A feast of initiatives doesn’t mean that the job’s done

I know that nobody will believe me when I say I don’t want to be critical of efforts to diversify the economy … but it’s true. After all, I’ve been a strong supporter of economic diversification ever since it became obvious that the Island was in danger of becoming a one-trick pony. All our eggs were going into one basket (to mix metaphors), and even those involved in financial services appreciated that the Island needed a much more varied mix of businesses.

The States listened and the States acted – eventually. It has been obvious for years that the economy was dangerously unbalanced, but Jersey waited until there was a recession before trying to do anything about it. But I suppose it’s better late than never.

However, I think that we might be in danger of letting this new-found enthusiasm for diversification to get out of hand. Diversification certainly needs to be a priority of the government, but we also have to be realistic about what we can achieve as a small Island.

Take Digital Jersey, for example. I well remember the previous attempt to attract ICT businesses to the Island. Unfortunately, it was still a time when the States enthusiastically adopted new policies but weren’t really prepared to commit themselves to spending any money on them.

So a Jersey Information Society Commission was formed. But all the work was done by one man and his dog until it became obvious that it wasn’t going to work.

The recent creation of the Digital Jersey organisation is obviously a much more professional attempt to take advantage of the opportunities of the digital economy, but not a great deal more has changed in the last ten years.

The Island certainly has some advantages, particularly with the telecommunications network and its resilience (thanks to the finance industry). But I doubt whether we have more or better expertise in this area, or have a much better infrastructure than any of the 400 or so other cities who are said to be competing for this kind of business.

Having to import much of the expertise required would obviously defeat the object of the exercise, although it’s obvious that quite a few licences will be required. I also doubt whether our costs are much better than elsewhere, and a lot of work needs to be done to ensure that our laws give us a competitive advantage.

However, I don’t want to be too negative about the prospects for the digital industry, or any other industry. There are clearly very attractive opportunities, but I think we need to be a little more realistic about what can be achieved, at least in the short term.

Anyone expecting the work of Digital Jersey to have a significant impact on the Island during the remainder of this recession is in CCL (an acronym to suit a digital age).

The same applies to the £200,000 grant from the Economic Development department for a fantasy film to be made in the Island using the castles and fortifications as a feature. Personally, I have never believed that Jersey has much to offer the film industry, and the attempts to attract film makers here was simply trying to copy the success the Isle of Man has had in this industry.

But our cousins in the Irish Sea have much more space and a much wider variety of locations, as well as existing film production facilities. Jersey is small and there are very few locations for filming, and virtually no production facilities.

Even when the production companies are attracted to the Island by taxpayers’ money, Jersey does not always benefit much. For example, the money spent on producing a TV programme at Hamptonne didn’t do much for the Island’s profile. The credits on the film didn’t even name Jersey as a location.

So it would be nice to think that Jersey could emulate New Zealand, and that cinema fans would flock to the Island because they have seen the fabulous locations on film. But I wouldn’t rate our chances too highly.

However, having said all that, if Economic Development have done their homework (which I’m sure they have) and they believe that investing £200,000 in the project is money well spent, then I for one will support them. I just hope that they are pretty sure of success.

That’s the problem with investing in new businesses and trying to attract new industries to the Island – there is no guarantee of success, and there will always be a risk. The only way to avoid that risk is to do nothing, which tended to be the policy in the past.

So the new willingness of the States to take more risk with available resources is to be welcomed, but our expectations should also be lowered. We shouldn’t assume that just because Jersey needs to diversify its economy, the business will simply flow in. Our competitors will not just stand aside because Digital Jersey is out to attract new business or Economic Development is prepared to invest in a film. It will be hard work, and we won’t always succeed.

The setting up of organisations such as Digital Jersey, Locate Jersey and Business Jersey is to be welcomed wholeheartedly, but we shouldn’t act as though the job’s done. It’s only just begun.