Excess Capacity

I doubt anyone could argue that encouraging entrepreneurship, and fully rewarding those that work really hard, often at great personal financial risk, is the best manner to secure sustainable growth in the economy of Jersey in the medium to long term. A growing business will pay more GST, pay more income tax, pay more social security and perhaps pay more duty. To reward endeavour is the right thing to do.

The word “pimp” has strong associations with exploitation in its original context, which is why using it to describe someone who takes a cut of earnings might carry negative connotations. However some people might use the term informally to describe a situation where someone profits off another’s labour in an exploitative way. A more precise term might be “rent-seeker” or “predatory landlord,” depending on the nature of the arrangement. One of biggest threats to Jersey’s prosperity is high inflation – high government rents, taxes, and charges force businesses to charge more to the detriment of the majority. The government / public sector / property holdings don’t seem to have even a Ladybird Book understanding of the consequences of the high rent, unnecessary charges, and ludicrous red tape.

The public of Jersey, you and me, directly owns all the harbours and, until 2015, the airport facilities around Jersey. Harbours at Gorey, St Catherines, , St Helier, St Aubins, and many other places – land worth tens of millions generating significant rental.

In 2015 all rights of the public, in respect of the airport assets, were transferred to Ports of Jersey for no consideration under the Air and Sea Ports Incorporation (transfer) (Jersey) Regulations 2015. We still owned the harbours so the Government decided to rent all this land, and all the assets on it generating income, to Ports of Jersey on a 150 year lease for an annual rent of just £1 – yes £1. Evidently this was in our best interests as the ultimate land owners, albeit 10 years later there is little evidence to suggest this is the case.

Over recent months I’ve heard several stories of those renting properties, properties that until 2015 we had full control over, being put on onerous leases by their predatory landlord – Ports of Jersey. The landlord appears to want to squeeze their tenants with turnover based rents, so the harder the tenant works the more Ports of Jersey take for doing nothing. With their high salaries and generous bonus payments you can perhaps understand why they need the money.

The problem I have is that the approach of Ports of Jersey is almost certainly illegal, and the culture of the Company continues to be wholly inappropriate given their legal obligations.

I was for 6 years a politician and the States Assembly is, first and foremost, a legislator. Our role as politicians was to read and understand the legislation before us and I doubt the ‘vapes’ fiasco where no one picked up an error in the legislation would have happened in my day. I am interested in the law, not perceptions or mis-interpretations. The role of the Board of Ports of Jersey, and the Government as influential shareholders, is to ensure they operate within the law.

The role of Ports of Jersey is set out in law under the Air and Sea Ports (Incorporation) (Jersey) Law 2015. This law states, in clear language, that Ports of Jersey shall always “act in the manner best calculated to secure sustainable growth in the economy of Jersey in the medium to long term.”

 The goal is sustainable economic growth and supporting entrepreneurs and small businesses is an obligation. Many governments recognize that startups and small enterprises are vital to long-term economic stability, job creation, and innovation. High rents or turnover-based rents can be a burden, especially in the early stages of business development, potentially stifling growth instead of fostering it.

In other regions, governments offer reduced rents, tax incentives, or business grants to encourage entrepreneurship. A more supportive approach might involve lower rents, or other mechanisms to ease financial strain while businesses establish themselves. Prioritizing affordability could yield stronger, more resilient businesses that contribute to economic growth over time. This approach, by law, is the mandate by which Ports of Jersey must operate.

As previously mentioned the law states they MUST “act in the manner best calculated to secure sustainable growth in the economy of Jersey in the medium to long term.”

If you are a tenant and have been affected by their illegal actions then please write to Deputy Farnham or Deputy Morel. If you have an onerous lease they are obliged to replace it with one in the best interests of long term economic growth of our island, as set out in law.

Government should be run for the benefit of the people, not to screw them and live off their hard work. As I have said many times, the biggest risk to the Island of Jersey is itself and those that run it (which is not the politicians).