17 April 2013
The Treasury and Resources Minister has published a report to the States in which he sets out the progress on capital spending in 2013, including an assessment of capital cash flows on a quarter by quarter basis.
The Minister also makes a further response to the recommendations made by the Fiscal Policy Panel (FPP) in their report of November 2012. The Minister continues, as undertaken in the 2013 Budget debate, to keep matters under review.
The report is in two parts:
- update on prevailing economic conditions and how they are affecting Jersey
- progress on addressing the Fiscal Policy Panel’s (FPP) seven recommendations from November 2012 report
The FPP has advised the States on various financial and economic policies. In particular, the FPP has provided advice on the Fiscal Stimulus programme and in their November 2012 report they recommended ongoing monitoring of the economic situation in Jersey and that the Treasury consider how best to respond to changing circumstances.
Capital and infrastructure spending is widely regarded as an effective means of stimulating the economy. The Treasury is keen to ensure that cash allocated in capital budgets is spent, to help the local economy. The report includes, for the first time, an assessment of capital cash flows on a quarter by quarter basis.
The Treasury and Resources Minister, Philip Ozouf, said “I recognise the importance of continuing to support the economy during the downturn. Due to the strength of our public finances and also demonstrated by including for the first time further 2012 financial results and the Treasury’s success in managing the Common Investment Fund how this investment in capital is being funded.
“The report demonstrates that the Treasury is making every effort to bring forward capital spending in order to provide a further fiscal stimulus for the Island.”
The report sets out a reminder of the approved capital allocations for 2013 (£56 million) and analyses the expected cash flow associated with capital expenditure in 2013 (£62 million) for the main capital spending departments, significant spending for other departments (£16 million), Harbours and Airport (£29 million – note that the major schemes included here will have most effect in later years).
The total spending in 2013 is a combination of spend on schemes from prior years that are in progress together with new starts in 2013. Publication of this information supports the Treasury’s objective of constantly improving reporting and accountability.
The Treasury and Resources Minister said “Because of the prudent decisions taken, and success in managing the balance sheet, we potentially have the resources necessary to do more in the coming months. The Treasury is willing to do more capital and infrastructure spending if economic conditions call for it.
“We will continue to keep matters under review. We are now working on the capital programme for 2014 and preparing the ground for longer term projects - including the hospital and housing - together with options for external financing. We are, in the meantime, underlining our determination to ensure that the money already allocated is actually spent.”
Download Progress report from Treasury Minister in response to Fiscal Policy Panel Annual Report (size 986 Kb)