Chief Minister's speech to Institute of Directors

When I spoke to you last year, we had 2 years to achieve what we set out in the Strategic Plan. Now we have less than a year to finish the job.

I would say we are making good progress – with many more policies coming to fruition next year. The biggest challenge remains the economy.

We have recovered from recessions before, but this time there is a difference.

In the past, there was an assumption that the long-standing economies of Western Europe would emerge as still the strongest in the world. But today, it’s the emerging economies that are coming up with the new ideas, spending more on research and development and investing in many of the exciting opportunities around the world.

Global economy

So how can we maintain our place in this global economy where newcomers are getting all the attention?

I believe we have the skills, ideas and determination to maintain our position in the world. We should be under no illusion though - success is far from guaranteed.

Some think we should pull up the drawbridge and ignore the increasingly global nature of the world economy. I understand where this view comes from - no-one wants to see our unique natural environment disappear beneath concrete and glass.

But if we want to continue to thrive, isolationism is clearly not the answer.

We need a middle way - a way to offer companies an attractive environment where they can develop their business and provide employment for islanders.

A way to prioritise existing residents for the available jobs.

A way to preserve the island for future generations.

Building success

1. a public sector we can afford
2. a community where everyone feels they can play a valuable part
3. an economy that is equipped for the future

First, I want to see a lean, efficient public sector that is nimble enough to adapt to the changing needs of our island; that can help keep Jersey competitive, attract business, control spending, and keep taxes low.
 
The reform programme is making steady progress -

• we are well on the way to reforming social housing
• we are reducing the number of office buildings we use
• we are transforming health and social services
• our Lean programme is streamlining outdated systems
• we will soon start to see more online services and better access to government information
• we are reviewing employee pensions – to make them fairer, sustainable and affordable
• we are reviewing 76 employment policies - reducing them to around 35
• we want to reward people for their contribution, not their length of service
• we are not just modernising pay structures, but also our relationship with union representatives

Community

Second, I want a community where everyone feels they can play a valuable part. I want every islander to be able to make the most of their talents. 

• the 2014 Skills Strategy will ensure that the local labour force has the skills local employers need
• the new “Skills Accelerator” programme is helping local firms with the cost of staff training - encouraging them to invest in their employees, to diversify and expand their businesses
• we have set up Trackers – an apprenticeship programme that develops home-grown talent across all industries and professions

Back to Work

And we are helping unemployed people back to work. In 3 years we have spent almost £20 million on employment initiatives.

We have had considerable success -

• more than 1500 offers of paid work for participants this year - that’s 200 more than in 2012
• latest figures show a drop in unemployment - 1800 people - the lowest for a year
• we have introduced an Employment Grant - offering employers £7,200 for each long-term unemployed person they employ
• long term unemployment has dropped to its lowest level since December 2012

I’m pleased the Back to Work team has seen such positive results in one of its main target areas. We’ve also taken action to make sure people are better off in work than on benefits. Changes to Income Support have strengthened sanctions for jobseekers who don’t do enough to find work, or who leave work voluntarily without a good reason.

Support for vulnerable

We mustn’t forget that there are vulnerable people in our community who need support. 

• we are introducing a new long term care scheme
• refurbishing many of our older housing estates
• building more than a hundred homes for older people
• rezoning private land for affordable housing
• borrowing money to build more social housing
• running a deposit loan scheme to help islanders to buy their first home

We are forging an inclusive society where all islanders have the opportunity to maximise their potential, so we can truly say we have a successful island.

Population

I don’t know if the IoD has ever sent Santa a letter, but it has been reported that Chamber does. In the spirit of Christmas, perhaps I can talk about the first present Chamber requested.

Let’s be clear. We already have a population policy – outlined in the Strategic Plan.

A policy that will keep in balance our quality services, housing and amenities; supported by a successful economy and an environment that’s attractive and safe.  

Economy

Third, we need an economy equipped for the future. 

Value to Britain 

One of our key strengths is our close working relationship with the City of London. Capital Economics quantified, for the first time, the value of Jersey to the UK. Our industry supports more than 180,000 jobs and provides approximately £9 billion to the UK economy. 

Transparency 

We share with the UK a zero tolerance of tax evasion and a commitment to transparency. This has been recognised by the UK Prime Minister, David Cameron. 

• we have joined the G5 project on automatic exchange of information – developing a single global standard
• we gave our support to the G8 - producing an Action Plan to improve the transparency of the beneficial ownership of companies
• we support the G20 St Petersburg Summit Leaders’ Declaration
• we have agreed to join the Multi-lateral Convention on Mutual Assistance in Tax Matters - and to automatic exchange of information under the EU Savings Directive
• Jersey has also been invited to become a vice-chair of the Automatic Exchange of Information  working group of the Global Forum

We are keeping in step with the global direction towards greater transparency.

Competitiveness

It will take inventiveness and innovation to succeed in a world that is reshaping itself around the emerging economies in the East. Jersey people have always been pioneers – whether as cod fishermen, dairy farmers or hoteliers. Now we must use that spirit to make Jersey the ‘location of choice’ for investors looking to start or build up their business.

Enterprise

Early next year we will be publishing a new Enterprise Action Plan – defining the steps we need to take to deliver Economic Growth and Diversification. 

Government success

Some think too much time in the States Assembly is taken up with peripheral issues  and navel-gazing. But let me assure you, Government is working hard to ensure a strong, sustained and successful recovery that reaches every industry and every islander in Jersey. There have already been many successes -

• in the first nine months of this year Locate Jersey helped 28 new businesses to move here, creating 245 new job opportunities
• 235 of these jobs are for locally qualified people 
• 103 are in information technology and e-commerce
• This is an excellent example of the drive to strengthen our economy by developing the digital sector
• Gigabit Jersey is transforming communications by bringing superfast broadband to every home and business on the Island
• Digital Jersey has set ambitious targets - by 2020 it’s aiming to create 2,200 new sustainable jobs, making a real contribution to the growth and diversification of Jersey’s business base

In conclusion

I am confident that with the right approach, together, we can come through these difficult years in a strong position. We have laid the foundations for an economy that’s fit for the future, an environment that’s safe for our children, and a community where the vulnerable are cared for and the entrepreneurial spirit is valued.