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NOVEMBER 2013 ISSUE 21 JERSEY S BUSINESS MAGAZINE CRUNCHING THE NUMBERS Jersey s economic adviser looks forward VIEW ONLINE AT BAILIWICKPUBLISHING.COM SPACE THE FINAL FRONTIER FOR OFFICES IN JERSEY PLEASE TAKE ONE Simon Nixon founder of talks about skills competitiveness and complacency. READ THE FULL INTERVIEW ON PAGE 48 London Waterloo LONDON WATERLOO MINUTES TO LONDON TRAIN EVERY RETURN ANYTIME TRAIN TICKET WITH SPECIAL BLUE ISLANDS FARE 68 15 30 MINUTES SOUTHAMPTON PLUS JERSEY COMPLIMENTARY LOUNGE ACCESS IN JERSEY FAST-TRACK SECURITY IN SOUTHAMPTON Fly better. Fly blue. Buy local. Terms and conditions apply WELCOME FURTHER INFORMATION PUBLISHERS If you would like to appear in Connect have a story to tell or simply want to receive a copy then please get in touch with the publishers Bailiwick Publishing (LCI) Fox Building Second Floor Suite La Rue des Pres St. Saviour JE1 3UP Telephone 01534 887740 CONNECT ONLINE For all the latest news and events straight to your inbox visit and subscribe to our daily news service. EDITOR James Filleul Email editor WRITERS Ben Qu r e Email ben Gwyn Garfield Bennett Email gwyn Paula Thelwell Email paula ADVERTISING Katrina De Jesus Telephone 01534 887740 Email katrina SUBSCRIPTIONS Email subscriptions DESIGN AND PRODUCTION Mark Jackson Email studio Artwork under 10Mb in size may be sent to this address. This is our 21st birthday edition of Connect. Before you look dubiously at your mug of tea and wonder if on reflection it actually contained something a little more potent what I mean is it s our 21st edition. OK it s a closer milestone but still significant as it marks the completion of the foundationbuilding stage of the business and the beginning of stage two you can read more about our plans for next year on page 66 we are very much looking at the local economic climate as a glass half full . After all that s still more than enough to drink a birthday toast. When we launched Connect in April 2011 we set out to tell the stories which really mattered to local businesses we think that s important as there is a tendency in Jersey to portray business as akin to a rapacious child who has the capacity to generate great wealth but who lacks a clear moral compass. And so without the tightest of regulation and guidance from a wise and benevolent state customers employees or the environment (delete as appropriate) would be left abused and exploited. Well no actually. At Connect we see business as the solution rather than the problem as a creator of prosperity and as a tutor of the need to work hard to look after your family and your community. That launching or growing a business is about taking responsibility providing jobs and so weaving another strand in the Island s social and economic wellbeing which at their root are exactly the same thing. We try and tell those stories in engaging ways from interviews to articles to our expanding family of Connect columnists foremost among them being The Fool. On page 60 of this edition he takes a walk through the 2014 Budget and what he finds on the way prompts him to redress the surprising lack of comment on proposals for the Island to borrow many millions as well as funding a new hospital from hoped-for returns on our reserves. We also believe in letting the characters in our stories speak for themselves without intermediation that s the principle behind our Unplugged feature which in this edition (page 48) welcomes Simon Nixon newly arrived Jersey resident and founder of Moneysupermarket. com to the Connect stage. He uses his time in the spotlight to talk about how Jersey needs to get much more competitive and why recently announced plans to improve IT skills are long overdue. As ever I hope you enjoy the read each edition of Connect lives and breathes for a month before dying and descending to take its place on the dusty shelves of our basement. We try and include enough interesting material to bring you back to its pages many times during that time - if you have suggestions for more do let us know. This magazine can also be read online at Copyright Bailiwick Publishing LCI. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. Views expressed by our contributors are their own. Editorial opinions expressed in this magazine are not necessarily those of Bailiwick Publishing. Bailiwick Publishing does not accept responsibility for the advertising content. While every effort is made to achieve total accuracy Bailiwick Publishing cannot be held responsible for any errors or omissions. James Filleul Editor Please recycle this magazine. Like us on Facebook Follow us on twitter connectjersey NOVEMBER CONNECT 01 ON THE COVER UNPLUGGED Simon Nixon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 REGULARS LOCAL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 MARKETING The Refinery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 NEXT QUESTION Luke Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 TECHNOLOGY Julian Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 LINKEDTo Grahame Lovett. