£44m boost for economy
Thursday 9th April 2009, 3:00PM BST.
PLANS to inject £44m into Jersey’s economy in an unprecedented move to get the Island through the recession have today been revealed by the Treasury.
The cash will be used to fund an emergency package of measures to support workers and businesses as the worldwide economic downturn continues to tighten its grip on Jersey.
Treasury Minister Philip Ozouf revealed that following a deterioration in the Island’s short-term economic outlook he now plans to ask the States to approve plans to:
• Increase the Stabilisation Fund to £156m by transferring £18m from the old Dwelling House Loans Fund.
• Use £44 million of the fund for an immediate fiscal stimulus package.
• Earmark the other £112 million to plug gaps in 2010 and 2011 caused by a drop in tax revenues and an increase in income support payments because of a rise in unemployment.
• Picture: Senator Ozouf
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i wonder how many projects building or otherwise will be kicked off and how many will ACTUALLY go to local firms????????
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A building company recently advertised for a number of apprentices here. But how many did they actualy recruit?? I think you may find it was none.
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The G20 appeared to fail on putting money towards climate change reduction. Is there a chance we won’t fail? It could even create some jobs having a few Wind or tide turbines.
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Who is this going to help? How much of our taxpayers money will end up in the pockets of already wealthy builders, developers and local businessmen with good ‘connections’ with the States?
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I agree with you Annie, the green economy can create wealth and jobs. Let use this money wisely.
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At least they are trying to do something to help people. This money is available to the States, therefore it makes sense to try and use it to help people. Only time will tell if it has any impact, but this is better than doing nothing.
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#4 Dave asks
“Who is this going to help? How much of our taxpayers money will end up in the pockets of already wealthy builders, developers and local businessmen with good ‘connections’ with the States?”
Well,there is something called Trickle Down Effect.
With the emphasis on trickle, i.e, don’t expect a raging torrent.
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Dave I think you have hit the nail on the head with your comments. It is the workers that need protecting not just big business and the rich.
We should be diversifing into alternative energy especially from the sea. Instead we are dependent on the whims of world markets and nuclear power!
Also I thought capitalism was all about the survival of the fittest? Why pay money to a company that will only extend its life by a short time period?
As far as I am concerned it would be much better to employ people doing worthwhile jobs like keeping the countryside and the beaches clean allied with setting up renewable energy companies that make use of free energy for the benefit of the island as a whole, and not just share holders or big business.
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Until we have a clearer picture of when and how fast recovery is going to occur we should hold back on spending too much of the stabilisation fund.
It is possible that the recovery, when it happens will be flat.
If we have a large deficit in this situation we may find that we have dug ourselves in a very big hole.
Perhaps we should be looking at ways of reducing costs to make more cash available to support local business – for example by freezing pay on middle/high earners in the civil service management pyramid.
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I think if I was about to throw away over forty million quid i’d also have a worried look on my face!!!!!
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I really do not think that the Treasury Minister and his fellow politicians have anything at all to crow about, taxpayers money has been salted away, public property has been sold off to private individuals and housing trusts and money banked.
Meanwhile we have a prison that is understaffed and barely fit for purpose, delapadated social housing stock, insufficient funds to have a law drafted to protect island children from paedophiles, families with autistic children desperate for adequate social care and respite, GST on the basics, a higher than average society with addiction drugs and alcohol, and a government elected by 40% of the population.
The politicians had better start looking at how they prioritise spending for a start off forget the 1.5 million on the airport departure lounge and get some more customs officers and law draftsmen.
Finally at the rate this governments works the credit crunch will be over before any of the 44m is spent!
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The last depression started in 1929, world stock markets weren’t at the same pre depression levels till I believe 1958 and we had a big war inbetween. I believe this has all the hallmarks of another depression, if it is then it won’t be over next year as the so called experts keep saying.
I would also be very concerned that the likes of Ozouf and co were very bullish at the Senatorial elections talking everything up. Look at the mess we are in now. Mind you six months is a long time in politics. Are these people really competent to be leading us into a depression? I would have to say no. I even talked about this very topic then and it went down like a lead ballon. I do hope I am proved wrong or else £44M will be but a drop in the ocean.
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We just have to hope and pray that they know what they are doing! Based on passed experience we should all probably move away as the faithful elect have failed on various projects and seem to be more involved in trying to insult and bring each other down…. To be quite honest the Jersey government does nothing but humiliate this great island and the vast majority of the states members should be very, very ashamed of their behaviour…. Maybe the states should thank the islanders for their patience & money to help them through this…. GST versus an extra days holiday for all states workers… How much is that costing????!!!!
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Think Al Murray got it right….”where’s the *+!?*~#” expletive …. money ?
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Jersey Hope people are entitled to a day in lieu for Liberation Day as it falls on a Saturday. This is not an extra day’s holiday. I suggest you check with CAB, I am sure they will verify what I have said. I am sure employers wil be aware of this point also.
