STATES Members have been accused of electioneering and adding costs to businesses by forcing companies to accept cash payments.
Murray Norton, Chamber of Commerce chief executive, said that the decision on whether to accept cash payments should fall to the individual companies.
Yesterday, States Members overwhelmingly backed a move from Deputy Montfort Tadier that requires businesses selling in-person goods and services will be required to accept cash payments from 2028. It also required the next Council of Ministers to bring forward a policy paper – including a review of banks fees for depositing cash – by next March.
However, Mr Norton said that the move could lead to increased prices.
He said: “The last thing that businesses, especially smaller ones, want to do is turn customers away because they only accept cards, but we feel that is a decision that individual businesses should be allowed to make.
“Running a business comes with high costs, especially in a small community, and it should not be down to governments to mandate how a business chooses to operate if there are legal and well understood ways of paying other than using cash.
“Contactless payments, whether that’s using a phone or a debit or credit card, are not new and are widely accepted and understood. We are concerned that States Members have used this opportunity ahead of an election to add additional costs to businesses who will be forced to absorb extra costs or increase their prices to survive.”
During the debate, Deputy Tadier said that the Assembly should set a “clear direction of travel” to protect cash, adding that the “window of opportunity” to intervene against the rising tide of digital payments was now.
The proposition means that in-person businesses will need to accept cash as standard. However, a caveat has been included to allow “reasonable exemptions” which would be developed by the next Council of Ministers.
In opening the debate yesterday afternoon, Deputy Tadier produced a £10 note from his wallet and questioned its true value.
“I don’t know if in ten years time, we will still have Jersey £10 notes,” he said. “I don’t know if in ten years time, it will have the same currency value in terms of where we can use this.
“I know that, at the moment, if I step out of the Assembly, I can go to all sorts of places within walking distance and exchange this for £10 worth of goods and services. But that is not the case in all places.
“Increasingly, if this is my only method of payment – maybe I don’t have a bank account, maybe I have lost my bank card and am waiting for a new one to come, maybe my phone has just died or maybe I am in a relationship where I have a partner who monitors how much I spend and he or she is watching where I am spending my money – this provides me not just with currency but also with freedom.”
Chief Minister Lyndon Farnham said that, while he agreed with the principle of cash, Jersey businesses “operate in a challenging environment” and careful consideration of forcing firms to accept physical payments was needed.
However, he said: “Systems do fail and physical cash can offer a reliable fallback.”
He ultimately supported the proposition.
Several Members said that accepting cash meant would promote inclusivity for all islanders – some of whom may not have access to a bank account, may be in an abusive relationship where their bank transactions are restricted and tracked, or who simply prefer using cash.
Deputy Karen Wilson said that “small” issues some businesses may face were “outweighed by the benefits”.
“Serving all customers, maintaining community trust and ensuring no resident is left behind – I believe that with smart, supportive measures, businesses can continue to accept cash without undue burden while Jersey can safeguard fairness and choice for all Islanders,” she said.
Last year, the Economic and International Affairs Scrutiny Panel, which is chaired by Deputy Tadier, conducted a review of the acceptance of cash payments.
Its findings revealed that, of 2,696 responses to an anonymous five-minute survey, 92% of businesses stated that they accepted both cash and digital payments, while 6% revealed that they only accepted digital payments.
External Relations Minister Ian Gorst said that he agreed the government should bring forward policy work to protect the future of cash, but did not accept forcing all businesses to accept it.
“The world is changing,” he said. “It is appropriate for the government, post the scrutiny review to do the policy work.
“For my part, it is the wrong way around to agree to legislate in advance of that policy work because I agree that legislation will be required and I don’t think it is appropriate for us, as an Assembly, to say we are agreeing now to legislate and then we are going to do the policy work.”
Members ultimately approved the proposition by 31 votes to eight, with two abstentions.
APPEL
POUR:
- Ministers: Lyndon Farnham (Chief), Sam Mézec, Mary Le Hegarat (Justice and Home Affairs), Carolyn Labey (International Development), Rob Ward (Education), Andy Jehan (Infrastructure).
- Deputies: Ahier, Alves, Andrews, Cole, C Curtis, A Curtis, Ferey, Gardiner, Jeune, Kovacs, Miles, Porée, Renouf, Southern, Stephenson, Tadier, B Ward and Wilson.
- Constables: Honeycombe, Johnson, Labey, Lewis, Mezbourian, Stone and Troy. (31)
CONTRE:
- Ministers: Ian Gorst (External Relations), Steve Luce (Environment).
- Deputies: Philip Bailhache, Scott and Warr.
- Constables: Crowcroft, Jackson and Le Sueur.
ABSTAINED: Kirsten Morel (Economic Development Minister) and Deputy Andy Howell.
