Jersey Finance given £4m to keep industry ‘competitive’

A DECISION to authorise the largest-ever States grant to Jersey Finance will help ensure the Island remains internationally competitive, according to the organisation’s chief executive Geoff Cook.

Jersey Finance chief executive Geoff Cook
Jersey Finance chief executive Geoff Cook

A DECISION to authorise the largest-ever States grant to Jersey Finance will help ensure the Island remains internationally competitive, according to the organisation’s chief executive Geoff Cook.

Economic Development Minister Alan Maclean signed off the grant of over £4 million last week.

The grant, which was proposed in the Medium Term Financial Plan, will not be the full extent of Jersey Finance funding.

In previous years, the money from the States has been exceeded by contributions from member firms in the form of cash subscriptions, income from events staged by Jersey Finance and pro bono contributions from the work of technical groups.

Comments for: "Jersey Finance given £4m to keep industry ‘competitive’ "

Mario

Sorry but this sector has done rather well from Jersey over the years and should have the resources to look after itself. Just like any business it should stand on its own two feet. Getting subsidies is not the way to go. Finance is slowly disengaging, time to move on to the next big thing (if you have any forward planning in place that is). If not...

it is pretty obvious to me what is going to happen next.

s

Sorry Mario, but its more that Jersey has done rather well from this sector, - employment at good wage levels, career opportunities, significant tax revenue, raising the standard of living etc.

Mario

How many career opportunities are there going to be in say 10 years time?

Just in case you haven't noticed Jersey's quaintness and uniqueness has been gradually erroded since finance became dominate. The quality of life has also gone downhill over the last 30 years. The standard of living is also going to go downhill...

gino risoli

would like to see every invoice for that 4 million

Crystal

where are all the 'can't use public money to save Plemont because we need it to pay nurses/build houses/ educate children' now eh? so so quiet all of a sudden...... was that a door closing?

Smart Robert

Funny how there is no money for ordinary essentials, but when it comes to one of Ozouf's mates, all of a sudden we've found a few quid! Or four million! Makes me sick how Ozouf is running / ruining this island! Time he and his cronies were kicked out! Waiting for the tears Phil, waiting for the tears!

Pip Clement

We have already been down this primrose path with farming and tourism.

Bigger States'grants, more civil servants doing regulatory, promotional jobs.

Next year the industry will be about 90% the size it is today, but there will be an additional Assistant Director, a few more Executive Directors, plus Executives, Assistant Executives, Executive Assistants, Assistants, etc.

Economic reality is ending the finance industry and Jersey Finance is helping it on it's way.

Jerry Gosselin

You're right Pip. Jersey Finance started out 12 years ago with just 2 staff, yet a quick look at its website indicates that it now has 26 staff (not counting Board members), of whom at least half are in senior managerial or executive positions. It is also worth noting that there are supposed to be two "government representatives" on the Board, but there is no ELECTED member of the States currently listed as being a Board member:

http://www.jerseyfinance.je/About-Us/Meet-the-Board/

SMALL BUSINESS

The new Tourism dept,grants forever more!

Go to the banks like me & try to raise funds "to keep competitive" they laugh you out the door.

the future

This is not allowing market forces to dictate who wins and who loses.

It would do Jersey much more good if they used this money to invest in facilities for the people who live in St Helier rather than supporting the people who live in the big houses of St John.

gino risoli

if we want to keep public spending under control we must insist on chequebook accountability online of all monies spent, this is how ordinary business keep control of finances. wake up people there is no other way of reigning in our government.

information is key to understanding.

Jerry Gosselin

"In previous years, the money from the States has been exceeded by contributions from member firms in the form of cash subscriptions..." - Well this certainly was not the case when the Economic Affairs Scrutiny Panel produced a report on the funding of Jersey Finance in 2008:

http://www.statesassembly.gov.je/ScrutinyReports/2008/Report%20-%20The%20Role%20and%20Funding%20of%20Jersey%20Finance%20Limited%20-%2005%20June%202008.pdf

The figures on page 16 of the above report show that apart from 2002 (when the island's economy was sluggish and States Members were under additional pressure not be seen to be wasting money), the States grant comfortably exceeded the income collected in subscriptions from the industry. This is in spite of the fact that the F&E Committee originally agreed the level of funding on the basis of a 50:50 arrangement up to a limit of £250,000 a year. Yet by 2003, Jersey Finance had successfully lobbied the committee for additional funding. From 2004, this additional funding was supposed to be spent entirely on promotional activities, yet in 2004 the promotional spend actually DROPPED while staffing costs increased. Furthermore, the graph on page 20 shows that from 2004 onwards, Jersey Finance's staffing costs (NOT including the additional Directors' fees) began to comfortably exceed the subscription income it raised from the finance industry.

So there has been a TENFOLD increase in the level of the States Grant- from £0.4 million in 2003 to £4 million in 2013. Will it therefore be £40 million required from the taxpayer by 2023? There is absolutely no indication that our government intends to start talking tough to Jersey Finance any time soon so why shouldn't it rise tenfold in a decade once again?

Mario

It probably would be under accustomed economic circumstances but we are heading for an economic blood bath. The island will be radically different by 2023. It has changed massively since 2003, getting porgressively worse month by month. Putting money into something which is slowly disappearing is like putting good money after bad IMHO.

Jerry Gosselin

No, I disagree Mario. If JFL's funding has managed to keep rising unabated all the way through the painful change to zero-ten over the last few years then quite clearly it will not stop rising now that we will presumably be entering a somewhat more settled phase of budgets (more settled because we have already raised taxes and slashed benefits so much). Estimated States income this year is £637 million, so we are not short- it is all down to where our PRIORITIES lie as to whether or not we can afford a £40 million JFL in a decade's time. The way the JFL's friends in government appear to look at it is this: the more desperate and hopeless our economic future, the greater the need to plough even more millions into JFL in the hope of salvaging our one last big industry... and seeing as we are authorising all this extra cash to you at JFL, is there any chance of recommending us for a place on the JFL Board some time in the future please?

solo

Well these headlines "SAY IT ALL" for Jersey, never mind any other industry . We must keep the Finance industry safe under any circumstance, even though it pushes all the prices up and up.

Mario

Yes it has caused a big housing bubble, which is going to go pop. This will leave many in negative equity with no way of getting out of the economic pit they will find themselves in due to further downsizing/relocating. If I was the government I would be getting seriously concerned about how things are panning out. Rising social discontent can't be ruled out in the coming years. People will only put up with so much before they crack, ref Greece etc.

Another Taxpayer

That Ozouf is an absolute disgrace the way our money is being squandered,if Finance cannot stand on there own two feet who can,the sooner this so called Politician is voted out the better,maybe the high flyers like Mr Cook in Finance Regulation should have there wages cut,it is absolutely horrendous the money that is being paid to these so called Executives or what ever,that we employ on an Island of this size.I cannot wait for this Island to come back to reality and the end of Ozouf as a representative of this Island