29 August 2008
As instructed by the States, the Council of Ministers (COM) delivered a Business Plan which keeps within the 2009 cash limits. However, the world has changed and the financial pressures on the people of Jersey have increased since the plan was lodged. The unprecedented increases in food and fuel costs are hitting all Islanders but in particular the less well-off and Ministers are focusing their efforts to alleviate the current economic impact on those with lower incomes.
It is not possible within the very tight spending limits to fund a number of social and environmental issues which Ministers believe should be funded and which are affordable so a series of new measures are proposed.
Some amendments have already been announced but the COM are proposing further amendments and feel that the States as a whole should have the opportunity to debate these proposals as they will obviously result in additional funding requirements in a number of areas.
The new measures include:
• The provision to enable all children between the ages of three and four years to apply for 20 hours of free nursery education.
• A series of environmental, recycling and sustainable transport projects funded by the introduction of Vehicle Emission Duty.
• As previously approved by the States, an increase in the Social Security cash limit to allow the provision of work and vocational day care service opportunities for people with a learning disability and people on the autistic spectrum.
The COM has maintained a consistent aim of providing free nursery education for all three and four year olds, but the present situation is inequitable with only half of children of this age able to access this opportunity. They are therefore proposing a revision to the Annual Business Plan which will enable all children between the ages of three and four years to apply for 20 hours of free nursery education. The annual cost to the Education, Sport and Culture Department for this amendment will be approximately £1.5m a year.
In accordance with COM environmental policy a series of environmental, recycling and sustainable transport projects are also included:-
• £1m to be added to the £0.5m donation from the Jersey Electricity Company and allocated to home insulation grants and energy efficiency measures.
• £0.5m to be allocated for additional commuter bus services, holding bus fares at current levels, expansion of the "Safe Route to Schools" scheme and developing an eastern cycle route.
• £0.5m to be allocated to increased recycling which will include the supply of kerbside containers and improved collecting of hazardous waste.
In order to fund the above environmental and transport strategies the Council of Ministers propose the introduction of a Vehicle Emission Duty (VED) on the registration of new vehicles, targeted at vehicles with high CO2 emissions.
The Chief Minister, Senator Frank Walker is keen to emphasise the importance of this new measure, "Action needs to be taken to progress the environment, recycling and sustainable transport strategies”, he said, “and with these measures we specifically target the vehicles that produce the highest CO2 emissions. Some small family cars, such as the Peugeot 107 or the Ford Fiesta that have emissions of 120g or less will pay nothing but high emission vehicles such as Range Rovers could pay £1200”.
These initiatives are included in a 2009 Business Plan Amendment Report due to be debated in the States on 16 September 2008.
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Notes to Editors:
1. For further information, please contact Senator Frank Walker on Tel: 440401.
2. The Annual Business Plan Amendments report is
attached. 3. Amendments previously announced include:
• Zero rating GST on food
• Increasing winter fuel payments by 20%
• Freezing fuel duty in the budget
• Maintaining the current rates of income support, including the allowance for GST on food, and the scheme for people who do not receive income support but are below the tax threshold. This means that the full benefit of GST reductions on food will be passed on to people on lower incomes who have already received support to cover their costs.
• Deferring from January 2009 until October 2009 any reductions in income support for people who receive transitional relief.
• Accelerating the programme of insulation for States Housing to help States tenants reduce their fuel costs.
• Introducing a programme of home insulation grants and energy efficiency advice to help the public reduce their fuel bills.
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