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 PUBLICi Dougie Peedle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 WHO S THE FOOL ................................... 60 NO ORDINARY DAY JOB Andy J han . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 GLASS HALF FULL Bailiwick Publishing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 SOAPBOX Ruthie Hawkesford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 HERE S THE THING... ................................ 20 06 36 74 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 SPECIAL REPORT St. Helier currently has three major office developments being proposed which if all built would offer an equivalent of about 75% of the total area of The Shard. But will all three go ahead And if not which are the front-runners Ben Qu r e puts on a hard hat and goes on site... . . . . . . . . . . . . . . . . . 20 46 FEATURES STATES OF JERSEY Alan Maclean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 PROMOTIONAL FEATURE Leonie s Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 BANKING Skipton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 EMPLOYMENT LAW Collas Crill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 ESSENTIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 02 CONNECT NOVEMBER 17 48 CONTENTS 62 72 40 NOVEMBER 2013. CONTENTS ISSUE 21. 18 54 WANT THE LATEST BUSINESS NEWS TO COME TO YOU Scan the QR code and click to send us your email address. NOVEMBER CONNECT 03 NEWS Want this magazine delivered to your home or office Visit to subscribe Jersey s digital future A strategic business plan to make Jersey a digital centre has been unveiled. Digital Jersey s strategy includes long-term growth targets and short-term goals for the Island s development and identifies the critical dependencies that must be in place to achieve these goals together with an assessment of how Jersey will compete against other jurisdictions. The plan includes targets for economic and job growth social benefits and reputation for Jersey. The CEO of Digital Jersey Ted Ridgway Watt said they now had a clear set of measurable aims and objectives that will support Jersey s development as a centre of digital excellence. However it is also clear that significant support from government and industry is going to be essential for us to succeed. Our role at Digital Jersey is to act as an accelerator for these objectives in order to support the digital economy and digitally enabled and connected society he said. Green light for parking Planning Minister Rob Duhamel has given the go-ahead for 64 new spaces in Green Street multi-storey car park. They will go towards replacing the 90 spaces which will be lost when building starts on the new police headquarters next to Lime Grove and will be created by an extension to the existing top floor level. In approving the new HQ Deputy Duhamel made it a condition that 53 of the 90 spaces due to be lost when the new building is constructed were replaced. However it has been possible to create an additional 11 spaces. When complete the extension will bring the total number of spaces in the multi-storey car park to 673. It s going to be different... 04 CONNECT NOVEMBER Accredited Institute of Practitioners in Advertising CPD agency. AH... Is your agency getting your message across or just wasting space Try some brand new thinking. Oi is the Channel Islands most progressive marketing communications agency. Our strategic expertise innovative ideas and experience in implementing large projects or campaigns locally nationally and internationally stands us apart from the plethora of design-based agencies in the Channel Islands. Call Peter Grange in Guernsey on 01481 750600 or Heather Townsend in Jersey on 01534 888186 for a chat. Find out more at ADVERTISING AMBIENT BRANDING DESIGN DIRECT DIGITAL SOCIAL Brand New Thinking NEWS For news stories every day visit to sign up to our daily email news service Irish comedy act to headline Jersey awards ceremony Ireland s top comedy hip hop improv double act Abandoman is the headline act for this month s CIM Awards at the Hotel de France. The duo s impressive CV includes several appearances on television shows including The Graham Norton Show and 8 out of 10 cats. They have supported Ed Sheeran on tour and are a huge hit on the comedy club and festival scene. They also enjoyed a week s residency on BBC 6 Music with percussionist Camilo Tirado. Steve Cartwright Chairman of