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Wrong, Adrian. Liberation day is a fixed date in the calendar. If 9th May falls on a Saturday or Sunday, it cannot be transferred to the following monday, or any other day. Until, that is, the politicians are so unpopular that they want to bank some extra brownie points with the public.
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Harve = right Adrian = wrong only states employees have been given another day yet another case of COM giving way as a lot of private firms in the real world have said “tough” if the 9th is a week day.
this leads to yet another faux pas by the goodies in the world trying to over protect the employee
jacs have confirmed that any body working a bank holiday should get double time..in the past it was considered overtime so what has happened small firms have closed for the day the result….No extra cash for the workforce,,they get hit yet again….but that the goodie people for you
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The UK tried to kickstart the economy by bailing out banks trusting the banks to lend more! Well wasn’t that a great idea, anyone with half a brain would have written a clause into the giving of the money stating certain lending targets that the banks would have to meet. The UK would have done better to give the money to the banks on the condition that they pay back all illegal charges from the last 6 years, this would have given the people more money and caused them to spend more (and in some cases save their houses).
Wherever this money goes it must be spent sensibly and if it is given to big business it must be given with strict criteria and thorough monitoring.
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i thought the idea of a fiscal stimulus was to re-capitalise the banks so they would start lending again and get the economy going. this is different. this just sounds like another excuse to spend more money to me!
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We could actually create jobs by overhauling our sewerage system and getting everyone finally connected to mains drains – that would be excellent, practical use for these millions of pounds, a step in the right direction for the environment and save the extremely patient local people who have been paying hundreds of pounds over the years to have their septic tanks emptied lots of money.
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So I take it WouldyouAdamandeveit that you won’t be getting Boxing Day off this year then as it falls on a Saturday? Or is that different?
Monday to Saturday is classified under Jersey law as working days. Therefore if Liberation Day falls on a Saturday even though its your day off you should get an extra day. This is how I interpret the law. However the A.G.’s office has interpreted it differently and made it known that there is no need to give a day off for this year.
Next year as Liberation Day falls on a rest day i.e. Sunday I would agree that we wouldn’t get a day for next year as it doesn’t fall on what is classied by law as a working day. So bad luck everyone you have just lost two days leave because of Liberation Day falling on the wrong type of day. Tuff.
However because the States haven’t decreed a day in lieu for Liberation Day we don’t get one but because they have for Boxing Day we do get a day for that! Can anyone tell me the difference between the two because to me they are the same.
As far as I am concerned we get 9 Bank Holidays in Jersey each year not some years 8 and some years 9! This is a joke as far as I am concerned.
I suugest everyone who reads this ring your states deputy and demand a day in lieu as they have the power to grant it. Or you could do nothing and just lose a days holiday, like you will next year as well.
This is the reality of things. I have spoken to JACS about it who will confirm the above.
Maybe someone from government could explain this to the workers, or even someone in the A.G.’s office? I for one would like to know why Boxing Day entitles everyone to a day off but not Liberation Day?
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Nellie good points about sewerage. I have been on about this for years but they aren’t interested. I believe as it isn’t something that is highly visible like a statue it is conveniently forgotten about. I too object to paying to have my sewerage removed because the States haven’t provided me with access to the sewers. I am prepared to pay for connection into the road but they aren’t prepared to pay to get it into the road for me.
A bit of a joke if you ask me, then they expect me to apply for a permit to discharge into the ground to protect me from prosecution! What difference does a permit make?
Everyone should be on mains sewers in Jersey. I spoke to an expert in the UK who laughed his head off when I said about 1 in 6 over here weren’t on mains sewers. We are around 85% connected, the UK is at 95%! What is going on? Come on States sort it out is about time money was spent on something useful for a change.
Why should people like me have the inconvenience and extra cost of something that should have been sorted out years ago when Jersey had money to burn? What about the environment in all this, or does no one in authority really care about it enough to sort it out?
This would provide much worthwhile work to the growing numbers of unemployed who will be requirung some sort of work to see them through this bad recession. Have the States the sense to do these sort of major projects or will they, as I see it, waste it on the finance centre that may or may not be needed in 5-10 years time?
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Annie du Feu (3) the voice of reason. The Channel Iles must be the prime location for Green tidal power. Come on Philip stimulate an industry for the future.
Meanwhile Nellie (20) has a good point.
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Nellie #20, good point. Are we not limiting ourselves a bit assuming that the only way money can be pumped into the economy is either by building or giving the money to banks?
UK banks have proved themselves not to be trustworthy enough to receive such money, would Jersey ones be any different? Maybe they would but there must be other options than building or banks?
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We could revamp the fort – not only would we be creating jobs but we would also save thousands by keeping the youngsters safe, occupied and out of trouble – saving on police and legal fees and citizens from having to pay for the results of vandalism.
