- Stories from States Question Time
- Taxpayers money not at risk from proposed Finance Centre
- Criticism over Finance Centre confidentiality agreement
- Could Finance Centre profit lead to extension for Town Park?
TAXPAYERS’ money is not at risk from the building of the proposed Jersey International Finance Centre on the Esplanade, according to the Treasury Minister.
During yesterday’s States sitting, Treasury Minister Alan Maclean attempted to reassure Members that the controversial scheme was important to the future of the Island’s finance industry and that he had offered no guarantees against public money in securing funding for the construction.
Click here to view the petition. [/breakout]
He made the comments in an unscheduled speech aimed to address concerns raised by Members and the public.
At least 1,180 people have signed a petition against the development and a protest is planned for the Esplanade – the site of the planned office blocks – on Sunday.
Last week, it was revealed that Swiss bank UBS had signed up as the JIFC’s first tenant, taking around 16,000 sq ft of office space, which Senator Maclean said could be extended by a further 7,000 sq ft.
The States-owned Jersey Development Company, which is behind the scheme, say that this is enough to start building on the site.
Senator Maclean said in the States that the tenant agreement with UBS was enough to cover the construction costs of the first building.
‘The announcement of a major tenant for the JIFC is very positive news for the Island and its economy.
‘The decision by UBS to take up a lease for more than 16,000 sq ft demonstrates the growing confidence shown in recent statistical surveys that our economy is turning a corner and businesses are feeling optimistic about the future.
‘We should be celebrating the fact that UBS have the confidence in Jersey to sign this lease and be the first.
‘The most difficult thing of all in any development is being the first and they have taken that decision’
Treasury Minister Alan MacLean responding to questioning on progress with the proposed Jersey International Finance Centre
‘It means that JDC can now go ahead with the first phase of this scheme.
‘This is a major step in a project that began in 2006.
‘Taxpayers stand to benefit from having taxes paid by companies and employees and from the profits generated from the JDC which will be used to regenerate areas of St Helier.
‘No taxpayer money is being used in the construction of the finance centre.
‘The JDC is a limited company and is borrowing from banks like any other developer.
‘The States is not providing any security or letter of comfort to this lending.’
He added: ‘We should not let anyone persuade us that these buildings are not needed.
‘We must offer prime grade A office space with state of the art facilities if we are to keep are existing businesses and attract more.’
Senator Maclean was forced to defend the proposed JIFC after the project came under criticism for failing to pre-let a previously stated 200,000 sq ft of office space before beginning building work.
The minister reiterated his belief that comments made in the States last year by the former Treasury Minister Philip Ozouf that 200,000 sq ft of space would be pre-let before building work would begin was a mistake.
A proposition has been lodged by St Brelade Deputy Montfort Tadier calling for an Islandwide referendum on whether to proceed with the finance centre, which is due to be debated later this month.
‘When construction is complete, all car parking spaces will be replaced underground and indeed on top of that there is parking being provided for each of the buildings.’
Responding to a question from St Helier Constable Simon Crowcroft on the amount of parking spaces
‘The facts are that there is demand for these spaces. I think the pre-let lease that has just been signed up demonstrates the demand.’
‘Responding to a question from St Brelade Deputy Montfort Tadier on the need for the offices.
‘I fully support the Scrutiny process and absolutely the Scrutiny Panel should have access to information.’
Responding to a question from St Saviour Deputy Kevin Lewis on whether the Corporate Services Scrutiny Panel should be given access to documents relating to the development.
MONEY generated from the sale of office space in the Jersey International Finance Centre could be used to extend the Millennium Town Park, the Chief Minister has said.
Responding to a question from Deputy Jackie Hilton about whether the Council of Ministers would commit to using profit from the venture to develop the area around Gas Place, Senator Ian Gorst said that money ‘could be’ used to extend the Millennium Town Park.
‘The profits can be used to regenerate parts of St Helier that are well overdue,’ he said.
‘There is work to be done before we can get there but it is schemes like extending the Town Park that profits can be used for.
‘The Council of Ministers are not unsympathetic to the comments made in this Assembly about the need for open space in the north of town.
Releasing a profit in due course from the International Finance Centre I believe can help deliver part of that vision.’
Senator Gorst added: ‘I support the building of the International Finance centre on the Esplanade car park because I believe in Jersey’s future and I want to create a future for our children and grandchildren.
‘The creation of jobs for the future I think is fundamental to our success.’
A SCRUTINY Panel has criticised a confidentiality agreement they were asked to sign over a document assessing the Jersey International Finance Centre.
St John Constable Chris Taylor told the States Assembly yesterday that he and other members of the Corporate Services Scrutiny Panel had refused to sign a non-disclosure agreement relating to a BNP Paribas appraisal of the viability of the development, following advice from the States Greffier.
The panel is currently reviewing the planned development on the Esplanade.
‘The request to sign the non-disclosure agreement for the panel was decided against because it was a bad precedent for other panels,’ said Mr Taylor.
‘We were being asked to be personally liable . The advice we received from the States Greffier was that we should not proceed on that basis.’
The BNP Paribas report was made available to the Treasury Department in February and released to the Corporate Services Scrutiny Panel only two days ago after they signed a revised version of the non-disclosure agreement.
Treasury Minster Alan Maclean said that the terms of the initial draft of the agreement had been strict to protect information sensitive to third parties involved in the development.
‘For commercial reasons it was important that the information didn’t get into the wrong hands,’ said Senator Maclean.
‘I have made it clear that I would not release this document, which is commissioned by the States of Jersey Development Company, unless a non-disclosure agreement was signed by the panel, specifically because of the involvement of third parties.’
He added that the report had taken too long to release and the matters of confidentiality and non-disclosure agreements in the States ‘must be clarified’.
With the announcement that work is set to start on the scheme, Islanders have taken to the JEP website and Facebook page to have their say:
Alan1963: ‘Stop wasting yet more money and throw this application in the bin and sack the politicians who set out to bankrupt the Island. People are angry, believe me, more than you can ever imagine!’
Greg Sanderson: ‘So someone has signed up for a quarter of the first block…how many blocks are there? I thought it was six.’
Willy Nieuwburg: ‘UBS has signed up for 16,500 sq ft of a 470,000 total = 3.5%. They just had to make some kind of announcement in the face of pressure from all sides, a pending protest and a petition!’
Phil McLaughlin: ‘This announcement of the leading of a paltry amount of space in one building seems to have triggered an indecent haste to start building immediately. Presumably no need to wait for tenders etc to come in… deals already in place?’
Sharon Cox: ‘Some States Members are taking notice of public opinion. Deputy Monty Tadier with Reform Jersey are listening and did have a public meeting in St Brelade. Others need to listen to their voters.’
Melanie Luce: ‘I hope the sea wall is retained in full. It is part of our heritage and history and would make a good fun run/charity/event area.’