the Jersey Branch of the Chartered Institute of Marketing said We are delighted to have secured such an exciting new talent in Abandoman for this year s event their sharp wit and comical timing will bring a new dimension to what will be a fabulously themed evening. It is thanks to our marvellous production sponsors that we can put on such an amazing show and I would like to take this opportunity to thank Delta Production Services The Beach Communication Spike Production all our individual award category sponsors and our production partners Gallery for their continued support. NATURALLY BRIGHTER Collas Crill has been named the fastest growing law firm. Flexible responsive and easy to do business with our pragmatic team takes a fresh approach to achieving client objectives. Our offices in Jersey Guernsey and Singapore service a client base across the globe including leading financial institutions high net worth individuals international businesses and funds. We are also leading lawyers to the local community servicing the needs of individuals and families in Jersey and Guernsey. services banking & finance corporate & commercial dispute resolution employment insolvency & restructuring investment funds ip & e-business personal & family law property - commercial property - residential risk & regulatory trusts & foundations wills & estates Best Practice Offshore Law Guernsey Jersey Singapore 06 CONNECT NOVEMBER NEWS Follow us on Twitter connectjersey Education s vision for IT in education A new strategy from Education Sport and Culture sets out the department s plan for Jersey students to excel in IT and computing. The new IT skills strategy has been developed to ensure the next generation of Islanders will have the ability to keep pace with the rapid constant developments in technology so they are well equipped to succeed in their chosen careers. It proposes a new approach to teaching the subject a new IT curriculum closer links with businesses and an upgrade for the IT infrastructure used in States schools which have one of the largest computer networks in the Channel Islands. The strategy focuses on three key priorities and details projects for each one. They are Teachingandlearning Infrastructureand technology Businessandeducation The Director of Education Mario Lundy said The potential of IT to enhance learning within and beyond the classroom is at the heart of this strategy. New technologies offer greater opportunities for pupils to engage in active independent learning and collaboration. This gives them the freedom to discover and develop solutions for themselves and enables teachers to rethink the way teaching is organised. Jersey is first with amendment to trust legislation The latest amendment to Jersey s trust legislation has just come into force. The Trusts (Amendment No. 6) (Jersey) Law 2013 further strengthens Jersey s legislative framework and provides greater clarity for the courts practitioners and those who work with or benefit through Jersey trusts. The amendment incorporates into the Trusts (Jersey) Law 1984 the existing law on mistake and the so called rule in Hastings-Bass the latter being a legal first within the international trust s arena. The effect of the amendment is to confirm the Royal Court s ability to provide discretionary relief in a number of trust scenarios e.g. where a settlor has Economic recovery underway Jersey Finance says the figures revealed in the latest Jersey Business Tendency Survey confirm that the economy is in recovery. CEO Geoff Cook said the latest figures from the States were welcome news and that it was particularly encouraging to see the new business indicator move to a level last seen in 2010 2011. Moreover he added the improvement relating to future employment was a key indicator for any sector and of real importance to local people. He said In order to sustain these trends across all sectors it is imperative that the Island continues to innovate and work hard to win new business with appropriate levels of support and stimulus maintained by the States. effective and hugely influential piece of legislation. This latest amendment only the sixth in nearly 30 years provides welcome clarity for the Royal Court and for the many settlors trustees and beneficiaries all over the world who enjoy the benefits of having Jersey law as the governing law of their trusts. The ability for the Royal Court to give discretionary relief when a beneficiary finds itself materially prejudiced by a trustee s decision - made perhaps in good faith but unfortunately founded upon erroneous advice - provides a welcome alternative to the uncertainties and costs which surround classic negligence litigation . made an error in settling assets into trust or where a trustee has erred in exercising