The FPP is an advisory body with an important role to play in helping to ensure prosperity through economic stability, according to the government.

Mr Dixon explained that:

“The Fiscal Policy Panel will be working hard in coming months to ensure that we make the best possible start when the first annual report is published in August. It is important that the Panel has the Island ’s trust and confidence from the outset."

“To do this the Panel intends to gain a full understanding of how Jersey’s economy works and we will be discussing the key economic issues with all sections of the Island ’s community. It will be fully transparent, making all of its recommendations and advice public and making its methodology known,” he added.

The preliminary report sets out for the first time the five guiding principles that will inform the Panel’s work, namely that:

• Stability is at the heart of sustainable prosperity;
• Fiscal policy needs to be focused on the medium term;
• Policy should aim to be stable and predictable;
• Supply in the economy is just as important as demand, and
• Low inflation is fundamental to the competitiveness of the economy.

Welcoming the Fiscal Policy Panel’s preliminary report, Senator Terry Le Sueur, Treasury and Resources Minister, commented:

“I am pleased that the Panel has chosen to set out how they intend to undertake the importance task they have been given. The FPP is the lynchpin of the Council of Ministers’ new Anti-inflation Strategy."

"This preliminary report is also a timely reminder that low inflation is critical to the Island’s continued economic success and benefits all Islanders."

“It is often said that there is little we can do to control inflation in the Island but, while we are influenced by many factors outside our control, there is much we can do to improve our inflation performance."

"The setting up of the Fiscal Policy Panel is an innovative step taken by the States that will help us improve tax and spending policy to meet our economic objectives. I look forward to receiving the Panel’s full report in the summer,” he concluded.