A MOVE to introduce a business-pays model as part of an overhaul of a new food licensing scheme should be scrapped according to a backbench scrutiny panel.
Environment Minister Steve Luce has lodged sweeping changes to the Island’s food laws – including proposing that food businesses — including restaurants, delis and food manufacturers — will need an annual licence.
However, an amendment lodged by the Environment, Housing and Infrastructure Scrutiny Panel has said this risks disproportionately affecting small producers and could “reduce market participation, consumers choice and the diversity of Jersey’s local food economy”.
The panel is also looking to scrap the proposed commencement date of 1 October 2026.
In its amendment, the panel said it “fully supports” the overall aim of modernising Jersey’s food safety framework and improving allergen protection, but it “remains concerned” about the proposed “business-pays” model and whether the Regulation Directorate would be ready to implement the changes by this autumn.
Following a survey of 90 food operators and written submissions from industry representatives including the Sustainable Co-Operative, the panel said there was significant opposition to businesses contributing towards licensing and inspection costs.
According to the panel’s report, 74% of survey respondents strongly opposed the principle of business contribution for licensing or inspection services, with many raising concerns about affordability amid rising operating costs.
“Given the significant opposition to a business‑pays fee model, the potential erosion of diversity and choice within Jersey’s small‑scale food economy, the absence of a detailed and transparent fee proposal, the lack of clarity over how fees would be calculated and the minister’s own emphasis that the Regulations are fundamentally a matter of public health, the panel propose to remove the minister’s ability to levy fees for licences,” the panel said.
The panel has also proposed removing the fixed start date of 1 October 2026. Instead, the regulations would come into force on a day specified by the States once the minister and Assembly are satisfied that preparations are complete.
In its report, the panel cited uncertainty over the scope of the regulations and how certain activities, such as occasional fundraising events or voluntary food provision, would be treated in practice.
Panel chair Deputy Hilary Jeune said: “The Draft Food Regulations are a necessity to bring Jersey up to date with modern practices of labelling food for allergens. However, there is a significant amount of confusion as to who will come under the scope of this licensing system, and even what exactly constitutes ‘food processing’. It’s therefore essential that we hold back on a commencement date until these matters are resolved.
“In addition, our stakeholder evidence and our own research, suggests that the fees could be a form of regressive taxation on smaller businesses which may have an unforeseen impact on our community. Losing small/micro businesses which support our local supply chains, increase the variety of goods, and increase opportunities for employment, is not in the public interest. We therefore think that removing the fees system, which has yet to be fully thought through, will ensure that Jersey can still benefit from the unique variety of businesses we currently enjoy.”
States Members are due to debate the draft regulations and accompanying amendment next month.
