Ministerial Response - Government Plan 2020 - 2023 - Environment, Housing and Infrastructure - 20 January 2020

Findings

Minister

Comments

4.1

The total Heads of Expenditure for the Department for Growth, Housing and Environment is

£64.4 million, although the proposed efficiencies are hoped to reduce this figure to £62.2 million. In respect of Ministerial allocations, the Minister for the Environment receives the lowest allocation of funding

(£7.3 million) for his remit out of all the Council of Ministers.

Various

Agreed.

4.2

There are historic concerns that the former Environment Department was under-resourced and under- funded and there is still uncertainty as to whether the proposed funding under this Government Plan is sufficient enough to adequately deliver the operations, functions and projects within the Environment remit of Growth, Housing and Environment.

MENV

There is officer assurance that BAU is adequately resourced. Growth pressures emanating from emerging work, future public and environmental pressure etc. will however need careful consideration on funding implications.

4.3

A total of 40 million in efficiency savings is proposed for 2020. In respect of Growth, Housing and

Various

The sum of £500,000 will be removed from budgets, some posts have already been left vacant

Environment, £2.2 million in efficiency savings is planned, £500,000 of which is planned to come from a spend reduction in the Target Operating Model (staffing re- organisation) for the Department for Growth, Housing and Environment. However, as the new structure is not yet complete, it is not yet possible to be certain of the final outcome.

following retirement of staff and it is expected that the savings will be achieved overall.

4.4

A further £700,000 is proposed to come from increasing revenue by extending the hours parking charge hours from 8am–5pm to 7am–6pm, although the full impact of this proposal is unknown.

MINF

This is no longer happening as the States of Jersey adopted an Amendment by Deputy R. Labey of St. Helier (P.71/2019Amd.(2)), which prevented this measure being taken forward as an efficiency measure under the Government Plan.

It is not clear at the time of writing as to how the reduction in cash limit for the department will be balanced as a result and further consideration will have to be given to the matter by the Council of Ministers.

For reference only, the background to proposal is set out below.

Ministerial Proposal and CoM Position

Having reviewed Deputy R. Labey 's Amendment and listened to the arguments put forward within the petition and elsewhere, and in conjunction with the further analysis by officers, the Minister brought forward a compromise measure to achieve the same, however this was not successful:

1. Extend chargeable hours from 5pm to 6pm only (thus if a customer parks at 8.30am in a long-stay car park and returns to their vehicle at 5.30pm, they would not have to purchase an additional unit of parking).

2. To increase the unit cost of parking by 3p over the annual RPI(Y) increase of 2p, resulting in a total increase in the retail cost of parking for 2020 of 5p.

It was therefore proposed to increase the cost of parking by 5p per unit from 85p to 90p and extend chargeable hours from 8am (as before) to 6pm (an extension of 1hr on the previous arrangement). The early morning extension was dropped in order to lessen the effect on those living in St. Helier .

These measures were predicted to provide a £700,000 commercial efficiency, as required by the Government Plan Efficiency Measures.

The Council of Ministers supported the compromise as a pragmatic alternative to the original efficiency proposal, which recognises the concerns raised by

Deputy R. Labey , the petition and elsewhere, and as consistent and complimentary to government policy.

Policy Context – Commercially Efficient

The Efficiencies Plan 2020–2023 (R.130/2019) provides a definition of efficiency. Included within the definition are the following provisions (see section 1, p.6 of Efficiencies Plan):

"3. Increasing the Government's revenue through further recovery of existing costs, moving towards full cost recovery of services where appropriate.

4. The extension and increase of existing charges or introduction of new charges as revenue raising measures."

The designation of the trading operation called Jersey Car Parking' is contained within Regulations made by the States in 2005 (States of Jersey 2005). These Regulations were in pursuance of the Public Finances (Jersey)

Law 2005.

