It’s party time for the States Chamber

Wednesday 26th May 2010, 3:00PM BST.

From John Heys.
THE slow but inevitable ruination of this beautiful Island of Jersey by an incapable and dictatorial junta of senior States members must be exposed to the outside world, and stopped now as the mistakes are getting beyond recovery, with no accountability at all.

Once very prosperous tourism and agriculture industries have been run down in total favour of the so called finance industry. The Chief Minister and his cohorts disregard the writing on the wall and pump millions into a tax haven industry now under attack from many sides.

Things have slipped down hill to the point where our GDP is: Finance 58%; tourism, the one live mainstay of our economy, 3%; and agriculture, famous for the Jersey Royal, tomatoes, and flowers, about 1% – facts which our ministers ignore, stating how wonderful things are with billions of pounds invested/hidden here.

Senator Le Sueur recently proposed giving £100 million in tax relief to the finance industry, which, of course, a small economy like this cannot possibly withstand, so to make it up he suggested introducing a general tax.

Against many alternatives which he would not contemplate, he said that it would be introduced. Incensed, the Jersey people held a petition to which 20,000 signatures were penned. When it was presented, Senator Le Sueur’s comment was: ‘I do not care how many signatures there are, GST will be introduced’, and when informed that elderly people on small fixed incomes were finding it even harder to purchase affordable food, he said : ‘They will just have to shop around’.

Both comments are an example of the total lack of understanding and the dictatorship attitude under which Jersey suffers.

Many large companies and hotel groups operating and making big profits in Jersey do not pay income tax, while Jersey companies have to, and everyone is running around like chickens with their heads off because we now have a big shortfall in our financial situation, a painfully obvious result of a ridiculous policy.

The civil service is totally top heavy, grossly overpaid and unaccountable for huge financial errors. As an example, it was decided to contract a French firm to build an incinerator without taking account of cheaper alternatives or adequate public consultation, at the approximate cost of £107 million, and although the exchange rate between the euro and the pound was to be accounted for, it was ignored, and we now find that this glaring error could cost the tax payer £2 or 3 million extra.

There was an uproar from the public, so an inquiry was held in what Jersey calls ‘behind closed doors’ to discover just who was in the wrong. The result was that the matter had been dealt with, no one was sacked or moved, and that the matter is now closed. I cannot imagine many countries, except those like Zimbabwe, or Iran perhaps, having the sheer audacity to treat the public in such a dictatorial manner.

We are constantly spun by the ruling junta that we are so lucky to have the finance industry paying in so much money, making this Island rich, but they never mention that we are so rich that out of the 52,000 working people, 8,500 are on Income Support because they cannot afford to live, or that due to the wonderful finance industry, the average price of a three bedroom house is £470,000, or that Jersey per GDP capita is the 3rd richest country in the World, yet its minimum wage is the lowest in all of 27 EU member states, and that Jersey spends less than 75% of the EU average on social protection.

Jersey is a tax haven playing to the benefit of the rich financed by the poor, who pay 20% in tax whilst the rich have a nice sliding scale of tax, so on their first £million they pay 20%, on the next half £million 10%, and 1% from then on, so on a declared £10 million, their tax bill would run at just 3.5%, and even then that can be avoided.

A total disgrace is the huge civil service pay cheque: 270 get from £70,000 to £89,999; 62 get from £90,000 to £109,999; 36 get from £110,000 to £129,999; 19 get from £130,000 to £149,999; 22 get from £150,000 to £169,999 two get from £170,000 to £189,999; one gets from £190,000 to £209,000; one gets from £210,000 to £229,999; five get from £230,000 to £249,999. And, recently announced, one gets £287,089, of which £42,500 is a bonus when his department actually made a loss of £610,000. And we think the banking rewards are immoral.

We have been warned that money is scarce and belts will have to be tightened and painful economies made, yet our states departments have overspent more than £8,520,000, as far as we know, and not one member will be held to account.

