Grange Development managing director, David Whalley, said that his profession is portrayed as ‘pantomime villains’ and is always being singled out to pay new taxes, such as the planned Jersey Infrastructure Levy.
He and his colleagues from the Chamber of Commerce said that the new charge will discourage development and see housing costs rise for Islanders.
The levy is expected to raise £2.5 million per year and would be used to fund community projects such as improved streets, play spaces and cycle paths.
It is planned to be introduced in 2019 and would charge £85 per square metre on schemes with more than 75 square metres of floor space. Social housing developments would be exempt.
The introduction of the new levy was the subject of a public hearing yesterday where Chamber members voiced their concerns to the Environment, Housing and Infrastructure Scrutiny Panel.
Chamber president Eliot Lincoln said that he feared the introduction of the levy would ‘slow down’ the construction industry.
‘At a time when we need more building and things are happening, what we are going to see is the reverse,’ he said.
‘The idea that the landowners will suck up the cost is nonsense. We will see two things – landowners holding on to land or the costs being passed on.’
Mr Whalley added: ‘The attitude is if you can get it [a tax] put on building developers, then do it. JIL is just another tax. I think if people in Jersey realised that 21 per cent of the price of their homes is already going to the government they would be quite upset.
‘Building developers are taxed because they are seen as pantomime villains.’
Property lawyer Clare Smith, of Ogier, warned that the UK Community Infrastructure Levy, upon which the JIL is based, was failing to raise revenue for local authorities.
‘It is something incredibly complex in England which they thought they could simply introduce here,’ she said. ‘They are pursuing an idea which is not popular anymore. Local authorities need the money but they are not getting it from the Community Infrastructure Levy.’
Andy Fleet of the Jersey Construction Council said that an independent report produced on the JIL indicated that it would make Jersey’s affordable housing problems ‘even worse’ as developers would de discouraged from building.
The hearing was attended by panel members Deputies David Johnson and Tracey Vallois, who said that they would relay the concerns raised to Environment Minister Steve Luce.
A States debate calling for JIL to be approved in principle is due to be held on 12 December.
