Questions over ministers bypassing scrutiny to get fuel farm lease agreed

Tuesday 08 March 2016

Urgent questions are being asked this morning about a planned ten-year extension of the fuel farm lease, with backbenchers concerned that ministers are trying to rush through the contract on Friday without following scrutiny procedures.

A deal to renew the lease with a company ultimately owned by Rubis has been agreed by Infrastructure Minister Eddie Noel, who emailed States Members on Friday to tell them that he was dropping the normal 15-day scrutiny period to get the lease agreed – contrary to a commitment he gave in 2013.

But St Helier Constable Simon Crowcroft has tabled an emergency question this morning about the deal – asking why the scrutiny period has been dropped, and why ministers waited eight days between signing off the contract and announcing it.

In March 2013, Deputy Noel told the Assembly that any lease renewal or extension would be subject to the 15-day rule – a rule that places States leases and property deals on hold to give States Members enough time to review it, and demand a debate if necessary.

Last month, Deputy Noel told Bailiwick Express that new checks had been introduced to the renewed lease on Jersey’s fuel farm to ensure that the owners are not taking excessive profits out of the operation.

They have added in a new ‘operating agreement’ which guarantees the right to arbitration for companies that use the facility over disputes, and which gives competition watchdog CICRA oversight of prices.

The lease is for the 209,350 square feet of land that the fuel farm sits on – Rubis own the actual infrastructure in terms of storage containers and equipment that comprise the fuel farm itself.

The fuel farm is used by companies that sell and store fuel in Jersey – competitors of Rubis have apparently complained that they are being charged excessive prices to use the facility.

Mr Crowcroft’s question, listed for this morning, asks: “For what reasons did the Minister not communicate to States Members that he intended to sign a Ministerial Decision in respect of the lease on the fuel farm at La Collette, St Helier, immediately following the approval of the matter by the Council of Ministers on 24 February; and, notwithstanding changes to Standing Orders in 2014, will he postpone the passing of the contract for the lease renewal in order to provide States Members with the customary 15-day period for scrutiny?”