The Financial Directions note that

"in normal circumstances trading operations will be required to make an annual financial return, which will be calculated on the basis of a commercial rate of return"

Benchmarking St. Helier 's parking charges with a number of UK towns indicates that based on population, parking charges on-street are commensurate but somewhat lower (around 20%) than towns of similar size in the UK for off street parking. However, unlike St. Helier, many comparable towns are charging for evenings, overnight and on Sundays.

When residential rents are used to benchmark, providing a better indication of land value and the economic attractiveness of the area, St. Helier can be seen to be offering considerably lower tariffs on-street and (long stay) off-street. When considering all day charges, there is scope for a 40% increase for

St. Helier to be consistent with the average.

Further benchmarking of St. Helier in relation to five south coastal seaside towns in the UK, undertaken by Growth Housing and Environment in September 2018, revealed that parking charges in Jersey are lower for all times of the day in all on and off-street city- centre locations. The average hourly charge for an on-street space in the towns surveyed was £2.14p.

Nationally the 2019 UK average fee for off-street parking is £2.08.

Similarly, in Jersey, GHE parking charges are on average in the order of 25% cheaper than most commercial car park operators, in many instances significantly so.

Thus, at current unit parking rates, it can be argued that the States of Jersey is not receiving the commercial rate of return it should expect upon £44 million of capital invested in the Parking Trading

Fund.

Retail Strategy – Potential for Adverse Impact

In terms of the impact of the proposed increase in the retail price of parking from 85p to 90p/hr on the town centre is expected to be minimal.

Research shows that the duration of typical shopper visits to town by car is up to 2hrs (on average 90mins) and the typical retail spend is £80.50. In this context a 10p increase in parking charges per visit (6p above inflation) is not considered to be significant.

The proposed rise in the tariff above inflation is a contribution to making an equitable commercial return, while recognising the importance of continuing to provide the public with a fair, competitive and attractive offer.

Policy Context – Climate Emergency and Sustainable Transport

A third of the Island's carbon emissions arise from road transport.

Of the approximately 10,000 vehicles that travel to St. Helier each workday morning approximately 6,800 are single occupancy. Fundamental to reducing these carbon emissions is encouraging people away from single occupancy cars to shared journeys or public transport.

The cost of parking is fundamental to the relative attractiveness of other travel choices. To be financially sustainable and to maintain service levels, bus fares have to increase by inflation, thus in order to encourage more sustainable transport choices parking charges will have to increase above the rate of inflation.

A new Sustainable Transport Policy is being developed which will contain a number of measures and incentives to encourage and support

sustainable transport. This proposed change in the parking tariff would have complemented the forthcoming Policy.

4.5

The Panel found that there is no funding request for the Shoreline Management Plan in the proposed Government Plan as funding has previously been approved.

MINF / MENV

Agreed.

4.6

The Panel found that there is £400,000 already set aside to enhance the St. Helier Urban Environment' for 2020, however it is questionable as to whether this funding is sufficient enough to achieve the aims set out in the Government Plan.

MINF

£400,000 is required to develop a long-term strategy to inform the planning, management and development of St. Helier 's public realm – its network of roads and streets. This will help to inform the Island Plan Review, and the development of a plan for St. Helier ; and will form part of an integrated sustainable transport implementation plan for the Island.

Our roads and streets have a variety of functions: at a fundamental level they determine the ease with which people and goods can move about the Island and travel; but they also contribute to our civic life, character and amenity. It is important that, when making decisions about their use and management, that issues of movement and quality of place are taken into account and weighed. A strategic policy framework is, therefore, required to inform decisions about intervention and potential for change on St. Helier 's network of roads and streets and it is this that will be developed and adopted in 2020 using the initial phase of funding (£400,000) that is allocated for this purpose.

This will lead to the development and adoption of a prioritised list of schemes for implementation and be used to create a delivery programme for public realm improvement works within St. Helier and elsewhere.

The development of the strategic framework, the delivery programme and the design and implementation of individual schemes will involve

extensive engagement and collaboration with internal and external stakeholders.

