Budget Transfer: London Office: 2013: From Central Contingency

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 11 November 2013:

Decision reference: MD-TR-2013-0085
Decision Summary Title:	Budget transfer from Central Contingency (one-off) to CMD in relation to the London Representative Office		Date of Decision Summary:	5 November 2013
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:	Budget transfer from Central Contingency (one-off) to CMD in relation to the London Representative Office		Date of Written Report:		5 November 2013
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 London Representative Office in 2013.
Decision(s): The Minister approved a budget transfer of £210,000 in 2013, from Central Contingency (one-off) to the CMD revenue head of expenditure in relation to the London Representative Office in 2013.
Reason(s) 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 £210,000 in 2013 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.
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: London Office: 2013: From Central Contingency

Treasury and Resources

Ministerial Decision Report

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

Purpose of Report

To enable the Minister to approve a budget transfer of £210,000 from Central Contingency (one-off) to the Chief Minister’s Department (CMD) in relation to the funding of the London Representative Office in 2013, following a report that was presented to Council of Ministers on 10th July where this funding was agreed.

Background

The States Assembly approved funding in the Medium Term Financial Plan 2013-2015 to establish a Jersey London Representative Office with recurring funding allocated from 2014 onwards. The purpose of the 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 London 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 London 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 London Office in 2013 will restrict 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 London Office in 2013.

By providing pump-priming funding in 2013, Jersey will be able to recruit staff and establish an office by Q3 2013, which will be fully operational from the start of 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.

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

The Council of Ministers approved additional funding for 2013 of £432,300 with this figure being revised downwards as detailed on the above table.

3. Recommendation

The Minister is recommended to approve a budget transfer of £210,000 from Central Contingency (one-off) to the CMD revenue head of expenditure in relation to the London Representative Office in 2013.

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 £210,000 in 2013 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.

Report author : Finance Manager – Corporate Group	Document date : 25 October 2013
Quality Assurance / Review : Business Manager	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2013-0085 - Budget Transfer to CMD - London Office\WR - Budget Transfer to CMD - London Office.doc