STATES OF JERSEY

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Howard Davis Farm, Trinity: part of Fields 562, 827 and 828 – sale of land (P.68/2006) – comments

 

Presented to the States on 8th August 2006
by the Public Accounts Committee

 

 

 

STATES GREFFE

COMMENTS

 

Introduction

 

This proposition was lodged on 5th June 2006, and subsequently the States decided to refer the matter to the Public Accounts Committee (PAC) for consideration.

 

The Chairman and Vice-Chairman of the PAC, in conjunction with other States members, considered the projet and were concerned about the valuation of the Howard Davis Farm site. It was not clear that best value for money was being achieved for the Public.

 

Accordingly, the Chairman and Vice-Chairman brought draft terms of reference to the Public Accounts Committee at its meeting of 3rd July 2006, and these were considered and approved.

 

Terms of reference

 

The terms of reference of the Public Accounts Committee were to –

 

1.         Determine whether the valuation of £750,000 for 7.5 vergées of land in an area designated as a “built up” area in the 2002 Island plan reflects current market value.

 

2.         Consider the method used to determine the value.

 

3.         Consider the cost implications involved including the relocation of the Animal Crematorium and the existing glasshouse.

 

4.         Consider all other cost implications for the States of Jersey involved in the transaction including legal fees, etc.

 

5.         Consider the conditions attached to the Contract of Sale including the option of re-purchasing the land at market value.

 

6.         Determine overall return to the States.

 

Conclusions

 

·                     The PAC supports the dairy industry, and recognises that it is essential to Jersey’s cultural heritage. It recognises the need for the dairy to become more efficient and that significant efficiencies have already been made in a dairy industry that will never truly have an economy of scale.

 

·                     The PAC considers that if assistance needs to be provided to the dairy industry, it should be in a regulated, open format. It should not be in the form of preferential site provision.

 

Conclusions – Valuation

 

·                     Very few large commercial sites become available for sale and therefore one would expect to achieve an enhanced value for the site.