Responses to Media Questions ?
Jersey Evening Post
The questions:
1 Immigration and population
States policy is to allow levels of population growth necessary to meet economic growth targets. However, it is becoming clear that substantial numbers of Islanders reject the idea of further population growth and would like to see tighter immigration controls. Are you in favour of population growth to meet economic targets or would you like to see it limited by one means or another?
Jersey has never successfully limited its population to a target figure and it is uncertain whether such a policy is achievable or desirable. Certainly, the mechanisms required to obtain a population cap would cause hardship to one or more sections of the people who drive the Island's economy. In a few years we face an £80M revenue "hole" and Jersey will need the extra taxable salaries that high earning immigrants will bring to help bridge that gap. Following this exceptional period, we must balance our distorted economy and then consider moving to a sustainable population level.
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2 The St Helier waterfront
Are you in favour of high-rise development in general and on the St Helier waterfront in particular?
Jersey is dominated by bungalows and two storey dwellings. This is an extraordinary result in an Island that struggles to house its citizens. Within limited space, the logic is to build high rather than spread out across remaining open land, thus I do support high rise. How high is another debate that turns around the proportions of a structure, architectural merit and design quality. I subjectively dislike most "skyscrapers" and would only support an exceptional design that was right for Jersey. The Waterfront represents modern Jersey and is the obvious location to put new development of this type.
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3 Cost of living
The cost of living is rising twice as rapidly in Jersey than in the UK. What measures would you like to see introduced to reduce the rate at which prices are rising?
The swiftest way to check rising prices is to raise tax revenues, taking money out of the economy and reducing demand for goods and services, which then forces prices to be pegged to stimulate demand. However, Jersey has some unique contributary factors such as being an island. The process of importing almost everything we use should be reviewed to see if Jersey is getting value for money from airline and shipping freight services. The new Competition Regulatory Authority is already having an impact and I support its role, although I am not convinced that competition is the solution to all pricing problems. For example, I would tackle milk prices by backing the early introduction of a new and efficient dairy.
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4 States spending
Is States spending excessive or wasteful? If you believe it falls into either category, where would you recommend cutting public sector expenditure?
States spending has been both excessive and wasteful, but times have changed. The workforce is being gradually reduced by natural wastage and voluntary redundancies, although it is wrong to believe that this process can continue without harming the quality and extent of public service provision. With that caveat, there must be pressure to continue to look for efficiencies and savings in the public sector. Some basic services, such as waste collection and management of public gardens are duplicated across both States Departments and parishes. There must be a rationalisation of these operations. All capital projects must also be more carefully scrutinised.
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5 The economy
What policies would you favour to ensure that the economy prospers and delivers the high standard of living that Islanders have enjoyed for so long?
Jersey must be a good place for businesses to flourish if we are to benefit from a robust economy. If the Island fails to generate wealth, there will be no money to spend on healthcare, education and welfare to name a few demand areas. Financial services can remain the main revenue generator if the States becomes responsive to the industry's needs, such as rapid execution of new fiscal legislation. Elsewhere, Jersey must play to its strengths. New opportunities are emerging from IT security and internet fulfilment businesses to sport fishing. Tourism appears to be reviving just as we are refurbishing decaying historical buildings as holiday lettings. In that light, I'm becoming more convinced that Jersey should make a serious investment in reducing the costs of coming to the Island by reducing landing charges at both the Harbour and Airport.
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6 Taxation
What are your views on current taxation policy, including goods and services tax, zero-rate corporate taxation and the principle of 20 per cent means 20 per cent income tax for those Islanders with relatively high incomes?
Usually, no one likes taxes. However, expert opinion indicates that Jersey's finance industry does like zero-rate corporate taxation, which has prevented it from migrating to an alternative zero rate jurisdiction. It's a MUST DO, but it will create a big gap in our future revenues. GST is the most effective way of filling that hole. It covers the largest pool of tax revenue payers, including holidaymakers, and will be a low rate of 3%. A Low Income Support system will target money to anyone who faces hardship. Other taxes, such as payroll or graduated income tax have the potential for harming our economy, whilst inheritance tax or land development tax can't raise sufficient revenue volumes. GST exemptions are a folly, requiring money (that could go into Low Income Support) to administer and affording exemptions to rich and poor alike. I currently believe that 20 means 20 is pitched too low, but I would intend to reduce income tax over time, which would mitigate the pain.
