Prison House Rental System: Amendments

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 9 January 2015:

Decision Reference: MD-HA-2015-0001
Decision Summary Title :	Proposal to change the prison house rental system		Date of Decision Summary:	5 January 2015
Decision Summary Author:	Executive Officer Home Affairs		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 :	Proposal to change the prison house rental system		Date of Written Report:	6 November 2014
Written Report Author:	Prison Governor		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Proposal to change the prison house rental system.
Decision(s): The Minister decided that the rental value of the 13 States owned prison houses (12 three-bedroom terraced houses and the detached house that is normally reserved for the Prison Governor) should be assessed at 75% of market value for similar, privately owned properties.
Reason(s) for Decision: The method that is currently used to calculate the rent for the properties pre-dates Ministerial Government and is based on a percentage of the occupant’s gross weekly basic wage. Therefore, although the 12 terraced houses are of the same size and design, the rental charged for them varies significantly. Andium Homes currently charge 90% of the market rate for similar properties in private ownership. Because the prison houses are located adjacent to the secure perimeter of the prison and need to be occupied by prison staff, a smaller percentage of market value has been applied i.e. 75%. This increase will be phased in over the next 18 months. The residents of the properties have been advised of the proposed change.
Resource Implications: Each terraced house will ultimately yield a monthly rental of between £226 and £419 more than at present.
Action required: The Prison Governor to advise the residents of the properties of the increase in rent and to introduce it in stages, as set out in the attached report.
Signature:		Position: Minister for Home Affairs
Date Signed:		Date of Decision (If different from Date Signed):

Prison House Rental System: Amendments

STATES OF JERSEY PRISON SERVICE

HMP La Moye

La Rue Baal

St. Brelade

Jersey

JE3 8HQ

Proposal to Change the Prison House Rental System

There are 13 States owned houses located in La Rue Baal adjacent to the prison that have been allocated to the Prison Service for occupation by prison staff. 12 are terraced, 3 bedroom houses and there is an additional detached house that is normally reserved for the prison Governor.

The houses are in very close proximity to the prison’s perimeter fence and consequently, it is preferable to have them occupied by prison officers to minimise the risk of a security breach and also to facilitate a quick response in emergency situations.

At present the method used to calculate the rent pre-dates Ministerial Government. It was the system used for by general States Housing but it stopped applying this more than a decade ago when it moved to the “Fair Rent” scheme. The rental applied to the prison houses is 25% of the occupant’s gross weekly basic wage less 20%. Consequently, although all of the 12 terraced houses are the same size and design, the rates charged vary significantly (from £608 - £841 per month). From 1st January 2015, under existing arrangements, the charges will range from £719 - £909 per month.

States Housing has since moved away from the Fair Rent approach and now charge 90% of the market rate for similar properties in private ownership. Two estate agents were appointed to assess the rental value of properties and the average of the two taken to determine the market value. Annual increases thereafter are then determined by the rate of inflation, with vacant properties having their market value re-assessed on an annual basis.

I suggest a similar approach be applied to the prison houses but as they are located adjacent to the secure perimeter of the prison and we need them to be occupied by prison staff, I propose a smaller percentage of the market value be applied.

I had the houses assessed by the same two estate agents as States Housing (Thompsons and Troys) and the results were as follows:

Staff Houses Governor’s House

Thompsons £1,450 per month £2,083 per month
Troys £1,575 £1,900
Average £1,513 £1,992

90% of average £1,362 £1,792

Examples of a lesser percentage of market value for consideration

Staff Houses Governor’s House

70% of average £1,059 per month £1,394 per month
75% of average £1,135 £1,494
80% of average £1,210 £1,594

Conclusion

I invite the Minister to approve that the rental value of the prison houses should be assessed in a similar manner to States Housing; that is as a percentage of the market value of similar privately owned properties.

In light of the proximity of the houses and the security implications, it is recommended that a lower percentage than that applied to other States housing is applied to the prison houses and 75% is suggested. As there is a very slow turnover in these properties, I suggest a market valuation should only carried out every 3-5 years.

As all of the above rates represent a significant increase, I recommend that this should be phased in over a period of 18 months, with 25% of the increase being introduced at 3 months’ notice and 3 further increases of 25% at 6 month intervals.

W Millar

Prison Governor

6th November 2014