CUSTOMS AND IMMIGRATION SERVICE
Passport Fee Decrease in September 2012
Background
Passport fees in the UK are decreasing on 3 September 2012 from Ā£77.50 to Ā£72.50 for an adult passport and from Ā£49.00 to Ā£46.00 for a childās passport.
These decreases are due to efficiencies that have been made including lower unit cost of New Generation Passport (NGP) books and lower cost of centralised printing, both of which have already been introduced in the UK. The NGP is planned to be introduced in Jersey by 2014, after which time Jersey issued British passports will be printed at a central UK site. Until this occurs the Service will not benefit from any similar efficiencies.
Passport fees have not been increased since September 2009 (MD-HA-2009-074 refers). In 2007 the Minister for Treasury and Resources approved the adoption of a formula for all future passport fee increases in Jersey to keep these in line with fees in the UK (MD-TR-2007-0090 refers).
Guernsey remit all their income from the issuance of passports to the UK Government as their defence contribution. They are highly likely to follow the UKās lead in reducing fees.
The Isle of Man, like Jersey, are concerned about the adverse effect upon their income having, already committed to the purchase of blank passport book stock until the beginning of 2014. Nonetheless the indications are that they will be decreasing their fees in line with the UK
Decreasing fees to UK levels
It is estimated that implementing the UK fee decreases would result in lost income in 2012 of Ā£11K and Ā£46K in 2013. (Note: this is in addition to the Ā£30K CSR savings already accounted for from 2013 for the NGP).
It is anticipated that the loss of revenue will eventually be matched by efficiency savings following the centralised printing in the UK of the NGP from 2014. The impact on the Service budget is therefore expected to be short term and manageable. The principal effect would be that surplus passport income may not be available to be set aside to meet the capital costs of the introduction of the NGP in Jersey.
There is a risk, albeit very difficult to predict, that if Jersey does not reduce its fees unfavourable public opinion may lead customers to apply in UK and not only receive a reduced fee but also an NGP, albeit not a āJersey variantā type. There is nothing in IPS policy to prevent a British Citizen resident in the Islands posting an application to the UK or applying in person and having the passport delivered to the Islands(s).
Recommendation
It is recommended that from 3rd September the Minister decides to decrease the fee for an adult passport by Ā£5 and the fee for a childās passport by Ā£3.
Michael Robinson
Head of Service
17 July 2012