The development, procurement and delivery of these works will be supported by this funding and the provision made for future years within the Government Plan, as follows:

2020  £400,000 2021  2.5 million 2022  £5 million 2023  £6.5 million

4.7

The types of homeownership schemes to be funded by the proposed additional investment are not yet known and the estimation of the funds required is based on uplifting a previous deposit scheme which was piloted in 2013.

MCH

The HPDB will report early in 2020 with a range of policy proposals including a consistent Affordable Ownership product. This could be using the existing Jersey Homebuy model which provides a discount in perpetuity, or through an alternative part-rent, part-own model, such as the UK shared ownership product. Any product is likely be the same regardless of delivery vehicle, and have a consistent discount.

4.8

There is currently no robust definition of a key worker', only a guideline. The true demand of accommodation for key workers is also unknown.

MCH

There is a working definition of "a key worker for accommodation purposes" that will be finalised at the conclusion of the research currently underway. This work will be included in the proposals brought forward by the HPDB in Q1 2020. A requirement for Key worker accommodation is identified and quantified in the Objective Assessment of Housing Need Report 2018. This will need to be revised by work undertaken in relation to the Island Plan with due regard to the "Jersey Care Model" and "Our Hospital" proposals currently under development.

4.9

The £110,000 funding requested for 2020 would cover part year funding for a Housing Options service.

MCH

SPP and CLS officers have met to initiate planning for the new Housing Options/Advice which was approved in the Government Plan. CLS will assemble a project team to scope out possible options for implementation during 2020. The

Gov Plan funding for 2020 includes start up costs of £70,000 and staffing (half year) of £40,000. The following year (2021 onwards) costs are £80,000 pa staffing costs.

4.10

There is ambiguity around the indicative funding requests for 2021–23 and how projects could be self-funded, suggesting that further work needs to be done to provide a more informed estimation of the figures.

MCH

The HDPB report will set out both potential policy options and the associated required funding options which will need to be considered in the context of the draft Island Plan and the outputs of other policy boards (including migration and economic in particular).

4.11

The Climate Emergency Fund business case proposes a one-off transfer of £5 million from the Consolidated Fund in 2020 and outlines forecasted income of £2,000,000 and expenditure of £2,545,000 for 2020. Income is expected to come from a rise in fuel duty, as well as depositing the balance of the income raised above Retail Price s Index (RPI).

MENV

Noted.

4.12

The Climate Emergency Fund is proposed to fund the development of a Carbon Neutral Strategy, Sustainable Transport Policy and various other expenditure to strengthen environmental protection.'

MENV

Noted.

4.13

An estimate of £1.55 million of the Climate Emergency Fund is proposed for the funding of sustainable transport initiatives although it was acknowledged in the business case that it is not possible to define the exact policies or initiatives until the Sustainable Transport Policy is agreed.

MENV

Noted.

4.14

There is a large degree of uncertainty over whether the proposed funding of the Climate Emergency Fund will be sufficient to deliver the aims of the project and any tangible results.

MENV

Noted.

4.15

There is lack of clarity as to whether there has been adequate engagement

MENV

See recommendation 4.6.

and discussion with key stakeholders on the Carbon Neutral Strategy.

4.16

The commercial sector was not consulted on proposals to increase fuel duty and a thorough impact assessment was not carried out as to how the proposals would especially affect businesses with large vehicle fleets.

MENV

Noted.

4.17

The £150,000 funding requested for 2020 would provide funding for an external partner to develop an infrastructure model, carry out assessments and develop a future Island Infrastructure Plan.

MENV

The business case in R.91/2019 requests £150,000 funding for 2020 only.

The business case further states that this funding will enable the procurement of an external partner to develop an infrastructure model, carry out assessments and develop a future Island Infrastructure Plan.

4.18

The Minister for the Environment is the Lead Minister for the assessment of public infrastructure business case, not the Minister for Infrastructure, as this work feeds directly into the Island Plan for which the Minister for the Environment is responsible.

