London Office Establishment: Government of Jersey: Funding Approval

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A decision made 26 July 2013:

Decision Reference: MD-C-2013-0078
Decision Summary Title :	Contingency funding to establish Government of Jersey London Office		Date of Decision Summary:	23rd July 2013
Decision Summary Author:	International Affairs Officer		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Contingency funding to establish Government of Jersey London Office		Date of Written Report:	23rd July 2013
Written Report Author:	International Affairs Officer		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Request for contingency funding to establish the Government of Jersey London Office in 2013.
Decision(s): The Chief Minister approved a request for non-recurring contingency funding in 2013 totalling £432,300 for costs associated with the establishment of the Government of Jersey London Office.
Reason(s) for Decision: Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. Delegation 1.3 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States. Financial Direction 3.6 ‘Variations to Heads of Expenditure’ states that Departments wanting to transfer funds between heads of expenditure must obtain the approval of their minister or of their accounting officer where a scheme of delegation exists.
Resource Implications: The Chief Minister’s Department revenue head of expenditure to increase by £432,300 and the T&R Corporate Contingency to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013.
Action required: Finance Manager – Corporate Group to seek the approval of the Minister for Treasury and Resources and, once received, to action the budget transfer in conjunction with T&R.
Signature:		Position: Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

London Office Establishment: Government of Jersey: Funding Approval

Chief Minister’s Department

Ministerial Decision Report

Budget Transfers from the Treasury and REsources Department to the Chief Minister’s Department in relation to the london representative office

Purpose of Report

To enable the Minister to request a budget transfer of £432,300 to the Chief Minister’s Department in relation to the funding of a Jersey London Representative Office in 2013, following a report that was presented to CoM on 10th July 2013 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.

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, we 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.

3. Recommendation

The Minister, with reference to the Council of Ministers approval of this funding on 10th July 2013 in support of the Jersey London Representative Office, is recommended to accept the budget transfer of £432,300 in 2013.

4. Reason for Decision

Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. Delegation 1.3 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.

Financial Direction 3.6 ‘Variations to Heads of Expenditure’ states that Departments wanting to transfer funds between heads of expenditure must obtain the approval of their minister or of their accounting officer where a scheme of delegation exists.

Resource Implications

The Contingency Fund in Treasury and Resources Department to decrease by £432,300 in 2013, and the Chief Minister’s Department’s revenue head of expenditure to increase by £432,300 in 2013.

This decision does not change the total amount of expenditure approved by the States for 2013, in the Medium Term Financial Plan.

Report author : Acting Finance Director – Corporate Group	Document date : 25th July 2013
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