Plemont Holiday Village: Grant to National Trust for Jersey: Funding from Criminal Offences Confiscation Fund (P.107/2014)

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A decision made 17 July 2014:

Delegated decision reference: MD-TR-2014-0073
Decision Summary Title:	Application of COCF Funding to States of Jersey Police Headquarters Re-location Project for onward payment to the National Trust for Jersey		Date of Decision Summary:	10 July 2014
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Application of COCF Funding to States of Jersey Police Headquarters Re-location Project for onward payment to the National Trust for Jersey		Date of Written Report:	10 July 2014
Written Report Author:	Treasurer of the States		Written Report : Public or Exempt	Public
Subject: The application of funding of £3,575,000 from the Criminal Offences Confiscation Fund (COCF) to the Home Affairs Department (HAD) for the Police Relocation capital programme with an equal amount to be transferred from the Police Relocation capital programme to the Chief Minister’s Department (CMD) for onward payment of a grant to the National Trust for Jersey.
Decision(s): The Minister approved the following: an application for funding of £3,575,000 from the COCF to the HAD to ease pressures on the Police Relocation capital programme; the use of additional income of £3,575,000 by HAD; a non-recurring budget transfer in 2014 of £3,575,000 from the HAD revenue head of expenditure to the Treasury and Resources (Jersey Property Holdings) (T&R (JPH)) Police Relocation capital head of expenditure; a non-recurring budget transfer in 2014 of £3,575,000 from the T&R (JPH) Police Relocation capital head of expenditure to the CMD revenue head of expenditure for onward payment of a grant to the National Trust for Jersey for the purpose of supporting the purchase of Plemont Holiday Village. This decision is in accordance with the States Assembly approval of P.107/2014 on the 1st July 2014.
Reason(s) for Decision: Article 19(1)(a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body is likely to exceed its estimated income, the Minister may authorise the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income. Article 18(1)(c) of the Public Finances (Jersey) Law 2005 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. The application will ease pressures on the Police Relocation capital programme and enable funding to be released to support the decision of the States on P.107/2014. The new Police Headquarters will provide the first ever purpose built Police Headquarters in Jersey, which will provide the kind of working environment that modern policing demands. This will support the States of Jersey police’s aim which is for its residents, businesses and visitors to be safe and fell secure. This meets the criteria for consideration of funding from the COCF. In an email to the Treasurer and the Minister for Treasury and Resources, dated 27th June 2014, the Attorney General has confirmed his support for the use of COCF funds for this purpose. The Council of Ministers in their meeting of the 11th June 2014 considered and endorsed the proposed funding mechanism of the Minister for Treasury and Resources for P107/2014: Plemont Holiday Village: grant to National Trust for Jersey. The States Assembly approved on the 1st July 2014 P.107/2014 Plemont Holiday Village: grant to National Trust for Jersey along with the proposed funding mechanism by the Minister for Treasury and Resources.
Resource Implications: Once the HAD income target budget and the HAD revenue head of expenditure have been increased by £3,575,000, that sum will subsequently transferred from the HAD revenue head of expenditure to the T&R (JPH) Police Relocation capital head of expenditure and then to CMD revenue head of expenditure for onward payment of a grant to the National Trust for Jersey. This decision does not change the total amount of expenditure approved by the States.
Action required: Head of Decision Support to notify the Finance Manager - Corporate Group, Financial Performance Reporting and the Finance Director – Home Affairs that this decision has been approved.
Signature:		Position: Senator P.F.C. Ozouf, Minister for Treasury and Resources
Date signed:		Date of Decision:

Plemont Holiday Village: Grant to National Trust for Jersey: Funding from Criminal Offences Confiscation Fund (P.107/2014)

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Treasury and Resources

Ministerial Decision Report

Application of COCF Funding to States of Jersey Police Headquarters Re-location Project for onward payment to the National Trust for Jersey

Purpose of Report

To enable the Minister for Treasury and Resources to approve the following:

an application for funding of £3,575,000 from the COCF to the HAD to ease pressures on the Police Relocation capital programme;
the use of additional income of £3,575,000 by HAD;
a non-recurring budget transfer in 2014 of £3,575,000 from the HAD revenue head of expenditure to the Treasury and Resources (Jersey Property Holdings) (T&R (JPH)) Police Relocation capital head of expenditure;
a non-recurring budget transfer in 2014 of £3,575,000 from the T&R (JPH) Police Relocation capital head of expenditure to the CMD revenue head of expenditure for onward payment of a grant to the National Trust for Jersey for the purpose of supporting the purchase of Plemont Holiday Village.