MENV

Because of the potentially critical interdependency, relative to the ongoing Island Plan Review, work is already underway to undertake the first phase of an infrastructure capacity study. This is presently being commissioned through the Island Plan Review strategic partner.

This work will deliver a state of the nation' report on the Island's existing and planned infrastructure in terms of existing capacity, lifespan and resilience now, (and up to 2020); over the next Island Plan period (2021–2030); and beyond to 2040. This report will be available in early 2020.

This work is being led by Strategic Policy, Planning and Performance, working closely with Growth, Housing and Environment.

The outcome of this Phase 1 work will be considered through the political governance of the Island Plan Review in the first instance, which includes the Minister for the Environment and the Minister for Infrastructure.

4.19

The £195,000 funding requested for 2020 would provide £150,000 for contractual management and improvement of the countryside access path network and £45,000 for staff costs.

MENV

Noted.

4.20

The Minister for the Environment is Lead Minister for the countryside access business case and there is evidence of joint working with the Minister for Infrastructure regarding access to infrastructure.

MENV

Noted.

4.21

The £100,000 funding requested for Jersey National Park for 2020 would provide funding for staff costs, as well as other initiatives, such as marketing, education and information materials.

MEDTSC

This is correct.

4.22

The Minister for Economic Development, Tourism, Sport and Culture is the Lead Minister for this project rather than the Minister for the Environment. This was justified due to the part the Jersey National Park plays in tourism. There appears to be some evidence of joint working between the 2 Ministers.

MEDTSC

This is correct. Both Ministers are motivated to progress this project for the benefit of the Island.

4.23

The Jersey National Park has relied heavily on the commitment and drive of volunteers in previous years who welcome the proposed additional funding and believe the funding should be sufficient to meet the project's aims.

MEDTSC

Noted.

4.24

The Government Plan requests additional funding of £650,000 to deliver the 2020 Island Plan, which together with the £350,000 in funding already allocated, brings the total cost of the Island Plan Review to £1,000,000. This is approximately double the cost of the previous 2011 Island Plan.

MENV

The rationale provided in the business case for the request for an additional £0.65 million – to provide a total budget of £1 million – is due to it being considered that that additional resource is required to enable and ensure:

• the development of a robust, evidence-based Island Plan

• an Island Plan with an extended remit

• early, meaningful and comprehensive engagement

• statutorily required independent scrutiny

• delivery within a more ambitious timescale

4.25

The rationale for the request for a substantial increase in funding is due to it being considered that previous Island Plan funding was not considered adequate to deliver the Island Plan in a timely manner, without further investment to produce a robust evidence base, as well as resources to provide enhanced public engagement and communication.

MENV

The rationale provided in the business case for the request for an additional £0.65 million – to provide a total budget of £1 million – is due to it being considered that that additional resource is required to enable and ensure:

• the development of a robust, evidence-based Island Plan

• an Island Plan with an extended remit

• early, meaningful and comprehensive engagement

• statutorily required independent scrutiny

• delivery within a more ambitious timescale

4.26

The £130,000 funding requested for 2022 would cover refurbishment costs for Government House which on average received 3,000 guests each year including members of Royal Family, Heads of State, Ambassadors, Ministers' of State, foreign dignitaries and Islanders.

MINF

Correct. The sum of £130,000 has been allocated for 2022 to refurbish Government House in the interregnum between Lieutenant Governors. The work has been scrutinised, deemed necessary, includes efficiency measures in the replacement of lightbulbs with low energy alternatives and adds value to the Island by promoting island interests to a broad cross section of prestigious visiting dignitaries. The Minister for Infrastructure retains political accountability for the projects and Jersey Property Holdings are supporting the office of the Lieutenant Governor in the procurement of works for which the Lieutenant Governor does not have funding.

4.27

The Office of the Lieutenant Governor does not have capacity to fund the required refurbishment works at Government House.

MINF

There is no provision in the budget of the establishment of His Excellency the Lieutenant Governor to fund such works, which are usually done during the interregnum between Governors.

