I am delighted to again be the Minister responsible for promoting, defending and representing Jersey’s financial services industry. During times of change and challenge, I recognise the need for a clear and consistent strategic message from Government, a commitment to ongoing support for the industry both locally and in key global markets and a promise to listen and act on the concerns of industry leaders. This is the approach I intend to continue to adopt.
In undertaking my role on behalf of the Island and industry – and in support of the thousands of jobs it provides – I am ably supported by my Assistant Minister, Deputy Elaine Millar, who has extensive professional experience in Jersey’s legal and financial services sector. We are working in tandem with the Chief Minister – who has a long track record of promoting business and investment in Jersey – and the Minister for Sustainable Economic Development as he leads the work to enhance our productivity and competitiveness.
This is a government that remains overwhelmingly supportive of Jersey’s international financial services industry and, as your voice in Government, we will stand up for jobs, growth and investment in our people and economy.
At the end of July, the Council of Europe MONEYVAL review into Jersey’s anti-money laundering and counter-terrorist financing measures was published. Colleagues in government, law enforcement, the regulator and industry have been preparing for and participating in this review for a number of years. The work has been intense and extensive and I am grateful to everyone who has worked so hard on behalf of the Island. Once again, we have achieved an excellent result and been recognised as a leading jurisdiction for compliance with international standards.
Jersey’s finance industry is occasionally and unjustifiably targeted by ill-informed critics and interest groups. It is therefore pleasing that the global authority on anti-money laundering and counter-terrorist financing – a body that is independent, impartial and informed – has reviewed our regime thoroughly and reinforced our reputation as a reliable and responsible partner in the international financial system. For my part, as I continue to represent Jersey’s interests in the UK, Europe and further afield, I will do so emboldened and re-energised by this report. We can all have renewed confidence in our industry and our Island.
Inevitably, the report gives us areas to address and improve on. Work in most of these respects is already underway, as we embed our adherence to modern standards as part of our everyday work.
I recognise the need for a balance between regulation, competitiveness and innovation. Our industry is nothing if it does not adhere to the highest regulatory standards and maintain the confidence of our international partners. Equally, our success is built on our agility and the ability to respond to the changing needs of our global customers. The Government will focus as much on new market opportunities and on being innovative, as it does on upholding our reputation as a responsible partner. I am listening and will continue to listen, so that we retain and build on the characteristics of the sector which have made us successful.
Our updated Financial Services Policy Framework, developed in partnership with industry, continues to guide our strategy for the industry. We are building on our strengths as we seek to grow and diversify. As an economy, we face similar skills and employment challenges as our competitors, albeit on a different scale. Nobody in Government can pretend that these are easy to resolve but we can work together to meet them as effectively as possible – using the policy levers we have in housing, employment and lifelong learning.
In 2025 we will see the implementation of the Pillar Two corporate tax regime and Government will begin to receive new tax revenue. In the Budget, we will set out an estimate for Pillar Two income and how this should be spent. This will include a significant commitment to investing in our competitiveness. I am clear that corporate tax revenue can only be received from companies who remain in or locate to Jersey and I know that we operate in a highly competitive environment.
Pillar Two should not be seen as an opportunity for Government to spend more on itself and we must not become dependent on this income. It will of course allow for some public investment opportunities but we should allow time for the regime to settle and we must support business and the economy as it does so. In my view, any excess Pillar Two receipts beyond our initial estimate should be further invested in our competitiveness, productivity and set aside for reserves. That would be the prudent approach.
As the Chief Minister mentioned, July saw the election of a new UK Government. In my time in Government, I have worked positively with Labour, Conservative and Liberal Democrat Ministers. We maintained dialogue with key Labour figures throughout their time in opposition and therefore have good relations with a number of new Ministers. We are building on those links and do so within the strong foundations of our constitutional relationship.
It remains a privilege to represent Jersey and our most important industry. In an increasingly turbulent world, Jersey continues to offer high-quality products in a stable environment. That is the hallmark of our success and is why we can all have confidence in the future.