Response to Scrutiny finance centre report

30 October 2015

Deputy Chief Minister Senator Andrew Green has made the following statement in response to the Corporate Services Scrutiny Panel report on the financial viability of the Jersey International Finance Centre:

“In absence of the Chief Minister and Treasury Minister, I have reviewed the Scrutiny Panel’s interim report.

“It is disappointing that the Panel have chosen not to base their findings and recommendations on the professional Ernst & Young LLP (E&Y) report – which the Panel commissioned - as a whole but, instead have chosen only to select areas that support a negative conclusion.

“Contrary to the Scrutiny Panel’s findings, on the basis of the evidence of professional viability and valuation assessments – it is clear that JIFC Building 4 is financially viable.

Building does generate a profit

“It is not clear how the Panel’s conclusions reconcile with the E&Y report. That report – which is to be welcomed – fully assesses the viability of building 4. Even using a low valuation, the Panel’s own advisors show that the building does generate a profit.

“In addition, I'm advised this assessment of viability is in keeping with the conclusions drawn by the valuation report commissioned by the Bank providing the funding for the building. 

“I cannot see how it is going to be possible for the Treasury Minister to accept the conclusions and recommendations of this panel.

E&Y’s professional recommendation that Buildings 4 and 5 should be progressed is to be welcomed.

“A successful Jersey International Finance Centre remains an important part of the approved States Strategic Plan to deliver economic growth, provide jobs and income for services and regenerate St Helier.

“The Treasury and Resources Minister and Council of Ministers will respond fully to the report in due course.”