Budget Transfer from Central Contingency to Chief Minister's Department: Jersey London Representative Office in 2014

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A decision made 8 September 2014:

Decision reference: MD-TR-2014-0090
Decision Summary Title:	Budget transfer from Central Contingency (one-off) to CMD in relation to the Jersey London Representative Office		Date of Decision Summary:	12 August 2014
Decision Summary Author:	Finance Manager – Corporate Group		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget transfer from Central Contingency (one-off) to CMD in relation to the Jersey London Representative Office		Date of Written Report:	12 August 2014
Written Report Author:	Finance Manager – Corporate Group		Written Report : Public or Exempt?	Public
Subject: Budget transfer from Central Contingency (one-off) to the Chief Minister’s Department (CMD) in relation to the Jersey London Representative Office in 2014.
Decision(s): The Minister approved a budget transfer of £220,000 in 2014 from Central Contingency (one-off) to the CMD revenue head of expenditure in relation to the Jersey London Representative Office in 2014.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. This budget transfer is the balance of the monies approved by the Council of Ministers in 2013. The Council of Ministers approved a Central Contingency allocation of £432,300 in 2013 with £210,000 already drawn down in 2013 under Ministerial Decision reference MD-TR-2013-0085.
Resource Implications: Central Contingency (one-off) to decrease by £220,000 in 2014 and the CMD revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan (MTFP) 2013-15.
Action required: Business Manager to inform the Head of Financial Planning, the Financial Performance Reporting Manager and the Finance Manager – Corporate Group that this decision has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfer from Central Contingency to Chief Minister's Department: Jersey London Representative Office in 2014

Treasury and Resources

Ministerial Decision Report

Budget Transfer from CENTRAL CONTINGENCY (ONE-OFF) to cMD in relation to the JERSEY london representative office

Purpose of Report

To enable the Minister to approve a budget transfer of £220,000 from Central Contingency (one-off) to the Chief Minister’s Department (CMD), in relation to the balance of the approved funding by the Council of Ministers in their meeting on the 10th July 2013 for the Jersey London Representative Office in 2014.

Background

The States Assembly approved funding in the Medium Term Financial Plan (MTFP) 2013-2015 to establish a Jersey London Representative Office with recurring funding allocated from 2014 onwards. The purpose of the Jersey London Representative Office will be to strengthen relationships, promote and protect the Island’s interests, and achieve a position of influence in the UK similar to that which has been developed in Europe by the Channel Islands Brussels Office.

Prior to recurring funding starting in 2014 for the Jersey London Representative Office, pump-priming funding is being sought to establish the Office in 2013. This proposal is supported by the Financial Services and External Relations Advisory Group (FERAG) and the Corporate Management Board (CMB).

A Jersey London Representative Office will provide Jersey with a more structured approach to its relationship with the UK, and enable the Island to build relationships and promote its interests more actively in Whitehall, Parliament, the diplomatic community and the City of London.

The potential threats which Jersey faces are immediate and there are significant economic, political and reputational risks if the establishment of the office is delayed. These include:

Economic: Jersey would have less protection against policy changes implemented by the UK Government (e.g. taxation and financial regulation) by not having a London presence to assert the Island’s position and influence decision-making. It would also have less capability to take advantage of inward investment opportunities.

Political: Failure to establish a Jersey London Representative Office in 2013 would’ve restricted Jersey’s ability to exert any increased influence in the UK and ensure that the best interests of islanders are pursued in Westminster, Whitehall and the City of London.

Reputational: To defend and maintain the Island’s reputation, Jersey needs to rapidly strengthen engagement in London, which would be supported by establishing the new Jersey London Representative Office in 2013.

By providing pump-priming funding in 2013 and 2014, Jersey will be able to recruit staff and establish an office by late 2013, which will be fully operational from early 2014 rather than 2015. This will allow the office to achieve effectiveness earlier, and so better manage potential risks, build important relationships with the UK, and take advantage of opportunities to develop Jersey’s economy.

This budget transfer for £220,000 is the balance of the monies approved by the Council of Ministers in 2013. The Council of Ministers approved a Central Contingency allocation of £432,300 in 2013 with £210,000 already drawn down in 2013 under Ministerial Decision reference MD-TR-2013-0085.

Funding requirement for 2013

London Office costs to year end	Cost
Staff	£66,000
Rent	£24,000
Spend to date	£80,000
Legal	£10,000
Spend to year end	£30,000
Total	£210,000

3. Recommendation

The Minister is recommended to approve a budget transfer of £220,000 in 2014 from Central Contingency (one-off) to the CMD revenue head of expenditure in relation to the Jersey London Representative Office in 2014.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources (T&R) is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

Resource Implications

Central Contingency (one-off) to decrease by £220,000 in 2014 and the CMD revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan (MTFP) 2013-15.

Report author : Finance Manager – Corporate Group	Document date : 12/08/2014
Quality Assurance / Review : Business Manager	File name and path :L\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0090 - Contingency funding drawdown to CMD for London Office\WR - Budget Transfer to CMD - London Office.doc

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