4.28

Jersey Property Holdings hold the Governor's residence on behalf of the public and therefore the Minister for Infrastructure has ultimate political accountability for the refurbishment of Government House.

MINF

This is correct.

4.29

Having reviewed all the supporting information, the Panel is satisfied with the funding requests for the pre-feasibility studies which are being requested in this Government Plan.

Various

Noted.

4.30

Funding of £12,650,000 is requested for 2020 to fund the ongoing maintenance and replacement of: the sewerage network, roads and sea defences. Historically, networked assets have not received 1% of value due to funding pressures and therefore there is currently a maintenance backlog.

MINF

Agreed.

4.31

£6.56 million is required to address the maintenance backlog in respect of Jersey's highways. This amount is considered to be sufficient in terms of what is also deliverable regarding the scheduling of works on Jersey's roads.

MINF

Agreed.

4.32

Funding of £7,850,000 in 2020 and £4,000,000 in 2021 for the Sewage Treatment Works is requested in this Government Plan to enable its completion. £29 million in funding allocations has previously been made from the Infrastructure Rolling Vote, which is considered not to be a sustainable funding mechanism going forward.

MINF

Correct.

4.33

The total funding of £11.85 million is considered to be sufficient to deliver the Sewage Treatment Works project to completion.

MINF

Yes, the project is now progressing well, and it is expected to come in within the overall identified budget at this time.

4.34

Having reviewed all the supporting information, the Panel is satisfied with the funding request of £1,500,000 for 2020 for the drainage foul sewer extensions,

MINF

Noted.

noting that the requests for 2021–23 are indicative and that approval will be required by the States in future Government Plans.

4.35

The business case for Sewage Treatment Works – odour mitigation does not request funding for 2020 and only outlines indicative funding for 2021 of £1,500,000, therefore a States' decision is not required at this time.

MINF

Agreed.

4.36

The business case for Bellozanne Sewage Treatment Works outfall rehabilitation does not request funding for 2020 and only outlines indicative funding for 2023 of £1,000,000, therefore a States' decision is not required at this time.

MINF

Agreed.

4.37

Having reviewed all the supporting information, the Panel is satisfied with the funding request of £650,000 for 2020 for the First Tower pumping station upgrade.

MINF

Noted.

4.38

Having reviewed all the supporting information, the Panel is satisfied with the funding request of £500,000 for 2020 for an inert waste site feasibility study.

MINF

Noted.

4.39

Having reviewed all the supporting information, the Panel is satisfied with the funding request of £500,000 for 2020 for the

La Collette waste site development, noting that the requests for 2021 –23 are indicative and that approval will be required by the States in future Government Plans.

MINF

Noted.

4.40

Having reviewed all the supporting information, the Panel is satisfied with the funding request of £400,000 for 2020 for the Island Public Realm including St. Helier , noting that the requests for 2021 –23 are indicative and that approval will be required by the States in future Government Plans.

MINF

Noted.

4.41

The £580,000 funding requested for 2020 would cover the costs of refitting the Norman Le Brocq fisheries vessel which are required to operate legally on health and safety grounds. The £2,800,000 indicative funding for 2023 will cover the costs of a new build vessel which is required to meet the challenges and pressures on Jersey's fishing territories following Brexit.

MENV

The new build vessel will also be required to adhere to increased safety requirements for standard business as usual.

4.42

The Norman Le Brocq vessel is currently the only States owned fisheries vessel and is not deemed adequate in size to deal with fishing disputes which are likely to arise as a result of Brexit.

MENV

The NLB is currently the only wholly Government-owned asset of any size and capability not counting vessels operated by Ports of Jersey. It is used as a multi-platform asset across various services in Government and operated principally as a Marine Resources research and fisheries protection vessel.

4.43

Funding of £4,333,000 is requested in 2020 for the replacement of various fixed assets including elements of the Energy Recovery Facility, pumping stations,

La Collette Waste Site and Bellozanne Sewage Treatment Works.

MINF

Agreed.