Staffing levels have had to be scrutinised and redundancies painfully actioned, yet on the other hand Senator Ozouf has announced that another 127 posts have been created and 30 temporary positions introduced, and further adds that local jobs should go to local people when only the other week I wrote about dozens of top local jobs filled by outsiders and it continues practically every day, so who is he trying to convince?

It is painfully obvious that this island does not have the wherewithal to run itself and is being inexorably driven towards huge irrecoverable problems, with ever mounting costs due to mistakes, constant overspends, and with the tax evasion and avoidance procedures coming under scrutiny, so that when the numerous methods are exposed and get stopped, we will have no industry to fall back on.

Much of the blame unfortunately lies with the apathetic Jersey public. When there is a chance with elections to get rid of all the chaff in our States, only 33% of the people bother to vote, stating: ‘What is the point, there is no alternative’, or ‘They are all the same’.

I feel that we are at a point now when we must look to either the UK or the EU to step in and start to provide professional guidance with some form of local party politics to monitor the situations.

There are a number of good States Members struggling to introduce common sense, but they are constantly out-voted by the nodding heads controlled by the ministerial system.
It has even been suggested that Jersey declare UDI. With no help, guidance or watchful eye at all from the UK, we are in chaos now. Given a free hand, this Island would nose dive into ruination.

What is needed is party politics, where manifestos are published and members expected to abide by them, thus providing control and accountability.

I fear that unless drastic measures are taken now to halt and redress the downward rush, Jersey will find itself in the worst mess it has ever been in, and the finance industry will leave the sinking ship to go to where it can continue making fortunes in safety.


  1. 1
    Pip Clement

    I think many of the senior figures realise that it is an absolute mess but they simply do not care.
    Quite a few of them are unlikely to be there after the next election so they are just hanging on to power and muddling through.
    Clothier was cherry picked and changed so that it suited the controlling faction within the States.
    The fact that this was an action that was morally and politically bankrupt and exposed many senior figures as nakedly self interested gerrymanderers did not bother them in the slightest at the time.
    It should also be noted that a senior establishment figure is not standing in the forthcoming byelection for senator. It will be between Syvret and Southern with the other candidates collecting only hundreds of votes but running for deputy next time round with a bit of name recognition this time.

    Report abuse

  2. 2
    Wilson Riou

    John – you make a lot of separate points most of which are unrelated and you seem to suggest that party politics will solve them.

    What evidence do you have to support your argument that tourism and agriculture have been ‘run down’ through policy rather than external market forces?

    The £100 million tax relief you refer to is I assume the zero/ten regime. You know that the IOM bounced Jersey and Guernsey into reciprocating (to maintain competitiveness) by pre-announcing its intentions.

    You know that GST was arrived at after public consultation and on the advice from the Crown Agents who identified the systemic risk of relying on tax revenues from business that have no long term allegiance to Jersey. You also know that any new tax that focused on local business and residents would be unpopular and would easily attract many thousands of signatures to a petition.

    The points about public sector spending are well made but you must know that this isn’t just a Jersey problem – those in the UK are far worse.

    It’s a little ironic that just as the UK is coming to realise that party politics has been the problem in the past and that the future will be based around coalitions and consensus, we in Jersey are starting to discuss the merits of parties!

    Are you saying that the rich and influential have more power? If so show me any country (democracy or otherwise)where this is not the case?

    Report abuse

  3. 3
    Jerry

    Even if I accepted Mr Heys’ analysis of the problem (and I’m afraid there are large parts of it that I would dispute) there is no detailed argument in his letter, to support his bald assertion that the solution is to be found in UK/EU ‘advice’ and/or party politics.

    Whether or not one is a fan of the UK, the EU, or political parties, it would be difficult to make a case for any claim that the problems he describes are absent from the UK, absent from the EU, or absent from jurisdictions which have a party-political system. On the other hand, UK and European-country blogs are full of often well-evidenced argument that those countries’ biggest problems are caused by external political interference and the group-think ethos and inherent corruptibility of the party system.

