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Chief Minister's speech to the Institute of Directors

Good Morning.

It’s been 289 days since I took up the office of Chief Minister. In that time there have been long days, there have been difficult days, and there have been days when my decisions were challenged by commentators, the media and the public.

But I don’t regret a single day. When I stood for this role I told my States Assembly colleagues that my focus was on tomorrow. In dealing with the fundamental problems ahead of us and achieving a better future for our Island in the long term.

I am proud to say that today I chair a Council of Ministers that is looking not only at the day-to-day work of government, but towards the future – in a way unmatched by previous Councils.

We have developed a Common Strategic Policy, which sets out Ministers high-level ambitions for Jersey and contains five strategic priorities where we will focus our efforts.

We are working towards the publication of our Government Plan. This will replace the existing Medium Term Financial Plan process, and explain how we’ll use public money to provide day-to-day services as well as to deliver our strategic priorities. 

We have begun the development of long-term policies that will address future immigration and housing.

And, we have published and begun to implement a Children’s Improvement Plan that will ensure our young people grow up safely, live healthy lives, and can learn and achieve as valued members of our society.

In both Children’s Services and across Government we are working to ensure that the mistakes of the past are not repeated, and that the legacy of this Government is one of positivity and inclusion.

To achieve our ambitions we must strike a balance.

We must balance the demands of a States Assembly and a public wanting to see immediate change, with the evidenced and granular work that will achieve tangible, long-term, sustainable benefits.
We must balance the requirement of providing an excellent level of service, with the need for a balanced budget and cost efficiencies in an increasingly uncertain economic climate.

And, we must balance tackling the structural deficiencies in our public service, with the unprecedented external pressures that risk our future economic stability and success. But we are well prepared to tackle these issues.

Brexit

Of all those pressures, one stands out most clearly. We are nine days from Brexit. Right now, I can give you no better indication than the latest news reports as to whether the UK will leave the European Union on 29 March, or not.

On Thursday, the Prime Minister will return to the European Council to seek an extension of time necessary to achieve a deal acceptable to Parliament. I cannot say what the outcome of that request will be.

Michel Barnier indicated yesterday that the EU issuing an extension shouldn’t be taken for granted, and that they would need a concrete plan from the UK in order to be able to make an informed decision.

If an agreement is reached, then the UK will leave the EU in an ordered way, with a two-year transition. If it is not, then the default legal position remains that the UK will leave the EU on 29 March with no deal.

The uncertainty of a no deal scenario is unwelcome to the public, to our trading partners and to investors.

Contingency plans

What I can say with absolute certainty is that we have developed extensive contingency plans to prepare for a no deal Brexit.

We have in place the strategic, tactical and operational teams necessary to implement those plans. And while I cannot promise that the Island will be unaffected by Brexit, I can promise that the steps we have taken will significantly mitigate the risks.

We will not run out of food or medicine. We will continue to be able to trade with the United Kingdom and Europe. And our Islanders will be able to travel unhindered.

There may be disruptions to our supply chains, but these will be kept to a minimum, as will any disruption felt when travelling into EU countries. 

I also know that many EU citizens who live in our community will be concerned about their rights to stay on the Island in the event of a no deal Brexit. To them I say: ‘You are our friends, our neighbours and our colleagues. We want you to remain as part of our Island. The Jersey EU Settlement Scheme will ensure you can do so.’

International links

As the deadline to Brexit approaches, we are also doing all we can within government to seize the opportunities to strengthen our global links and to further develop our international identity.

I am committed to strengthening our existing partnerships with Africa, the Middle East and China.
My visit to China, in November of last year, emphasised to me the value of that particular relationship, and has led, for example, to Island officials being invited to attend an important conference on the future of the Belt and Road project.

And I am equally committed to the time and investment needed to build new ground in the United States and developing markets. 

I was particularly glad to add my support to the opening of the Jersey Finance New York Office. A permanent presence in the city not only provides increased exposure of our newly developed products to US investors, but acts as a springboard to renewed relations with the closest neighbour state, New Jersey.

Beneficial Ownership

As we develop our international identity we must be certain in the strength our most established relationship.

I am sure that everyone in this room is aware of the challenge to eight centuries of constitutional autonomy through the amendments to the proposed UK Financial Services Bill. The amendments to that Bill attempt to impose public registers of beneficial ownership on all Crown Dependencies and Overseas Territories.

This has been robustly challenged by Jersey’s Ministerial and official team, alongside our Crown Dependency colleagues.

Our message to UK Parliamentarians has been consistent and clear: We are not represented in the UK Parliament, and it is a constitutional rule that the UK does not legislate for the Crown Dependencies on domestic matters without our consent.

Those who seek to impose public registers of beneficial ownership have entrenched views on the value of those registers, while tacitly recognising the superiority of our own central register. Our system is more robust. Our data is verified. Our record of assisting law enforcement is unquestionable.

Along with Senator Gorst, I will continue to defend our constitutional autonomy and will engage the UK Government, the OECD and FATF in order to develop an effective global standard that addresses the global problems of financial crime and tax evasion.

Pay negotiations

The other matter which I am certain has not escaped your attention is the ongoing dispute between the States Employment Board and sectors of the public service.

I want to be clear. I value the work of every single member of our public service and the significant contribution they make to Island life. I also appreciate that the matter of pay is a difficult and highly emotive one.

But we must be pragmatic and I believe that the offer that we have made in the last weeks is fair and proportionate. It resolves differences in pay between groups of employees, to ensure that we have equal pay for work of equal value.

It ensures that we offer fair and competitive salaries, but that we do not distort the Jersey labour market through significant public sector pay rises.

And it takes proper account of the amount of funding available, and the long-term impact on public finances.

I am confident that we can achieve a solution that will see a comprehensive agreement for all public sector workers and a strong and collaborative approach to pay negotiations in future.

One Gov

Before I hand over to Charlie, I wanted to give my thoughts on the progress of the OneGov work that he has spearheaded.

Silo working is already becoming a thing of the past.

The Team Jersey programme is engaging members of our workforce who have traditionally felt isolated or unheard.

We are seeing real improvements that will ultimately provide the efficiencies we must achieve in the long term.

Yes, there is still much to do, as departments consult on and implement their own Target Operating Models. Change is not quick. Change is not comfortable. But it is necessary and it is welcome.

The work that Charlie and the senior management of the public service are undertaking is essential to our future success.  It can be bruising, but I want to commend Charlie and our team for the work they are doing.  I ask you to give them your continued vocal support and encouragement as they complete this process.

Conclusions

I am certain that the next 289 days will continue to be long and challenging. As will the 289 after that. But those challenges are mixed with opportunity:

  • opportunity to embrace how we can diversify our economy through innovation in digital, agriculture and tourism
  • opportunity to promote cutting-edge financial services products in new markets
  • and an opportunity in 2020, as we celebrate 75 years of Liberation, to really embrace what is great about Jersey, and to use this significant anniversary as a springboard to promote our Island identity and economy globally

For me, the ‘tomorrow’ that remains my focus is looking increasingly positive and bright for Jersey, and for all of our Island community. I hope that is a vision that we can all share.

Thank you.

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