4.44

There are a number of capital projects which do not require funding decisions for 2020 and only provide indicative funding proposals for 2021–3. The Panel will review these projects in future Government Plans when requested funding is confirmed and further details are available.

Various

Noted.

4.45

This Government Plan is requesting funding approval for 2020–23, totalling £6.5 million for a new Vehicle Testing Centre despite the options appraisal not having been concluded. The rationale has been given that this is due to the project being defined as a likely major capital project.

MINF

The work to assess feasibility will take place in 2020 which will then inform what the solution is and therefore what the build requirement will be. This capital bid is a marker to ensure the project is identified, and once detail is known, the figure will firm up. It is suggested that the Scrutiny panel supports the principle of funding, subject to the detailed feasibility work providing the detail.

4.46

The funding requested for the Prison Improvement Works Phase 6(b) is for both 2020 (£1,714,00) and 2021 (£90,000) and will involve the demolition of A, B and C wings and relocation of the Atlas Lock Hub.

MHA

Agreed.

4.47

Funding of £450,000 is requested for 2020 to convert Courtroom 1 in the Magistrates Court Building to be able to accommodate Assize trials (Jury trials). Currently only the Royal Court Building can accommodate an Assize trial.

CM

4.48

The Chief Minister considers the funding proposals to be sufficient at this time, although the final cost will be dependent on fluctuating prices for construction materials. He also considers the conversion to be sustainable for a minimum of

10 years.

CM

4.49

There is a discrepancy between page 128 of R.91/2019 and

page 149 of the Government Plan as to whether the funding request for Dewberry House is for both 2020 and 2021 or just 2020. The Minister for Justice and Home Affairs confirmed in response to written questions that it is only funding for 2020 which is being requested at this time.

MHA

As set out in the Minister's letter to the Panel on 27 September 2019, the funding request was for £1 million in 2020. The overall projected cost of the project is £2.55 million. The funding for 2021 was not included in the proposition to the States. The £1 million allows the initial funding to do the feasibility and commencement works (potentially enabling works or to meet immediate pressures) and then influence the amount to be proposed for the rest of the Government Plan 2021–2024 which will contain firm details of the remaining expected costs of the project.

4.50

It was first identified that Dewberry House was not fit for purpose in 2015.

MHA

Agreed.

4.51

The Minister for Justice and Home Affairs considers that it is impossible to be entirely confident that the level of funding for the project is sufficient, however, the estimate has been based on reasonable assumptions and current

MHA

Agreed.

build costs'.

4.52

There is a discrepancy between page 128 of R.91/2019 and

page 149 of the Government Plan as to whether the funding request for Five Oaks is for both 2020 and 2021 or just 2020. The Department for Health and Social Services has confirmed that it is only funding for 2020 which is being requested at this time.

MHSS

4.53

There are no plans to incorporate the relocation of the services provided at Five Oaks into plans for a future hospital at this time.

MHSS

4.54

The Minister for Health and Social Services is confident that the funds are sufficient to deliver the project's aims, based on the advice he has been given.

MHSS

4.55

The funding requested for Jersey Fleet Management is for the purchase of vehicles that generate an income from internal leases to various Departments of the Government of Jersey.

MINF

Noted.

4.56

A decision on funding of £553,000 for 2020 is requested for car park maintenance and refurbishment. Further indicative funding proposals are given, including those for car park modernisation plans in 2022–3, although a decision on these proposals is not required until a future Government Plan.

MINF

It is noted that Scrutiny are satisfied with the funding request for 2020 for public car park maintenance and refurbishment and have given it a business case green.

It is further noted that Scrutiny recognises that a business case for modernisation is not required until 2022–23 as funding for 2020–21 has already been approved.

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

4.1

The Panel does not consider the extension of parking charges to be an efficiency as it is a revenue raising initiative. The Panel recommends this be removed from the Efficiencies Plan. If the Minister for Infrastructure wishes to continue with this measure, a full impact assessment on the proposal to extend the hours for parking charges should be provided to the Environment, Housing and Infrastructure Scrutiny Panel for proper scrutiny prior to actioning the proposal.

