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Budget transfer relating to Energy from Waste Plant - Replacement Assets

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A decision made 15 December 2014:

Decision Reference:  MD-T-2014-0130

Decision Summary Title :

Rescind MD-T-2014-0118 and transfer capital from one head of expenditure to another existing head of expenditure.

Date of Decision Summary:

 09 December 2014

Decision Summary Author:

 

Capital Accountant

Decision Summary:

Public or Exempt?

 

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

Rescind MD-T-2014-0118 and transfer capital from one head of expenditure to another existing head of expenditure.

Date of Written Report:

09 December 2014

 

Written Report Author:

Capital Accountant

Written Report :

Public or Exempt?

 

Public

Subject:  Rescind MD-T-2014-0118 and approve the transfer of funding from the capital head of expenditure for EFW Replacement Assets to the capital head of expenditure for Replacement Assets.

 

Decision(s):  The Minister rescinded MD-T-2014-0118 and approved the transfer of funding from the capital head of expenditure for EFW Replacement Assets to the capital head of expenditure for Replacement Assets.

 

Reason(s) for Decision:  Transport and Technical Services (TTS) have been requested to rescind MD-T-2014-0118 for the creation of a new head of expenditure and instead use the existing head of expenditure for Replacement Assets (Q00MC10012).

 

The existing green waste shredder is now seven years old and although an asset life of 10 years was assigned in the replacement schedule this was overly optimistic and increasing maintenance costs and breakdowns mean that a new shredder is required to ensure continuity of operation at the Green Waste site.  As the current backup shredder is now subject to continual breakdown and uneconomic to repair, it is proposed to use the existing shredder as backup plant.

 

As a result of the extended defects period imposed upon the EFW plant, some assets which were to have been replaced from the EFW replacement assets funding have been replaced under contract at nil cost to the States.  As such, it is proposed to transfer these funds to the head of expenditure for Replacement Assets to fund the shredder replacement.  The “Replacement Assets” funding originally provided to TTS is insufficient to provide for the replacement of this asset which is essential for the continued operation of the Green Waste composting operation in accordance with Waste License requirements.

 

Under Financial Direction 3.6 the approval of the Minister for Treasury and Resources is required for variations to heads of expenditure, although this power has been delegated to the Treasurer of the States for amounts under £1,000,000.

 

Resource Implications:  The TTS capital head of expenditure; EFW Replacement Assets (Q00MF14036) will decrease by up to £450,000 and the “Replacement Assets” head of expenditure (Q00MC10012) will increase by an identical amount.

 

 

 

 

Action required:  The Minister to rescind MD-T-2014-0118 and subsequently approve the transfer of up to £450,000 from the EFW Replacement Asset Vote (Q00MF14036) to the Replacement Assets Capital Head of Expenditure (Q00MC10012).

 

Signature:

 

 

Position:

Minister for Transport and  Technical Services

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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