IF today is the ‘time to win’, as we are told by the title of the new strategy to restore a competitive edge to the financial services sector, it really does beg the question as to what was yesterday? Based on the accompanying report, the answer seems to be that yesterday was the ‘time to obsess with over-regulation to the detriment of growth, drive up costs and complexity, miss out on chances for innovation and fail to invest in infrastructure and technology.’ While accurate, it’s clearly not as snappy.
The need for a ‘reset’ is unequivocal: ‘Other jurisdictions are matching Jersey on standards while outperforming on speed, certainty, coordination and customer experience.’
The change plan was described by Deputy Ian Gorst – the Minister responsible for financial services – as no less than a ‘blueprint for Island life’. For the Government’s Chief Executive, it was the rather more dour and technical, ‘institutional spring-clean.’ Whichever, it is being billed as the moment Jersey turned. The moment, if you like, that the many voices calling for exactly these changes were listened to.
Ministers went to great lengths to state the importance of financial services to local life – contributing £6 out of every £10 of tax revenue, enough to pay for Health, Education and much of Social Security – which really does add weight to questions about how it could have been allowed to drift so far, for so long, given the considerable scale and importance of that contribution?
While the ‘Competitiveness Programme’ has been in development for some time following work by consultants McKinsey, and in fact some early measures have already been taken, the final presentation this week was delivered in the full glare of the forthcoming elections. Politics now permeated much of the commentary.
For Deputy Gorst, that presentation was a chance to urge the Island to love the finance sector once again, with Ministers who promoted spending on social policies being reminded where the money actually came from – and voters reminded to turn out and cast their ballot with the importance of the financial services sector firmly in their minds (and, one presumes, the architects of this strategy).
There was now no mention of economic diversification – only that the Government, the industry, Jersey Finance and the regulator were henceforth all working in partnership, with their individual roles much more clearly defined to prevent further overlap, and united behind a common goal of delivering growth.
The scale of their ambition is broad, encompassing housing, education, transport links and the cultural provision available for future finance workers.
Truly, a blueprint for Island life.