MINF

The States Assembly has now voted on this matter, and thereby removed this proposal from the Efficiency Plan.

With immediate effect if removing from EP.

Or, if continuing with the proposal, to have completed an impact assessment by Q2 2020, prior to actioning a Ministerial Order.

4.2

The Council of Ministers should ensure that detailed strategic direction on how to deliver the action enhance the St. Helier Urban Environment' is provided in 2020 for the next annual approval of the Government Plan 2021, including more robust leadership and co-ordination to deliver on the intended aims.

CoM

For the Government Plan 2021

4.3

The Minister for

MCH

Accept

The HPDB will

By the end of

Children and Housing should, by the end of February 2020, provide more robust estimations which are backed up by more extensive evidence- based research for the delivery of long-term housing policies and initiatives.

produce a report containing a suite of policy measures that will form the basis of the recommendations to be made to the Chief Minister in February 2020. These interventions will improve the supply, affordability, access to, and standard of housing in the Island in the long-term.

February 2020

4.4

The Minister for Children and Housing should ensure that, for the next Government Plan, a clear proposal is provided in the business case detailing what will be self-funded and what will be Government funded and that appropriate stakeholder engagement and consultation is carried out when developing this proposal.

MCH

Accept

The proposals brought forward for the next Government Plan are being developed with the relevant delivery agents and wider stakeholder engagement and consultation will occur prior to completion in 2020.

For the Government Plan 2021

4.5

The transfer of

£5 million in funds currently proposed to come from the Consolidated Fund should instead be transferred from the Strategic Reserve Fund.

MENV

The Environment Minister accords with the Council of Ministers who do not accept this recommendation. It is believed that its proposed method of funding the Climate Emergency Fund in 2020, from money within the Consolidated Fund, is the correct approach.

The States Assembly has previously set its overarching policy for the use of the Strategic Reserve

With immediate effect

Fund as:

"Money held in the Fund is to be used in exceptional circumstances to insulate the Island's economy from severe structural decline (such as the sudden collapse of a major Island industry – the policy enables up to £100 million to be made available for a Bank Depositors Compensation Scheme should this be necessary) or from major natural disaster."

The Minister sees no justification for this policy to be amended and rejects the Scrutiny Panel's recommendation for funding the climate emergency requirements from the Strategic Reserve fund.

The Minister acutely aware of the Fiscal Policy Panels' advice that the Government's overarching aim should be to grow the value of the Strategic Reserve Fund. The Panel has provided advice that the current value of the Strategic Reserve Fund was not sufficient, at 17% of GVA, and that a range of 30%–60% of GVA may be required to meet the objective of

insulating the economy from the sudden collapse of a major island industry. The Panel has recommended that the Government should consider working towards a larger Strategic Reserve Fund through a long-term programme of contributions and retaining the returns from investment. The Panel commented that it was pleased to see that the second half of this recommendation has been met, as the draft Government Plan does not propose any drawdown from the Strategic Reserve and, therefore, investment returns would be retained in the Reserve. The recommendation from the Scrutiny Panel would go against the Fiscal Policy Panel's advice.

The Minister for the Environment and the Council of Ministers is committed to develop a strategy to tackle the climate emergency and is aiming to move quickly towards the Island being a sustainable low carbon jurisdiction. A wide range of fiscal levers are being explored, and options for future changes

will be set out in the Carbon Neutral Strategy which the Council has committed to bring forward in 2020.

In summary, The Minister for the Environment and the Council of Ministers continue to acknowledge their commitment to contribute to addressing the climate emergency and the significant challenge of environmental threats to our Island but cannot support the view that these challenges in 2020 require funding from the Strategic Reserve Fund and is satisfied with the initial proposed approach.