There is talk about investing in retraining and apprenticeships but if the jobs aren’t available then this is not going to put money back into circulation. Cheap loans and tax breaks to start new businesses, assistance in finding premises for the new businesses and perhaps a panel of retired businessmen who would probably be happy to assist on a vuluntary basis, to help new businesses find their feet. There are people out there with brilliant ideas but it’s really hard to get these off the ground.
Industries to use our recycled waste on-Island would also be a brilliant use of these available funds. The UK reports they have stockpiles of recycled materials so why ship it over there at great expense – why can’t we do something with at least some of it over here – great for the environment – good for employment.
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Nellie, what about the swimming pool next door.
Proper ‘youth centre’ possibly? Free membership card system. Outside 5-a-side football cages, study rooms, games rooms, smaller and varying indoor skateparks, soundproofed practice rooms for musicians/bands, quiet lounge rooms, music video lounge rooms, counsellor on hand a few nights a week for those that wish to talk to someone in confidence, etc etc. Youth workers for every room. Maybe get volunteers to run occasional and optional classes like kick-boxing, self-defence, general safety education? Obviously have young people in the plan right from the start so they get what they would actually use. CCTV everywhere (to protect staff and young people) with a zero-tolerance policy on alcohol, drugs, bullying etc resulting in week/month long-bans from the building. Also a small shop for drinks, sweets, magazines etc. Unfortunately with today’s litigious society parents of the teenagers would probably need to sign some kind of waver saying that the youth workers etc weren’t responsible for anything that happened to their children (within reason of course).
Hire the building out during weekdays for use by companies to bring in some extra money. It could also be used during the day to give more activity to those with special needs.
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Yes Leah, the possibilites are endless – definitely restore the pool as we need a serious swimming pool as well as a fun pool.
Deputy Roy Le Herissier is asking for suggestions from the public for the use of the fort on r.leherissier@gov.je – maybe you would like to forward your suggestions on to him. He would like to hear from as many people as possible.
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Alternative energy is the way to go I have been on about this for 30 odd years now. However it has fallen on deaf ears. Those in charge prefering the finance route to success.
Our tides are some of the biggest in the world only bettered by the likes of the Bay of Fundy with 17mtrs 55 foot. However 13mtrs or 40 foot is not a bad rise and fall to be able to generate energy from.
There are also tidal currents which could used around the island and if the C.I. banded together they would have a tremendous money generator.
Jersey is the reason the French went down the nuclear route in the 1950′s. We blocked their access to outlying reefs which they wanted to make use of to generate energy from a barrage. I believe they even offered us free energy in exchange for access, unfortunately we prefered to keep our territory for ourselves and let it sit idly by generating no energy for anyone.
So, we are were we are today, reliant on something that may, or may not, be here in a few years. A transitory industry as opposed to a never ending renewable energy source. Some people in my opinion are very dim.
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Maybe the money should be used to create a “national” peoples bank of Jersey rather then pumping it back into the ever so greedy institutions who got us into this mess in the firstplace.
Perhaps then the peoples bank will not be entirely motivated by profit and we may all benefit from a realistic “Jersey” mortgage to buy a Jersey property and where we may see a decent return on our savings.
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Very good point BS Deluxe it would be good all round to have a proper bank over here that doesn’t go in for the excesses of capitalism like sub prime and hedge funds etc.
Maybe the bank could be run at nil profit after inflation payments to protect people’s savings, and use all monies to help boost the island economy and to diversify out of the dinosaur that is finance.
So much money goes to bankers to pay for massive pensions etc and big golden parashutes to reward failure.
I will say it yet again diversify before it is too late. Alternative energy would be an area I would strongly recommend however the CoM view things differently from me so this would probably be seen as a non starter.
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#5 Adrian: “As far as I am concerned it would be much better to employ people doing worthwhile jobs like keeping the countryside and the beaches clean”
And where would that money come from? Where’s the return on investment? Would you also support user fees to support your work plan? Or maybe we could introduce fines for ‘spoiling’ the countryside and beaches? Then we could hire enforcement officers as well!
It’s amazing how many whiners there are on these forums with crackpot, hair-brained schemes that are entirely detached from reality. That would explain why Mr. Syvret is so popular
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The local bank idea is a good one and something Mike Higgins came up with a little while ago – not likely to gain the support of the ministers though unfortunately.
SteveC – just because people are thinking of ways to make the Island better doesn’t mean they’re whining – just that there’s room for improvement and by discussing these ideas it’s possible to refine them, iron out the flaws and come up with a viable proposition.
As for keeping the beaches clean or picking up litter – I’ve met people that would do practically any job rather than sit at home and live off low income allowance, so this isn’t necessarily a crackpot idea. Granted it isn’t making a profit business-wise but at least the taxpayers are getting some return for their money.
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Adrian and Nellie…
such a bank already exists… it’s called the Co-oprative bank!
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