Snubbed? Senator Philip Ozouf denied his own ministry

Instead the former Treasury Minister, who has been in the States since 1999, will remain an Assistant Minister at the Chief Minister’s and Economic Development departments.

Senator Philip Ozouf endured a nail-biting election night on 15 October as he vied for eighth and last place with former Senator Sarah Ferguson. The ex-Treasury Minister won the contest by a slim margin, and survived a recount asked for by Senator Ferguson, but was left looking rather vulnerable with his political pants down

Following the general election in October and the subsequent voting in of the new Council of Ministers it was suggested that Senator Ozouf – who is currently spending two days a week working in London on behalf of the Island – would have a new ministry created especially for him.

However, that plan has now been shelved.

Speaking this morning, Chief Minister Ian Gorst insisted that the move was not a snub for the former Treasury Minister.

He said that Senator Ozouf was doing the job he had been asked to do focusing on growing the digital economy and taking responsibility for finance and competition.

The Chief Minister said that his vision for a reformed public sector included dismantling silos and making States departments work better together.

‘We are looking to develop a team approach, to break down barriers and work together and I think by forming a new ministry we would undo a lot of work we have done in the past three months,’ Senator Gorst said.

He added that he was committed to reorganise a government structure designed for the last century so that it was best placed to tackle the issues Jersey was facing now and in the future.

Senator Gorst also hinted that he had not ruled out proposing that a new minister be created with the portfolio currently managed by Senator Ozouf, but for that minister to sit within an existing department.

Economic Development Minister Lyndon Farnham said that it would be more efficient and effective to use Senator Ozouf’s skills in a number of different departments.

  • Elected Deputy for St Helier No 3 in 1999
  • Elected as Senator in 2002
  • Elected Economic Development
  • Minister under the new ministerial government
  • Re-elected in 2008 and appointed Treasury Minister[/breakout]

‘It has been decided that there is not going to be a separate ministry,’ he said. ‘We all work extremely well as a team and I think it can be a lot more efficient to do it this way.

‘Senator Ozouf is a tremendously capable and experienced politician and I think he can be extremely useful to a number of different departments using his delegated functions.’

He added that not having a separate ministry would also save money at a time when budgets were already under pressure.

Senator Ozouf said that he had volunteered to take on his current remit and was delighted to be getting on with the job and making progress.

Senator Philip Ozouf, speaking to the JEP from Doha via Skype

Senator Philip Ozouf was in a confident mood when the JEP interviewed him in November:

SENATOR Philip Ozouf is a politician in transition.

The newly appointed Assistant Chief Minister does, indeed, have a portfolio – financial services, digital technology, competition and innovation – but he has as yet no ‘ministry’ as such and, apparently, no specific budget.

Another novelty – for a States politician – is that he will be working in London for two days a week.

Appropriately for such a pioneer, he invited the JEP to interview him, via Skype, in his hotel room in Doha, where he has been supporting a Jersey Finance trade delegation and speaking at a Euromoney conference.

Chief Minister Ian Gorst and Senator Philip Ozouf in Downing Street

One thing is clear: his new role will be firmly under the direction of the Chief Minister, Ian Gorst.

‘There are a number of levers in Ian’s office. There is more work to be done on government efficiency. He also wants economic growth on rocket boosters. We’ve got to get our confidence back,’ says Senator Ozouf against a backdrop of a Doha night sky.

‘Innovation is a Jersey trait. Despite our size, we’ve created the Jersey jumper, the Jersey cow, the Jersey Royal potato, all world-class products.

‘We have punched above our weight for decades. But we seem to have lost our confidence a little, either through complacency, or regulatory necessity. We’ve lost the belief that we can succeed.

‘My job must be to rebuild confidence in the higher-value areas of the economy and speed up our game.’

As the former Treasury Minister, Senator Ozouf is only too well aware of the reason why Jersey needs such a boost in income. It was his Budget, after all, that forecast the £50 million deficit for 2015.

‘Health is one of the big political issues,’ he said.

‘By 2020, the projections are that Health will require £30 million year on year, plus an additional £50 million. It will be up to the new Health Minister and the Treasury to confirm if that is correct in the next Medium-Term Financial Plan for 2016-19. But whether it is £30 million or £70 million, it will be more.

‘We could do three things: we could use our savings and break fiscal prudence (but that has been ruled out already); we could make savings and make the States more efficient; or there’s the elixir of economic growth – we must raise income, we must boost the economy. I know that’s what this job is about.’

But how? It’s not an easy question to answer, and one which has bugged successive Councils of Ministers since the start of the recession in 2008.

But Jersey has come through better than most, says the Assistant Chief Minister.

In terms of financial services, however, some might say that promoters Jersey Finance are already doing whatever can be done to increase business, so what additional benefit can an Assistant Chief Minister bring?

This week’s visit to the Gulf is a case in point. ‘I was asked to provide support to raise the profile of the Island,’ explained Senator Ozouf.

Senator Philip Ozouf and former Senator Sarah Ferguson at a recount of last October's election

‘Jersey provides services to sovereign wealth funds because of the quality of the trust sector and appropriate standards of regulation. The Emir of Qatar was at 10 Downing Street last week and has made significant investment in the UK. It is a classic case of Jersey benefiting the UK by what it offers as a finance centre.’

Another reason to have a government minister on board is that over the next few years, the traditional banking model is set to change, in particular the concept of ring-fencing deposits to protect customers from any further crashes.

‘In the past there has been a need for governments to bail out the finance sector, which in Jersey is well guarded,’ said the Senator.

‘One important change for us is the start of discussions about a Jersey Monetary Authority, so that we have the tools to prepare for any international financial crisis. That needs to be fast-tracked.’

‘Another challenge for us is how technology will erode jobs. My task is to raise awareness of what the digital economy will mean for Jersey.’

On the plus side, in a global marketplace there are opportunities for the right product, at the right price, with the right marketing and skills.

‘The government is not good at picking winners, but we can create the right environment by being responsive, and quick,’ he said.

Neither will there be any hiding place in the Island for uncompetitive practices – the reason why he stood for the States in the first place.

‘It’s been ten years since the Competition Law was introduced, but some unexplained high prices still remain. I feel I’ve got my old job back. And I think it’s almost the best job in the States.

CHIEF Minister Ian Gorst said this morning that the decision not to create a new ministry for Senator Philip Ozouf’s three-pronged portfolio was neither a U-turn nor a snub for the former Treasury Minister.

While the honeymoon period continues for his new Council, Senator Gorst is keen to show a picture of harmony, a model of positive collective responsibility. He is doing well and things are moving forward, but he is going to have his work cut out.

Senator Ozouf has made a career of recruiting fiercely loyal friends and sworn enemies. The Chief Minister has to manage a collection of strong personalities, egos that can be both large and fragile.

He is right to reform the way government is organised and that may well mean fewer ministries. Time will tell whether he can keep this team unified as they are forced to work much more closely together.

There is currently some overlap between the portfolios of Economic Development, Foreign Affairs and the one held by Senator Ozouf, making reorganisation desirable and necessary.

It will take some time for Senator Gorst to decide how his Council should look and operate. He knows he must create a regime which is more efficient and more co-operative. The rationale is sound on paper, but whether he can get his troops to stand in line will be as big a challenge.

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