a power perhaps failing to take into account matters which should have been considered or acting on incorrect professional advice. Geoff Cook CEO Jersey Finance commented Since its enactment in 1984 the Trusts (Jersey) Law has proved to be a highly 08 CONNECT NOVEMBER it s tough out there... we ve had to get a lot smarter Imagine if you only paid for an advert when you knew your customers had seen then clicked on it. Imagine also that you knew exactly who had opened your marketing eMails when where and what they did next. wouldn t that give you an advantage over your competitors cutting edge media techniques applied with established wisdom NEWS Want this magazine delivered to your home or office Visit to subscribe Building bye-law public consultation Safety valves will be fitted to baths in all new-build homes to prevent scalding from bathwater if proposed changes to building standards are approved. A revision to building bye-laws sets out a number of proposed changes aimed at maintaining adequate standards in drainage hygiene and hot water storage in new buildings. Revisions to Part 6 of the second schedule to the building bye-laws and the supporting technical guidance document have been published and the draft document is now out for public consultation. Planning say the overall aim of the revisions is to improve water efficiency in newly constructed dwellings as well as improving and updating the current technical guidance. The Planning Minister s support for initiatives to improve water efficiency in new buildings reflects a desire to reduce the unnecessary use of domestic water use where possible. As the Island relies on rainfall for most of the mains water supplied and is vulnerable to periods of low rainfall or drought Planning say water efficient fittings in new homes could help reduce wastage. Islanders have until 25 November make comment on the proposed changes. OUTSOURCED INTELLIGENCE 02 01 C M New Manchester flights for 2014 Budget airline is introducing flights to Manchester from next May. DESIGN SOCIAL MEDIA WEBSITES 03 Y CM MY CY The new service will further open the north of England and the Midlands to Islanders as already flies between Jersey and Leeds Bradford Airport and is also introducing a new service to East Midlands in 2014. s CEO Steve Heapy said We re delighted to launch another new destination from Jersey. I m confident our new flights to Manchester - home to world-class music fashion and sport - will be very popular amongst our loyal customers in Jersey. The new routes were welcomed by the Group Commercial Director for Ports of Jersey Myra Shacklady who said The increasing commitment by to offer services to and from Jersey will continue to benefit both the inbound tourism business and allow additional ways for local residents to visit family and friends in the UK. CMY K 04 PR 06 05 MARKETING EVENTS 11 PETER STREET ST HELIER JERSEY JE2 4SP TEL 44 (0) 1534 720200 WWW.GETREFINED.COM in 10 CONNECT NOVEMBER Need a manager to help during peaks of demand Wish someone could help organise you Unable to obtain additional headcount This is where we come in... We provide superior executive assistance marketing support new business development and project management. You simply buy hours with us to help you get over your pinchpoints at work. Still unsure Heres what our clients say... BEBS professionalism shined through. Their ability to see the big picture in a project and then to be able to break it down to deliver individual services worked well for us. Tracey at BEBS is an excellent marketer and manager. Tracey at BEBS has a natural networking ability putting people at ease developing rapport and as we know people deal with people they like If you are an entrepreneur a consultant or a small business owner and need more time to focus on income-generating tasks and building your business call Tracey Bull today on 07797 734 505 or email tracey to find out how BEBS can help. Search for BEBSltd on... TWO MENUS TWO TEAMS ONE WINNER Will they stand the heat This November for one night only two teams made up of fourteen novice chefs will go head-to-head at the charity event Shaun Rankin s Kitchen Inferno . The Blue Islands team and the Air-Tel Vodafone Team are both fiercely competitive - they ve been holding team meetings and rehearsals to make sure they get their dishes just right for the 50 diners who will eat their food and critique their efforts. Shaun Rankin will be giving orders and all the tears tantrums and chefs shenanigans will be captured on camera at the Highlands Academy Restaurant. This month Brian McCarthy Managing Director of Le Masurier will be taking part in Trek Kerala in India to raise money for Jersey Cheshire Home. So far Brian has collected 15 000 in sponsorship and the