Budget transfer from Economic and Productivity Growth Drawdown Provision within Central Contingencies to Chief Ministers Department: Internet of Things Lab

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A decision made 24 November 2017:

Decision Reference: MD-TR-2017-0140
Decision Summary Title:	EPGDP Funding Allocation – CMD 05 – Internet of Things Lab		Date of Decision Summary:	14th November 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	EPGDP Funding Allocation – CMD 05 – Internet of Things Lab		Date of Written Report:	14th November 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: A non-recurring allocation of up to £499,000 in 2018 and up to £30,000 in 2019 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision within Central Contingencies.
Decision(s): The Minister decided to approve the non-recurring allocation of up to £499,000 in 2018 and up to £30,000 in 2019 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval. Following review and recommendation by the EPGDP Officer Group at its meeting on 19th October 2017, the Economic Policy Political Oversight Group (EPPOG) reviewed and approved funding from the EPGDP for proposal CMD 05 – Internet of Things Lab at its meeting on 23rd October 2017. EPPOG's recommendation is subject to the Treasury Minister receiving written confirmation from Digital Jersey of the contingency arrangements that can be put in place if demand falls short of expectations.
Resource Implications: The Chief Minister’s Department revenue head of expenditure will increase by up to £499,000 in 2018 and up to £30,000 in 2019. The EPGDP within Central Contingencies will decrease by an identical amount. £529,000 in total is proposed to be drawn down in 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the two years. This decision does not change the total amount of expenditure approved by the States for 2017, 2018 and 2019 in the Medium Term Financial Plan.
Action required: The Head of Decision Support to advise the Digital Policy Officer – Chief Minister’s Department once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Economic and Productivity Growth Drawdown Provision within Central Contingencies to Chief Ministers Department: Internet of Things Lab

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Treasury and Resources

Ministerial Decision Report

EPGDP Funding Allocation – CMD 05 – Internet of Things Lab

Purpose of Report

To approve a non-recurring allocation of up to £499,000 in 2018 and up to £30,000 in 2019 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision within Central Contingencies.

Background

Overview

Following review and recommendation by the EPGDP Officer Group, the Economic Policy Political Oversight Group (EPPOG) recommended that the Treasury Minister should approve funding for proposal CMD 05 – Internet of Things Lab from the EPGDP.

EPGDP Funding will be utilised to create a dedicated Internet of Things (IoT) Lab. The IoT Lab will offer access to c.10GB internet speeds, a data platform for analysing large data sets collected from IoT sensors and communal workshop space for building and testing IoT devices.

The IoT Lab will provide a focal point for businesses to: work together, share resources, apply research to real-life scenarios and turn IoT ideas into commercial ventures. The Lab will complement the Digital Hub and the Barclays Eagle Lab – existing co-working facilities - by providing a dedicated workspace for building and testing IoT sensors.

Financial Analysis

	2017	2018	2019	Total
IoT Lab (building and software costs)	-	449,000	-	449,000
Staff*	-	35,000	-	35,000
Marketing	-	15,000	-	15,000
Evaluation	-	-	30,000	30,000
Total	-	499,000	30,000	529,000

*There are no States of Jersey FTE requirements. Funding for staffing beyond 2018 will be met by revenue from the Lab and Digital Jersey

3. Recommendation

The Minister is recommended to approve the non-recurring allocation of up to £499,000 in 2018 and up to £30,000 in 2019 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision within Central Contingencies.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval.

Following review and recommendation by the EPGDP Officer Group at its meeting on 19th October 2017, the Economic Policy Political Oversight Group (EPPOG) reviewed and approved funding from the EPGDP for proposal CMD 05 – Internet of Things Lab at its meeting on 23rd October 2017. EPPOG's recommendation is subject to the Treasury Minister receiving written confirmation from Digital Jersey of the contingency arrangements that can be put in place if demand falls short of expectations.

5. Resource Implications

The Chief Minister’s Department revenue head of expenditure will increase by up to £499,000 in 2018 and up to £30,000 in 2019. The EPGDP within Central Contingencies will decrease by an identical amount.

This decision does not change the total amount of expenditure approved by the States for 2017, 2018 and 2019 in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 14th November 2017
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0140 - EPGDP Funding Internet of things lab £499k
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