Chamber of Commerce speech: Minister for Sustainable Economic Development

17 September 2025

​Good afternoon,

Thank you all very much for joining this event today, it's great to have this opportunity to speak to so many of our Island's business and thought leaders.

It's a little over two years since I last spoke at a Chamber Lunch like this one and set out a call to action to address the key economic challenge facing Jersey. Namely that, without growing our economy, we will face a future of either higher taxes or reduced public services.

This challenge is not unique to Jersey and reflects demographic shifts and low productivity which have been seen across almost all advanced economies. 

As I said then, changing this trajectory is not easy, in fact it's tough, very tough. But today I want to talk about what has been done and what we still need to do to secure our future economic prosperity.

A Strong Starting Point​

The good news is that Jersey has been undertaking this journey from a strong foundation:

• Living standards - as measured by GDP per person stood at £63,500 in 2023. This puts us among the top ten in the world. This is an incredible feat for a community of 100,000 people but it's something we should never take for granted.
• Jersey's economy continues to grow. On average 0.9% per year over the last quarter of a century and since 2019, 2% per year.
• High street – Despite the media / social media narrative, our High Street is impressive. St Helier has an occupancy rate (including areas beyond the High St) at over 90% for retail units, which puts us alongside the major UK cities Edinburgh and Liverpool, as well as Brighton, Oxford and York. In fact, it is bettered only by the nation's capital, London and the famous historic town of Cambridge.
• Natural environment - Jersey preserves a rich natural environment that underpins both physical and mental wellbeing
• Jersey has good education and health systems
• Jersey is ranked as one of the safest places in the OECD.
• Amongst the fastest internet speeds in the world.
• Unlike in many developed economies, Government is not in significant debt.
• Businesses – proximity to Government enables regular discussion and engagement
• We have the Future Economy Plan, which sets the strategic direction for the next 20 years.

Economic Realities​​​

At the same time, we need to be realistic about the state of our economy today:

• Financial services is the largest sector of our economy and must continue to be an important part of our future, if we are to maintain living standards. This means we must constantly show that Jersey is open for business, not just through our marketing but also through our actions.
• Financial services cannot exist in isolation and its success is dependent on the success of all other sectors and the continued innovation of Jersey's economy. 
• Concerningly, when we talk about the sustainability of our economy, for decades Jersey has had low levels of investment, not just in public assets but also in our wider economy via the private sector.
• Technological adoption is increasing but is not where it needs to be.
• We now have ageing infrastructure which requires ever greater maintenance costs.
• Our population is also on average older than many of our competitors, this means growing demands for public services and proportionately fewer working age Islanders. I've spoken here before about the impacts of our ageing demographic, which will reach its peak by 2040 but we are already seeing the effects in action, as health spending rises. Education spending has also increased significantly, which importantly, points to a community that values learning.  
• But we've had relatively low productivity growth over the last few decades, growing at just 0.1%. 

These are not problems that will fix themselves. They require long-term decisions and the prioritisation of economic growth at the heart of government policy and private sector activity.

​Delivery​

It is with productivity in mind that we have rolled out the Better Business Support Package. This £20 million fund is designed to improve the productivity of our economy and to empower businesses like yours to make the investments that are in the best interests of your particular industry.

Like the Impact Jersey programme, the Productivity Support Scheme is about bringing innovative solutions to Jersey's economy but it is up to businesses themselves to decide how best to invest in their own operations. I fundamentally believe that whilst government can help provide resources, it is the innovation created in a free-thinking economy that delivers growth and so businesses should decide for themselves where best to invest.

We continue to work to support new air routes, we've expanded support for skills and training and provided millions of pounds on top of the base budget to Visit Jersey.

Tourism is having a difficult time, I am deeply aware of this but contrary to some commentary, I and my team are working closely with the sector and have been since I took office. We developed the Visitor Economy Strategy together, hand in hand and in times of constrained government budgets, I have boosted support for the sector by millions and much of our deregulation work is focused on the visitor economy.