proceeds from this event will add to this total. Good Luck to all the competitors raising money for a great cause. Remember if you can t stand the heat... AN EVENT BY SUPPORTED BY RAISING FUNDS FOR Tim Bond Team Leader Sophia Bird James Filleul Peter Shirreffs Brian McCarthy Ben Davies Derek Warwick COOKING SKILLS Tim Bond Brian McCarthy Ben Davies James Filleul Sophia Bird Peter Shirreffs Derek Warwick Sally Minty-Gravett Rob Veron Team Leader Kevin Pamplin Harry McRandle Hannah Jacques David Lord Peter Mac COOKING SKILLS Rob Veron David Lord Hannah Jacques Peter Mac Sally Minty-Gravett Harry McRandle Kevin Pamplin BLUE TEAM RED TEAM NEWS For news stories every day visit to sign up to our daily email news service National award for local director 2013 IoD Director of the Year Awards UK Finals. Last year the same award went to Eliot Lincoln CEO of Greenlight. Mr Elliot was one of five Islanders shortlisted for the awards. In addition the Chief Executive Officer of Centre Point Trust Jane Moy and the Chief Executive Officer of Aaron Chatterley were both highly commended in the Public Third Sector and Large Company categories respectively. The others shortlisted were the Director of Dolan Hotels Limited Andrew Shrimpton in the SME Company category and the Director of Jersey Sports and Spinal Clinic Nigel Mann in the Young Director of the Year category. The IoD Director of the Year Awards UK Finals is designed to recognise and celebrate the exceptional achievements of individuals at director level within private public and voluntary organisations across the British Isles. For the second year in succession a Jersey business director has won a national IoD award. The General Manager of the Grand Jersey Eamonn Elliott was named the Young Director of the Year at the 8 OFFSHORE JURISDICTIONS GOAL Behind the facts and figures you will find one cohesive firm. Appleby one of the world s largest offshore law and fiduciary groups. With strong connections and skilled teams we deliver a seamless service across jurisdictions sectors and international borders. It s this combination of talent and global presence that sets us apart. CONNECTING THE RIGHT PEOPLE AND PLACES Bermuda British Virgin Islands Cayman Islands Guernsey Hong Kong Isle of Man Jersey London Mauritius Seychelles Shanghai Zurich 14 CONNECT NOVEMBER A 16G iPad I WIN B MIN Get your hands on your parcel quicker with our Text & Collect service. Sign up to Text & Collect and we will text you when your parcel arrives at Commercial Street or Rue des Pres. Return the application form by 30th November 2013 and you ll go into the draw to win a 16GB iPad Mini. For an application form email customerservices textandcollect POSTAL SERVICES ATTRACTIVE RETURNS WITH SAVINGS ACCOUNTS FROM SKIPTON INTERNATIONAL MADE WITH YOU IN MIND When investing your money in a deposit account attractive interest rates and friendly efficient service is a winning combination. Skipton International Limited is an award winning local bank dedicated to providing high levels of service and backed by the peace of mind provided by the UK s fourth largest building society. For more information on our attractive range of savings accounts call our friendly and dedicated team at Skipton International. CALL 01481 727374 PO Box 509 Fairbairn House Rohais St Peter Port Guernsey GY1 6DS Skipton International Ltd is registered in Guernsey (30112) and is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994 as amended. Skipton International Limited is a participant in the Guernsey Banking Deposit Compensation Scheme. The Scheme offers protection for qualifying deposits up to 50 000 subject to certain limitations. The maximum total amount of compensation is capped at 100 000 000 in any 5 year period. Full details are available on the Scheme s website or on request. To help maintain service and quality telephone calls may be recorded. APPOINTMENTS Looking to trade places Visit jobs-board - 128 jobs are currently available Total jobs at time of going to print New president for local banking association The Jersey Bankers Association has appointed the Chief Executive Officer of Standard Chartered Bank in Jersey Richard Ingle as its new president. He succeeds Chris Blampied from Royal Bank of Canada who had completed his two-year term leading the local industry body. Richard said he was honoured to be asked to stand and he was looking forward to representing the interests of the diverse range of member banks. In these times of continual change the Jersey Bankers Association has an important role to play in engaging with its members and working closely with its partners at home and overseas. Many of the international initiatives developed in response to the financial crisis are starting to come to fruition and it