Transport and Technical Services: Fees and Charges: 2014 Increases (excluding Jersey Car Parks)

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A decision made 20 November 2013:

Decision Reference MD-T-2013-0096
Decision Summary Title :	Transport and Technical Services – 2014 Departmental Increases to Fees and Charges		Date of Decision Summary:	14 November 2013
Decision Summary Author:	Senior Management Accountant - Compliance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transport and Technical Services – 2014 Departmental Increases to Fees and Charges		Date of Written Report:	14 November 2013
Written Report Author:	Senior Management Accountant - Compliance		Written Report : Public or Exempt?	Public
Subject: Transport and Technical Services – 2014 Departmental Increases to Fees and Charges (excluding Jersey Car Parks)
Decision(s): The Minister approved the increases to the Department’s fees and charges as set out in the attached schedule, and requested permission from the Minister for Treasury & Resources to increase above RPI(X) as at September 2013 in order to meet the income obligation set out in the Medium Term Financial Plan 2013-2015.
Reason(s) for Decision: To enable the Department to increase its fees and charges by 2.5% from 01 January 2014 in line with the increased income assumptions as per the Medium Term Financial Plan 2013-2015 in order to meet cash limits and ensure cost recovery and to approve the revised schedule of charges in respect of contaminated material and plasterboard (from 07 April 2014) and inert waste (from 01 July 2014) This Ministerial Decision excludes the charges for Jersey Car Parks which will be under a separate Ministerial Decision.
Resource Implications: The additional income as a result of the proposed increases to fees and charges has been included within the income estimates in the Medium Term Financial Plan for 2013-2015. The cost of advertising increases to fees and charges in the Jersey Evening Post.
Action required: Request permission from the Minister for Treasury and Resources and when approved the Finance Director to arrange for the Department’s fees and charges to be advertised in the Jersey Evening Post.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Transport and Technical Services: Fees and Charges: 2014 Increases (excluding Jersey Car Parks)

Transport and Technical Services

2014 DEPARTMENTAL INCREASES to Fees and Charges

Purpose of Report

The Minister for Transport and Technical Services is asked to approve a request to increase the Department’s various fees and charges for 2014 (a schedule of charges is attached as Appendix A).

Discussion

The majority of the proposed increases have been limited to 2.5% per annum in line with income assumptions as per the Medium Term Financial Plan 2013-2015 in order to meet cash limits and ensure cost recovery. FD 4.1 “Increases in States Fees and Charges” states that “The prior approval of the Minister for Treasury and Resources to increase an existing fee or charge WILL NOT be required where the average increase in the fee or charge does not exceed the lesser of 2.5% per annum compounded or RPI(X) over the relevant period.” The RPI(X) at September 2013 was 1.4% however, the departmental cash limit has been calculated based on an assumed increase of 2.5% in line with Treasury requirements. As such, although the proposed increases are in line with the 2.5% cap, the permission of the Minister for Treasury and Resources will still be required prior to implementation of the changes.

In addition, it is proposed that the following fees and charges are not increased by a straight 2.5% for the reasons detailed below.

Fee/Charge

Explanation for increase/decrease

Knackers yard

Cattle per kilo (minimum charge £10 excluding GST)

Goat/Sheep/Pig/Other per kilo (minimum charge £10 excluding GST)

Compounded Increase

As a result of roundings the price per kilo for cattle, goats, sheep, pigs and other animals excluding calves and horses remained at 2012 prices during 2013 but are proposed to be subject to a compounded increase rounded to nearest 1p for 2014.

Commercial Green Waste

Compounded Increase

As a result of roundings the price per kilo for commercial green waste there was no increase for 2013 prices but this charge is to be subject to a compounded increase for 2014.

Plasterboard (from 07/04/13)

New Charge Structure

This charge at present is included in the Inert Waste charges, however trials have taken place to determine the best way forward and a report is attached as Appendix B with a recommendation for the new charge.