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7 Chief Minister
Who would you vote for as Chief Minister?
I will vote for a CM who has certain key qualities such as being an inclusive team leader. The CM will also have to represent Jersey at international level, so presentation will be a requirement, backed by tough negotiating skills. I would prefer someone with vision, as long as he or she will listen to other opinions with an open mind and is prepared to get things done, rather than demand endless validation processes. The ideal candidate will also have charisma, personality and skills of a raconteur to function usefully on the various "charm offensives" that go with the territory.
JEP Questionnaire
Name: Guy de Faye
Date of Birth: 7th August 1955
Length of Residence in Jersey: 34 years
Address: 4 Eagle House, Queen's Road, St Helier
Occupation: Legislator - Deputy in the States of Jersey
Education and
Qualifications:
Grouville Primary School, Victoria College Preparatory, Victoria College,
Kingston University (Surrey)
Bachelor of Arts Honours degree in Law,
5 A-levels, 9 O-levels
Positions held in associations, clubs etc.
None current
Other interests:
Unfortunately, being a States member is a full time job, including weekends - leaving me unable to pursue my usual interests. Given time, I would get my boat afloat and indulge in some sailing or pottering around La Rocque gullies on outboard motor. I am also a qualified scuba diver. Off Island, I enjoy travelling and have now visited every continent, except Antarctica.
Positions in the States:
Vice President, Legislation Committee
Member, Environment, Planning and Public Services Committee
Member, Tourism Development Fund Committee
Reasons for seeking election to States as Senator:
Ministerial government should speed up States' decision making, but my work as a St Helier Deputy indicates that three years is not long enough to be able to see policy initiatives through to completion.
During restructuring of Environment, Planning and Public Services, I suggested the creation of the Transport and Technical Services Ministry and would now like to be considered for the role of T&TS Minister. I want to deliver the Transport and Travel Strategy as well as implement the Waste Strategy, which will determine the replacement of the Bellozanne incinerator.
I want to expand opportunies for recycling and encourage Islanders to dispose of waste responsibly.
Additionally, I want to ensure that Jersey's vital infrastructure, drains and roads, are restored to a proper level of maintenance and also realise some exciting ideas for revitalising local transport.
However, I don't believe I can command a senior position without seeking the approval of the wider electorate, especially as I favour the Island wide franchise as the most appropriate method for electing Jersey politicians.
I am Jersey born and care deeply about my Island. My priority is the public interest. I am considered to be a persuasive speaker and I tell it straight.
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Channel Television
Q1: Can our States control immigration?
The Island has no direct control over immigration but can influence the problem by indirect means. National and international agreements ensure that only limited groups of people can be turned away at our ports of entry. Arrivals from the Common Travel Area (UK, Ireland, other Channel Islands and the Isle of Man) are allowed to pass through immigration. Other nationals may need a visa or work permit, although - for example - citizens from the European Economic Area do not require a work permit and are entitled to enter Jersey to seek employment and accommodation.
The indirect controls on immigration have been the requirement for housing qualification consents and the allocation of employment under the Regulation of Undertakings. The operation of these rules has created well known difficulties and hardships, but they clearly limit immigration. The new Migration policy will link housing consents more directly to employment, but overall control will remain in the hands of the government.
In short, the States has limited control over its borders but retains significant, though not total, control over economic immigrants.
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Q2: Would you place any restrictions on the further development of the Waterfront?
Jersey deserves a world class Waterfront and we must ensure that professional architects, designers and planners of the highest calibre are engaged to provide that result. This is a one-off and there must be no mistakes. A bold vision is required. It must be right for Jersey and for the Island's future generations.
However, if we want to get the best out of top flight experts, we cannot tie their hands. Only a person with more money than sense would commission an artist like Pablo Picasso and then announce that the canvas was one sqaure foot and the painter was restricted to a choice of two colours.
Neverthless, some extremes must be avoided. One lesson to be learned from the al-Quaeda attack on the twin towers of the New York World Trade Centre must be that it is worth ensuring that any "Jersey Tower" does not get included in, for example, the TOP 500 of the world's tallest buildings.
