A BID to make it mandatory for businesses selling in-person goods and service to accept cash would create unnecessary red tape for businesses and should be rejected, the Council of Ministers has said.
Deputy Montfort Tadier has lodged a proposition, which is due to be debated in the States Chamber this week, calling for businesses to be required to accept cash – to ensure “no one is left behind” to make Jersey a “cash-inclusive island”.
However, in an official comments paper responding to the proposal, the Council of Ministers have said they will not back the motion because it “would impose unnecessary burdens on local businesses and increase the cost of trading”.
Urging Members to reject the proposition, ministers said: “[The] government is not supportive of legislation that may be inflationary to the consumer or risk business services not being available due to red tape and barriers to operation.”
It added: “There are practical costs associated with different payment options such as the need to manage a till, pay a member of staff to count cash at close of business each day and purchase a safe to ensure that cash is kept securely.
“As with any business, such costs must be met somehow – either by reducing costs elsewhere or by raising prices. Businesses therefore make decisions on whether or not to accept cash based on a range of factors.”
Although it said “access to cash is good” and that the government “has no plans to cease supplying Jersey notes to banks”, ministers added that “evidence does not indicate this a significant issue that warrants legislative intervention” which is being proposed.
