Weighed in the Balance

Weighed in the Balance

I read in Bailiwick Express:

“The JDC owns all of Weighbridge Square, which has been on a 150-year leasehold from the Public of Jersey since 15 February 2008. “

This is news to me! I never knew that leasehold conveyed ownership rights! Maybe someone should tell the British Government about Hong Kong, which readers may recall was leased to the British Government by  China on a 99 year lease, and had to be returned to them in 1997.

“The Assistant Minister for Treasury and Resources, St. Peter's Constable, John Refault, approved the sale of the lease for part of Weighbridge Square currently used by the Royal Yacht Hotel for their alfresco dining area for £975,000. “

This is the subject of a proposition by Chris Taylor putting a halt to it. Essentially the leasehold is reverted to the States for part of the land, which is given to States of Jersey Development company, so they can sell it and pocket the proceeds.

Constable Taylor told Express: "This is part of public space, it shouldn't be sold. I am upset it was approved. If the JDC don't want it, they should give it back to the States but don't go on and sell it."

Absolutely true! It looks as if in the final stages of the COM before the May elections

(1) this has been rushed through with indecent haste without consulting the States.

(2) it has been done by the Assistant Treasury Minister so as not to tarnish the hands of the Treasury Minister himself. John Refault, the Assistant Minister, who signed off this decision will not be accountable to the public for it. Meanwhile Treasury Senator Alan Maclean is standing off at a distance like a political Pontius Pilate who is playing a safe arms length game and does not appear directly responsible for the decision, although he must have approved it.

(3) Surely there should be some States decision on this, as fellow Minister Lyndon Farnham is listed in the Register of Members interests as Consultant / Director of the Yacht Hotel Limited? While there is not a direct conflict of interests, this is certainly close to one. Wouldn't the wider States be better placed to decide if this is value for money than his colleague? And particular one that is known to be close to him politicially within the Council of Ministers. I am not saying there is anything untoward, but Ministers have to avoid the potential for apparent conflicts of interest - that is sound practice.

(4) While leasehold is not ownership, it seems that it is effectively so for the States of Jersey Development Company whenever it chooses to flog off leased assets. This is an extraordinary casual way for the States to behave.

Chris Taylor makes a number of points in his motion for rescindment:

“There are 2 parts to this Proposition the first is about the ownership of the land and the second relates to the ways in which public property can be sold.”

Part 1

“P.73/2010, which the States Assembly adopted on 13th October 2010, was to set up the

States of Jersey Development Company (“SoJDC”). “

“Part of the Proposition was that properties namely – the Bus Station, the Waterfront Hotel (Radisson) freehold, the JEC sub station and the Weighbridge Square should be returned to States’ ownership.”

“A fifth property namely the Waterfront car park is to be returned to States’ ownership once the new Esplanade Quarter car park is built. These properties should have been passed to States’ ownership some years ago, so the Public of the Island could enjoy the income generated by these assets.”

“There is no doubt from page 62 of the report within P.73/2010 that the properties are listed for transfer to States’ ownership being Jersey Property Holdings (“JPH”). This being the case the SoJDC does not have the authority to sell assets that are not in their ownership. The Assembly agreed to these properties being returned to JPH and I ask “why has the Assembly’s decision been overridden by the Minister for Treasury and Resources?””

Part 2:

“In the case of this particular property, the Weighbridge Square, SoJDC are selling part of a Public square which clearly is a significant part of the Island’s Public Realm, which should not be sold to speculative investors. On page 68 of P 73/2010, paragraph 1.12 makes it clear that any Public Realm handed back to Jersey Property Holdings must have a revenue stream so as to ensure no long term operating costs of the property. So having sold the income generating part of Weighbridge Square, how are the long term costs of maintaining the Square going to be met?”

“Currently when JPH sells propert a report is circulated to all States Members, usually with a plan and some detail. This enables any States Member to lodge a proposition relating to the report and have the proposal debated. However in the case of any Arm’s Length Organisation (“ALO”) such as SoJDC, public assets such as the Weighbridge Square can be sold with ministerial permission without notification to States Members via a Report. This effectively allows ALOs to sell the family silver without proper notification to States Members. I would therefore ask the Privileges and Procedures Committee to look at Standing Order 168 and report back to the Assembly”