Economy Of Jersey
Modern Economy
Modern Economy
The modern economy of Jersey is largely driven by international financial services & legal services, which accounted for 53% of total GVA in 2007. Other sectors include construction, retail, agriculture, tourism and order fulfillment, such as internet based selling.
In recent years (2008) Jersey Gross National Income per capita has been amongst the highest in the world.
Financial & Legal Services
Royal Bank of Scotland building.
Jersey based financial organisations provide services to customers worldwide. In June 2008, it was reported that 12,070 people were employed full-time, within this sector. The Royal Bank of Scotland International (RBSI) is a major employer with some 900 staff employed in Jersey, as of March 2009.
The finance sector profits rose to about 1.5 billion in 2007, representing a real-term increase of 12% on 2006.
Jersey is a tax haven, and so attracts deposits from customers outside of the island, seeking to reduce their tax burdens. Its taxation laws have been widely criticised by various people and groups, however the Chief Minister of Jersey, Terry Le Sueur, has countered these criticisms, saying that "Jersey among cooperative finance centres".
Jersey's finance industry featured in a BBC Panorama documentary, titled "Tax me if you can", broadcast of the 2nd of February 2009.
On 4th of February 2009, Jersey Finance officially announced its intention to open a new representative office in London.
At the end of 2008, deposits in Jersey banks totalled 206 billion, down 6.2 billion from 212.3 billion at the start of the year.
Construction
Construction represented 5.2% of GVA during 2007. In June 2008, it was reported that 4,980 people were employed full-time in the construction and quarrying sector.
St. Helier, and the Waterfront area in particular, has seen much redevelopment during the early 21st century, with several projects in planning or under-construction during 2009. Developments include a leisure complex, the Radisson hotel, and a new central bus station - Liberty Station. As of 2009, there are plans to sink the A1 road, to provide building sites above it for offices, possibly for financial companies.
Construction grew by 8% over the period 2006 to 2007.
Retail & Wholesale
As of June 2008, there were 6,610 persons in full-time employment within Jersey's wholesale & retail trades.
Retail and wholesale grew by around 5% during 2007.
Sandpiper C.I. Limited operate a chain of stores in Jersey, their franchises include well-known names, such as Marks & Spencer, Iceland, and Costa Coffee.
Jersey is the head quarters of play.com, Flying Brands, and other online retailers which offer free delivery on goods such as books, music, movies, gadgets.
Agriculture
Potatoes, cauliflower, tomatoes, and flowers are important export crops, shipped mostly to the United Kingdom. The Jersey breed of dairy cattle is known worldwide and represents an important export income earner. Milk products go to the UK and other EU countries.
As of 2009, the Jersey Royal potato is the biggest crop export.
Tourism
Hotel de France
Jersey saw a boom in tourism during the post World War 2 years. This boom has been winding down since the late-1980s. Many of the larger hotels, which were constructed during the boom, have now been demolished.
Notable hotels include:
the Pomme d'Or overlooking Liberation Square in St. Helier, which during the occupation served as the German Navy Headquarters and from whose balcony the Liberation force raised the Union Flag on Liberation Day, 9 May 1945;
the Hotel de France, formerly the Imperial and the Jesuit college, in St. Saviour overlooking the town of St. Helier;
the Hotel L'Horizon in St. Brelade's Bay.
La Grande Vere, in St. Helier overlooking St. Aubins Bay, with views of Elizabeth Castle and the Waterfront.
The Royal Yacht is a refrubished, modern, luxury hotel situated in St Helier.
Visitors to the island arrive either by sea at Saint Helier, or by air at Jersey Airport. These routes are subsidised by the States of Jersey. Exact figures for subsidies are not in the public domain.
Transport, Storage & Communication
This sector accounted for 4% of GVA during 2007.
Most of the telecoms infrastructure is owned by Jersey Telecom.
In 2008, most goods imported and exported were transported by Huelin-Renouf, Ferryspeed, and other smaller operators, via either Saint Helier harbour, or Jersey Airport.