I would prefer all cars to be out of sight in underground car parks and I would encourage the generous application of balconies, roof gardens and terraces to maximise the various altitude perspectives of the panoramic enjoyment of St Aubin's Bay, Elizabeth Castle, the Harbour and Marina.
Public access must be the top priority, both along the waterfront sections, across the bulk of the ground level and to the top floors of any tall buildings, to obtain the best views. Sightlines at ground level must be established and protected, views of the castle are the most obvious inclusions. All weather areas are vital, together with the sensible separation of potentially noisy leisure locations and residential accommodation.
Importantly, it must not be forgotten that the centrepiece of the site is a working marina and its yachtsmens' requirements must not be overlooked.
It would additionally be a novelty bonus if a couple of new Waterfront buildings could be aligned to provide transit marks for safe channels into the Harbour!
When the Waterfront is completed, I would hope most people would say - They couldn't have done better.
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Q3: What really are the checks and balances in the new ministerial system and will they be effective to withstand the unified pressure from the Council of Ministers?
Fans of the reforms emanating from the Clothier Report recommendations will proclaim how carefully balanced the new States Assembly will be and how effective a new scrutiny system will become. We shall find out soon enough, but I feel certain that the practical reality will be that policies promoted by the Council of Ministers will rarely be resisted.
As the new Assembly will continue to be populated by 53 States members, the required minimum majority for any proposition remains at 27 votes.
Up to now, propositions have generally come from Committees of around five members. Even if a number of Committees are linked to a proposition, support still has to be generated. The Council of Ministers will be off to a flying start every time with a reasonable expectation of ten ministerial votes and, potentially, another thirteen from Assistant Ministers, who are unlikely to upset their chances of promotion by failing to tow the line. Thus, the Council only has to squeeze another four votes, from the remaining 30 States members, to secure its policy objectives in the States Assembly.
Call me cynical, but I forecast a ready queue of voting fodder from enthusiastic scrutiny side members anxious to fill possible vacancies, should any Minister or Assistant Minister be perceived as a disloyal and failed team player and heading for "the drop"!
Furthermore, the much vaunted scrutiny system has already been found wanting in a number of respects. Notably, it has failed to entice much support from the Bancs des Connetables. It will additionally rely heavily on the dedication and quality of the scrutiny panel chairmen and panel members. Sadly, with the exception of extremist hardliners, most politicians of talent and ability, with a pragmatic resolution to compromise where necessary, will be swept up into the Executive.
Members deemed also rans, awkward, fickle, novice, second rate, unreliable, wobbly etc. will inevitably comprise the pool of talent for scrutiny's "critical friends", providing a motley group that the more fanatical will attempt to mould into an opposition. Therefore, there is likely to be a serious mismatch between the parliamentary abilities and skills of the Executive and Scrutiny teams. This is before one takes account of the advantages held by the Ministerial side in terms of immediate information and research capacity.
In the new system the planned checks and balances will have to be skilfully controlled and manipulated if they are to be effective.
In an electoral environment that is largely obsessed with the role of Chief Minister, it seems unlikely that voters will devote their attention to selecting the shrewd operators needed to populate the scrutiny panels. With the States Strategic Plan already in place, supported by a number of approved subsidiary strategies, the new Executive looks like getting a pretty smooth ride, whilst scrutiny will struggle to deploy its panels and will be unable to cover all aspects of policy generation and execution. Ironically, the demand to reduce the total number of States members seems certain to make the situation even worse.
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Q4: What would the candidates do to bring Jersey's legislation into line with the UK to afford better protection for consumers?
First of all, it is important to emphasise that Jersey should never consider coming into line with UK legislation in general. One of the Island's distinct features, that helps to protect our constitutional position, is its own unique legal system, much of it based on French law.
Additionally, there is considerable merit in looking at laws from jurisdictions beyond the UK, such as Canada and New Zealand. As Vice President of the Legislation Committee, I know that this comparative approach has allowed our law draughtsmen to cherry pick elements of law from other countries and derive the best result for our own requirements.
In respect of consumer protection there are a range of legal aspects to choose from and work has already been done in this area.
I agree with the recommendations of the July 2001 "Review of Consumer Protection in Jersey" by Mark Boleat.
