We must diversify now

Tuesday 21st October 2008, 3:00PM BST.

From Kevin Keen.
LIKE most Islanders I pray our finance industry will weather the storm caused by the global credit crunch.

Although the latest GVA figures say just over half of local wealth creation comes from finance, the reality is we are now almost totally dependent on the sector. What would the construction industry be building without finance? How many pubs, restaurants and shops would we lose? How could we afford all that States expenditure and the jobs that go with it?

Notwithstanding the importance preserving this sector now must be the time to increase efforts to diversify the economy. This will probably take years but the sooner we start the sooner we will get the benefits of more baskets to keep our economic eggs in and the new career opportunities diversification would create for our young people.

But how does the States really kick start this initiative? Well in my opinion now is the time for a big rethink about the Waterfront. It is a substantial site in public ownership and could be deployed to facilitate new industries. What about using the land for a business school or a technology and media park? Maybe we could create an enterprise zone with tax and housing breaks for those willing to take the risk of establishing new high value industries?

If our finance industry still has a need for bigger, shinier offices post the credit crunch; these can surely be accommodated within old St Helier? Offices on existing sites would have the further valuable benefit of protecting the prosperity of our town.

A change of direction like this will need vision, strong leadership, risk taking and probably public money and of course it will take longer than the average political time horizon but it is vital we do something. With a new Chief Minister and Council of Ministers maybe we will see this sort of bravery? I hope we do.
Vue des Champs,
Clos de la Porte,
St John.

1
badbob

October 21, 2008 at 3:54 pm

Quite an interesting comment Mr Keen, it has taken years for our government to destroy our tourism and agriculture industries, now you reckon we need to ‘diversify’? ‘high value industries’ ? all extremely vague and probably viewed by the larger world community as undesirable, like our present finance industry(corporate tax evasion).sorry mr keen i for one would like to see the demise of the finance, We can then return to a less populated ,fairer less self obsessed society.

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2
Joe "the Banker"

October 23, 2008 at 10:28 am

Positive thinking

“it has taken years for our government to destroy our tourism and agriculture industries”

These were destroyed by globalisation. It costs anything upto £300 for someone to fly over to Jersey from the UK. It costs £30 to fly to Sicily from the UK. Where are you likely to go on Holiday? It surprises me that there even in a Tourist industry. (Same principle for agriculture)

Jersey is in a prime position to weather this finacial storm. Jerseys main industry is, as Badbob pointed out, tax evasion. The European governments are forking out loads of Tax money to pay off bad debts. Therefore taxes are likely to increase in the UK and Europe. Sending more money through Jersey to avoid this.

There will always be money, taxes, a finance industry and the rich. Four things that work to benefit Jersey. At the end of the day things are alot better here than in the UK. The average income tax in the UK is between 25% and 50% I doubt anyone here can claim that they pay that much. And GST?! Its 3% not 17.5%!

Life is going to change, and has changed, but of course it will pick up. Some diversity would be a good idea, but we shouldnt be looking to abandon ship because it might sink.

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