During the period 1984 to 1994, British Channel Island Ferries were responsible for much shipping to and from the United Kingdom.
Stock Exchange
Jersey shares the Channel Islands Stock Exchange (CISX/Exchange) with Guernsey, where it is based.
Seasonal Workers
The workforce in Jersey tends to increase during the summer months, with around 3,500 more people employed in the summer of 2008 than in the winter of 2007. These seasonal workers are mostly employed in agriculture, hotels, restaurants and bars.
Traditional & Historical Economy
Agriculture
Until the 19th century, cider was the largest agricultural export with up to a quarter of the agricultural land given over to orchards. In 1839, for example, 268,199 gallons of cider were exported from Jersey to England alone, but by 1870 exports from Jersey had slumped to 4,632 gallons. Beer had replaced cider as a fashionable drink in the main export markets, and even the home market had switched to beer as the population became more urban. Potatoes overtook cider as the most important crop in Jersey in the 1840s. Small-scale cider production on farms for domestic consumption, particularly by seasonal workers from Brittany and mainland Normandy, was maintained, but by the mid-20th century production dwindled until only 8 farms were producing cider for their own consumption in 1983. The number of orchards had been reduced to such a level that the destruction of trees in the Great Storm of 1987 demonstrated how close the Islands had come to losing many of its traditional cider apple varieties. A concerted effort was made to identify and preserve surviving varieties and new orchards were planted. As part of diversification, farmers have moved into commercial cider production, and the cider tradition is celebrated and marketed as a heritage experience.
Textiles
The knitting of woollen garments was a thriving industry for Jersey during the 17th and 18th centuries.
Ship Building
Jersey was the 4th largest ship building area in the 19th century British Isles. See History of Jersey.
Historical Exchange Rates
Jersey pounds per US dollar - 0.55 (2005), 0.6981 (January 2002), 0.6944 (2001), 0.6596 (2000), 0.6180 (1999), 0.6037 (1998), 0.6106 (1997); the Jersey pound is at par with the British pound.
Taxation
Until the twentieth century, the States relied on indirect taxation to finance the administration of Jersey. The levying of impts (duties) was in the hands of the Assembly of Governor, Bailiff and Jurats until 1921 when that body's tax raising powers were transferred to the Assembly of the States, leaving the Assembly of Governor, Bailiff and Jurats to serve simply as licensing bench for the sale of alcohol. The Income Tax Law of 1928 introducing income tax was the first law drafted entirely in English. Income tax has been levied at a flat rate of 20% for decades.
As VAT has not been levied in the Island, luxury goods have often been cheaper than in the UK or in France, providing an incentive for tourism from neighbouring countries. The absence of VAT has also led to the growth of the fulfilment industry, whereby low-value luxury items, such as videos, lingerie and contact lenses are exported, avoiding VAT on arrival and thus undercutting local prices on the same products. In 2005, the States of Jersey announced limits on licences granted to non-resident companies trading in this way.
Although Jersey does not have VAT, the States of Jersey introduced a goods and services tax (GST) in 2008.
The strategy for introducing the new GST tax was to fill a 'black hole' in the budget that was created by the introduction of a new 0/10 tax that replaced the old tax system that previously exempted foreign investors from corporation tax and levied a 20% rate on Jersey residents. The new 0/10 tax exempts all businesses except those in financial services from having to pay any corporation tax (0%), while leaving the financial services to pay a low tax rate (10%). The income generated from the new 0/10 tax proposal will not be equal to the revenue of the original tax system and this leaves Jersey with a deficit in their budget of several million pounds.
To fill the deficit created by the changes made to Jersey's tax structure, the States of Jersey introduced GST. GST is added to most goods and services, which has raised the cost of living. The people hit the hardest by the new GST will be the people on the lowest incomes, however, to try to prevent islanders living below the poverty line, the States of Jersey introduced an Income Support service in January 2008.
It is arguable that the people who benefit from Jersey's new tax structure are the owners of the large businesses that are separate or support the financial service based businesses. This is because they do have to pay any corporation tax but will still benefit from the island's business.
