Minister for Economic Development: States on Incorporation of Jersey Airport and Harbours

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A decision made on 15 September 2011:

Decision Reference: MD-E-2011-0147
Decision Summary Title :	DS - Minister’s Statement		Date of Decision Summary:	14 September 2011
Decision Summary Author:	Business Compliance Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	N/A		Person Giving Oral Report:	N/A
Written Report Title :	WR - Statement - Incorporation		Date of Written Report:	14 September 2011
Written Report Author:	Business Compliance Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Minister’s Statement
Decision(s): The Minister approved the draft statement to be made in the Assembly at an appropriate point in this week’s sitting.
Reason(s) for Decision: The Statement is presented to the States to advise that the Minister has instructed the Group Chief Executive to restructure Jersey Harbours and Jersey Airport and to prepare a business case for incorporation.
Resource Implications: None.
Action required: For the Business Compliance Manager to forward the Statement to the States Greffe to be printed and lodged.
Signature:		Position: Minister - Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

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Minister for Economic Development: States on Incorporation of Jersey Airport and Harbours

STATEMENT – 13th SEPTEMBER 2011

As Members are already aware, a Shadow Board for Jersey Harbours and Jersey Airport was formed in November 2010. The Terms of Reference for the Board were approved by the Assembly by P47/2011.

In March, I wrote to the Chairman of the Jersey Harbours and Jersey Airport Shadow Board asking for their consideration on matters concerning the potential incorporation of the two Trading Operations

Given the strategic and financial challenges facing both organisations, I was keen to establish whether incorporation could provide an element of the solution.

Working alongside the Executive Teams, the Shadow Board have now advised of their clear belief that incorporation of both Jersey Harbours and Jersey Airport will improve the financial sustainability of the two trading operations.

The Shadow Board have recommended the development of a detailed Business Case for incorporation which clearly identifies:

The envisaged financial sustainability
Costs and benefits of incorporation, including any remaining liabilities post integration of the business
The viability of incorporating the two organisations together or separately
A risk register identifying any social, economic or Island risks
The impact on existing staff and future recruitment

To this end, I have today signed a Ministerial Decision instructing the Group Chief Executive to prepare a business case for incorporation.

Both my letter to the Shadow Board seeking advice and their response are attached to the Ministerial Decision which has been circulated to Members

In addition and following a recommendation from the Group Chief Executive, I have approved a proposed restructuring of the Harbours and Airports organisations to deliver immediate benefits, including savings and efficiencies.

Finally, I have instructed the Group Chief Executive to engage stakeholders in the development of the business case to ensure an effective plan is prepared, including Human Resources, the States Employment Board, Law Draftsmen, Law Officers, States of Jersey Development Company, Treasury officials, and the JCRA.

When completed, this work will:

Integrate the structures of the businesses, drawing on best practice and to deliver efficiencies
Deliver a vision and strategic objectives for the newly merged businesses
Unify commercial strategies under one structure, whilst concentrating operational excellence in specific functions
Complete a business case for incorporation for approval by the States

Thank you Sir.