Background

National Trust for Jersey had signed an option agreement with Plémont Estates Limited (the owners of the land) which provided an opportunity for Plémont Holiday Village to be purchased for £7.15 million, and that it was envisaged that the Trust would provide half of the acquisition cost, plus approximately another £1 million to cover the costs of demolition and clearance, therefore providing a total of £4.575 million towards the project.

The Council of Ministers in their meeting of the 11th June 2014 , with the Treasurer of the States in attendance, considered P.107/2014 Plemont Holiday Village: grant to National Trust for Jersey which sought the agreement of the States to request the Minister for Treasury and Resources to identify the appropriate means of funding a grant of £3.575 million to the National Trust for Jersey in order for the site and adjoining land be acquired for the benefit of the island, subject to a condition that the Trust would thereafter demolish the former holiday camp and restore the coastal landscape to a natural state. The Minister for Treasury and Resources proposed the following funding mechanism which was endorsed by the Council of Ministers in the same meeting for P107/2014: Plemont Holiday Village: grant to National Trust for Jersey:

Subject to the confirmation of the Attorney General that the requirements of the Proceeds of Crime Law have been met, the Minister can advise that the grant could be facilitated by transferring available funds from the Criminal Offences Confiscation Fund to offset appropriate existing, approved expenditure allocations – in this case the Police Relocation capital head of expenditure. This releases funding to be used to provide the National Trust for Jersey with a grant.

The steps would be:

(1) funding allocated from the COCF treated as revenue income of the Home Affairs Department (subject to the agreement of the Attorney General);

(2) budget transfer under delegated powers from the Home Affairs revenue to the Police Relocation capital head of expenditure;

(3) budget transfer under delegated powers from the Police Relocation capital head of expenditure to the Chief Ministers’ Department revenue head of expenditure; and

(4) grant from the Chief Ministers’ Department revenue head of expenditure to the National Trust for Jersey. (NB under States spending ruled a grant must be made from a Department – it cannot be made directly from the States as a body).

The net effect of these steps is that States expenditure for 2014 would not be increased. The balance of the COCF would decrease by £3.575 million.

This proposed mechanism was presented as comments alongside P107/2014 for consideration by the States Assembly during the debate.

In an email to the Treasurer and the Minister for Treasury and Resources, dated 27th June 2014, the Attorney General has confirmed his support for the use of COCF funds for this purpose.

The States Assembly approved on the 1st July 2014 P.107/2014 Plemont Holiday Village: grant to National Trust for Jersey along with the proposed funding mechanism by the Minister for Treasury and Resources.

The application will ease pressures on the Police Relocation capital programme and enable funding to be released to support the decision of the States on P.107/2014. The new Police Headquarters will provide the first ever purpose built Police Headquarters in Jersey, which will provide the kind of working environment that modern policing demands. This will support the States of Jersey police’s aim which is for its residents, businesses and visitors to be safe and fell secure. This meets the criteria for consideration of funding from the COCF.

Recommendation

The Minister is recommended to approve the following:

an application for funding of £3,575,000 from the COCF to the HAD to ease pressures on the Police Relocation capital programme;
the use of additional income of £3,575,000 by HAD;
a non-recurring budget transfer in 2014 of £3,575,000 from the HAD revenue head of expenditure to the Treasury and Resources (Jersey Property Holdings) (T&R (JPH)) Police Relocation capital head of expenditure;
a non-recurring budget transfer in 2014 of £3,575,000 from the T&R (JPH) Police Relocation capital head of expenditure to the CMD revenue head of expenditure for onward payment of a grant to the National Trust for Jersey for the purpose of supporting the purchase of Plemont Holiday Village.

This decision is in accordance with the States Assembly approval of P.107/2014 on the 1st July 2014.

Reason for Decision

Article 19(1)(a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body is likely to exceed its estimated income, the Minister may authorise the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income.

Article 18(1)(c) of the Public Finances (Jersey) Law 2005 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.

In an email to the Treasurer and the Minister for Treasury and Resources, dated 27th June 2014, the Attorney General has confirmed his support for the use of COCF funds for this purpose.

The Council of Ministers in their meeting of the 11th June 2014 considered and endorsed the proposed funding mechanism of the Minister for Treasury and Resources for P107/2014: Plemont Holiday Village: grant to National Trust for Jersey.

Resource Implications

Once the HAD income target budget and the HAD revenue head of expenditure have been increased by £3,575,000, that sum will subsequently transferred from the HAD revenue head of expenditure to the T&R (JPH) Police Relocation capital head of expenditure and then to CMD revenue head of expenditure for onward payment of a grant to the National Trust for Jersey. This decision does not change the total amount of expenditure approved by the States.

Report author : Treasurer of the States	Document date : 10 July 2014
Quality Assurance / Review : Business Manager	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0073 - COCF Funding for the purchase of Plemont by the National Trust\WR - COCF funding for SOJP HQ for Plemont.doc