Limited’s third overseas office in 2010 is dependent on the funds to enable the office to remain open for 2011 and 2012, so in order for the office to open in 2010, the 2011 funding consequences must be committed to, as well as funding held in reserve for 2012. The programme to support the finance industry is designed to satisfy the third objective of the fiscal stimulus initiative, by way of laying the foundations for future growth, and as is the case with many other fiscal stimulus initiatives (such as projects in respect of skills and training), the third office cannot be committed to now without continuing spend into 2011, and possibly 2012. The allocation of £230,000 to the project now for 2011 costs, together with the additional amber light amount of £230,000 for 2012 will enable the workstream to proceed alongside the other components of the project to support the finance industry through the economic downturn and help lay the foundations for future growth.
Resource Implications: No financial or resource implications other than those explained in the accompanying report.
Action required: Treasury to be informed of decision to release necessary funds to the Economic Development Department’s budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: