Economic Development Comment on Fulfilment Industry Policy

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A decision made (25.01.07) to approve the comment on P.152/2006 - Fulfilment Industry Policy.

Ministerial Decision

Subject:	Economic Development Comment on P152/2006 – Fulfilment Industry Policy
Decision Reference:	MD-E-2007-0027		Exempt clause(s):
Type of Report: (oral or written)	Written		Person Giving Report (if oral):
Telephone or e-mail Meeting?			Report File ref:	Fulfilment Industry Policy Comment 25/01/2007
Written report – Title	Economic Development Comment on P152/2006 – Fulfilment Industry Policy
Written report – Author (name and job title)	Senator Philip Ozouf, Minister for Economic Development
Decision(s): The Minister approves his comment on P152/2006.
Reason(s) for decision: The Minister is supportive of the fulfilment industry and believes that a further review of the industry at this time would not be beneficial. The Minister believes that existing regulatory authorities and existing mechanisms are both sufficient and appropriate.
Action required: Comment to be forwarded to the Publications Editor, States Greffe for lodging.
Signature: Senator Philip Ozouf (Minister)		Date of Decision:

Economic Development Comment on Fulfilment Industry Policy

Economic Development Comment on P152/2006 – Fulfilment Industry Policy

The Minister generally agrees with part (a) (i) of the proposition in that the Island can benefit from the appointment of a dedicated post for e-commerce. A post for an e-commerce Manager within the Economic Development Department had already been agreed in the 2006 Business Planning process and is currently undergoing evaluation. It is anticipated that recruitment will take place in March 2007 (see attached Job Specification). However, the remit for this person will be much wider than just online retailing and will encompass promotion and diversification of a growing e-commerce sector which the Minister believes has significant potential.

In respect of part (a) (ii), the Minister is firmly of the belief that the fulfilment industry has been reviewed thoroughly. The attached documents provide evidence that full and comprehensive reviews have been undertaken. In addition, the Economic Affairs Scrutiny Panel has already itself reviewed the industry as part of the scrutiny process and produced two reports in May and October 2006. The current and potential role of the industry in the Island’s economy is well understood and the existing policy is both appropriate and in the Island’s best interests. Online retailing and fulfilment policy is being kept under constant review because of the sensitivity and potentially changing nature of developments outside of the Island. The Minister does not therefore agree that any further review be undertaken.

The Minister does not believe that he should direct the Jersey Competition Regulatory Authority to investigate any potential cross-subsidy between Jersey Post International Limited and Offshore Solutions Limited, as requested in part (a) (iii). It is a licence condition that cross-subsidy is not permitted and it is for the Jersey Competition Regulatory Authority, as the Island’s independent and expert regulatory authority, to ensure that licence conditions are adhered to and enforced.

In respect of part (b) of the proposition, the Minister does not consider that there is a need to introduce a standard code of practice for dealing with appeals against ministerial decisions. The Council of Ministers will however be considering the matter and issuing its own comment. In respect of the Regulation of Undertakings and Development (Jersey) Law referred to in the report, a robust and fair appeals process is in place and is publicly available. The Minister recognised the Panel’s comments concerning the documentation of the appeals process and it is now documented (see attached document).

Senator P. Ozouf

Minister for Economic Development

25th January 2007