2

Al

. There will be no recession in Jersey eh ? This is sobering stuff and I would bet much nearer the mark than recent comments by Terry and Frank. Witness the events in the UK in the last 24 hours with Woolworths and MFI in administration and that in the run up to Christmas when they should be doing well. A definite sign that the crises has moved from the financials to the real economy. Wait till January and February next year and there will be plenty more business failures I am afraid and lay offs all around ; (

It’s not just the states but most everyone in Jersey and the UK who would be well advised to save some pennies and pay off some debts if they can now IMO.

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4

Nick

Well here we go again! yet more gloom and doom merchants having a field day and recommending, (Surprise Surprise!) we need to set aside more money to languish in a Bank account,or some sort of investment that can go down as well as up!Of course setting aside a surplus for a “Rainy Day” is a fundamental of sound investment and should not be ignored,but there is also a responsibility to recognise when you are standing in the Rain with the Storm breaking out all round you! It is precisely for such circumstances that you set aside funds in the first place!The message is coming across loud and clear from expert opinion worldwide that to clam up on spending at a time when key world economies are in danger of slipping from recession into depression is like removing blood from someone who urgently needs a transfusion.
No one is suggesting wild extravagance. Yes some monies should be added to reserves, but not at the expense of a sound,imaginative and future wealth creating spending plan. It is this that is the challenge for Governments in Recessionary times, creating employment preventing the loss of key industry and to some extent providing some “Shoot for the Moon” money! It is only when facing real challenge that the human race becomes focused and in rising to a seemingly insurmountable challenge that real advance and inventive development is achieved, sometimes by sheer accident.
If anything if you analyse where “Western Governments”, and in particular the UK Government,have been going wrong during what have in the recent past been boom years it has been poor investment spending strategy.
In the UK public money has been poured into “Service” and “Social” sectors with a total disregard as to what is being achieved or whether value has been given or added at the end.So determined has everyone been to achieve the original possibly poorly identified objectives that very little time has been spent monitoring progress to establish whether the outcome will create something tangeable or of value.
Neither has enough attention been given to what unexpected gains may have been possible along the way.
Something that looked like a good idea ten years ago may be outdated and a total “White elephant” by the time it is a reality.
Here in Jersey we have a number of glaring examples, Fort Regent and over adventurous Land reclaimation schemes being just two that spring to mind.
Both are examples of over ambitious schemes that have lost direction or have been overtaken by events to the extent that what has been achieved is in reality a very poor return for the money invested.
Imagine if you can if similar funds had been put into securing control of our sea and air routes on and off this Island? e.g. it is not so long ago that the Albert Johnson Dock in Portsmouth was for sale for what is by today’s standards “Peanuts”.Securing ownership of that would not only have given the Island permanent control over it’s mainland UK connections it would have secured an off Island investment that would have provided a very sound return (It is now a base for Brittany Ferries) it would also have provided off Island work for Islanders.The standard of the ferry service would also have been far easier to upgrade and maintain.
The same applies to Southampton Airport, also sold during the period, and look at it now!
What of Now? Well how about an artificial ski slope and toboggan run up at Fort Regent?
This is an investment that would create jobs, revenue from both Islanders and Visitors, and would attract ski mad sportspersons to the Island.The old swimming pool building makes an ideal base for this.(£3-£5mn?)
How about reviving the Snowhill cable car station in the manner of the Swiss (Mount Pilatus to Lucerne) and make it a viable commuter option out to the East of the Island.
How about a genuine 15″ gauge steam and diesel railway operating from St Helier to St Aubin, and possibly on to Corbiere, along the lines of the Romney, Hythe and Dimchurch Railway in the UK, using genuine minature scale engines and carriages capable of providing a proper commuter/tourist passenger service?
How about serious investment in sea current power generation so the Island can be a net exporter of eco friendly energy.
A sand yachting school and annual event?
Serious investment in sea life tourism, eco reef creation.(Tourist Submarine?)
A paragliding centre?
Get behind agriculture and seafood industries in an eco friendly way.
Serious Waste recycling? A possible export industry?.
A Formula One or Glorious Goodwood style road race (Singapore/Monaco style).
I could go on but I’ve already given away a few good ideas that with sensible investment and monitoring could be self supporting and generate local jobs that would generate real revenue properly managed, and an alternative too the all eggs in the financial basket scheme now under consideration in St Helier.
A Tunnel (Hong Kong Airport style, no digging) to France, not an expensive bridge?
Buy a French fishing port?
Secure your lines of communication and supply one of the basic military strategies that has been totally ignored here in the Island to my great surprise given the number of ex service persons who have retired here over the years.
Just a few original thoughts for those over conservative accountancy types to try and get their unimaginative brains around.
Money in the bank is comforting but as is all too apparent it is not necessarily safe, so why not go mad and spend a little wisely, create some excitement, it’s better than dying of boredom!

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6

Ann

Well said Nick! but we all know it was finance which brought Jersey it’s prosperity in the first place.

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8

Nellie Macon

Read between the lines – “there could be a deficit of £250M if States spending rises and income remains flat” – we know States spending will rise if TLS gets in as CM – so what is his budget going to do – try to make the longsuffering taxpayer accept even more taxes and use this as an excuse for bumping up GST in 2 years (remember he only “guaranteed” it at 3% for 3 years)!

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