I would like to thank Senator Farnham for putting his confidence in me, and I hope that I can convince the rest of the Assembly to also put their confidence in me. I could spend my 10 minutes talking about how we need to support our financial services industry by delivering on the Time to Win programme, talk about the importance of our visitor economy and how we need to support it, and the positive impact that it has on our society. I could talk about the importance of our air and sea links, and how we need to look again at the ferry service agreement. All these are important issues and do need attention. But what I am compelled to speak about today is our whole Island economy; each and every industry sector. According to Statistics Jersey, our Island economy has seen virtually zero economic growth since 2000. As a result of this, since 2001, our real average earnings have increased by zero. The point is that economic growth matters. The biggest factor for Islanders feeling under financial pressure, not having any money left at the end of the month, is that the economy has not grown and average earnings have not increased by more than inflation. Taxes have increased over the last 20 years but not earnings. This is why Islanders feel worse off, because many are, and this is why the electorate is so fed up with us in the Assembly. The key issue at the last election was the cost of living in Jersey and the need to make our Island more affordable. If we had achieved just 1⁄2 the average earnings increase that was achieved in the 1990s over the last 20 years, then the real median average wage would be £7,000 more than it is today. Let me put that in basic language. Our failure in here has cost people out there £7,000 a year. Economic growth matters. We owe it to Islanders to grow our economy for a more prosperous future for everyone. We need to allow our people to earn a pay rise. Now it is easy to say let us grow the economy but it is much more difficult to achieve, and many countries in the E.U. (European Union) are struggling with the same problem.
However, we have many strengths to build upon. We are politically stable, we have a respected legal system, sound-ish public finances, internationally recognised financial services, and a skilled workforce. Building upon this, my strategic vision for Jersey’s economy is one where we are innovative, competitive, we encourage entrepreneurs, and we are outward-looking to build an export- based economy to supplement our local economy. It is likely these exports will be based on knowledge services and creativity that are enabled through technology and exported via our excellent connections to the rest of the world. To achieve this, we must change the framework and rules within which our businesses operate. I will be working with the new Minister for Planning and Regulation to speed up decision-making and delivery, remove barriers and controls, many of which have already been identified. I want to work with industry sectors to identify further barriers and blockages. I promise not to repeat the mistakes of past Ministers for Economic Development, both in Jersey and Europe, and draw up ambitious plans on the premise that they are in charge of the economy. They are not. It is the business leaders and entrepreneurs that drive an economy, create growth, diversification, not governments. This is particularly important today, as we are on the cusp of the next industrial revolution where the pace of technological change means that learning has become a lifelong necessity, not an optional extra. Artificial intelligence, automation and digital transformation will reshape our economy and many jobs surprisingly quickly. Some roles will disappear, many more will change, and entirely new careers will emerge that do not exist today. We cannot foresee the extent that our economy will change, nor what the winners and losers will be. This is why we need our economy to be flexible and able to more easily adapt to change. Our responsibility is not to fear or resist change. Our responsibility is to prepare our workforce to succeed within it. That means investing in digital skills. I was interested to see that Skills Jersey had been transferred out of Economic Development, and I believe there is a case to bring it back; although I was pleased to hear the comments of the Minister for Education and Lifelong Learning on developing skills. I see an enormous task in retraining our people to use artificial intelligence as a tool to improve productivity and remain relevant in a competitive market. Often those in Government do not understand that our economy is about people; people making decisions about whether to participate or not, whether to invest or not, whether to lend or not. These decisions are influenced by the way that Government behaves. Do we encourage? Do we give entrepreneurs confidence? Are we pro-growth?
Unfortunately, this key element has been missing for several years now as we have over-regulated and tried to control. We have been acting in a manner that drains confidence from businesses and entrepreneurs in Jersey and those seeking to come here. This must change. We need to re-establish the trust that must exist between businesses and Government that will allow confidence to grow and investment to flow. My job, as your Minister for Sustainable Economic Development, is to build on this confidence and to create the environment for businesses to flourish, for entrepreneurs to see opportunity rather than risk.
[9:45] To create this environment, in addition to the Minister for Planning and Regulation, I will be working closely with the Minister for Social Security, the Minister for International Affairs, the Minister for Treasury and Resources on taxation and the Minister for Housing. Housing and the high cost of housing remains a key economic issue that we need to resolve. The high cost reduces labour mobility, hinders recruitment, pushes out our young local people and discourages entrepreneurs. As an Assembly, we need to make progress on housing and the cost of housing in the next 4 years. We owe it to the people of Jersey. While I am talking about housing, I would like to stress that the strategic positioning outlined a few moments ago of encouraging innovation, competitiveness, entrepreneurs, and export-based economy is about creating businesses owned by people living in Jersey and employing people in Jersey. As you know, our tax system is largely based on taxing wages of people here, and it is important that ownership is retained by directors in Jersey so that dividends can be taxed. In general, a business owned by a Jersey resident will pay more tax to Jersey than one owned by a person or corporation outside of the Island. Again, we need to encourage ownership to be retained in Jersey. In the coming weeks and months, I expect there will be many actions, decisions, and some Propositions that will cause debate, possibly even surprise. What I ask of every Member here is to recognise that if we are to deliver meaningful economic growth, if we are able to give our people on the median wage their £7,000 pay increase, we need to change. We need to do things differently and we need to do it at pace. If we do not change, we cannot expect a different outcome, we cannot expect meaningful economic growth. But we can do this. So let us embrace change together. With courage and determination, we can create a brighter future for the people of Jersey. [Approbation]





