The industry is crucial to Jersey and our quality of life and we need it to succeed in a massively competitive world. It is twice the size of Guernsey and the Isle of Man's visitor economies and we all feel the benefit of it every day.

Deregulation, capital investment support, marketing support, sports events, arts, culture and heritage investments, air route development, brand development, St Helier retail district renovation and constant coordination with Chamber and the JHA are the indicators of my and this government's support for the whole visitor economy. Transition is challenging but together, we will succeed in navigating it.

Better Business Support Package​

Today we've published our first progress report on this Better Business Support Package and you'll be able to assess for yourselves its effectiveness so far.

I've been particularly proud of the multiplier effect achieved with this scheme. As today's report shows, for every £100 spent via the Productivity Support Scheme an average of £190 in private investment has been generated. This means that for every £1 of public money spent on the scheme, nearly £3 is being generated in actual spend.

Add to that the fact that 62% of approved grant applications are spent on-island, we are seeing the scheme deliver additional benefits for local businesses and the wider Island economy. This level of intervention is, to my knowledge quite an unusual place for Jersey's government to be but given the low levels of private sector business reinvestment, the resultant multiplier effect that has ignited higher levels of private investment, shows the value of such interventions.

The number and level of applications mean that we had to close the scheme in July when applications reached the full allocation of available funds. However, now that all submitted applications have been reviewed, I'm able to ask Jersey Business to reopen the scheme for more productivity-enhancing applications this year.

I encourage everyone to consider applying for this and the other grants whilst they are still available. This is a use it or lose it opportunity to invest in your business and have Government support it by up to £75,000.

Of course, in 2026, there will be a further £2.8 million available in productivity grants and another £1m in visitor economy grants which are aimed at stimulating further investment.

As the world turns to economic protectionism, I'm convinced that Jersey's success rests on our ability to maintain an open economy, which seeks and encourages innovation and new ideas. The world won't stop changing and whilst it can be difficult for us to accept change, Jersey is too small to stand still.

In agriculture, an industry that provides islanders with so much benefit, but not all of it measured in pounds and pence, we are using the agricultural support scheme to enable larger producers to compete on an even playing field with international competitors, whilst supporting succession and innovation by helping new entrants into the sector, helping them develop commercially and supporting them to innovate. Four years ago, we had just 40 agricultural undertakings in the island, today we have over 100. We are putting the sector onto a sustainable footing and, as the recent Regen Festival displayed, there is an incredible buzz in the sector, one that has been missing for decades and it comes from valuing the sector as a whole, its benefits to our nutrition, our environment and to our society by, for instance, providing alternative careers for those people who don't see their future in office life.

Agriculture in Jersey has been a keen embracer of technology and has seen its productivity increase enormously over the last 20 years. It is because we understand the importance of technology to economic growth that we developed the Impact Jersey fund, delivered by Digital Jersey, it has been driving forward innovation. From home sensors, to air rescue drones, technology enabled care and health monitoring, and customer services in the retail and hospitality sectors [Open Programme, Care tech, CX Tech]. The benefits of these new innovation projects will not just pioneer new economic and commercial opportunities but also help to improve the efficiency of our public services, the energy efficiency of our homes and the independence and health of older Islanders.

But Government investment can only go so far.

The most important thing Government can do is to provide the right environment to enable businesses to invest in themselves and that's why my team has been addressing the barriers to business in our policies and legislation.

We'll shortly be rescinding the Shops Regulation of Opening and Deliveries Law which will allow all retailers to trade on Sundays if they chose to do so without any paperwork or permit fees.

I'll be bringing forward more amendments to the Tourism Order to further simplify the requirements for visitor accommodation and create more flexibility for our local hotels.

Later this year, the States Assembly will be asked to approve a set of targeted changes to the Island's Competition Law to help ensure that businesses and consumers get the best out of their economy with effective and proportionate competition.

It's in the vein of creating the right conditions for growth that the Telecoms Security Framework and Cyber Security Policy Framework and supporting Cyber Security Law have been prioritised to not only secure investment in our economy but to protect it by ensuring Jersey remains an attractive and safe place to do business for years to come.

