Treasury and Resources
Ministerial Decision Report
TRANSPORT AND TECHNICAL SERVICES
TRANSFER BETWEEN REVENUE AND CAPITAL HEADS OF EXPENDITURE FOR 2010 JERSEY HARBOURS REPAYMENT
1. Purpose of Report
The Minister for Transport and Technical Services has requested the Minister for Treasury and Resources to approve an internal budget transfer between TTS revenue and capital heads of expenditure amounting to £450,000 for the 2010 repayment of the Jersey Harbours temporary loan.
2. Background
The previous Minister for Transport and Technical Services (TTS) approved a business case supporting the transfer of responsibilities for engineering and municipal services from Jersey Harbours to TTS.
In order to facilitate the service transfer it was agreed that building works totalling £1.8 million would be required at La Collette and Bellozanne. The funding was to be taken from existing unspent TTS Capital Votes and paid back from future rental income generated from the letting of the vacated Harbours building. The agreed funding solution was as follows:-
1. Create a new capital head of expenditure in TTS called ‘Harbours Transfer’.
2. Transfer a total of £1.8 million into this new head of expenditure from the following capital votes:
La Collette Phase II £600,000
Sludge Phase 1 Thickener £1,200,000
Total £1,800,000
3. Require Jersey Harbours to make a capital repayment for TTS on 01 January each year for the following amounts:
2008 - £450,000
2009 - £450,000
2010 - £450,000
2011 - £450,000
4. Transfer the capital repayments to the La Collette Phase II and Sludge Phase 1 Thickener over the four year period 2008 – 2011.
3. Current Position
As of 31 December 2009 a total of £900,000 had been repaid by Jersey Harbours. TTS has requested the 2010 repayment from Jersey Harbours and now requests the Minister for Treasury and Resources to approve a budget transfer between TTS revenue and capital heads of expenditure amounting to £450,000.
4. Recommendation
The Minister for Treasury and Resources is recommended to approve a budget transfer of £450,000 from TTS revenue QDA000.443010 to TTS capital QZS020.121010.
5. Reason for Decision
Under Financial Direction 3.6 and the Public Finance (Jersey) Law 2005, the approval of the Minister for Treasury and Resources is required for any variations to heads of expenditure above £100,000.
6. Resource Implications
The department’s capital budget to increase by £450,000 and reduce the value of revenue cash limits by an equivalent amount. This does not change the total amount of expenditure approved by the States.