Primarily we need Sale of Goods and Services legislation which provides clarity of contractual rights similar to the "statutory rights" enjoyed by consumers in the U.K. and the European Union. This should include customer guarantees in respect of services and redress for misleading statements or product claims.
Jersey should additionally regulate distance selling, such as mail order, in accordance with international standards and, importantly, impose a general duty on traders for product safety.
In fact, because the Island imports most of its goods from the UK and France, we already benefit from consumer protection legislation, from sell by dates to details of ingredients.
However, the States should ensure that there is good consumer representation driving useful information to allow customers to purchase with confidence.
The key drivers, though, are the power of the housewife's purse and straightforward competition in the marketplace, With basic consumer protection legislation in place, government should try to avoid placing additional burdens on reputable businesses.
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BBC
What would you do to help first time buyers get on the housing market?
There are no easy solutions to this continuing problem. Developers could build sufficient homes to satisfy the demand and even reduce the cost of first time purchases, but we are all aware of the bitter battles that ensue each time another green field is targeted for construction work. This demand underlines why it would have been folly to have restricted the Waterfront project to just six storeys in height, especially in view of Jersey's inability to restrict population growth. I am personally convinced that the Island should initiate new reclamation schemes, if we are to retain the remnants of our rural heritage.
In the short term I am interested in the proposals for shared equity schemes, as investing in your own property is one of the best ways to save. It also encourages the occupier to look after his or her investment. Nevertheless, this still requires a mortgage arrangement and I am not convinced that local people get the best value from our financial services industry. I would like consider the possible benefits of linking States First Time Buyer Properties to specific banking deals that offer low rates of interest, probably in a cooperative style.
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Are you for or against GST and why?
I am against increased taxation like any other ordinary resident. Unfortunately, we have to raise taxes to provide the vast raft of public services that many of us utilise and, in addition, if Jersey wishes to retain the benefits of the financial services industry the Island cannot expect the same revenues as before, due to global competition. This means that the Island can expect a reduction in annual income of around £80M in a few years time and more tax income is the only way to bridge the gap, without massive cuts in public services linked to widespread redundancies.
General Sales Tax is the most painless option of all the choices available. It will cover all classes of local resident as well as visitors, providing the largest pool of wealth to collect tax from, which is why it can be pegged at 3 percent for, at least, the first few years of operation. At that rate, there is a reasonable expectation that many retailers can absorb the increase from within their profit margins.
Income tax applies to a smaller group of people and obviously would not apply to holidaymakers making purchases. To raise the same amount of revenue as GST, Jersey would have to give up its flat tax rate of 20 percent, either increasing the flat rate or by introducing graduated rates of tax. This would immediately impact on mainly wealthy residents, attracted to the Island by the low income tax rate. This group tend to be the most mobile, often owning properties in more than one country. They would simply go and live somewhere else, depriving Jersey of their tax revenue entirely.
Ultimately this would impact upon the high earners in our financial services industry who might easily consider relocating to other global finance centres, some of which levy no income tax at all. Thus, at a time when even the UK and the USA are considering the merits of low rate flat taxes, to go against the flow would be very dangerous for the Island's economy. In reality, Jersey should be expecting to reduce its income tax rate.
Lifting the cap on Social Insurance payments comes into the category of a payroll tax. This measure would change the nature of the current Social Insurance scheme and would cast the tax net over a limited group of people, essentially those in regular employment. It would be easy to collect, as a system is already in place and it does allow opportunities to adjust the rate levels and caps for both employer and employee.
However, despite the apparent attractions, payroll taxes in general can be extremely damaging, especially for a small economy like Jersey. The extra costs to the employer can put off businesses from relocating to the Island and encourage locally based businesses to consider leaving. The extra levy on the employees wage packet fuels wage demands and also puts pressure, on high earners especially, to consider working in lower taxation locations. The dangers are that the local economy shrinks, rather than expands, alongside an inflationary wage spiral.
There are numerous other taxes to consider, such as Capital Gains Tax, Environmental Taxes, Inheritance Tax, Land Tax etc. but none are capable of raising anything like the amounts needed to cover a budget deficit of £80M.
Thus GST is Jersey's cod liver oil. No one wants to swallow it, but things could get a lot worse without it.
