Many of you will know that over the last 12 months I’ve floated the concept of a new infrastructure charge on planning applications; a way of being fairer to everyone when it comes to paying for community infrastructure.
Today is the first time that I’m speaking publicly, and specifically, about those ideas, and it’s only right that I start here, at the Jersey Construction Council.
Let me state very clearly from the outset, it is impossible to say what this charge may involve without proper investigation and proper consultation, and that’s why I’m grateful to be here today, discussing this subject with you.
Comparing Jersey to other places is rather unhelpful. Each planning system (and its adopted planning gain framework) around the globe is based upon that specific locality’s own unique needs. Jersey is no different. While we may be looking to other systems as a model, our system will be original and based on our local requirements and development characteristics.
In the UK, the Community Infrastructure Levy is known as the CIL. Here in Jersey it will probably be known as the JIL - Jersey Infrastructure Levy.
CIL in the UK varies significantly from place to place. It is designed to allow change to follow economic buoyancy; it stays relevant to the current climate - that principle is important for Jersey.
I want to be, and am working towards, developing policies that provide tangible planning gain to the public and a satisfactory process for all involved, including developers.
We all accept that land values increase greatly with the grant of a planning consent, or a re-zoning. We also need to accept that this value has been created by a public decision.
If the public don’t take some of the unearned value uplift of a planning approval, then it all lies with the landowner and / or developer. We should be asking ourselves if this is fair?
A mechanism such as a Jersey infrastructure levy should drive the land value down, not the end price up. The idea is NOT to drive up the cost of development.
If land values don’t fall immediately, it will most likely be because land transactions (pre-development) have taken place without taking the charge into account.
I accept that there may be a transitionary period when a charge is introduced, but once it is established, and developers and landowners are aware of their obligations, prices should fall.
Let’s be clear, a simple and standard levy will speed up the process and avoid costly legal charges.
If we don’t review our practices, it will undoubtedly lead to an unwieldy and bureaucratic system that fails to deliver any actual gain (if we haven’t reached that stage already).
Finally, before we get into discussion (and it will be a discussion because I want to listen to your views and ideas), can I say this: CIL in the UK was heralded for bringing fairness, up front certainty and transparency to the planning system.
Any principle that gives us a fairer, more open, more consistent, more understandable and a more usable process is hugely important to me and vitally important to Jersey, especially as we move forward with the Future St Helier project.
This won’t be a ‘quick fix’, and it’s not going to happen overnight - it’s a big piece of work - and it will involve much consultation, but I’m ready to get going and looking forward to working with everyone in the industry to reach a positive conclusion.
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