will be critical that Jersey banks have a voice to ensure their contribution is clearly understood and valued by the local and international community. The Head of Products and Marketing at RBS International Jerry Whitsey has succeeded Richard as vice-president. STM adds to senior management team International fiduciary management company STM Fiduciaire Limited has appointed Una Smith to its senior management team. An Associate of the Institute of Chartered Secretaries she brings more than 15 years experience in the finance industry to the post of associate director of client services. Helen Munns MD of STM said We are at the forefront of the financial service industry and our people not only represent STM but also Jersey. I am both delighted and proud to welcome Una to STM and look forward to the expertise and experience that she will bring to the administration and senior management teams which will only further enhance the service that we provide to clients. As a client services professional with both corporate and private client experience Una has been responsible for the provision of corporate and trust services to a wide range of international corporate and private clients. She will continue to work directly with such clients as well as co-managing the client service teams. Henley Financial Appoints Senior Financial Consultant Henley Financial has appointed Jersey-born Hayley Carstairs as its Senior Financial Consultant. In her new role Hayley will continue to specialise in advising clients on retirement planning including Henley s Retirement Annuity Trust Scheme personal financial planning employee benefits advice and financial advice for small business owners. Hayley will be working alongside Henley s Director Terry Vaughan renewing an association going back 15 years. He said Hayley has the approach attitude and professionalism needed by our advisory staff and will be an important part of our development plans for the future. Born and educated in Jersey Hayley is professionally qualified to Level 4 via the Chartered Insurance Institute Personal Finance Society including specialist pension and investment qualifications. She previously worked for three local financial services firms during which time she has proven herself to be a successful and understanding client adviser with a wideranging knowledge of the financial services market. This is a wonderful new challenge she said. I m looking forward to working with Terry once again and continuing to provide the reliable easy-to-understand financial advice for which Henley is renowned. First Names Group expands Jersey team Lorraine Wheeler has been appointed as the Client Services Director in Jersey by First Names Group. The fiduciary corporate and funds service provider says the Fellow of the Chartered Institute of Bankers will bring a wealth of experience to the role. MD Mark Pesco said It is a really exciting time at the group. We are expanding and growing our services and it is imperative we have a strong leadership team driving our growth. Lorraine is extremely experienced and knowledgeable in the industry and I am sure she will be fundamental to our continued success. We are delighted to have her on board. Lorraine is vice-chair of STEP Jersey and well known within the finance industry having worked in the UK Bermuda and Switzerland before moving to Jersey in 2002 with her family. She said I am very impressed with the organisation. The group has a superb reputation for client service and I am very much looking forward to working with the team our clients and our professional advisers. CONNECT 17 APPOINTMENTS Did you know you can post jobs for FREE with Connect Email Katrina De Jesus for further details on katrina Credit Suisse expands Jersey team Credit Suisse in Jersey has expanded the local team to further develop its investment management business in the Island. David Baker and Ian Blackman have joined the Swiss bank as senior relationship managers to focus on the Jersey and UK resident non-domicile client base. Old Victorian David joins Credit Suisse from UBS AG in Jersey where he gained 20 years experience meeting the wealth management needs of private clients and their advisors. He previously spent ten years working in global custody securities trading and investment management areas. Jersey-born and educated at the former Moorestown College Ian has 34 years experience in relationship management and treasury roles in the Island. He moved from Chase Manhattan Private Bank to UBS AG in 2000 where he continued to build relationships with high net worth clients as a senior relationship manager for Jersey and UK resident clients. In welcoming David and Ian to Credit Suisse CEO Roy McGregor said While we are a truly global bank with expertise across