The States passed the Draft Public Finances Law this week, but it will be reviewed by a Scrutiny panel before it is given final approval.
That means parts of it could be reworked after some Members raised concerns about new restrictions on who can make changes to government spending plans.
Treasury Minister Susie Pinel said it would replace the existing law brought in when ministerial government was introduced and followed numerous reports, including criticism from the Comptroller and Auditor General, that recommended the States manage its finances better. She said: ‘I am confident that this draft legislation provides a strong cohesive framework for our public finances, which reflects the changing way in which the government of Jersey operates. And one which also reflects modern accountability and financial management.’
But under the new arrangements, the States Assembly will no longer be asked to approve funding for major capital projects and only the Council of Ministers will be able to make changes to the amounts of money allocated to department budgets.
Senator Kristina Moore, chairman of the Corporate Services Scrutiny Panel, said Scrutiny had expressed concerns to the Treasury Department and wanted more time to review and put forward amendments.
‘The minister calls this significant legislation and I am sure Members will agree that significant legislation requires appropriate scrutiny to ensure we do move forward in the best way.’
She said they would be accused of delaying other key decisions such as the Government Plan.
Deputy Scott Wickenden went further in his criticism. ‘I don’t think I’ve been more upset by a piece of draft legislation,’ he said. ‘I’ve not seen anything that’s been so undemocratically lodged in my entire life.’
He said the new law prevented Members from carrying out their duties.
‘It is utterly wrong to use this law to restrict this Assembly from doing what they have been elected to do, which is to debate in this Chamber. And I think it’s deplorable,’ he said.
Deputy Kirsten Morel added he was disappointed the law seemed to have come from the consultancy firm KPMG rather than from the Treasury Minister. ‘This law smacks of those bills that go through Congress in America. The title says one thing, but hidden very deep within are the traps which people have put in there that are only discovered years and years later.’
He added that the law changed the relationship between the Island and the government.
However, ministers rallied round, with Education Minister Tracey Vallois saying it ensured proper governance was in place.
And Environment Minister John Young, who has reservations about some of the changes within the States, said current financial controls were out of date. ‘The one thing I know is that we have to be able to progress a better planning methodology of what our government achieves,’ he said. ‘And we have to move off this silo one-year plan, and here we’ve got a device that enables us to do it.’
Deputy Pinel said the Treasury Department did not write legislation but listened to the advice from consultants.
‘When you are creating new legislation like this which is replacing something that’s 14 years old and completely not fit for purpose, there are going to be things that people don’t like,’ she said. ‘This is why Scrutiny wanted to have a look at it. We’re not talking about the articles. This is the principles and we’ve got to move forward.’
The States approved the principle of the law by 36 votes to 13 against.
Senator Moore’s panel will review it and bring amendments for when the law comes back for further debate on Tuesday 4 June.
