I’d like to offer my sincere thanks to the Chamber of Commerce for the invitation to speak today. I’m sure that several of you would argue that this speech is already long overdue, and, if you believe the JEP’s cartoonist, that I should have a far better tan, and look significantly more rested than I do.
In fact, the past four months have been an intensive period where both I – and the new Council of Ministers – have been far from idle. We are in a transitional phase across Government, not only within the public service as we move to implement the Target Operating Model, but also in the Council of Ministers as we develop new ways of working as an effective team.
Any change professional will tell you that embedding change and getting people to accept new ideas is not an overnight process. As a Council of Ministers, we have spent the last 125 days focused on getting it right.
We’ve each become familiar with our portfolios and built fundamental relationships with the officials and leaders who will implement our strategic vision.
We’ve been dealing with complex legacy issues from across the eight years of the previous administration.
And, critically, we’ve developed a meaningful strategy for the next four years.
I will not apologise for taking the time necessary to do that.
It would have been easy to come to you earlier with a wish list of my policy ambitions. But it would have been just that – a wish list, without detail or commitment from the Council of Ministers as a whole.
Now, for the first time, we have a Council of Ministers that has come together from across the political spectrum to agree a Common Strategic Policy. And, for the first time we have a civil service that has begun to break the silos that in the past have inhibited real progress against strategic aims.
We now have the opportunity to make meaningful and measurable changes to Islanders’ lives by implementing our agreed priorities.
We’ve worked throughout the summer, in a series of working groups and COM special sessions, to discuss and finalise our priorities.
I believe that the focus we give to them will make a real difference to Jersey, making our Island stronger, safer, healthier and more self-confident.
Setting our priorities
The Common Strategic Policy (CSP) which was lodged with the States Assembly last week, is a statement of our high-level ambitions.
It’s not a manifesto or a detailed programme of activities, because we’ll set that detail out next year, in a fully-integrated, four-year Government Plan – along with the details about what it will cost and more importantly, how we’ll pay for it.
The Government Plan will incorporate and replace the Medium Term Financial Plan, and will bring together the policies, actions and funding we need to deliver on our priorities in one place.
I am delighted that we are doing this, as it marks a real difference from the previous process.
But it’s not the only difference.
We’ve listened to Islanders and to States Members during the election campaign and in the months that followed, and we’ve pledged to work differently.
I want to leave you in no doubt that:
We will tackle the contentious issues, including implementing a comprehensive migration and population policy.
We will work in a closer relationship with the States Assembly and the Parishes to provide more effective services for Islanders.
And we will listen to all of our stakeholders, including the Chamber, who have the knowledge and the experience to ensure that the policies we develop are fit for purpose.
Our five priorities
At the heart of the CSP are five priorities, which Ministers have developed and unanimously agreed should be the touchstones for our government.
We’ll put children first by protecting and supporting them, by improving their educational outcomes and by involving them in the decisions that affect their everyday lives.
We’ll improve Islanders’ wellbeing and mental and physical health by supporting them to live healthier, active lives, improving the quality of and access to mental health services, and by putting patients, families and carers at the heart of Jersey’s health and care system.
Today is World Mental Health Day, and I cannot think of a better time to make this commitment, and to get Islanders talking about ways to look after our mental health, especially in our young people.
We’ll create a sustainable, vibrant economy and skilled local workforce for the future.
We’ll do this by delivering an economic framework to improve productivity, by nurturing and strengthening our financial services industry and by pursuing the diversification of our economy into new areas.
We’ll also enhance our international profile and promote our Island identity as we deliver the best outcomes from Brexit.
We’ll reduce income inequality and improve the standard of living, by improving the quality and affordability of housing, improving social inclusion, and by removing barriers to, and in, employment.
Finally, we’ll protect and value our environment by embracing environmental innovation and ambition.
We’ll do this by protecting the natural environment through conservation, sustainable resource use and demand management.
And we’ll improve the built environment, to retain Jersey’s sense of place, culture and distinctive local identity.
The CSP is underpinned by a series of six common themes that stretch across departmental responsibilities, and four ongoing initiatives, including the development of a modern, innovative public sector that meets the needs of Islanders effectively and efficiently. Some people have questioned why there isn’t more detail about how we’ll pursue our priorities, and say that they are too high level.
Yes, they are broad overarching ambitions, but without a strategic framework to set direction, you risk compiling a programme of activities that lacks focus. So, the CSP is the foundation on which we will build what we do across the next four years.
And it is the standard against which the Chamber, industry and the public will hold this government to account.
Providing a sustainable, vibrant economy
Of critical importance to the audience here today is the pledge that we have made to provide a sustainable, vibrant economy – and to build a skilled local workforce for the future.