4.6

The Department for Strategic Policy, Planning and Performance should carry out improved stakeholder engagement, even in the initial planning stages of policy proposals for a Carbon Neutral Strategy and Sustainable Transport Policy, in order to take on board crucial feedback, expertise and, where appropriate, recommendations from key stakeholders. This should be started before the end of Q4

MENV

Noted and a full engagement programme for 2020 is outlined in the carbon neutral strategy.

Before end of Q4 2020

2020.

4.7

Impact assessments and consultation with the commercial sector should be undertaken in respect of the proposed increases in fuel duty before January 2020.

MENV

Noted.

Prior to January 2020

4.8

The Panel recommends that the Minister for the Environment and the Minister for Infrastructure should take a joint lead approach to delivering this project throughout the remainder of 2019 and until the project's completion, in order to ensure the highest level of expertise, collaboration and political oversight.

MENV and MINF

If the Island's infrastructure is to be able to respond to a range of external drivers and mega trends, including the potential for continued population growth, there is a need to understand the capacity, lifespan and resilience of existing and planned critical infrastructure now and into the future.

Where a planned response may be required over the next 10-year period, there is a need to ensure that this is recognised, understood and, where necessary, addressed in the new Island Plan.

Because of this potentially critical interdependency, relative to the ongoing Island Plan Review, work is already underway to undertake the first phase of an infrastructure capacity study. This is presently being commissioned through the Island

With immediate effect until the project's completion

Plan Review strategic partner. This work will deliver a state of the nation' report on the Island's existing and planned infrastructure in terms of existing capacity, lifespan and resilience now, (and up to 2020); over the next Island Plan period (2021–2030); and beyond to 2040. This report will be available in early 2020.

This Phase 1 report will inform the development a Phase 2 piece of work to include the development of an infrastructure model leading to the development of a future Island Infrastructure Plan.

This work is being led by Strategic Policy, Planning and Performance, working closely with Growth, Housing and Environment.

The outcome of this Phase 1 work will be considered through the political governance of the Island Plan Review in the first instance, which includes the Minister for the Environment and the Minister for Infrastructure.

4.9

The Minister for Economic Development, Tourism, Sport and

MEDT SC

Accept

As the project starts in January 2020, the first full update can be provided at the

Starting from January 2020, on a quarterly basis until the project's completion.

Culture should provide the Environment, Housing and Infrastructure Scrutiny Panel with quarterly cost-benefit updates, starting from January 2020, detailing how the requested funds for the Jersey National Park have been spent and what has been achieved.

end of the first quarter of 2020 and throughout the year at regular quarterly intervals. It is planned that progress will be monitored against the National Park Management Plan and updates will be based on agreed KPIs that will be embedded in a new partnership agreement.

4.10

In order to demonstrate clear politically accountability, all business cases within the Government Plan, including for projects driven by Non- Ministerial Departments and capital projects, should clearly state a Lead or Accountable' Minister / Assembly Committee or Panel in order to demonstrate clear, transparent politically accountability and leadership for the project's delivery. The Council of Ministers should incorporate this for the next Government Plan 2021.

CoM

This Phase 1 report will inform the development a Phase 2 piece of work to include the development of an infrastructure model leading to the development of a future Island Infrastructure Plan.

For the next Government Plan 2021 and all future Government Plans.

4.11

The Minister for Infrastructure should provide the Environment, Housing and Infrastructure Panel with a report on the outcome of the options appraisal for

MINF

Accept

A report will be provided to the panel when the option appraisal is complete. It is also the intention to provide updates as the work progresses. The current position is that the process of

On completion of the Options Appraisal.

a vehicle testing centre as soon as this has been concluded.

selecting appropriate Management Consultants to undertake the options appraisal will commence early in January with a view to appointing the most appropriate company and beginning the study early in March 2020. It is currently anticipated the study will be completed before the end of the summer period of 2020.

4.12

The Panel recommends that further information is provided in the next Government Plan outlining how future requests for funding will take into account the purchase of electric vehicles, which are generally more expensive than other fossil fuel vehicles.

MINF

Accept

Further research work will be undertaken to inform the next Government Plan.

For the next Government Plan 2021.