Economic Stimulus Plan: Budget Allocation for Jersey Opera House Refurbishment Project

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A decision made regarding a budget allocation from the Economic Stimulus Plan in respect of a refurbishment project for Jersey Opera House

Decision Reference: MD-TR-2010-0118
Decision Summary Title:	Fiscal Stimulus – Allocation to Department for Education, Sport and Culture – grant to Jersey Opera House		Date of Decision Summary:	22nd July 2010
Decision Summary Author:	Interim Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Fiscal Stimulus Funding to the Department for Education, Sport and Culture in respect of a grant award to Jersey Opera House		Date of Written Report:	22nd July 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Department for Education, Sport and Culture in relation to a grant for Jersey Opera in respect of a refurbishment project.
Decision(s): The Minister approved the allocation of £112,000 to the Department for Education, Sport and Culture (“ESC”), in respect of a grant to be awarded to Jersey Opera House to be transferred to the department’s budget in 2010. The Minister further instructed the Chief Officer of ESC to report on spend of all stimulus monies, and project progress/performance on a monthly basis in accordance with guidelines set by the Treasury and return any unspent grant monies without limit in time.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The approved funding of £112,000 to ESC will enable grant payments to be made to Jersey Opera House in accordance with the critical path for delivering this stimulus project on a timely basis.
Resource Implications: No financial resource implications other than those explained above and in the accompanying report. No manpower resource implications.
Action required: Treasury to be informed of decision to release necessary funds to the Department for Education, Sport and Culture’s budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Economic Stimulus Plan: Budget Allocation for Jersey Opera House Refurbishment Project

Treasury and Resources

Ministerial Decision Report

Allocation of Discretionary Fiscal Stimulus Funding to the Department for Education, Sport and Culture in respect of a grant award to Jersey Opera House

1. Purpose of Report

The report summarises the evaluation process and resulting recommendation of the Fiscal Stimulus Steering Group (the “FSSG”) to the Minister for Treasury and Resources in respect of an allocation of funding to the Department for Education, Sport and Culture (“ESC”) for a grant award to Jersey Opera House. The grant of £112,000 is to be awarded in respect of the refurbishment of certain parts of the Opera House building to provide the organisation with improved space for performance, hospitality and office accommodation. This allocation of funding will enable the scheme to proceed to tender, after which the FSSG will evaluate the results of the tender process and evaluation and consider a recommendation to the Minister for Treasury and Resources for a further allocation of funding for the total project cost, which will then be known with certainty. The project will give a boost to the construction industry by way of releasing a project which would not take place without fiscal stimulus funding.

2. Background

As recommended by the Corporate Services Scrutiny Panel the total programme of fiscal stimulus projects includes schemes to be undertaken by both States departments and non-States organizations. This scheme will improve the Opera House building which, although occupied and operated by an organisation run independently of the States, is owned by the public of Jersey.

A bid from ESC to support a refurbishment project by the Jersey Opera House was included in the provisional programme at the beginning of 2010, although at that time it was not certain that there would be sufficient funds within the £44m fund to deliver the total project. It could only, at that time, have moved forward if a significant proportion of the total cost was available from the Opera House itself but funding constraints prevented this from happening. However, in May 2010 the FSSG considered the committed (green light) programme and remaining provisional (amber light) programme and as a result of other schemes being delivered for a lower cost than was originally anticipated, the FSSG agreed to consider funding the whole of the Opera House scheme on satisfactory confirmation of continued compliance with fiscal stimulus criteria.

3. Fiscal Stimulus Rationale

The bid was evaluated under the fiscal stimulus criteria which resulted in its inclusion in the provisional programme. As part of the FSSG evaluation underlying this recommendation those criteria were revisited and it was concluded that the project, in particular the estimated cost and planned programme, remains acceptable to proceed with an allocation of £112,000 for pre-contract costs. The allocation of funding for the full project cost, taking account of any funding which may be available from other sources at that time, will be considered following receipt and evaluation of tenders within the expected timeframe.

Furthermore, it is anticipated that progression of this project may afford other opportunities (including possible rationalisation) in relation to performance and office space currently used by other cultural organisations in Jersey, helping to achieve better value for money in a wider sense for the States and in particular ESC supported cultural activities.

4. Recommendation from the Fiscal Stimulus Steering Group

The Fiscal Stimulus Steering Group (the “FSSG”) recommends to the Minister for Treasury and Resources that a sum of £112,000 is allocated to ESC’s 2010 budget to enable onward grant payments to the Opera House for funding the pre-contract costs of the project. In accordance with procedure for schemes proposed to be fully funded with fiscal stimulus monies, the FSSG and the Minister for Treasury and Resources intend to consider the allocation of the full project cost once tenders have been received and evaluated.

5. Reason for Decision

A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The project meets the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £112,000 allocation to ESC will enable grant payments to be made to Jersey Opera House to progress delivery of this stimulus project, providing work for the construction and maintenance sector.

6. Resource Implications

No financial resource implications other than those explained above.

No manpower resource implications.