This time last year the Islands were covered in fog, and Deputy Peter Harwood and I were prevented from presenting our vision of joint working between Jersey and Guernsey. This year has started very differently.
We have already been on a joint Channel Island visit to Brussels. We met senior political advisers and key decision makers, and talked about the Channel Islands’ positive contrition to the EU economy. We discussed how Island businesses can benefit from, and contribute to, the European economy, engaging directly and jointly so we can continue to benefit from this relationship.
Only last night a senior politician reminded me that when we present ourselves together we are greater than the sum of our parts.
As you might expect, the talk in Brussels varied from the parliamentary elections in May to the new commission later in the year. The consensus seems to be that both their reconstituted institutions would need to concentrate on jobs and economic growth. The same two themes are a priority for Jersey in 2014.
Economy
Our biggest challenge now is the economy. We have recovered from recessions before, this time it’s different. The emerging economies are coming up with the new ideas, spending more on research and development, investing in many of the exciting opportunities around the world.
We must maintain our place in a global economy where newcomers appear to be getting most of the attention. I believe we have the skills, ideas and determination to maintain our position in the world. However, success is far from guaranteed.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.
Success
To make a real success of our island, we have to build an economy where the benefits of growth are felt by all. An economy where the right skills, jobs and rewards are there for people with the right attitude, and where our children can look forward to a future of multiple possibilities.
So what does that mean? As I said a month ago, I believe it means we need three things:
- a public sector we can afford
- a community where everyone feels they can play a valuable part
- an economy that is equipped for the future
Reform
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
- we are creating a stable base for an affordable public sector that delivers results for the taxpayer
- we are getting on with it
This year we will be producing a long term revenue plan to help inform decisions from 2015 to 2020. It will include income and revenue projections, potential growth allocations and savings targets.
Controlling spending growth and making savings are an integral part of our reform programme.
Talents
Second, I want every Islander to be able to make the most of their talents. Jersey is competing in a world where highly qualified, committed young people are heading ever further from home to make their way in an increasingly global economy. We need to equip Islanders with the right skills to thrive in this rapidly changing world of work.
We are launching the 2014 Skills Strategy early this year; working with individuals and employers to plug the skills gap, providing the local labour force with the skills employers need.
Our new 'Skills Accelerator' programme is already 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 we are helping unemployed people back to work.
Last year we ran a Jobs Fest programme. It paid the wages of more than 100 job seekers; 54 of those people were retained by their employers after the programme ended.
We are looking at whether we can repeat that success later this year.
We have introduced an Employment Grant, offering employers £7,200 for each long-term unemployed person they employ, supporting businesses to recruit local job seekers.
And Back to Work will soon be launching a campaign to support specific industries. Starting with hospitality, we will be helping employers to take on and train local people, improving the skills of the local workforce.
We have also been approving non-local licences only for posts that can’t be filled from within the Island. I know this policy has not been universally popular, but I also know that many Chamber members have been positively engaging with Back to Work schemes, and I thank you for that. We owe it to islanders to prioritise them for the jobs that are available.
We've also taken action to make sure people are better off in work than on benefits; strengthening sanctions against jobseekers who don’t do enough to find work, or who leave their job without a good reason.
We must not forget though that there are vulnerable people in our community who need support. We are introducing a new long term care scheme, running a deposit loan scheme to help islanders to buy their first home, 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
Our current population policy is outlined in the Strategic Plan: to maintain a working age population, enabling the economy to flourish, and public services to be sustained without threatening our environment and way of life.
Government departments have been assuming an average inward migration figure of 325 people per year. This figure has underpinned our major policies, like health transformation. I believe that this existing assumption of 325 individuals per year is a reasonable basis for an interim population policy, which we plan to publish later this month.
In the meantime we have been laying the groundwork for the next Council of Ministers to develop a new population policy, based on robust research and sound forecasts. Population cannot be considered in isolation. It needs to support the balance we set between economic, community and environmental goals.
Earnings, productivity, health, town development, policies to protect the countryside and coast: they all play a part in determining population policy. Making changes in one area will impact on every other area.
When looking to the future, we need to be clear about what kind of Island we want:
- what we want for our economy: better productivity, successful businesses
- our community: good jobs for islanders, a great place to live
- our environment: conservation of green areas
When we have agreed on what we want, all our policies should work towards that aim. It will not be a quick fix and it will take longer than the term of office of one Council of Ministers. That is why, alongside our interim population policy, we will be launching a new way to plan for our future.
Living in Jersey, we enjoy a strong sense of community, a unique natural environment, a strong economy.
In the Annual Social Survey, Islanders say they are happy with their quality of life, have a high trust in people, have good access to green spaces and feel safe walking alone at night.
We can’t be complacent if we want our island to remain a great place to live, work, visit and do business. We are facing challenges, and to meet those challenges we are developing a vision for Jersey.
