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Covid Reserve: Allocation of funding to Economy in 2021 to enable essential air connectivity to and from the Island due to the impact of Covid-19

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.

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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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[THIS DECISION HAS BEEN RESCINDED BY MD-TR-2021-0045] A decision made on 15 January 2021

Decision Reference: MD-TR-2021-0006

Decision Summary Title:

Allocation of Covid Reserve funding to Economy in 2021 to enable essential air connectivity to and from the Island due to the impact of COVID-19

Date of Decision Summary:

14th January 2021

Decision Summary Author:

Group Director, Strategic Finance

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title:

Allocation of Covid Reserve funding to Economy in 2021 to enable essential air connectivity to and from the Island due to the impact of COVID-19

Date of Written Report:

14th January 2021

Written Report Author:

Group Director, Strategic Finance

Written Report :

Public or Exempt?

Public

Subject:

The allocation of up to £241,500 in 2021 from the Covid Reserve to the Economy head of expenditure as detailed in the attached report, to enable essential air connectivity to and from the Island due to the impact of COVID-19.

Decision(s):

The Minister approved a non-recurring allocation from the Covid Reserve in 2021 of up to £241,500 to Economy as detailed in the attached report to enable essential air connectivity to and from the Island due to the impact of COVID-19.

Reason(s) for Decision:

 

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

 

The current Contingency Allocation Policy (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ A draft business case has been received and reviewed by the Investment Appraisal Team.

 

Further to this review, the Treasurer recommends this allocation to the Minister for approval.

 

Funding of up to £330,000 was allocated to the Office of the Chief Executive (OCE) head of expenditure in 2020 through MD-TR-2020-0037 to allow Government of Jersey to contract with Blue Islands to provide air services for the movement of essential workers and non-emergency medical patients on a non-commercial basis.

The funding was originally provided for the initial minimum contract period of three months (as envisaged by the initial business case) but was subsequently extended (by MD-TR-2020-0074) for a further month (to the end of July). This extension responded to the circumstances whereby commercial flights to and from the Island did not recommence until mid-July.

Recent significant increases in the number of cases of Covid-19 in Europe, have led both the UK and Jersey Governments to implement stricter public health restrictions.  England is operating under a lockdown situation until (at least) 2nd December 2020. Inevitably these increased restrictions have negatively impacted the number of people willing or able to travel between the UK and Jersey (and vice-versa).

It is noted that on the 21st November 2020 the Competent Authorities Ministers endorsed the proposals to restart these additional flights to ensure minimum acceptable levels of air connectivity. The restart was approved by the Minister in MD-TR-2020-0147.

The Director of Partnerships, through OCE, agrees such routes as may be required and appropriate to service the Island’s immediate air connectivity needs with Blue Island, subject to such modelled costs being within approved, allocated funding.

In the Government Plan 2021-2024 the States Assembly approved a Covid Reserve of £40 million which is available to fund additional, unavoidable and unbudgeted costs due to the impact of COVID-19.

Resource Implications: The Economy head of expenditure to increase by up to £241,500 in 2021 and the Covid Reserve to decrease by the same amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-2024.

 

Action required: The Head of Financial Governance to advise the Group Director, Strategic Finance, the Specialist – Business Cases and the Head of Finance Business Partnering of Economy that this decision is approved.

 

Signature:

 

 

Position: 

Deputy S J Pinel

Minister for Treasury and Resources

 

 

Date Signed:

 

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