In an effort to draw a line under the issue, which has dogged debate on the finance centre for months, Senator Ozouf has addressed the comments he made to the States Assembly last year about the level of pre-let deals that had to be in place before building could begin.
Read last week’s Saturday Interview with Senator Phillip Ozouf here
He initially told the JEP that his words had been twisted by anti-finance centre campaigners.
However, he rephrased his comments when a transcript of what he said in the States was put to him, to say that those opposed to the project had focused, to the exclusion of all else, on an ‘inconsistent answer’ he gave while speaking in the States Chamber.
Senator Ozouf stopped short of calling his answer a mistake.
Building work began on the finance centre project earlier this year after the Jersey Development Company announced it had secured Swiss investment firm UBS as the first tenant for about 25 per cent of the first building.
However, as soon as the announcement was made, objectors to the finance centre claimed that previous comments made in the House by Senator Ozouf did not support the JDC’s actions.
According to Hansard, the system which records what is said during States sittings, Deputy John Le Fondré last year asked Senator Ozouf: ‘Previously in a statement to the Assembly the minister has stated: “That development works on the Esplanade Quarter will not commence until agreement has been entered into for the letting of at least 200,000 square feet of office accommodation.”
‘Could the minister confirm whether this position has changed in respect to the present planning applications and if there is to be any reduction in pre-let areas and, if so, why and when he was going to announce this to the Assembly bearing in mind what is, therefore, the increased risk to the project?’
Senator Ozouf answered: ‘No, the position has not changed.’
Opponents of the JIFC went on to claim that this meant the JDC needed to secure 200,000 sq ft of pre-lets before building the first office.
Speaking to the JEP the former Treasury Minister said he had given an ‘inconsistent answer’ and that there were far more examples of finance centre discussions in which he had spoken about the JDC’s phased approach and the proportionate level of pre-lets that were needed.
He added that the 200,000 sq ft requirement related to a time when previous developers Harcourt had planned on delivering the entire project in one go and that the developers had been on his mind in February last year as there was an ongoing legal dispute involving the company.
Senator Ozouf said: ‘The answer appears to be inconsistent with everything else that has been said.
‘I don’t know why I said something so completely inconsistent compared to all the other answers given.’
He went on to say that those comments had been magnified by opponents of the scheme who were operating in a commercial ‘dog eat dog’ world.
Senator Ozouf added that his comments about JIFC buildings being fully let had come at time when the Royal Bank of Canada was in talks with the States to fill 100 per cent of the first office block.
Deputy John Le Fondré: ‘Sorry, I did not quite catch the “not” and that was the point. What I would just like to ask as well as a first supplementary; previously in a statement to the Assembly the Minister has stated: “That development works on the Esplanade Quarter will not commence until agreement has been entered into for the letting of at least 200,000 square feet of office accommodation.” Could the Minister confirm whether this position has changed in respect to the present planning applications and if there is to be any reduction in pre-let areas and, if so, why and when he was going to announce this to the Assembly bearing in mind what is, therefore, the increased risk to the project?
Senator Philip Ozouf: ‘No, the position has not changed.’
Deputy Le Fondré: ‘To be clear given that the present scheme is 180,000 square feet he will be looking to get pre-lets on 100 per cent of the two buildings that are being proposed.’
Senator Ozouf: ‘The market is certainly dynamic and we do not wish Esplanade Square to represent any risk to the public. I think what has changed from a market dimension in the last few months is the fact that such is the optimism of financial services and others sectors of the economy – such as the digital area – that there is increasing evidence of an absence of supply so while I am absolutely clear with S.o.J.D.C. (States of Jersey Development Company), who I had a board meeting with my Assistant Minister and the Treasurer of the States yesterday, is that their buildings are to be progressed on a fully-let basis in order to reduce the risk. I also wanted to discuss with the Minister for Economic Development the reality that in fact we are now at a position where office accommodation is not available for inward investment in Jersey. If Esplanade Square can assist that in any way I certainly am happy to take advice from ministerial colleagues to consider discussions with S.o.J.D.C. about how the exciting Esplanade Square Development could move even faster to deliver inward investment into Jersey.’
