Fiscal Stimulus Budget Allocation to Jersey Property Holdings for Jersey Opera House Project

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A decision made on 8 March 2011:

Decision Reference: MD-TR-2011-0021
Decision Summary Title:	Fiscal Stimulus Budget Allocation – Jersey Property Holdings for works to the Jersey Opera House building		Date of Decision Summary:	4 March, 2011
Decision Summary Author:	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:	Fiscal Stimulus funding for works to the Jersey Opera House building		Date of Written Report:	4 March, 2011
Written Report Author:	Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Fiscal Stimulus Plan: budget allocation to Jersey Property Holdings for the delivery of works at the Jersey Opera House.
Decision(s): The Minister approved the allocation of £921,493 from the Consolidated Fund to Jersey Property Holdings for the Jersey Opera House project. The Minister agreed to accept the commitment from the Chairman of the Jersey Opera House that this project will create three additional office spaces at the Jersey Opera House to be used at the discretion of the Minister for Education, Sport and Culture. The Minister agreed to accept the commitment from the Minister for Education, Sport and Culture to utilise three newly created office spaces at Jersey Opera House for ESC staff or staff employed by an organisation supported by ESC. The Minister further instructed ESC to supply a full Property Rationalisation Report to the Minister every 6 months for the next 18 months (three reports). The Minister further instructed the Construction and Maintenance 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.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. This allocation of £921,493 to Jersey Property Holdings will allow the Jersey Opera House project to progress along the critical path benefiting local business and individuals. Article 15(1)(a) 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.
Resource Implications: This project will create three additional office spaces at the Jersey Opera House to be used at the discretion of the Minister for Education, Sport and Culture. The Fiscal Stimulus allocation has previously been approved by the States therefore there is no additional approved expenditure as a result of this decision.
Action required: The Fiscal Stimulus Programme Manager to inform Jersey Property Holdings and the Head of Financial Performance Reporting that this Decision has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Fiscal Stimulus Budget Allocation to Jersey Property Holdings for Jersey Opera House Project

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Treasury and Resources

Ministerial Decision Report

Fiscal Stimulus funding for works to the Jersey Opera House building

Purpose of Report

To enable the Minister for Treasury and Resources to approve a request from Jersey Property Holdings in respect of additional funding for the Jersey Opera House (JOH) so that the refurbishment phase of the project can be completed.

Background

In 2010 the Education, Sport and Culture department submitted a bid for grant funds for the Jersey Opera House refurbishment project. Subsequently, it was decided that Jersey Property Holdings (JPH) should project manage the refurbishment as the States own the Opera House building. Also that ESC remain as project sponsors and chair the project meetings. In July 2010 the Fiscal Stimulus Steering Group allocated pre-contract costs to the project. Following the tender process JPH are requesting the remaining funds to complete the refurbishment phase.

Evaluation Process and Results

The bid was evaluated under the fiscal stimulus criteria which resulted in its inclusion in the programme. Initially the project was awarded £112,000 (MD-TR-2010-0118) to enable the project to proceed to tender.

Additional funds (£921,493) are now being requested to fund the main contract costs of the project. The FSSG and the Minister for Treasury and Resources have agreed that this project meets the criteria for fiscal stimulus funding.

The refurbishment works include improvement in terms of what the JOH offers in terms of activities right across the cultural spectrum. A new studio to be created will be used for small performances, specialist activities, workshops for schools, plus a corporate entertainment space, which can also be used for small seminars and meetings.

The refurbishment will also significantly improve the catering available to patrons and corporate clients while also refurbishing the office accommodation and creating extra work space.

Furthermore, it is anticipated that progression of this project may afford other opportunities (including possible rationalisation) in relation to performance and office space currently used by other cultural organisations in Jersey, helping to achieve better value for money in a wider sense for the States and in particular ESC supported cultural activities. With this in mind, the Chairman of the Opera House has confirmed that this project will create sufficient office space to accommodate up to three Arts Trust Officers.

Recommendation from the Fiscal Stimulus Funding Group

The Fiscal Stimulus Steering Group recommends that the Minister for Treasury and Resources allocates funding of £921,493 to Jersey Property Holdings for the main contract of refurbishment costs.

Reason for Decision

A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The projects meet the key criteria for fiscal stimulus being timely, targeted and temporary. The allocation of funds will enable JPH to ensure the refurbishment of the Jersey Opera House.

Resource Implications

Allocation of funding totalling £921,493 to Jersey Property Holdings.

No manpower resource implications.

Report author : Fiscal Stimulus Programme Manager	Document date : 4th March 2011
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2011-0021 - Fiscal Stimulus Budget Allocation JPH - LJR\WR - Fiscal Stimulus Budget Allocation JPH - LJR.doc
MD sponsor : Treasurer of the States