Jersey Harbours: Reduction of estimated contribution in 2012 Annual Business Plan

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A decision made 23 March 2012

Decision Reference: MD-TR-2012-0033
Decision Summary Title:	Reduced Contribution from Jersey Harbours for 2012 and Report to the States		Date of Decision Summary:	20 March 2011
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:	Reduced Contribution from Jersey Harbours for 2012 and Report to the States		Date of Written Report:	20 March 2011
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Public
Subject: Jersey Harbours reduction in estimated contribution in the 2012 Annual Business Plan and Report to the States
Decision(s): The Minister agreed to waive part of the contribution estimated by Jersey Harbours in 2012 to the sum of £81,317 and to present a Report to the States in compliance with Article 27(4) of the Public Finances (Jersey) Law 2005.
Reason(s) for Decision: Article 27 of the Public Finances (Jersey) Law 2005 states: “(4) If during that financial year the Minister with responsibility to the States for the States trading operation satisfies the Minister that the trading situation of the trading operation makes it impossible or difficult for the trading operation to contribute the minimum contribution agreed in accordance with paragraph (2)(b), the Minister may waive or delay payment of all or any part of the contribution. (5) The Minister shall at the first practicable opportunity advise the States of any action taken under paragraph (4), and the reason for taking the action, together with details of any revised estimates of the States trading operation.”
Resource Implications: The reduced contribution in 2012 of £81,317 from Jersey Harbours will be paid to the States of Jersey by SoJDC. There are therefore no financial implications for the States arising from this decision.
Action required: Head of Shareholder Relations to notify the Jersey Harbours’ Finance & Business Resource Director and the Head of Financial Performance Reporting that this decision has been approved. Greffier of the States to be requested to present the attached report to the States at the earliest available opportunity
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Jersey Harbours: Reduction of estimated contribution in 2012 Annual Business Plan

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Treasury and Resources

Ministerial Decision Report

Reduced Contribution from Jersey HARBOURS for 2012

Purpose of Report

To enable the Minister for Treasury and Resources to approve the request from Jersey Harbours to reduce their estimated contribution in the 2012 Annual Business Plan by £81,317 as a result of the planned establishment of a lease with the States of Jersey Development Company (SOJDC) for the use of car parking in the Waterfront Car Park and to present a report to the States as required under Article 27(4) of the Public Finances (Jersey) Law 2005.

Background

A lease is in the process of being drafted between SoJDC and Jersey Harbours, a States Trading operation, for the use of car parking in the Waterfront Car Park for bona fide users of Elizabeth Marina and St. Helier Marina. The agreement is for a fee of £79,000 per annum (plus GST); payable quarterly in advance (charges will commence from 1st August 2011 and continue for 2012 onwards).

The licensed premises are made up of the following two areas:-

1) Use of Car Parking Area A: 50 car parking spaces within the lower basement level of the Waterfront Car Park, La Route du Port Elizabeth, St Helier. To be utilised for all times during the license period on a 24 hour, 7 days per week basis, including bank holidays and weekends.

2) Use of Car Parking Area B: 100 car parking spaces within the lower level basement of the Waterfront Car Park, La Route du Port Elizabeth, St Helier. To be utilised only at weekends between the hours of 12:00 midnight Friday to 12:00 midnight Sunday and Bank Holidays.

Draft Lease Agreement with SoJDC

Previously, Jersey Harbours paid SoJDC £21,600 per annum for the maintenance and utility charges relating to the provision of car parking spaces for Elizabeth and St Helier Marina users.

It has been agreed that going forward SoJDC will pay the net amount of £57,400 per annum over to the States (as a dividend), payable on a quarterly basis. (Fee £79,000 invoiced to Jersey Harbours, less £21,600 for maintenance and utility charges) It is acknowledged that there will be no effect on the States finances in 2012.

This decision reduces the financial return from Jersey Harbours in 2012 by £81,317 (£200,000 to £118,683). This amount is made up of £23,917 relating to the period 1st August 2011 to 31st December 2011 and £57,400 for 2012 financial year. Other Income of the States for 2012 will increase by £81,317 paid as a dividend by SoJDC.

Recommendation

The Minister is recommended to waive part of the contribution estimated by Jersey Harbours in 2012 and to agree to the presentation of a Report to the States in compliance with Article 27(4) of the Public Finances (Jersey) Law 2005.

Reason for Decision

Article 27 of the Public Finances (Jersey) Law 2005 states:

(4) If during that financial year the Minister with responsibility to the States for the States trading operation satisfies the Minister that the trading situation of the trading operation makes it impossible or difficult for the trading operation to contribute the minimum contribution agreed in accordance with paragraph (2)(b), the Minister may waive or delay payment of all or any part of the contribution.

(5) The Minister shall at the first practicable opportunity advise the States of any action taken under paragraph (4), and the reason for taking the action, together with details of any revised estimates of the States trading operation.

Resource Implications

The reduced contribution in 2012 of £81,317 from Jersey Harbours will be paid to the States of Jersey by SoJDC. There are therefore no financial implications for the States arising from this decision.

Report author : Head of Shareholder Relations	Document date : 20th March 2012
Quality Assurance / Review : Head of Decision Supoprt	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2012-0033 -\WR - Reduced Harbours Contribution 2012 - DS.doc
MD sponsor : Treasurer of the States