Budget Transfer: Scrapyard Infrastructure Capital Head of Expenditure

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A decision made on 11 September 2017:

Decision Reference: MD-T-2017-0081
Decision Summary Title :	Use of Additional Inert Waste Tipping Income and Transfer of Budget from the DfI Revenue Head of Expenditure to the Scrapyard Infrastructure Capital Head of Expenditure		Date of Decision Summary:	5 September 2017
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Use of Additional Inert Waste Tipping Income and Transfer of Budget from the DfI Revenue Head of Expenditure to the Scrapyard Infrastructure Capital Head of Expenditure		Date of Written Report:	5 September 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: The application to the Treasurer of the States to use additional inert waste tipping income to fund the works required to construct a new scrapyard at La Collette and the transfer of up to £700,000 from the DfI Revenue Head of Expenditure to the Scrap Yard Infrastructure Capital Head of Expenditure (Q00MF14035).
Decision(s): The Minister for Infrastructure agreed to request the Treasurer of the States to approve the following: The use of up to £700,000 additional inert waste tipping income to fund the works required to construct a new scrapyard at La Collette. The increase in the DfI income budget of up to £700,000 and an identical increase to the DfI expenditure budget (both within the DfI Revenue Head of Expenditure). The transfer of up to £700,000 from the DfI Revenue Head of Expenditure to the Scrap Yard Infrastructure capital head of expenditure (Q00MF14035).
Reason(s) for Decision: Paragraph 5.13 of Financial Direction 3.6 stipulates that the use of surplus income of over £100,000 of the estimated income notified to the States for that particular service area and of a non-contentious nature has been delegated to the Treasurer of the States Article (18)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from one head of expenditure to another head of expenditure for any purpose. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.
Resource Implications: The DfI Revenue Head of Expenditure to show an additional income budget of up to £700,000 and an additional expenditure budget to match. This expenditure will subsequently be transferred to the Scrap Yard Infrastructure capital head of expenditure (Q00MF14035).
Action required: The Finance Director to request the Treasurer of the States to approve the use of additional income, and to approve the transfer from revenue to capital in order to fund the Scrap Yard Infrastructure works.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer: Scrapyard Infrastructure Capital Head of Expenditure

DEPARTMENT FOR INFRASTRUCTURE

USE OF ADDITIONAL INERT WASTE TIPPING INCOME AND TRANSFER OF

BUDGET FROM THE DFI REVENUE HEAD OF EXPENDITURE TO THE

SCRAPYARD INFRASTRUCTURE CAPITAL HEAD OF EXPENDITURE

Purpose of Report

To enable the Minister for Infrastructure to request the Treasurer of the States to approve the following:

The use of up to £700,000 additional inert waste tipping income to fund the works required to construct a new scrapyard at La Collette.
The increase in the DfI income budget of up to £700,000 and an identical increase to the DfI expenditure budget (both within the DfI Revenue Head of Expenditure).
The transfer of up to £700,000 from the DfI Revenue Head of Expenditure to the Scrap Yard Infrastructure capital head of expenditure (Q00MF14035).

Background

The Department for Infrastructure (then Transport and Technical Services) re-tendered the scrap metals contract in 2012 and a new operator took over the scrap operation in January 2013. Due to the existing contractor not vacating the old scrap yard in time, the initial scrap metals operation was based at Gate 4 Bellozanne, co-located with the old EfW plant.

The Department received a budget of £1.025 million as part of the 2014 Budget to facilitate the construction of appropriate scrap metal facilities (initially bid for in 2011/12 in the knowledge that the contract was being retendered).

Remediation of ground contamination at the old scrap yard site was undertaken over the course of 2013-14 following an extended period of negotiation with the previous operator. Removal of some of the concrete slab and other infrastructure in order to undertake this work has restricted the area available to the new operator following their move to the old scrap yard site. Prior to the move it became apparent that the previous plan to upgrade the site would not be the best option for the operator or the Department.

Over the course of 2015-16 plans have been drawn up to re-locate the scrap yard to co-locate with other solid waste operations at La Collette. The current plans are expected to cost in the order of £1.5m to construct an impervious slab, drainage infrastructure including interceptors to prevent pollution issues, site services and security. Upfront feasibility, design and planning costs have reduced the available budget to £860,000 and prior to starting work it is necessary to have the necessary budgets in place.

The level of inert and contaminated tipping waste received for 2017 has been high, mainly due to several large dig-outs resulting in additional income to the Waste Management section of the Department. It is proposed that some of this inert waste income be utilised to increase the available capital budget for “Scrapyard Infrastructure” to enable the project to commence.

Recommendation

The Minister for Infrastructure is recommended to request that the Treasurer of the States approves the following:

The use of up £700,000 additional inert waste tipping income to fund the works required to construct a new scrapyard at La Collette.
The increase in the DfI income budget of up to £700,000 and an identical increase to the DfI expenditure budget (both within the DfI Revenue Head of Expenditure).
The transfer of up to £700,000 from the DfI Revenue Head of Expenditure to the Scrap Yard Infrastructure capital head of expenditure (Q00MF14035).

Reason for Decision

Paragraph 5.13 of Financial Direction 3.6 stipulates that the use of surplus income of over £100,000 of the estimated income notified to the States for that particular service area and of a non-contentious nature has been delegated to the Treasurer of the States

Article (18)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from one head of expenditure to another head of expenditure for any purpose.

Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.

Resource Implications

The DfI Revenue Head of Expenditure to show an additional income budget of up to £700,000 and an additional expenditure budget to match. This expenditure will subsequently be transferred to the Scrap Yard Infrastructure capital head of expenditure (Q00MF14035).

6. Action Required

The Finance Director to request the Treasurer of the States to approve the use of additional income, and to approve the transfer from revenue to capital in order to fund the Scrap Yard Infrastructure works.

Written by:	Finance Manager
Approved by:	Director of Finance