Christmas is now upon us. The Christmas trees are up, the shops are open late, and I’m on my fifth Christmas lunch. But I don’t feel Christmas is really here until I have stood before you, explaining how your government is working hard to make life better for islanders.
Achievements
This time last year we were struggling to meet the remaining objectives in the Strategic Plan, knowing that we were about to embark on an election year. Our top priority was getting people into work, and in three years we managed to help 4,500 people into paid work.
We followed the advice of the Fiscal Policy Panel and put more money into the economy, but I'll let you into a secret, it wasn't enough:
- we increased both the financial incentives to work and the sanctions against benefit claimants who were not looking for work
- we created the Community Jobs Fund, employment grants for employers, incentive schemes for youth and hospitality, a new construction training programme and a new apprenticeship scheme
- we set up a £5 million Innovation Fund and established Jersey Business to support local firms
- we commissioned a review of Jersey’s financial services sector so we could maintain the success of the industry for the future
- we published our Financial Services Policy Framework, setting out how government, industry and regulator will work together to shape the future direction of the industry
- we created a Tourism Shadow Board and promoted Jersey, its industries, history and culture around the world
- we helped families buy new homes with the deposit loan scheme and introduced anti-discrimination and family friendly legislation
- we approved a new charities law, which will support the voluntary and community sector and also, importantly, support the growth of our philanthropic wealth management market
- we oversaw the introduction of a long term care benefit and started to reform the health service
I am pleased we managed to achieve so much, but I am aware there are many challenges to come and much more to do. This year though, we are not starting from scratch. I believe we have the best team of ministers ever assembled, and we are prepped and ready.
Economic growth and jobs
Our main priority now is economic growth and jobs, and whenever we talk about economic growth, population rears its head. I would like to make it clear that throughout our history, Jersey has benefitted from immigration. We have always been open to those who want to make a contribution and build a decent life for themselves and their families.
We have welcomed many different communities and we have built a successful, diverse democracy. I can understand that people are worried about the future of this small island, it has a finite capacity and we need to make sure any decisions on population are in our best interests. But we are a successful jurisdiction because of immigration, not in spite of it.
So it is fundamental to the future of our island that we get this issue right.
We already have strong controls in place:
- we limit who can receive benefits
- Income Support claimants need to live here for five years before they are eligible
- sickness benefit is paid out to people who have paid in
- affordable housing is only available to people who are residentially qualified
- you need to be here for six months before you are eligible for subsidised GP visits
If we pull up the drawbridge and shut off immigration altogether, we will not create the jobs and investment we need to fund services for the people who are already here. Our hospitality sector would grind to a halt without people who have come from overseas to help run it. People from many different countries have made Jersey their home and contribute to our financial services sector.
People come here to work hard and pay their taxes and they contribute to our island. For the sake of jobs, livelihoods and opportunities for our people, we must guard against the misguided view that Jersey can withdraw from the world and somehow all will be well.
We may be an island but we should not be insular. Throughout history we have always looked outward. We have used the seas that surround us to connect with the world, and with that trade have come people, companies, jobs and investment.
Skills
Population is complicated. It’s not just about who we allow into the island, it's also about education for our people. Too many local people do not have the skills to help them secure a job. We need our young people to be well equipped for work, so we are less reliant on immigration to fill our skills gaps.
We need to make sure all members of our community are ready to take on the jobs of the future, in financial services, in digital industries, and across our economy. That means lifelong learning and employment skills, as well as academic qualifications.
The government has set out strategies to achieve these aims. Taken together our skills, enterprise and financial services strategies are fundamental to the future health of our economy.
We already offer time limited consents so employers can take on staff for a short period while islanders are trained up for the job, but there are no simple solutions. I believe most islanders understand that a modern, knowledge-based economy like ours needs some immigration of skilled staff if we are to maintain a successful economy that can provide the services we have come to expect.
We should be proud; it is a tribute to Jersey that so many people want to come here.
Economic recovery
Our economy is showing signs of improvement in many areas:
- unemployment continues to fall
- employment was at the highest level on record in June 2014, with increases in both private and public sector employment
- average earnings across our economy have grown by more than inflation both this year and last; in stark contrast to the UK, where cost of living pressures continue to intensify
- in 2014 Locate Jersey dealt with 158 business enquiries, creating 361 potential job opportunities in areas as diverse as construction, retail and fintech
- retail sales are up for the first time in eighteen months
- 2013 saw Jersey’s GVA stabilising
- the latest Business Tendency Survey showed growing confidence among local firms
- our international credit rating has been re-affirmed by Standard and Poor’s as one of the best ratings possible for a jurisdiction of our size; AA+ with a stable outlook
- and figures for Jersey’s finance industry show the value of funds business in Jersey has reached its highest level for five years
We will continue to support what we hope are the first stages of economic recovery, delivering vital capital expenditure to lay the foundations for future growth.
