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A decision made (13/11/2008) regarding: Transport and Technical Services - 2009 Increases to Fees and Charges.

Decision Reference: MD-T-2008-0104
Decision Summary Title :	Transport and Technical Services – 2009 Increases to Fees and Charges		Date of Decision Summary:	6th November 2008
Decision Summary Author:	Honey Whiteman		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Transport and Technical Services – 2009 Increases to Fees and Charges		Date of Written Report:	14th October 2008
Written Report Author:	Honey Whiteman		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transport and Technical Services – 2009 Increases to Fees and Charges
Decision(s): The Minister approved the increases to the Department’s fees and charges as set out in the attached schedule with effect from 1st January 2009.
Reason(s) for Decision: To enable the Department to increase its fees and charges for Waste and Driver and Vehicle Standards in 2009 in line with the Anti-Inflation Strategy agreed by the States.
Resource Implications: None
Action required: To request the Treasurer of the States to approve the increases to the fees and charges.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Transport and Technical Services - 2009 Increases to Fees and Charges.

TRANSPORT AND TECHNICAL SERVICES

INCREASES TO FEES AND CHARGES

Purpose of the Report

The Minister for Transport and Technical Services is asked to approve a request to increase the Department’s various fees and charges (a schedule of charges is attached as Appendix A).

Discussion

The majority of the proposed increases have been limited to 2.5% per annum in accordance with the States Anti-Inflation Strategy.

However, it is proposed to increase some of the charges, mainly those for the Tanker Services, Abattoir and the Knackersyard by 5.5%. When GST was introduced the Department was originally informed that such charges were GST exempt. Therefore they were not increased by 3% in May 2008 when GST was introduced. Subsequently the Department has been informed that they are taxable; the increase of 5.5% takes into account GST.

In addition the clinical waste charge per kilo has been increased by 34% to ensure cost recovery of clinical waste disposal. An internal audit review was undertaken in 2007 on the effectiveness and controls in relation to the costing of the disposal of clinical waste. It concluded that “the recharge for clinical waste disposal should be based on a current year costing and the basis of the charge should be revisited to establish the ‘real cost’ of disposal on a per kg basis”. The charge of 98p per kilo (excluding GST) proposed for 2009 has been based on 2007 actual as the 2008 basis, which is budget forecast, can fluctuate.

In accordance with Finance Direction No.4.1 Increases in States Fees and Charges, all increases to charges above 2.5% require the approval of the Minister for Treasury and Resources. The Treasurer of the States can approve increases to States charges under his delegated powers, where those increases are non-contentious.

Recommendations

The Minister is recommended to approve the increases to the Department’s fees and charges as set out in the attached schedule which are due to take effect from 1st January 2009 and seek the approval of the Treasurer of the States to any increases above 2.5%.

Reason (s) for Decision

To enable the Department to increase its fees and charges for Waste and Driver and Vehicle Standards in 2008 in line with the Anti-Inflation Strategy agreed by the States and to allow cost recovery on the charge for disposal of clinical waste.

Action Required

To request the Treasurer of the States to approve the increases to the Department’s fees and charges as set out in the attached schedule.

Reference:

Written by:	Honey Whiteman, Senior Management Accountant

Approved by:	Ellen Littlechild, Finance Director

Attachment:	Appendix A – Transport and Technical Services – 2009 Increases to Fees and Charges