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Allocation of Reserve Funding to Growth, Housing and Environment in 2020 for establishment of a field hospital

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 9 April 2020:

Decision reference: MD-TR-2020-0042

Decision Summary Title:

Allocation of Reserve Funding to GHE in 2020 for establishment of a field hospital

Date of Decision Summary:

9th April 2020

Decision Summary Author:

Head of Financial Governance

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Allocation of Reserve Funding to GHE in 2020 for establishment of a field hospital

Date of Written Report:

8th April 2020

Written Report Author:

Head of Financial Governance

Written Report :

Public or Exempt?

Exempt (Articles 33 and 35)

Subject:

The allocation of up to £14.4 million in 2020 from the General Reserve to Growth, Housing and Environment (GHE) as detailed in the attached report, for establishment of a field hospital to assist in managing the COVID-19 pandemic.

 

Decision(s):

The Minister approved a non-recurring allocation from the General Reserve in 2020 of up to £14.4 million to GHE as detailed in the attached report for establishment of a field hospital to assist in managing the COVID-19 pandemic. The Minister decided to delegate drawdowns within this amount for component parts of the overall allocation to the Treasurer of the States.

 

Reason(s) for Decision:

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

 

The current Contingency Allocation Policy (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ A draft business case has been received  which includes total expected costs of £4.3 million for establishing and running the Field Hospital for a period of 4 months.  The Business case will be further reviewed and developed and in particular the  estimated costs are subject to further review, challenge and due diligence.

 

A separate allocation for the running costs of the facility will be proposed once the business case and costings have been further developed.

 

A project board and team and governance framework has been established and an AO will be appointed for the project by the PAO.

 

The Treasurer recommends the allocation of a sum of up to £14.4m for the establishment of a 180 bed Field Hospital in Jersey, given the approval of the Competent Authorities and Emergency Council at the meetings of 8 April.  That decision was made based on a rapid but robust assessment by, and recommendation of, a multi-function team using experience of similar UK proposals.  That recommendation was based upon the  current understanding of COVID 19 modelling, and healthcare requirements, taking into account of the programme, logistics, risk assessment and cost and included a site options appraisal.

 

The Treasurer makes the recommendation based upon that  assessment and appraisal and their approval; the urgent need to mobilise the project so that the facility is in place in time for the expected peak of the outbreak in Jersey; and the draft Business Case.

 

The Treasurer notifies the Minister of a currently estimated additional £4.3 million cost of running the facility that will be the subject of a further proposal.

 

It is recommended that the Treasurer be delegated the release of funds as component parts of the project are confirmed further to additional financial and procurement due diligence possible within the timeframe allowed by the critical path necessary to deliver the facility on target, to maximise the impact on the effective treatment of Islanders suffering ill-health as a consequence of COVID 19.

 

The Treasurer had previously signed a decision (under delegation from the Minister) to allocate £640,000 to enable an urgent order to be placed for beds. That sum is included within the business case and the allocation contained in this decision, and the allocation will be made only once.

 

Resource Implications:

The GHE head of expenditure to increase by up to £14.4 million in 2020 and the General Reserve to decrease by the same amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2020-2023.

 

Action required:

The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering of GHE that this decision is approved.

 

Signature:

 

 

Position:

Deputy S J Pinel

Minister for Treasury and Resources

Date Signed;

Date of Decision:

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