Pomme d'Or Farm: Refurbishment Scheme: Budget transfer from Treasury and Resources to Housing

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A decision made 21 June 2011 regarding:

Decision Reference: MD-TR-2011-0065
Decision Summary Title:	2011 Budget Transfer – T&R to Housing for Pomme D'Or Farm Housing Estate refurbishment		Date of Decision Summary:	5th June 2011
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	2011 Budget Transfer – T&R to Housing for Pomme D'Or Farm Housing Estate refurbishment		Date of Written Report:	5th June 2011
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: 2011 Budget Transfers – T&R to Housing for Pomme D'Or Farm Housing Estate refurbishment.
Decision(s): The Minister for Treasury and Resources approved a budget transfer of £3.25 million from the Treasury and Resources Department to Housing for Pomme D'Or Farm Housing Estate refurbishment.
Reason(s) for Decision: Article 15(1)(a) 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 used for the purposes of another head of expenditure.
Resource Implications: The T&R contingency capital head of expenditure to decrease by £3.25 million. The Housing Department capital head of expenditure for Pomme D'Or Farm Housing Estate refurbishment to increase by £3.25 million. This decision does not increase the total amount of expenditure approved by the States. The £3.25 million funding will be returned to the Treasury and Resources Department by the Housing Department as sales receipts improve.
Action required: Head of Decision Support to inform the Head of Financial Performance Reporting and the Finance Director of the Housing Department that the transfer has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Pomme d'Or Farm: Refurbishment Scheme: Budget transfer from Treasury and Resources to Housing

Treasury and Resources

Ministerial Decision Report

2011 Budget Transfer – T&R to Housing for Pomme D'Or Farm Housing Estate refurbishment

Purpose of Report

To enable the Minister for Treasury and Resources to approve a budget transfer of £3.25 million from the Treasury and Resources Department to Housing for Pomme D'Or Farm Housing Estate refurbishment.

Background

On 2nd March 2011 the Minister for Treasury and Resources made a Statement to the States Assembly (attached) expressing his intention to allocate £3.6 million from Fiscal Stimulus (i.e. funding of £44 million approved by the States in P55/2009 Economic Stimulus Plan) to the Housing Department for urgent refurbishment of the Pomme D'Or Farm Housing Estate.

On 11th March 2011 the Minister for Treasury and Resources signed a Ministerial Decision (MD-TR-2011-0027) agreeing to apply the proceeds from the sale of the Sunshine Hotel site to purchase a replacement or other asset. As an interim measure, and in accordance with the decision, these proceeds are being held in the Treasury and Resources contingency capital head of expenditure pending identification of specific use.

The intention to follow this course of action was notified to the States in R67/2011: Fiscal Stimulus: Financial and Performance Review. The relevant extract is as follows (from Section 6):

“Further to this, two large projects (Pomme D’Or Farm estate and Phillips Street shaft) were highlighted as requiring urgent funding, and while meeting the majority of Fiscal Stimulus criteria, they also failed to meet the ‘Timely’ criteria. In March 2011 the T&R Minister made a second ‘Statement on a matter of Official Responsibility’ to the States Assembly [attached] that he intended to vary the timeframe for Fiscal Stimulus allocations to extend the funding of the programme for the Pomme D’Or Farm estate repair and refurbishment project.

More recently, the Minister, having made a Ministerial decision to make available the

capital receipts from the sale of the Sunshine Hotel site, has considered that these

receipts would be far more appropriate to support the Pomme D’Or Farm estate repair and

refurbishment project, as they relate to proceeds from the sale of a property originally held

to benefit Social Housing on the Island. Apart from a small sum needed to supplement

these receipts for Pomme D’Or the remaining Fiscal Stimulus funds are then proposed to

be allocated to the build of the Phillips Street Shaft, a project to complete the final phase to

connect the eastern area of town to the Cavern, therefore reducing the risk of flooding.

The remaining Fiscal Stimulus funds will therefore be allocated to Skills and Training £2.2

million, Pomme D’Or Farm estate £0.4 million and Phillips Street Shaft £3.2 million.”

The Minister having discussed matters with members of the Fiscal Policy Panel and taken further advice has decided that no further allocation from Fiscal Stimulus will be made at this time. The Housing Department, having been consulted, have therefore agreed to absorb the £400,000 that would have been allocated from remaining Fiscal Stimulus funds.

The £3.25 million funding will be returned to the Treasury and Resources Department by the Housing Department as sales receipts improve.

3. Recommendation

The Minister for Treasury and Resources is recommended to approve a budget transfer of £3.25 million from the Treasury and Resources Department to the Housing Department for Pomme D'Or Farm Housing Estate refurbishment.

4. Reason for Decision

Article 15(1)(a) 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 used for the purposes of another head of expenditure.

5. Resource Implications

The T&R contingency capital head of expenditure to decrease by £3.25 million. The Housing Department capital head of expenditure for Pomme D'Or Farm Housing Estate refurbishment to increase by £3.25 million. This decision does not increase the total amount of expenditure approved by the States. The £3.25 million funding will be returned to the Treasury and Resources Department by the Housing Department as sales receipts improve.

Report author : Head of Decision Support	Document date :5th June 2011
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2011-0065 - Pomme D'Or Funding - KH\WR - Pomme D'Or Funding Transfers - KH.doc
MD Sponsor : Treasurer of the States