JERSEY needs a diversified economy and cannot solely focus on finance, the Economic Development Minister has said, as some of his ministerial colleagues appeared to put their weight fully behind Jersey’s biggest industry.
Deputy Kirsten Morel said that retail, tourism, agriculture, biopharmaceuticals and other industries had to be supported too.
Last month, the government – led by External Relations Minister Ian Gorst – launched its ‘Time to Win’ programme, a concerted effort to make the ‘finance and related professional services’ industry competitive in the face of “multiple and converging threats”.
Government chief executive Andrew McLaughlin, who led the programme at an officer level, told the JEP at the time: “Despite the best and heroic effort of politicians over the past 40 years, we have not achieved the level of diversification in the economy of Jersey that we probably would have liked.
“That means, despite best intentions, we are probably more dependent than we ever have been for jobs, tax and other activity on the finance sector.”
At the Time to Win launch, Treasury Minister Elaine Millar called on Islanders to challenge election candidates who did not support finance.
However, Deputy Morel’s department recently published an update to its ‘Future Economy Programme’ – which attempts to develop new industries as well as grow existing ones.
It said: “The financial services sector remains the largest single contributor to gross value added (GVA) and the recent competitiveness review seeks to enhance this, benefiting the whole Island.
“Other sectors contribute to the economy in ways that go beyond GVA through making Jersey an attractive place to live, work, and providing our quality of life. At the same time, the importance of all sectors contributing to the resilience of the whole island’s economy and supporting our living standards cannot be taken for granted.
“For instance, our visitor economy ensures we have strong connectivity; strong connectivity supports businesses to employ people and remain competitive, all contributing to our Island’s growth and resilience.”
Asked if he felt there was a tension in the Council of Ministers between those who backed finance and those who preferred a more diversified economy, Deputy Morel replied: “I wouldn’t say there was a tension but I see it as really important to bang the drum for the rest of the economy because having all our eggs in one basket is a resilience issue.
“The Treasury Minister did make some comments in the Assembly last week suggesting that other areas of the economy need their own competitive programmes. I do not disagree – but we have them already.
“For me, her comments suggested a lack of awareness about the work we have done with other sectors, whether it’s retail, tourism, agriculture, arts, culture and heritage. We have strategies for all of these which are ultimately competitiveness programmes.”
Deputy Morel said he was pleased with the progress of the Future Economy Programme, which was launched in 2023. The update concluded that 82 out of 90 of the original actions were either complete or in progress.
He said: “I am happy but these things take time. One of the things I am not so pleased about is the speed that the political narrative around the programme appears to have disappeared into the background.
“The Economy Department has been working hard on delivery and perhaps not shouting enough, which is my responsibility. We have better connectivity today, agriculture is standing on its own two feet, and we are supporting other sectors in many ways.
“The fact is, if we do nothing, living standards will fall, or future governments may be forced to make difficult decisions such as raising taxes, significantly increasing population through migration, or reducing public services.”