In the coming weeks, I will lodge a brand new Alcohol Licensing Law, which will speed up processes, create more flexibility in opening hours and reduce the red tape on businesses.

The Chamber of Commerce has been instrumental in all of these changes and I would like to thank you all for your engagement and feedback which has helped to shape them.

At his Chamber of Commerce speech back in February, the Minister for the Environment made a commitment to ensure that economic matters get the consideration they deserve when determining planning applications.

Planning Hub​​

Now, I'm incredibly pleased to be able to share the news with you that we're launching a new Planning Hub. This service will be delivered via Jersey Business and will support businesses to strengthen their economic case in planning applications and make sure that economic growth is a priority for Jersey's future.

The Planning Hub is being launched alongside a new initiative enabled by myself and the Environment and Planning Minister, Deputy Steve Luce. Our departments have worked together to create a new joint approach to planning which will see economic impact being taken as a key consideration in the deciding of future planning applications. This is a vital change.

Ferries​​

Of course, I could not talk about the long-term without referencing the new Ferry Concession Agreement.

The transition period has not always been smooth but I think the true marker of a good faith partner is how they rise to meet challenges when they do arrive.

• They mobilised a completely new service in just three months, creating a new team, building new relationships and securing vessels for their new routes.
• DFDS has updated schedules following feedback from retailers.
• They've adjusted company policies on dogs, horses and bicycles based on Islanders requests.
• They've invested directly in the freight service by buying the Caesarea Trader.
• They've have put on extra sailings where there has been demand – operating 9% more departures in Q2 2025 than we saw in the same period last year.
• And after a slow start to the Summer Season they carried 4% more visitors last month than in August 2024.

As I've said, the process has not been without its difficulties and with a major port redevelopment beginning this Autumn in St Malo, there may be more challenges but I know DFDS are committed to continuously delivering improvements on both routes next year.

I also want to see DFDS upgrade the onboard experience on their Levante Jet vessel, better coordinate their marketing in France with Visit Jersey and implement a frequent traveller scheme, which I expect to see in the coming months.

We are just six months into a twenty-year Concession Agreement and I'm confident we will continue to see more improvements as DFDS refine their service.

I spoke earlier about our economy's strong foundations and the same is true of the new Concession Agreement.

• The new contract includes a dedicated freight vessel delivering 6 freight-only rotations per week (on top of the additional RoPax vessel) and also includes dedicated contingency vessels to guarantee our supply chain.
• We now have greater freight capacity than ever before and have already seen an increase in the total volume of freight carried compared to previous years.
• We've got contractual group guarantees meaning that one of Europe's largest ferry operators is contractually obliged to deliver its service here in Jersey. The local operators can't be jettisoned in the very unlikely event that the routes prove unprofitable.
• We now have pricing that enables investment but have also locked in hard caps on passenger fares and freight prices and have tied any future rise in fares to inflation, so future years will not see large, unexpected price rises.
• And we've secured 300 million pounds of investment in brand new vessels which will be purpose built for Jersey's routes. The first of which will be operating on the Southern Route by 2028.

Creating the Right Conditions for Growth

Ultimately, all of these decisions are about two things: creating the right foundations for growth and security over the long-term.

Because the truth is simple: Government cannot do everything.

• With a 20% tax rate and rising costs of healthcare, we cannot fund every initiative ourselves.
• Government must understand its limits and recognise where it can help and where it is just getting in the way.
• And we must keep continually improving our public sector to make services as efficient and enabling as possible, which means rapidly adopting AI to reduce administrative tasks.
• We must also look beyond central government to all agencies funded by the public to ensure that we are getting value from our arms length organisations, and that we have outcomes-based accountability for the money they spend. We have to drive value and get excellent returns wherever public funds are used.

Put simply, Government doesn't grow the economy, all it can do is put the conditions in place, and in some cases simply get out of the way, so that you can grow the economy.

It is your businesses, your activity, your innovation that pays for the public services we all enjoy. We must enable you to invest in the future economy, so that government can invest in public services for the future.

