Jersey Telecom Sale Proposition Report Lodged

by Robert Lee, Tax-News.com, London

11 October 2007

Jersey's Minister of Treasury and Resources, Senator Terry Le Sueur has lodged a Report and Proposition asking the States to agree that their shareholding in Jersey Telecoms (JT) should be sold, and requesting the identification of a suitable buyer.

The Jersey government says it has been consulting extensively with experts on the sale of Jersey Telecom, and reports have also been produced by various directly interested parties, such as the Minister for Economic Development, Jersey Telecom, and the Economic Affairs Scrutiny Sub Panel (EASsP).

In response to the recommendations of the EASsP review of the Minister’s sale proposals, it was agreed to commission a further joint review of the sale proposals, to be overseen by an independent steering group. That steering group, comprising Bill Ogley - States Chief Executive, Ian Black - Treasurer of the States, David Parker - expert adviser to the EASsP and Bob Lawrence - Chief Executive of Jersey Telecom, sought expert advice from economic advisers, Oxera. All States members were invited to raise their concerns or questions.

The Steering Group has concluded that selling Jersey Telecom would be in the best economic interests of the Island, providing a number of conditions are met. Le Sueur has, in cooperation with the Minister for Economic Development, developed measures to address each of the proposed conditions, and is confident that there are no longer any reasons why the sale should not progress.

Senator Le Sueur commented:

"I am delighted that we have been able to address all the concerns about the sale of Jersey Telecom including protection of consumers, continued investment in infrastructure, protecting employment rights of staff and ensuring an appropriate buyer. These aspects and many others have been given full consideration."

"With the right measures in place the States, the Company and the people of Jersey can be confident that the sale is the best option for the Island , taxpayers, telephone users and Jersey Telecom and its staff."

He concluded: "I will be asking the States to debate the sale in November and approve the selected buyer next year."

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