Information about the publication of Ministerial Decisions

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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
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A decision made 15 November 2012:

Decision Reference: MD-E-2012-141
Decision Summary Title :	Bankruptcy (Désastre) (Jersey) Order 201-		Date of Decision Summary:	6 November 2012
Decision Summary Author:	Director, Finance Industry Development		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Bankruptcy (Désastre) (Jersey) Order 201-		Date of Written Report:	6 November 2012
Written Report Author:	Director, Finance Industry Development		Written Report: Public or Exempt?	Public
Subject: Drafting of a new Order replacing the provisions set out in Article 5 (a) and 5 (b) of the Bankruptcy (Désastre) (Jersey) Order 2006.
Decision(s): The Minister for Economic Development approved the drafting of an Order to increase the figures contained in Article 5(a) and 5(b) of the Bankruptcy (Désastre) (Jersey) Order 2006 by the Jersey Retail Price Index. The new figures should be as follows: In relation to Article 5 (a)– previously £3,500 – amend to £4,350 In relation to Article 5 (b)– previously £1,000– amend to £1,250
Reason(s) for Decision: The Economic Development Department was contacted by the Viscount’s Department requesting an amendment to be made by Order to the Bankruptcy (Désastre)Jersey Law 1991. This amendment relates to Article 32 of the Law which refers to the “Order of payments of debts” which includes, inter alia, priority claims for wages, salary, holiday and bonuses, provided that the sum to which priority is given does not exceed the prescribed amount as set out in Article 5 (a) and 5 (b) of the Bankruptcy (Désastre) Jersey Order 2006 (“the Order”) (attached). The Viscount’s Department has noted that by applying the Jersey cost of living index to the figures listed in the Order, there has been an increase of 23.8% since 2006 when the previous Order was made. It is therefore deemed desirable to update these figures in line with the increase on the most recent inflation figures available (Sept 2012). The Viscount’s Department is supportive of the view that the new figures should be set at: In relation to Article 5 (a) of the order – previously £3,500 – change to £4,350 In relation to Article 5 (b) of the order – previously £1,000– change to £1,250
Resource Implications: There are no financial or manpower implications for the States of Jersey arising as a result of this decision.
Action required: The Order is to be drafted by the Law Draftsman.
Signature: Senator AJH Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Bankruptcy (Desastre) Jersey Order 201-

MINISTER FOR ECONOMIC DEVELOPMENT

Report in relation to:

1) BANKRUPTCY (DESASTRE) jERSEY ORDER 201-

1. Issue

1.1 Article 32 of the Bankruptcy (Désastre) (Jersey) Law 1991 (“the Law”) provides for the Minister to state by Order certain prescribed levels that will apply when the Viscount is distributing the proceeds of a debtor. These levels were last set by the Bankruptcy (Désastre) (Jersey) Order 2006 and since that date the Jersey Retail Price Index has increased by 23.8%. The Viscount’s department has requested that the Minister for Economic Development executes a new Order setting the levels at a figure which is close to the most recent inflation information that is available, namely September 2012.

2. Background

2.1 Article 32(1)(b) of the Law deals with the order that proceeds from the realization of a debtors property should be distributed by the Viscount during a désastre. The Article allows the Minister to set certain prescribed levels in relation to payment to employees of the debtor for:

i) arrears of wages or salary for services rendered to the debtor during the 6 months immediately preceding the declaration, and

ii) holiday pay and bonuses

2.2 The policy behind the setting of these prescribed levels is to ensure that the proceeds from the realization of the debtor’s property are not exhausted by claims from previous employees. The provision does however allow the employees to receive a reasonable payment should their employer be declared en désastre.

2.3 The prescribed levels were last set by Order in 2006, some 6 years ago. These levels were set as:

i) £3,500

ii)£1,000

Since that date, it has been calculated, using the States of Jersey Inflation calculator, provided by the statistics unit, that there has been inflation of 23.8%.

2.4 Given the inflation figures provided, it has been recommended by the Viscount’s department that these figures be increased in line with inflation to maintain the situation that should and employer be declared en désastre, employees receive a reasonable payment in relation to arrears of wages and holiday pay.

It is proposed the new levels are set at:

i) £4,350

ii) £1,250

3. Financial and Manpower Implications

3.1 There are no financial or manpower implications for the States of Jersey which would arise as a result of the Minister making this Order.

4. Recommendation

It is recommended that the Minister approves that the Order be drafted to increase the prescribed levels and that the Minister signs the Order once it is drafted.

Bankruptcy (Desastre) Jersey Order: Proposed amendment