Last week, we all celebrated the 68th anniversary of freedom from Occupation. In Jersey, we watched as the key moments of Liberation were enacted in front of this building.
On the same day Guernsey also commemorated Liberation, recalling, as we did, the considerable suffering and hardship experienced by Channel Islanders during those difficult years.
Nearly seven decades later, we are the grateful beneficiaries of the hard work, creativity and tenacity of those Channel Islanders in pushing towards a brighter future.
As you’re aware though, our history goes back much further than that. Together, we represent the last remnants of the medieval Duchy of Normandy and we share much in our past.
Financial Services
I also believe that we share a future. We recently saw the results of research undertaken by McKinsey in collaboration with Jersey Finance, commissioned by Jersey’s government, to look at the future of our finance industry.
The research highlighted stability and innovation as the two critical factors which will help the industry thrive. Those two characteristics have been part of our Channel Islands story for hundreds of years.
The research confirmed that our business is largely determined by characteristics like our geographical position, the fact that we are English speaking, have common law, and political stability. These features are not unique to Jersey, but are common to all Channel Islands.
The results of the study identify the prospect of tough challenges ahead including reduced profitability, increased ring fencing and regulation, continued globalisation and a push towards larger organisations.
This may lead to fewer jobs, unless we offset these challenges by actively pursuing business growth opportunities. For instance:
- cross-border investment flows will accelerate
- tax regimes won’t be harmonised
- competition between jurisdictions will remain
- wealth accumulation will increase rapidly, particularly in emerging markets
- concerns over political instability will remain an important factor in investment decisions
- institutional and private investors will continue to look for secure locations for safekeeping their wealth
Working together
There is much in the results of the research to be hopeful about. And while I appreciate that our two islands will be competing for business, I believe we will be stronger if we speak with a unified voice.
Much of what has come out of the research is applicable to the Channel Islands as a whole and will call for a common response.
We are viewed from abroad as the Channel Islands rather than as separate entities. The differences between our two islands appear minimal when viewed from mainland Europe, let alone when viewed from the growing economies of Asia.
We need to represent the best of our services and set out the bigger picture – the common advantages we can offer, the political stability that we know investors seek, a convenient location and language, and common law.
This, I believe, will maintain and secure a decent quality of life for Channel Islanders. That is why I believe it makes so much sense to continue to foster inter-island co-operation across as many areas of public, political, and business life as possible.
Accelerating cooperation
We’ve already made good progress. The number and breadth of areas in which the islands are now working side by side is unlike anything we have seen before.
Recently, we held meetings in Washington with representatives of a number of important government committees - including the treasury and the Senate finance committee - where we discussed taxation, transparency and the fight against financial crime.
It was a significant visit for one particular reason though. Jersey’s Assistant Chief Minister for External Relations, Senator Sir Philip Bailhache, and Guernsey’s Treasury Minister Deputy Gavin St Pier, carried out this visit together – the first joint Channel Island delegation to Washington.
These meetings strengthened our ties with the US and reinforced our reputation as a leader in tax transparency, information exchange and international co-operation.
Sharing resources is both efficient and a model for future engagement. It works well in Brussels, it’s been constructive in France, and it was regarded as a constructive step forward by those we met in Washington.
This week government officers from both islands are in Helsinki for meetings and, in October, ministers from Guernsey and Jersey plan to visit Brussels together. In November both islands will be at the British Irish Council meeting hosted in Jersey.
Working together in a confederated Channel Islands foreign affairs committee is something we could achieve in the near future – and I hope there is enough support to really achieve this.
Confederation
We already have much of what it takes to create a successful confederation, including four important cornerstones:
- common understanding, not just at a policy level but also at an interpersonal level, between politicians and officials
- familiarity with each other’s ways of doing things, our particular procedures and structures
- alignment of international interests and the pursuit of those interests by engaging directly with governments in the UK, Europe and around the world
- perhaps most crucially of all, trust, based on a proven track record of working together towards common objectives
This cultural shift towards inter-island co-operation is also happening across departments, where we’re sharing problems and comparing notes on best practi
Culture and sport
Culture and sport play an important role too. They offer opportunities to build relationships – the social glue which binds us - while also providing opportunities for showcasing the islands’ strengths.
As a result of a Guernsey introduction, both islands last year hosted the internationally renowned Chinese artist Cai Guo-Qiang, helping forge connections between the Channel Islands and China.
We work together on music, languages and history. Next year the heritage organisations of Guernsey and Jersey are staging an exhibition of the renowned documentary photographer Martin Parr. And Jersey is in discussions with Guernsey, Normandy and Brittany about working together on the coin hoard found in Jersey.
Efficiencies
These shared initiatives have brought tangible benefits at a time when, in common with most governments around the world, our Bailiwicks have been faced with a tough economic climate and the challenge of making public services more efficient.
We know sharing can cut costs and I am confident we can go further. If we can overcome some of the understandable but at times frustrating resistance to inter-island co-operation, I think we can achieve significant public sector savings and an excellent outcome for members of the public in both islands.
Rather than dividing us, the new environment, combined with a new willingness on the part of both Guernsey and Jersey, has brought our islands closer together.
So given the challenging circumstances we face, what does the future hold?
Future working
At this point in our history, we can perhaps begin to think of the stories of our islands as increasingly compatible and complementary.
We have sought to develop a strong foundation of co-operation, based on external relations and regulation. With this firm ground underfoot, we already have much of what it takes to create a continued successful alliance that will secure the best interests of both our Islands.
The world around us is changing at a rapid pace, and we are stronger together. This may be a well worn phrase, but working together we can maintain sustainable economies for both islands without compromising our independence and way of life.
Together we can create a future that will do justice to the efforts of our post-Liberation predecessors.
I am convinced that working together is fundamental to our future prosperity.
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