A SERIES of recommendations – including an overhaul of employment licensing and removing restrictions on opening hours before the end of next year – have been issued to make it easier to conduct business in Jersey.
The government’s failure to act on these will result in “reputational damage” and “continuing downward economic trajectory”, according to the Barriers to Business report.
Economic Development Minister Kirsten Morel, who commissioned the £90,000 report following a commitment in his Ministerial Delivery Plan, said that some recommendations were already being addressed, but that there was “still work to do”.
The report – by government-funded arms-length agency Jersey Business – was published just days after Nude Food and Rojo nightclub announced they would cease trading, and the Green Goose Jersey café said it was cutting down on its opening hours due to increased operating fees.
And import freight costs – cited by all businesses as a barrier – could soon increase following proposals by Condor to hike freight prices by 19%.
As part of the report, research company 4insight surveyed hundreds of businesses in the retail, hospitality and tourism, agriculture and aquaculture, construction, care, digital, and professional services industries.
When asked for one word which best described doing business in Jersey, the most frequent answers were “difficult”, “challenging”, “frustrating” and “expensive”.
Survey results further revealed that the greatest challenges to businesses were staff recruitment and retention, a lack of vision from the government, administration, and complying with government legislation and registration.
Businesses also raised concerns about the government’s new payment platform, Ariba, stating that it was a “long slow process which is difficult to use”.
The report explained: “The combination of skills shortages, staffing challenges, inflexible employment laws, increasing minimum wage costs and the movement of people out of Jersey are negatively impacting business profitability, service levels and ability to meet demand across all sectors.
“For critical sectors like agriculture, staff shortages could jeopardise food security and the long-term viability of the remaining farms if not addressed.”
The report includes 20 short-term (before the end of 2024), nine medium-term (before the end of 2026) and nine long-term recommendations (beyond 2026) for the government.
Within a year, the government should adjust the calculation of the minimum wage to include food and accommodation and consider removing the associated legislation entirely as the Island moves towards a “living wage”, the report states. A living wage is defined as a wage that enables a person to maintain a “normal” standard of living in their environment.
The report also said the government should commit to reviewing the regulatory burden on businesses, and remove Sunday trading permissions for all businesses as long as they follow set guidelines.
To bring “vibrancy” to St Helier, the report also suggested establishing an annual programme of activities within the town centre such as weekly markets and introducing a scheme which encourages pop-up stores to utilise empty shops in the short term, as well as simplifying the events approval process.
In the medium and longer term, the report recommended introducing tailored employment laws for small businesses – and creating temporary accommodation by repurposing offices or utilising a decommissioned cruise ship.
It has also recommended reviews of Customs processes and a simplification for recruiting workers from outside Jersey which may include removing the requirement for businesses to apply for licences to recruit from other jurisdictions.
It continued: “Businesses volunteered their time to take part in the consultation on the understanding that their voice would be heard.”
Failure to listen and act, the report continued, “will reinforce business opinion that the government cannot be trusted”.
“If the challenges presented in this report are not addressed, each working resident will need to deliver more output by 2040 and the population will need to rise to 150,000,” the document states.
Deputy Morel said: “For the first time, we have clearly defined the constraints and challenges; the next step will be to address them to create an enabling culture and a more thriving ecosystem where all industries can prosper.
“I know that members of the business community are often frustrated by what is seen as ‘red tape’, and I made a commitment in my 2023 Ministerial Delivery Plan to identify and begin to remove that ‘red tape’ and lower barriers across government.”
He continued: “Some recommendations are already being addressed, but there is still work to do and I will be working with other ministers to remove or reduce barriers, enabling Jersey businesses to start, to grow and to flourish.”
FACTBOX
Of 235 respondents, 65% said “staff recruitment or retention” presented a challenge to their organisation.
58% said that there was a “lack of vision or understanding for your industry by government”.
30% also selected staff recruitment and retention as the “greatest challenge”.
