15 January 2007
Economic Development Minister Senator Philip Ozouf says he will meet representatives of the Chamber of Commerce to discuss their concerns about the States policy for developing the Island’s retail industry sector.
Senator Ozouf says he will always be happy to review any new information which becomes available, but remains concerned that Chamber may not fully appreciate the full spectrum of information and opinion that informed the policy framework and the analysis underpinning it.
Senator Ozouf said: ‘Government must have the interests of the whole Island community at heart. We must think about what will be good, not just for Island businesses, but everyone living in Jersey. This means balancing people’s wish for lower prices and more choice with the desire of some in the business community for continuing restrictions on new retailers entering Jersey.’
The Chamber of Commerce has claimed that new statistical information about ‘overtrading’ affects the value of the retail policy, but, said Senator Ozouf: ‘Changes in the data do not alter the value of the policy framework because it is not dependent on those conclusions. In fact far from it - the framework makes it clear that there is uncertainty surrounding the original data and that it would be unwise to base policy on it.’
He added: ‘Government must consider the effect of its policies for the whole community. In this case, the new policy for developing the retail sector could help the Island achieve its economic objectives of economic growth, low inflation and higher productivity, which will mean more jobs for local people. For the consumer, this could mean lower prices and more choice. ‘
To develop the policy framework, senior advisers spoke to many retailers and consumers in a long-running consultation process. Many of the retailers were prepared to face new competition as long as new businesses coming to Jersey were not allowed unfair advantages. Consumers put great emphasis on the need for more choice and lower prices in retail outlets in Jersey. The policy which was agreed is based on a balanced, incremental approach, which is aimed at ensuring new retailers cannot take a dominant position in the market.
The framework provides guidelines to help with the regulation of business undertakings and planning decisions about retail space. These guidelines are required now, so that the States can ensure that decisions taken will support the high level strategic aim of improving Jersey’s economic performance.
Senator Ozouf concluded: ‘The policy framework guiding development in our retail industry sector considers the benefits to the Island (and the people who live here) as a whole rather than just the impact on existing retailers, which is clearly the Chamber's concern. There is no reason to suspend the policy, as the Chamber has asked, on the basis of its comments. Outside the finance industry, the retail industry is Jersey’s biggest employer. How can we ensure that this industry fits with the States strategic objectives if it is sheltered from competition?’
Ends
For more information, contact Economic Development chief executive Mike King (448102) or economic adviser Dougie Peedle (440446), as Senator Ozouf is out of the Island on holiday.
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