JERSEY’S construction slowdown has left the industry without enough building work for a full awards ceremony, the Economic Development Minister has told Scrutiny.
Deputy Gerald Voisin said he was “not aware of any construction of homes or flats going on in St Helier at the moment” and warned that the cumulative burden of regulation was preventing businesses from prospering.
Pointing to the Jersey Construction Council’s recent gala dinner, he told yesterday’s hearing: “I attended the Construction Council awards ceremony a few weeks ago, and there were no awards because there hadn’t been enough building.”
The council’s website confirmed that “a full awards ceremony was not held this year” at the event on 19 September.
However, two special awards were presented: one to Highlands College’s Green Skills Academy initiative and a lifetime achievement award to structural engineer John Woodward of Rothwells.
Deputy Voisin said construction would be “difficult to unlock”, citing the additional 3% stamp duty on second homes and an increase in minimum accommodation sizes as factors holding back development.
He warned that measures which made sense individually were having a damaging combined effect.
“Each one piece of the regulation on their own right actually makes sense, that’s why they were debated and voted through in the Assembly,” he said.
“But that cumulative impact of regulation on regulation on regulation means that businesses can’t continue to prosper.”
The minister said the additional stamp duty had discouraged private investors whose deposits could help “kickstart” housing projects, while larger minimum accommodation sizes made developments more expensive.
“Certainly people in the industry say that the 3% additional stamp duty put off a lot of private investors that would buy or certainly put deposits down on flats,” he said.
“Not only are you putting up prices, but you’re also scaring off a lot of investors.”
Planning Minister Mark Boleat recently launched a consultation to determine whether more flexible rules on the size of homes could help tackle housing shortages and affordability, as a consultation opens on Jersey’s residential space standards.
The four-week review will consider whether the current requirements strike the right balance between housing quality, cost and supply – and whether Jersey should allow alternatives such as compact studio flats or co-living developments.
During the scrutiny hearing, Deputy Voisin also outlined plans for a programme to support sectors beyond financial services – describing it as a “Time to Win for the rest of the economy”, although a name has yet to be chosen.
The existing Time to Win report sets out a programme for the future of financial services, which generates 40% of Jersey’s jobs and 60% of tax revenue.
The wider programme would explain “sector by sector, what is required to enable them to deliver the growth and the balance that is required”.
The JEP has contacted the Jersey Construction Council for comment.