Jersey has a rich economic history, based on fisheries, agriculture, tourism and the now-dominant financial services sector. We have successfully maintained all of these sectors within our economy and must recognise their shared importance in our history, culture and prosperity.
The financial and professional services sector has been the bedrock of our economy over recent decades. It is vital that we continue to protect and invest in this sector, while embracing new opportunities in both long-standing and developing industries.
Our economy must be supported if it is to grow, innovate and diversify. We also must stabilise and reverse the recent declines in productivity, because low productivity impacts our economic competitiveness, earnings and Islanders’ quality of life.
And, we need to ensure that the policies we develop to address these issues are built on strong, evidenced foundations, with the support of industry and the public.
How will we achieve this?
Focusing our efforts
Our first step will be to work with partners, including the Chamber, to develop costed detailed policies and activities relating to our strategic priorities.
In the interests of transparency, yesterday we published a draft programme for developing the Government Plan. I should emphasise that this is an initial programme of activity, which will evolve over the coming months into a full programme of work.
It is what sits behind our five priorities and shows the depth and breadth of the analysis and discussion that Ministers were having over the summer as we developed the CSP.
It shows how we will translate the strategic priorities into detailed and deliverable outcomes, within the public resources available, for inclusion in the Government Plan next year.
Integral to our ambitions is the need to develop a comprehensive economic framework that will deliver the evidence we need to assess and prioritise how and when we act.
We will work with all sectors of the economy to understand their long-term policy, legislative and resource needs, and design and implement economic development policies as a result.
This means that Chamber and our other partners will no longer be working in a vacuum but will have meaningful engagement in policy development. This will support the government in pursuing opportunities that create the most benefit for people and the Island as a whole.
We will also ensure that Jersey’s infrastructure is fit for our future needs – including public buildings, sporting and cultural facilities, utilities and the digital environment. This will mean investing in St Helier to make it a more desirable place to live, work, do business and to visit.
To enable this, we will align the economic framework to an investment framework. We will also consider creating an investment fund to support the delivery of the economic and investment framework.
What we will achieve
Aside from broader policy objectives, there are concrete commitments we will make in the coming weeks, months and years to enhance our economic success.
We will establish a Policy Development Board to develop an agreed population and migration policy that balances population pressures against our economic and environmental needs.
We’ll focus on improving education and skills in the Island, by introducing proposals for a higher education centre of excellence and student campus fit to deliver both the academic and vocational skills’ needs of the Island, including digital, finance, innovation, tourism, marine and creative industries.
We’ll also continue to expand Jersey’s positive international reputation and promote our Island identity beyond financial services.
I believe that our international reputation should reflect the richness and diversity of our Island’s talents and the many ways that we act as a responsible global citizen, such as through the work of Jersey Overseas Aid.
In 2019 we’ll launch the Global Jersey campaign, alongside our arms-length partners, to demonstrate the Island’s global expertise and reach in international development and philanthropy, hospitality, conservation, culture and the arts – as well as financial services.
We want to provide a focus for the opportunities for the Island beyond Brexit and our credentials as a global partner of choice.
Financial efficiencies
One of the ongoing initiatives that we also set out in the Common Strategic Policy – which has long been an area of particular focus for me – is the need to establish a sustainable fiscal framework and public finances that make better use of our public assets.
As the Treasury Minister announced on Monday, in the draft Budget, the forecasts point to a structural deficit in our public finances of up to £30 million by 2020 unless we take action.
So we are taking action.
In 2019, to bridge this forecast gap between our expenditure and our revenues, the public service will make sustainable savings totalling £30 million.
These are not one-off efficiencies, but a permanent reduction to the costs of the public service.
These savings have been identified through the due diligence work that has been going on during the year, and are the first tranche of efficiencies that will be delivered by the One Government modernisation programme that the Chief Executive of the States is leading.
Some of those savings will be achieved through a permanent reduction in the size of the States’ workforce.
And here I should point out that the States is currently carrying around 600 vacancies, and has a staff turnover rate of 12%, so responsible headcount management is a realistic and pragmatic approach.
The remainder of the savings will be achieved as a result of modernising the States – by improving processes, better commercial contract management, consolidating assets, stopping the duplication of effort, and through the digitisation and automation of routine tasks and services.
This is only the start, as over coming weeks, we will refine our work on efficiencies for 2020-23.
I anticipate that the Treasury Minister will provide an update on those in her Budget speech in December.
I know that many of you may be thinking “I’ve heard this all before”. But I want to be crystal clear that the Council of Ministers and I are committed to seeing these efficiencies implemented.
Brexit
We cannot ignore the impact of Brexit on our long-term policy ambitions.