A start date for the new charge will be advertised as 07 April 2014 to allow the department to communicate fully with the industry and general public and for the industry to incorporate the new charges and procedures into their operation

A background report from Validus is also attached as Appendix B1.

Composters plus Caddy (each) minimum order 10 (only sold to garden nurseries)

No Increase

Maintain at 2013 prices to enable garden nurseries to sell at £10 each to encourage sales.

Tipping Charges Inert Waste – CAT1 CAT2 & CAT3 La Collette

New contractor July 2014 onwards

TTS charges for inert waste CAT1, CAT2 & CAT3 will increase by 2.5% and run from January to June 2014. From July 2014 onwards a new contractor will be in place and charges for CAT1 & CAT2 will be set by the contractor. CAT3 will be replaced by Inert Waste non - recyclable at £15 per tonne in accordance with the new aggregates contract.

Contaminated Material

New Charge Structure

A cost recovery charge for contaminated soil to ash bays a report is attached as Appendix C for approval.

Motor cycles (CBT)

Increased as per agreement September RPI(Y) 1.2%

There is an agreement that the fee for CBT will increase each January by RPI(Y) as at the previous September. The September 2013 RPI(Y) is 1.2%

International driving permits

No Increase

Issued by the parish, retain a £10.00 flat fee.

All other Driver and Vehicle Charges

Roundings

These have been rounded to the nearest 5p to assist with cash handling.

The fees and charges for Jersey Car Parks have not been included as part of this Ministerial Decision but will be brought to the Minister for consideration as a separate report.

In accordance with Finance Direction No.4.1 Increases in States Fees and Charges, all increases to charges above 2.5% require the approval of the Minister for Treasury and Resources. The Treasurer of the States can approve increases to States charges under his delegated powers, where those increases are non-contentious.

Revised Charging Structure

Plasterboard and Contaminated Materials are currently categorised as “CAT3 waste” and charged accordingly. However, neither material is permitted to be dumped in the general inert waste tip under the TTS waste license and thus it is proposed that revised charges and categorisation for these materials is introduced.

As these had formerly been charged at a lower rate, they are not new “user pays” charges requiring a States debate as per P63/2003 and the Minister is asked to request the permission of the Minister for Treasury and Resources to revise the charging structure for these categories of waste to reflect the costs of dealing with them. Contaminated material will be stored in a lined cell and the charges are based on the unit cost for construction and filling of this.

Plasterboard is a restricted land fill material and was therefore under “Waste Hazards” during 2013. A trial cover and treatment programme has been run. This trial has cost approximately £200,000 and it is proposed to cover the majority of these costs by an increased charge ,however, SMT decided that the charge should be capped at net £96.57 GST £4.83 totalling a gross charge of £101.40. The costs that would need to be borne by the department are reception staff, advertising, site maintenance and administration totalling £34.40.

The above fees and charges will be increased in line with the attached Appendix with effect from 01 January 2014, except where noted otherwise.

Recommendation

That the Minister approves increases to the fees and charges for 2014 as laid out in the attached Appendix. That the Minister requests the Finance Director to arrange for the Department’s fees and charges to be advertised in the Jersey Evening Post following the approval of the Minister for Treasury and Resources.

Reason for Decision

To enable the Department to increase its fees and charges by 2.5% for 2014 and request permission from the Minister for Treasury and Resources to increase above the RPI(X) as at September 2013 in order to meet the income obligation set out in the Medium Term Financial Plan 2013-2015.

Resource Implications

The additional income as a result of the proposed increases to fees and charges has been included within the income estimates in the Medium Term Financial Plan for 2013-2015. The cost of advertising increases to fees and charges in the Jersey Evening Post is included within the expenditure estimates of the department.

6. Action Required

Request permission from the Minister for Treasury and Resources and when approved the Finance Director to arrange for the Department’s fees and charges to be advertised in the Jersey Evening Post.

Written by:

Senior Management Accountant – Compliance

Approved by:

Director of Finance