Economic Development Minister
Statement on a Matter of Official Responsibility
The Retail Framework 2010
As members will probably be aware, my Department has been working on a policy document principally concerning issues of concentration in the food retail market in Jersey. This draft document was unfortunately leaked to the Jersey Evening Post and the resulting press coverage has been selective and therefore highly misleading.
I would like to take this opportunity to clarify what the policy does and does not say. Members will find copies of the full document on their desks.
1. The Retail Framework is aimed at ensuring that the Strategic Plan’s economic objectives of economic growth with low inflation are delivered.
2. I have listened to and balanced the views of islanders, the economic advice and the views of businesses. As a result, this policy strikes a correct balance that creates a framework that is in the best interests of all Islanders.
3. This framework will allow the flexibility to help address the issue of the high cost of food in Jersey. Members will appreciate that this is of critical importance to us all but has the greatest benefit to those less well off families and individuals in our Island.
4. Today, Jersey’s food retail market has two main supermarket operators, a structure that has the potential to inhibit competition and can, in extremis, result in an undesirable ‘Duopoly’ emerging. If this were to happen, it would limit competitive pressure on retailers, contributing to higher prices and less choice for consumers.
5. The policy takes full account of Islanders’ views. Over 1000 local households responded to a Statistics Unit survey, with 84% saying that they would like to see an additional supermarket operator in Jersey.
6. The policy is intended to, and indeed does, create a level playing field which treats any applicant for large retail development fairly and equally, regardless of whether they are an existing operator or a new entrant.
7. To be absolutely clear, nowhere in the policy does it recommend, ‘scrapping countryside protection’ as reported in the press. The framework states that a ‘sequential test’ should be conducted to allow suitable sites to be considered for a retail development. That means starting with town centre sites. If no suitable sites are found, sites on the edge of the centre or in other areas of town should be considered. If still no suitable sites are found, only then should edge of town or semi-rural sites be considered. But the final arbiter on any application would of course be the Planning and Environment Minister.
8. The economic advice attached to the policy is both objective and balanced. It was produced following a considerable amount of analysis from the Economic Adviser and includes the most up-to-date and appropriate research available.
9. I would also like to add that my department, is not, as some would have Members believe, ‘actively encouraging’ any individual or new entrants into the supermarket sector. We will of course deal with any such enquiries as we do with any new business enquiry.
10. This framework is intended to create a clear policy statement that seeks to remove barriers to entry. It clearly recognises that Government intervention of any nature should be limited wherever possible in any market.
I hope that Members will recognise that the detail of the Retail Framework document bears little resemblance to recent emotive newspaper headlines and articles.
In all cases, applications, whether from an existing or potential new entrant, will be treated on merit, balancing social, environmental and economic issues.
I will answer Members questions and would be delighted to arrange a more detailed briefing for any Member who would like additional information.
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