The negotiations between the United Kingdom and the EU were always going to be challenging and, as we reach the zenith, the rhetoric and the risk of a cliff edge will no doubt increase. But, I am confident that, within the Government of Jersey, we are well-prepared for this outcome.
Brexit has broken the internal silos within our public sector, and the exchange of information and collaborative working across departments means that we are in the strongest position possible as we enter the final countdown to Brexit day.
As a business community, as well as a government, we need to demonstrate to investors, to intermediaries and to our global partners that we have the necessary contingency planning in place for Brexit, and the confidence to continue offering world-leading financial services. I want you to share that confidence – built on an understanding of our unique position, of our detailed planning, and our robust engagement with the United Kingdom.
We’ve recently undertaken a planning exercise across Government to ensure that all departments are prepared for and able to manage the potential risks to their areas of responsibility, in the event of a hard Brexit.
We’re in ongoing discussions with HMRC to formalise the Jersey-UK customs arrangements for the future, to ensure that we can guarantee the seamless flow of trade in goods, including essential supplies, between Jersey and the UK from Brexit Day.
We’ve met with the representatives of the aquaculture, commercial fisheries and shellfish merchants associations, and are working with French colleagues to ensure those industries can continue to access the European market. Alongside ongoing political conversations, we will be arranging meetings for industry with relevant local and regional bodies in France, emphasising our historic, mutually-beneficial, relationship.
We’ve also introduced the Jersey EU Settlement Scheme, to ensure that all EU citizens living and working in Jersey - your colleagues, your directors, your employees - can remain here after Brexit.
Through a simple online application, they can guarantee their rights, allowing them to continue contributing a significant, cultural, economic and social value to our Island.
Finally, in January we’ll be launching the Ready for Brexit campaign – which will include a focused week of workshops, roundtables and presentations to prepare all industries and the public for the practical impacts on our Island whatever the outcome of Brexit negotiations may be.
The next steps
With our overarching ambitions in place, it is right to question the speed at which we will implement our priorities.
Will it be another six months before we begin to take any action and another year before I provide you with an update?
No.
Once the CSP has been debated by the Assembly, we have an agreed programme of work in place to quickly and effectively ensure that we are meeting our commitments.
Before the end of the year we will refine the policies outlined in the indicative programme of work published yesterday. We will also complete the move of our customer facing services to a single site on La Motte Street.
In early 2019 we will present a Report to the States, which will enable us to start work on our priorities within the financial constraints of the current Medium-Term Financial Plan.
Then, in June 2019, we’ll propose the four-year Government Plan 2020-23, which will provide the fine detail of government activities planned for the following year, and set out the priorities for the subsequent three years. This plan will then be updated every year, on a rolling basis, meaning that any future administration does not have to begin the process anew.
In 2020, we’ll propose a new Island Plan to 2030, setting out an agreed single, integrated, strategic and spatial approach to the longer-term challenges and opportunities faced by our Island, which will be dealt with beyond a single term of government.
A new vision for Jersey
125 days is barely enough time to scratch the surface of the issues faced by the Island and the incoming Council of Ministers. But it does provide time to take stock of the broad challenges we face.
The CSP is an ambitious and aspirational document. And I want that ambition to be shared across the Island.
But there is a hurdle.
If you read social media commentary, letters to the JEP, or just speak to Islanders on the street you will notice an unfortunate trend.
We have become at best complacent and at worst openly cynical about our Island and every decision taken – before giving the time to see if it will be effective.
We have to change that way of thinking.
We all need to make a commitment to give the space and opportunity for real change
I would also ask for your support for the work of the States CEO, Charlie Parker – who I know was received positively by the Chamber in the past – in the complex and challenging job of modernising the public service.
We are changing as a government to ensure that we offer the most efficient and cost-effective public services.
This was never going to be a painless process and it was never going to be a quick one. But we are delivering the change that was asked for during the election.
If you believe as I do, write a letter. Answer the criticism you hear on the street. Be prepared to stand up for change and the priorities we have set.
We used to have a message that Jersey was a welcoming place. One that valued its culture and individuality, but wasn’t afraid to take the bold steps to maintain a thriving economy.
That message was marred by the scandal of child abuse, poor spending decisions and a loss of confidence in government.
We have recognised our failings. And we have moved to put them right.
Today, with the CSP, we have a new vision for the government and people of this Island.
We will put children first.
We will create a more equitable society where we reduce income inequality and provide opportunity for all.
We will provide the services that lead to longer, healthier lives for our Islanders.
We will develop a diverse thriving economy, while recognising our responsibilities both as a global citizen and to our own environment.
And we will have pride again in Jersey, and our ambitions for its future.
We should start spreading that message today.
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