    Report abuse

  4. 4
    bella

    Well put John-A lot of what the general public have been saying for years.
    They definitely have ruined this place.
    All they think about is finance,not a care in the world for the rest of us,who have to pay for their folly by higher pricing of food, services etc.

    If finance goes belly-up what will the think tanks do then?

    Report abuse

  5. 5
    Mac

    @Jerry: you might be right. But the alternative – taking advice from Guernsey, whose economy is more diversified and who do not have GST – is too painful to bear contemplating! :-)

    Report abuse

  6. 6
    Jerry

    5 Mac – the very thought of advice from over there brings a shudder, eh? Me, ah wouldn’t even take add-vahs from St Ouen – if the best pioche for the job isn’t the one your great-grand-dad left stuck in the fumier in 1926, then it’s a strange world, four-sure. :D

    Report abuse

  7. 7
    JOHN HEYS

    in answer to Wilson RIOU’s comments. The separate points i made just show what range of a mess we have been steered into.
    The evidence of the demise of Tourism and Agriculture is self evident, just compare the £millions donated to Finance promotion compared to help for farmers and Tourism, we all know that for YEARS the States have put all their eggs into the Finance basket.
    The zero/ten mistake as you know is costing us the huge black hole which is being recouped by the people of Jersey, so what is the point? Big companies and off island registered Hotel groups now do not pay income tax, so what would be the difference to charge them, we would lose nothing if they did not like it and left, and please do not come back with the weak reason of creating employment, a huge proportion of those employed are Eastern European who send money home, and English on short term contracts.
    Gst was NOT necessary, many alternatives were suggested and doggerdly ignored by Le Sueur, and when there was public consultation (known as being told what was going to happen) the wishes of the public were totally ignored.
    Public sector spending in Little Jersey can not be compared to the huge UK, and is so much easier to control. How ludicrous paying £100′s
    of thousands to public servants on an island this size, as a comparison why not compare it to Sark?
    You know very well that this Island is governed by a few in the States, with a following of useless head nodders but at last through elections we are seeing new blood gradually emerging and gathering together to have their say, party politics is the ONLY way that elected members will be held to honour their pledges, ie comply with the Party Manifesto, we all see pledges made at the Hustings only to be reversed once elected.
    Of course the rich and influental have more sway and power, and yes it is universal, but that fact does not mean it can not be more controlled in Jersey to the benefit of the people rather than the few!! By the way, you mentioned the word Democracy, look it up and then compare your findings with how we are ruled!!

    Report abuse

  8. 8
    Intersted Bystander

    Well said John Heys !
    I agree with everything mentioned in your letter. Obviously there is a lot more that can be said about the present system of what is laughingly called ‘Gvernment’ in Jersey, but that would more than fill the pages of the JEP for some time !
    There is presently an election for senator, hustings for which are now taking place. It would be really nice if the general public of Jersey were more involved in the way that they are governed. One of the ways that they could become more involved would be to vote on who they would like to see in the governing body. To vote at all would be good, but to vote with a certain knowledge of the present procedures, that have proved to be so unpopular with the average Jersey resident, would be better !
    Get out to the hustings, listen to the candidates, ask questions, get answers….then you are ready to vote. By voters apathy,the present States Assembly is making a complete mess of everything that it touches ! Do not blame them, as they know not what they do !
    Get in there and vote for the person that you feel is not a ‘yes man’ to the establishment.

    Report abuse

  9. 9
    Brian Hotton

    John Heys,

    You are so right. Those who are trying to say ‘you are wrong’ are suffering the with the same condition as the Council of Ministers and their ‘Wannabees’, ‘Heads buried’.

    As for party politics of course yes, even a coalition of parties is far better than the 53 individuals we have, of the 53 I would say there are 26 intelligent ones, just look at the voting patterns.

    Brian.

    Report abuse

KIT 4 CLUBS

Win a share of £10,000 Win a share of £10,000

2012 is the year of the London Olympics and to celebrate this great event the Jersey Evening Post, in association with sponsors Ogier is giving all sporting clubs a chance to win a share of £10,000.