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What are your opinions on a) student grants and b) nursery placements?
a) My primary position is that if any student has properly qualified for further education at a recognised tertiary education establishment, then he or she should receive a full grant for fees and maintenance in their own right, independent of their parents. In an environment of limited budgets I believe that parental means testing is necessary, so that the emphasis on grant awards is shifted to ensure that no student is deprived of tertiary education simply because they or their parents cannot afford it. When provision is even more restricted, I would then allocate according to exam grades, so that those with the best results were given preference. There should also be some common sense limitations to ensure that Jersey does to fund so-called "perpetual students" who shift from one course to another, whilst acknowledging that some specific courses, like architecture or medical qualifications take a number of years.
b) Nursery placements are particularly critical in Jersey where there is a relatively high number of women in the workforce. They are especially important for single parents after family relationships have gone wrong. They are vital for keeping talented people in work and for encouraging others into work. As usual funding is the critical factor. Although I am not aware of a cost benefit analysis of the value of nursery placements, it would seem to be a small price to pay, over a few years, to ensure that a locally resident person can continue in employment - rather than having to import a replacement. In the ideal world, most substantial businesses would offer creche or nursery facilities to their employees and the States of Jersey Government Departments should be leading the way. But in a small Island, now with limited resources, expectations must be reduced. Even so, I would hope that if the Millenium Town Park is ever completed, with three stories of underground car parking, then the neighbouring Le Seelleur property could be used as a day nursery for parents working in Town. Currently, I do not believe there is sufficient provision and what there is seems to be expensive.
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What would you like the waterfront to be when it is finished?
When the Waterfront is finished I would like to to be the sort of place that obliges people to say - They couldn't have done better. It needs to be spectacular, on a world class level. The public of the Island must be able to feel they are a part of it. The views will be stunning, so let's put all the cars out of sight in underground car parks and encourage, balconies, roof gardens and terraces. We must determine how dramatic the views should be, not just of the bay, harbour, historic castles and marina, but also in altitude perpectives. Ultimately, the quality of design should be of such a standard that architects and designers will fly in by the plane load to see how it was done. If it doesn't put Jersey "on the map" it will not have been adventurous enough.
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With the current cuts how important is event-led tourism?
Event-led tourism is the new and already over used description for yet another big idea that will boost Jersey's Tourism industry. Its just that it's not a new idea. Twenty years ago it was Pro-celebrity golf, the Battle of Flowers and the RAFA Air Display. Not much has changed! - bar the addition of a number of drinking and eating festivals, some music and art performances and the odd flower display. The killer questions are: Is the tax payer getting value for money? Is the cash better spent on reducing the cost of landing fees at the Airport and Harbours?
The problem is that it is very difficult to determine the PR value of an event. 750 people came to Jersey for the Jersey Live Concert and the Island was described as the "coolest place to be in the UK this weekend". The value of the visitors is quantifiable but you can't buy the publicity and still less put a price on it. The current cuts tell us more about budget trimming than the value of events, but clearly the experts at Tourism have had to single out some winners. My own view is that event-led tourism is extremely important, but funds must be carefully targeted at the right sort of event, attracting visitors who will appreciate other aspects of the Island, as well as entertaining local people who, either through donations, grants, subsidies or ticket sales ultimately fund it.
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Who would you support as Chief Minister?
Jersey's Chief Minister must be able to "cut the mustard" at both a national and international level. In the coming years Jersey will need a tough negotiator, competent to fight our corner in the face of increasingly threatening demands to fall in line with UK and EU policies. There will be even greater pressures from the global financial community and its regulators. Jersey's CM must be able to talk the talk as well as walk the walk. Presentation will be a key quality on the various "charm offensives" that will inevitably be required. The regular promotional tours to Arabic nations in support of Jersey's financial services industry are a good example of the expected duties. This will require both charisma and personality, with an ability to be a raconteur.
The CM will need to be a team player, as well as a team leader, on the home front. The Island's first cabinet is unlikely to respond well to someone who simply issues orders or fails to coordinate the various ministries. Above all, the CM cannot be subject to instruction from unelected, outside sources - either business interests or party executives - instead there must be a clear dedication to delivering the policies passed by the States. Whichever candidate gets closest to these criteria is the most likely to get my vote.
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