Jersey Publishes Economic Growth Plan

by Jason Gorringe, Tax-News.com, London

01 September 2011

Jersey's Minister for Economic Development, Alan Maclean, has published a draft Economic Growth Strategy to continue the process of economic policy development in Jersey.

The draft strategy, entitled 'Quality of Life Through Economic Success' is published following extensive research and consultation between the Economic Development Department, key representative bodies such as the Chamber of Commerce and the Institute of Directors, and a number of local business entrepreneurs.

The plans aim to strengthen the island's financial services sector and broaden the island's offering to international investors to place Jersey in a strong position going forward. The document addresses:

• Developing a flourishing and diverse financial services sector;
• Creating opportunities for new, high productivity sectors; and,
• Raising the productivity of existing sectors.

Alan Maclean commented: "Jersey has emerged from the global economic downturn in an enviable position compared to other jurisdictions but it is essential that we now plan how to build on that position and continue to deliver economic strength and success. We still face many challenges but by working closely with our key industries, encouraging more entrepreneurship and government taking a more supportive rather than interventionist role.”

Among forthcoming measures outlined in the document, by January 2012, a new enterprise and business support organization “Business Jersey” will be formed, independent of government, with its own board, chief executive and staff structure. According to the plans, it will deliver a new enterprise strategy, improving upon achievements to date, becoming more targeted in its implementation and placing a greater emphasis on the development and growth of all businesses, particularly those in high productivity sectors with high profit and productivity growth potential.

In addition to this, a new E-Commerce Commission will be created, based on the successful Jersey Finance Limited model, to promote the island’s e-Commerce sector capability in international markets.

The consultation reiterates the States of Jersey's commitment to retaining a tax neutral regime for corporates, and the 20% personal income tax rate necessary to retain key persons.

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