Finance Magazines
2020 Magazine is published each November and is the Island's annual personal finance magazine devoted entirely to personal finance and related subjects. It is circulated to every home in Jersey as well as to every business in Jersey, Guernsey & the Isle of Man.
Global Assets is an International finance magazine. It is the amalgamation of International Finance Jersey, International Finance Guernsey & International Finance Isle of Man. It is now an online subscription magazine only, circulated worldwide.
External links
Jersey Treasury & Resources
Jersey Finance
Waterfront Enterprise Board Limited
See also
Jersey
Jersey pound
References
^ a b c CIA World Fact Book
^ http://www.gov.je/NR/rdonlyres/8A7191DC-9CF9-4330-9D7B-78E473A2A248/0/JED2008.pdf JED 2008
^ a b c CIA World Fact Book
^ JASS 2008
^ Jersey Economic Digest 2008
^ Jersey Business & Economy
^ Jersey Gross Value Added (GVA) and Gross National Income (GNI) 2007
^ a b c d e f JED 2008
^ a b c Manpower by Sector
^ RBSI in Jersey
^ Jersey is a tax haven
^ Tax Research
^ Jersey among cooperative finance centres
^ "Tax me if you can"
^ "Tax me if you can"
^ Jersey Finance London Office
^ Quarterly Report for Q4 2008
^ Leisure complex
^ Radisson Hotel
^ Esplanade Quarter
^ Sandpiper CI Ltd.
^ Hassall, Peter D. (1997). Night and Fog Prisoners. Jersey Heritage Trust. pp.63. http://www.jerseyheritagetrust.org/occupation_memorial/pdfs/hassallbookcomplete.pdf.
^ Airline subsidies
^ Huelin-Renouf Shipping
^ Ferryspeed
^ Channel Islands Stock Exchange
^ Balleine's History of Jersey, ISBN 1-86077-065-7
^ The Triumph of the Country, Kelleher, Jersey 1994, ISBN 0-9518162-4-1
^ Jersey Society in London, Bulletin, 1983
^ Regional Knitting in the British Isles & Ireland
^ 8 March 2005 Proposition P44/2005: Fiscal Strategy
12 May 2005
Amendment paragraphs (a), (b) and (d)
Amendment paragraph (c)
13 May 2005 States votes
Paragraphs (a)(i) and (ii)
Paragraph (a)(iii)
Paragraph (c)
Paragraph (d), as amended
Jersey in Figures, 2005, States of Jersey
vde
Economies of the dependencies of European Union states
Denmark
Faroe Islands Greenland
France
French Polynesia Mayotte New Caledonia Saint Barthlemy Saint Martin Saint Pierre and Miquelon Wallis and Futuna
Netherlands
Aruba Netherlands Antilles (Bonaire, Curaao, Saba, Sint Eustatius, Sint Maarten)
United Kingdom
Crown dependencies: Guernsey Isle of Man Jersey
Overseas territories: Anguilla Bermuda British Virgin Islands Cayman Islands Falkland Islands Gibraltar Montserrat Pitcairn Islands Saint Helena South Georgia and the South Sandwich Islands Turks and Caicos Islands
Categories: Economy of Jersey
by: gaga
How Limco Logistics Can Make Your International Shipping As Easy As 1-2-3 How To Choose The International Shipping Container That Is Right For Your Shipment Aarkstore Enterprise -Private Label Strategies in Global Electricals and DIY Retailing MP3 Players - Ought to Read Prior to Purchasing Aarkstore Enterprise -Global Jewelry Retailing: Market Size, Retailer Strategies and Competitor Performance Aarkstore Enterprise Global Education Sector And Changing Trends Taiwan Solar Energy Exhibition Opened In October To Attract Global Buyers The Motorola Droid 2 Global Global Telecom - Hiring Telecommunications Consultants HIV/Aids Now a Global Women's Disease The global PCR market is projected to reach around US$38.1 billion by 2015, with a CAGR of 11.6% Project Management of Complex Global Projects Wholesale Imports Are Vital to a Functioning World Economy