​The role of the Private Sector and the Chamber of Co​​mmerce

The role of the Chamber of Commerce is pivotal in this. I believe it acts as an important interlocutor between the public and private sector but I know it can do more than this.

In fact, Jersey's Chamber of Commerce has a remarkable history of ensuring economic growth in the island but it is one that has diminished as the trend for greater centralisation into government has taken place.

Not only is this the oldest Chamber of Commerce in the English-speaking world it is a Chamber that has also actively shaped the Island we live in today.

• In 1794, Chamber set up the Island's first Post Office.
• In 1846, it oversaw the construction of the Victoria Pier.
• In 1858, it raised funds to lay an underwater telegraph cable to connect the Channel Islands and England.
• In 1934, it was instrumental in building the airport and acquiring the surrounding land.
• It played a key role in the redevelopment of Fort Regent in the sixties and I understand, helped bring back the Battle of Flowers after the Occupation.

That is a proud record of leadership. And it shows what can be achieved when the private sector takes the initiative rather than placing it all on Government.

With a 20% tax rate, we have a small government, by definition but we are increasingly seeing infrastructure development being left to the public sector and this is a dangerous game.

I'm really pleased that the Chief Minister has placed the focus on developing the island's infrastructure with the launch of Investing in Jersey but I believe it is vital that government looks to the private sector to help deliver the projects in there and more.

Why? Well, two things…politics and bottle-necks.

The hospital is an superbly awful example of politics getting in the way. It is 13 years since the States first committed to build a new hospital and whilst our current Health Minister is ably getting on with the project, it should never have reached his desk, for it should have been delivered long ago. Islanders should be using a new hospital now but the constant second-guessing of decision-making has meant that plans were chopped and changed with each election. Such populism does not serve our island well.

I have seen at first hand how difficult it is for islanders to accept change but it is a real feeling and one that we need to find a way around. It strikes me that outside of Andium Homes' success, the only major infrastructure project that has gone ahead quickly and successfully is the Union St building. This is a public/private success story. By handing the project to the private sector and getting out of the way, we have seen rapid success.

We need more of that.

The second issue is one of bottle-necks. Government typically only delivers £80-100 million of capital investment per year. This means it is constrained and is a guaranteed bottle-neck. We can only avoid this is by working more closely together. By handing projects over to the private sector, by selling and property, by quickly appointing developers, we can deliver more infrastructure more quickly. The island needs it, islanders need it.

​Call to Action​​

It is easy to criticise and provide negatives stories but they undermine the island's decision-making, encouraging delay not delivery. Constructive critique is vital but so to is an understanding of contexts and environments. If we are to avoid damaging Jersey PLC, our global reputation and our economic future, then we need to build trust. Trust is a strength that can be delivered together. Stepping back, we are all in this boat together and need to create a 'win-win' environment again because we all benefit from each other's successes.

So my message today is simple.

• Government is making changes: we are modernising laws, fixing Planning, supporting key industries, and investing in productivity and infrastructure.
• But Government cannot deliver growth alone. It needs to work more closely with the private sector.
• The private sector — and espe​cially the Chamber of Commerce and other trade organisations— must once again channel the entrepreneurial spirit of the past into the twenty first century, and government must let you do this.
• In Jersey, we have enormous talent and people with outstanding global networks, we also have vast capital but the story of the century so far, has been one that hasn't used these qualities to their fullest. It's time for us to combine and unleash them.
• If we work together, play to each other's strengths and trust each other, we can create a modern, resilient, dynamic, and sustainable economy — one that pays for high-quality public services, offers rewarding careers, and ensures that future generations choose to build their lives here in Jersey.
• We need your help to do this. I need your help to do this and I will spend the last months in office working with my colleagues, the ALOs and yourselves to find the formula to deliver a better balance between the public and private sectors. This has always been the best way, indeed the only way for Jersey. W​hen we work together openly, honestly and constructively, we enable trust to replace regulation and innovation to replace protectionism.
• It's my firm belief that this is how we build a long-lasting, sustainable economy in which all islanders can thrive.
  

Thank you.

​Minister for Sustainable Economic Development, ​Deputy Kirsten Morel