It is encouraging to see these signs of improvement, but we are not complacent. We know the global economic outlook is uncertain and we should focus on the things we can influence, irrespective of external economic conditions.
Jobs
In 2015 we plan to keep working hard to create jobs and growth:
- we will be open to competition and inward investment
- we will promote innovation in new technologies and support Visit Jersey to bring new generations of visitors to appreciate the unique beauty or our home
- we will encourage every organisation and business to improve productivity
- we will remove barriers to participation in the economy
- we will develop a coherent vision for St Helier that will turn our town into an economic powerhouse that people want to live in
Properly planned town development can house our people comfortably, providing decent homes and open spaces while protecting the coast and countryside.
These are still turbulent global times and we need to concentrate on areas where we can make a difference. We must secure Jersey’s recovery and to do that we must ensure that our legislation remains competitive, and maintain our focus on reforming the delivery of public services.
Reform
Our public servants work hard with commitment and dedication, but with limited resources we need to control costs and review whether we are asking our staff to do the right things. 2015 will see more visible developments in e-government and workforce modernisation. We are stepping up our efforts to develop the public sector into an efficient, modern, 21st century organisation that proves services for Islanders in ways that are convenient for islanders.
We are working to reduce barriers to employment. We have already extended the qualifying period for unfair dismissal from six months to a year, and I hope this will encourage employers to take on more staff. We need to boost growth, and to do that we need to get more people into work.
Technology improvements will improve customer service and interaction with States departments. Digital Jersey and Jersey Business will promote new technologies and support innovation in the areas of Fintech and cryptocurrencies.
Financial services
In financial services we will build on the partnership between government, industry and regulator to continue implementing the McKinsey recommendations, protecting existing markets and products, developing new ones, and promoting our services to new markets overseas.
Back to Work will continue to coordinate all government employment schemes. We will introduce exemptions to the employment law for small businesses and reform self-employed Social Security contributions for low earning individuals.
Education
In education we will focus on standards and skills:
- by expanding the Trackers apprentice scheme to include finance and digital skills
- by encouraging business leaders to get more involved in education
- and by refocusing Highlands to ensure young people develop skills that are directly relevant to the Jersey jobs market
The education minister is keen to set up stronger links between schools and businesses and I am strongly supportive of his initiatives. I want young people to leave school with an understanding of the world of employment, a good grasp of technology and a ‘ready for work’ approach.
Strong community
However a strong island doesn’t just need a strong economy; it also needs a strong community. In fact, the two go hand in hand:
- 2015 will see Andium Homes investing some of the £250 million pounds we have borrowed for affordable housing into new homes for islanders
- we will develop a disability strategy
- we will continue introducing the different strands of our discrimination law, keeping in mind the need to be proportionate to our small, island community
Around the world, governments are coming to realise that our ageing population and the escalating costs of healthcare are the fundamental issues to tackle. We are reviewing the options for a new hospital and will continue to work on a system of sustainable funding for health care.
We have experts in place to lead the restructuring of our mental health services and we are investing in improving our treatment and support for people with mental health problems.
We are continuing our work to redesign health and social care to meet the needs of an ageing population and have already started to move more health care and support out into the community. These changes will become increasingly important in the coming years.
Families
We also need to put some resources into early years. We need to use the 1001 days programme to ensure every four year old starts school ready to make the most of their education. Family is the first, and the most important building block in a child’s life.
I want to strengthen families in all their forms. In doing so I hope we can try to reduce the impact of parental conflict on children. I have committed to develop a family policy statement by the end of 2015.
This work will include:
- reviewing our benefits and tax systems to ensure they do not dis-incentivise marriage
- looking at our social housing policies to see if they put increased pressure on families
- seeing what can be done to support relationships that are under stress
- and what can be done to help separated and separating parents work together in the best interests of their children
A family policy statement will support our priorities in education and health, as well; functioning families are more likely to raise healthy, happy children who are ready to learn and to benefit from the opportunities generated by a successful economy.
Challenges
I know Father Christmas isn’t due for another week, but he has shared with me a Christmas list he received from the IOD, and I hope you can see that we are well on the way to giving you a very happy festive period.
Jersey is in good shape, but there are challenges on the horizon. We have made significant progress since the first days of the downturn, and our economic performance has held up well in the circumstances. I look forward to steering our community through the turbulent winds of economic recovery over the next three and a half years.
Our economy has survived the biggest downturn since the 1930s, and the difficult decisions we have taken in the past put us in a stronger position for when the global economy strengthens further.
Our entrepreneurial spirit is alive and well and we live in a unique environment where people feel safe. I am very aware of the mountain we have yet to climb and ministers are ready to take bold, decisive action to secure the long term quality of life in our island.
But success is all about people and partnerships. I know the people of Jersey are committed to doing the best for their Island, and I welcome a strong partnership between business and government. I would go so far as to say that it is a key ingredient for future success and I hope you will join us on the journey.
In the meantime, I wish you a peaceful Christmas and a prosperous New Year.
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