We need finance centre to attract new business, says Minister

  • Finance centre saga continues as Economic Development Minister says Jersey needs more offices
  • Senator Lyndon Farnham told a scrutiny panel that lack of high-quality office space was a growing problem
  • He also said biggest problem Jersey faced was a skills shortage
  • Video: See inside Google’s amazing New York offices

THE lack of high-quality office space in Jersey is a growing problem that is likely to become the biggest barrier to attracting new businesses to the Island in the coming years, the Economic Development Minister has warned.

Senator Lyndon Farnham said that incoming businesses wanted assurances that large, modern units were being built or were due to be built to cope with their expansion plans.

However, he told a scrutiny panel on Monday that a lack of development was likely to lead potential newcomers to base themselves in other jurisdictions.

His comments came as he gave evidence to the Corporate Services Scrutiny Panel who are reviewing the States-owned Jersey Development Company’s plans to build a finance centre on the Esplanade car park.

Senator Farnham told the panel: ‘I can see the premises issue becoming a bigger barrier. Businesses come here on a small scale with big ambitions and I can see the demand for grade A office space growing.

‘I would envisage that in the next five years demand for grade A office space will grow significantly.’

An artist's impression of the finance centre

Senator Farnham later said that at the moment the lack of office space ranked ‘a close second’ in terms of problems, behind the skills available within Jersey’s workforce and the Island’s ability to bring in skilled workers from elsewhere.

During the public hearing Economic Development chief executive Mike King added that it was always far easier for the department to target incoming businesses if they had premises to ‘sell into’, rather than showing proposals and designs.

Deputy John Le Fondré is chairman of the Corporate Services Scrutiny Panel

The Jersey International Finance Centre continues to provoke controversy. A third building of the six-building scheme was approved last week, but rival developers now say they are likely to lodge an appeal.

Speaking to the JEP after the meeting Senator Farnham explained that fledgling companies wanted to know that high-quality office space was on its way.

‘What we’ve got is people stalling and stalling and reviewing and reviewing,’ the Senator added.

‘I have full confidence in the JDC that they will deliver this. Not only will existing businesses see an opportunity to restructure and consolidate, but it will create significant opportunity to bring in new businesses.

‘The most important thing for me is jobs creation because we will be reducing the public sector by several hundred jobs over the next few years.’

The CSSP – chairman Deputy John Le Fondré, vice chairman Deputy Simon Brée, Deputy Kevin Lewis and Constable Christopher Taylor – also raised concerns that the Jersey International Finance Centre would reduce footfall for retail and food businesses in the north of town.

Senator Farnham told the panel that vacated office space presented a chance for urban regeneration and that the retail market would adjust accordingly.

St Helier Constable Simon Crowcroft

SCRUTINY’S review of the Jersey International Finance Centre is a ‘distraction’ that could put off investors, St Helier Constable Simon Crowcroft warned earlier this month.

Despite originally opposing the finance centre planned for the Esplanade car park, he has now called on all States Members to back the project, which is under review by the Corporate Services Scrutiny Panel.

And Mr Crowcroft has gone further and claimed that the Scrutiny process is also under threat because panel chairman Deputy John Le Fondré has an ‘axe to grind’ over the Jersey Development Company’s scheme, after clashing for years with former Treasury Minister Philip Ozouf over the plans.

The Constable, who failed to convince the States to leave the Esplanade car park undeveloped or turn it into a town park in 2011, said that he had had no real feedback from his constituents about the finance centre.

‘In the shake-up of the election and new ministers and panels John has risen and is chairing a Scrutiny panel. He has the ability to undertake a review and has a lot of willing support from people with a vested interest in not seeing the scheme go ahead.

‘We are in danger of losing potential investors because people look at the finance centre and say it’s shrouded in political controversy and they don’t want to get into that. The sooner the review is completed the better.

‘I’m surprised that Scrutiny has had such support. There is a clear bias in terms of Deputy Le Fondré’s approach. His approach to the Esplanade Quarter has been negative, really, for years.

‘He’s not an impartial critic of the scheme. It’s not good for Scrutiny. Scrutiny should be impartial, but I think there’s a clear bias with Deputy Le Fondré, who I have a lot of time for as a States Member. Other jurisdictions debated and approved by the States.’

Responding to Mr Crowcroft’s comments, Deputy Le Fondré said that the Scrutiny panel was not just one person.

‘The panel has four members and they agreed to do the review, and the panel is determined to do a good job of it.

‘Any individual views of individual members have to be assessed in the context of what the remaining members think.

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