It will provide a robust framework, supported by accurate research and informed forecasting. It will help us make the right decisions for our future.
- what sort of place do we want Jersey to be in 20 years’ time?
- how can we achieve that?
- what might hinder our progress?
We need to talk about our ageing population, the speed of technology development, changing expectations. The next generation see things differently. For some, If there isn’t an app for it, they don’t do it.
We can’t predict exactly how developments will affect us over the next 20 years, but we know technology will play a vital role in the future of our Island.
As the world becomes increasingly digital we need to provide the right infrastructure to make the most of new technologies at home and at work.
We need to make St Helier a vibrant town that people want to use, visit and live in.
If we can regenerate our town, prioritise public spaces and amenities, we can make better use of land. The world is not standing still and neither can we.
Future economy
Third, we need an economy equipped for the future.
I was pleased that the latest Business Tendency Survey shows business optimism in the finance sector is the most positive since the survey began in 2009. And with such a large part of our economy dependent on a vibrant financial services sector, we need to maintain focus on this important area.
McKinsey warned of tough challenges ahead, increased ring fencing and regulation, continued globalization. But the review also found that these challenges can be offset by actively pursuing business opportunities.
If you tuned in to the BBC over Christmas, you may have heard talk of the MINT countries, tipped as the next economic powerhouses: Mexico, Indonesia, Nigeria, Turkey.
- we have already confirmed a visit from the Turkish ambassador later this month
- we will also be welcoming the Japanese ambassador, and a Chinese cultural visit to Hautlieu school
- we have confirmed ministerial trips to China, UAE and Washington DC
In this increasingly uncertain world, our political stability can help retain our long standing appeal. Put simply; we need to play to our strengths, and invest in our advantages. It is increasingly important that Jersey is properly represented in important world markets, raising awareness of the expertise and high-quality services we can offer, promoting the Island’s identity and culture, strengthening business and diplomatic relations, delivering long-term benefits for the Island.
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.
At the G8 Summit in London I was able to provide evidence of the value of Jersey businesses to the UK economy. I explained how Jersey is helping the UK on its journey to growth.
At the party conferences there was a clear change in the way Jersey is regarded by UK Ministers, peers and advisors. They now have reasoned arguments to be supportive of Jersey, and that support is growing. Only this morning the Justice Select Committee report said that the relationship is on a sound footing.
But 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.
We all know that Jersey is a great place to live, work and raise a family, but there are other places in the world and many are offering incentives for new businesses. If we are to attract more inward investment and develop a diversified, high productivity economy, our competition is not just other international finance centres, it is wider than that.
Preparing for the future
Jobs are created by businesses, not government. We will soon be publishing a new Enterprise Action Plan, defining the steps we need to take to deliver economic growth and diversification.
We are serious about developing entrepreneurialism in the non-finance sectors of our economy. We plan to continue reducing reliance on inward migration, to attract businesses and individuals that will invest in Jersey, to create a thousand new jobs in high value projects over the next three years, to support local firms to make productivity improvements.
The action plan explains how we will work in close partnership with Jersey Business, Locate Jersey and Digital Jersey to achieve these aims.
Our 'Town Team' is working hard to keep local businesses up to speed with shoppers’ changing habits. A retail development workshop is planned for next month, run by local expert Gary Duncan. He will be helping traders consider the new opportunities for local retailing.
Jersey Business is coordinating training and development for retailers. We will soon be consulting Islanders on the idea of allowing larger shops to open on Sundays. We want to know what Islanders, staff, shoppers and businesses think about it.
The GST refund scheme is being extended for another two years, and EDD is working with Chamber on a new Shop Jersey online portal.
Government continues to work hard to ensure a strong, sustained and successful recovery that reaches every industry and every islander in Jersey.
Back to Work has had considerable success. In three years we have spent almost £20 million on employment initiatives. There were more than 1500 offers of paid work for participants last year - that's 200 more than in 2012.
Latest figures show a drop in unemployment: 1800, the lowest for a year. And 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.
In 2013 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.
The new £5 million Innovation Fund is now open for business. This fund will support entrepreneurs, start-ups, and established companies to turn great ideas into jobs and economic growth.
We have a new Tourism Shadow Board, advising government on how to secure the future of tourism in Jersey. Jersey Milk is being exported to China and Hong Kong, and there’s also interest from Japan in this iconic Genuine Jersey product.
Budget 2014 has set out how we will continue to support the economy. We have allocated £90 million of capital expenditure to invest in our infrastructure in 2014. From 2016 and to 2020 we will spend more than £500 million on the new hospital, liquid waste plant and social housing.
By supporting the economy through fiscal stimulus, we help island businesses, reduce unemployment, and put ourselves in a stronger position, ready for when the global economy strengthens.
Balance
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.
By keeping every aspect of our Island in balance – economy, community and environment – we will continue to build a successful future for all Islanders.
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