Budget Transfers: Department for Infrastructure: Road Safety Improvements and Concessionary Bus Passes

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A decision made 15 October 2017:

Decision Reference: MD-TR-2017-0147
Decision Summary Title:	Use of additional income and subsequent transfer from Department for Infrastructure revenue head of expenditure to DFI Road Safety Improvements capital head of expenditure in connection with the funding of Concessionary Bus Passes and Road Safety initiatives from the Jersey Car Parking financial return to the States		Date of Decision Summary:	7th December 2017
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:	Use of additional income and subsequent transfer from Department for Infrastructure revenue head of expenditure to DFI Road Safety Improvements capital head of expenditure in connection with the funding of Concessionary Bus Passes and Road Safety initiatives from the Jersey Car Parking financial return to the States		Date of Written Report:	7th December 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Use of additional income and subsequent budget transfers of up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019 from the Department for Infrastructure (“DFI”) revenue head of expenditure to the DFI Road Safety Improvements capital head of expenditure (Q00MF15037), this being the remaining balance from the redirection of part of the Jersey Car Parking financial return to the States, after the funding of concessionary bus passes.
Decision(s): The Minister approved: the use of additional income by the Department for Infrastructure of Department for Infrastructure; and the transfers of Department for Infrastructure from the DFI revenue head of expenditure to the DFI Road Safety Improvements capital head of expenditure (Q00MF15037), this being the remaining balance from the redirection of part of the Jersey Car Parking financial return to the States, after the funding of concessionary bus passes.
Reason(s) for Decision: Article 19 (1) (a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure – (a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income Article 18(1)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States. In the MTFP Addition adopted by the States in September 2016 the States agreed to pass an increasing proportion of the Financial Return from the Jersey Car Parking trading operation to the revenue budget of the Department for Infrastructure. This would fund the proposed Disabled Person’s travel scheme, as well as funding the impact of non-staff inflation on contracts like the bus service and also Sustainable Transport Initiatives. It was envisaged that in the first year of operation of the new scheme, up to £600,000 will be transferred in this way. This will mean that the £1.672m financial return to the States would reduce to £1.072k in 2017, £472k in 2018 and zero in 2019. The balance of the return would be used by DfI to fund the concessionary bus pass scheme, offset non staff inflation on contracts like the bus service and Sustainable Transport initiatives. A decision (MD-T-2017-0098) was signed by the Minister for Infrastructure on 4th December 2017.
Resource Implications: After the Jersey Car Parking financial return to the States and the funding of concessionary bus passes from the DfI Revenue Head of Expenditure, the remaining budget from the JCP Financial Return will be transferred to the DfI Road Safety Improvements capital head of expenditure (Q00MF15037) increasing it by up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019. The total of £3,472,000 is proposed to be transferred between DFI heads of expenditure as up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019 but the amount for each year may be varied without exceeding the total amount for the three years. A previous Ministerial Decision (MD-TR-2017-0036) agreed the use of additional income by DfI previously approved for the Jersey Car Parking Sustainable Transport & Road Safety capital head of expenditure of £1,250,000 in 2017; £1,500,000 in 2018 and £1,500,000 in 2019. As a result of the current decision that approval reduces to £300,000 in 2018 and nil in 2019. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Finance Manager – Department for Infrastructure once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfers: Department for Infrastructure: Road Safety Improvements and Concessionary Bus Passes

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Treasury and Resources

Ministerial Decision Report

Use of additional income and subsequent transfer from Department for Infrastructure revenue head of expenditure to DFI Road Safety Improvements capital head of expenditure in connection with the funding of Concessionary Bus Passes and Road Safety initiatives from the Jersey Car Parking financial return to the States

Purpose of Report

To enable the Minister to approve the use of additional income and subsequent budget transfers of up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019 from the Department for Infrastructure (“DFI”) revenue head of expenditure to the DFI Road Safety Improvements capital head of expenditure (Q00MF15037), this being the remaining balance from the redirection of part of the Jersey Car Parking financial return to the States, after the funding of concessionary bus passes.

Background

Jersey Car Parking (“JCP”) was set up as a standalone Trading Operation under the Public Finances (Jersey) Law 2005 to administer, manage and maintain the Island’s car parks. Since the inception of JCP an annual financial return has been made. In the initial years this was to the former Public Services Committee, but in more recent years this has been to the general States Revenues. In the current MTFP2 (2016 – 2019) the minimum Financial Return is set at £1.672m with a 2.5% per annum increase from 2020 onwards.

Disabled Person’s Travel scheme

In the MTFP Addition adopted by the States in September 2016 the States agreed to pass an increasing proportion of the Financial Return from the Jersey Car Parking trading operation to the revenue budget of the Department for Infrastructure. This would fund the proposed Disabled Person’s travel scheme, as well as funding the impact of non-staff inflation on contracts like the bus service and also Sustainable Transport Initiatives. It was envisaged that in the first year of operation of the new scheme, up to £600,000 will be transferred in this way.

This will mean that the £1.672m financial return to the States would reduce to £1.072k in 2017, £472k in 2018 and zero in 2019. The balance of the return would be used by DfI to fund the concessionary bus pass scheme, offset non staff inflation on contracts like the bus service and Sustainable Transport initiatives.

Transport related initiatives which benefit Jersey residents with a disability

The Sustainable Transport Policy (“STP”) provides a number of targets and goals for making safety improvements for pedestrians, cyclists and the travelling public. These targets and goals translate into STP initiates which end up as projects on the ground. These projects can range from a small pedestrian safety improvement to a full village improvement schemes such as St Aubin and St Mary or new shared space facilities such as the St Peter’s valley path or the Eastern Cycle route. All of these schemes are designed for multi users and ensure that disabled access is considered and encouraged.

3. Recommendation

The Minister is recommended to approve:

the use of additional income by the Department for Infrastructure of Department for Infrastructure; and
the transfers of Department for Infrastructure from the DFI revenue head of expenditure to the DFI Road Safety Improvements capital head of expenditure (Q00MF15037), this being the remaining balance from the redirection of part of the Jersey Car Parking financial return to the States, after the funding of concessionary bus passes.

4. Reason for Decision

Article 19 (1) (a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure –

(a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income

Article 18(1)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.

A decision (MD-T-2017-098) was signed by the Minister for Infrastructure on 4th December 2017.

5. Resource Implications

After the Jersey Car Parking financial return to the States and the funding of concessionary bus passes from the DfI Revenue Head of Expenditure, the remaining budget from the JCP Financial Return will be transferred to the DfI Road Safety Improvements capital head of expenditure (Q00MF15037) increasing it by up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019.

The total of £3,472,000 is proposed to be transferred between DFI heads of expenditure as up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019 but the amount for each year may be varied without exceeding the total amount for the three years.

A previous Ministerial Decision (MD-TR-2017-0036) agreed the use of additional income by DfI previously approved for the Jersey Car Parking Sustainable Transport & Road Safety capital head of expenditure of £1,250,000 in 2017; £1,500,000 in 2018 and £1,500,000 in 2019. As a result of the current decision that approval reduces to £300,000 in 2018 and nil in 2019.

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 7th December 2017
Quality Assurance / Review : Director of Financial planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0147 - DFI Concessionary Bus Pass Funding
MD sponsor: Director of Financial planning and Performance