more than 50 locations our clients equally value the partnership they can build with a relationship manager who understands their local needs. Aztec Group appoints new Chairman Ian Blackman and David Baker Richard Hills has succeeded John Boothman as the new non-executive Chairman of the Aztec Group who stepped down after ten years in the post. Richard who is based in Guernsey has been a non-executive director of the group for three years. A director of three UK London Stock Exchangelisted investment trusts - and a shale gas exploration company - he also chairs a private potash exploration company operating in continental Europe and acts as the investment advisor to the Lord Hanson Charitable Foundation. Aztec Group s CEO and co-founder Edward Moore said We are all extremely grateful to John for his commitment to the group over the past ten years. John has a vast wealth of knowledge and experience in the finance industry and has played a significant part in the success of the Aztec Group. Richard said he was looking forward to his new role adding Over the past three years I have worked closely alongside John Boothman on the Aztec Group Board and am confident that under my tenure the group will continue to go from strength to strength. 18 CONNECT NOVEMBER SEMINAR SEMINAR GoldMoney opens up the vault GoldMoney breakfast seminar guests were treated to a rare insider s presentation on not only how to buy gold and other precious metals but what goes on behind the sealed doors of a vault. GoldMoney s Head of European Business Development Martyn White hosted the seminar on 24th September at the Grand Hotel and started by explaining gold s advantage as a store of wealth I think many people are genuinely surprised when they realise that an ounce of gold today still buys the same amount of crude oil as in the 1950s you certainly can t say that about any of our world currencies. The attendance of a vault manager from Via Mat was unusual since security considerations usually mean that vault staff cannot appear at public events like this. Via Mat is one of the leading non-bank vault partners used by GoldMoney. Guests learnt that in the vault not only are gold bars weighed and checked against the London Bullion Market Association database but GoldMoney insists on an extra integrity check for its customers which is for all gold bars to be given an ultrasound scan to check for any internal anomalies. All stocks are then regularly audited whilst in storage. Martyn White said that judging from feedback the seminar had been a big success We wanted to ensure we are providing the information that customers and potential customers need and it was pleasing to hear from those who attended that they felt it had been an interesting presentation. We will be holding more of these practical sessions in the coming months. If you missed the seminar and would like further information about future events email Hayley.dewar GoldMoney is a Jersey based company offering an easy online facility for the purchase and secure storage of precious metals. For further information visit NOVEMBER CONNECT 19 SPECIAL REPORT St Helier currently has three major office developments being proposed which if all built would offer an equivalent of about 75% of the total area of The Shard. But will all three go ahead And if not which are the front-runners Ben Qu r e puts on a hard hat and goes on site... NOVEMBER CONNECT 21 SPECIAL REPORT One of the more leftfield ways to measure the health of an economy is by the number of big cranes that you can see. The logic goes that if investors have enough confidence to fund construction projects then a) there s money about b) builders and tradesmen are working and c) there s confidence about economic prospects in the medium-term. So perhaps Jersey take some comfort in the fact that there are three major office construction projects proposed at the moment. The projects are the Jersey International Finance Centre (JIFC) being put together by the States of Jersey Development Company (470 000 sq ft of office space) the J1 scheme between Broad Street and Commercial Street proposed by Le Masurier (280 000 square feet) and the new Dandara project planned next to the Grand Hotel (160 000 square feet). Put them together and that s enough new prime office space to cover just over 11 cheaper to run because of improvements in environmental standards and insulation and they also provide larger floorplates allowing more people to work together instead of tucked away in individual offices or cubicles. But this is Jersey and there s a world of difference between drawing up some plans and actually starting to lay foundations. Between those two stages lies the Island s Planning process a kind of unholy cross between an MC Escher drawing and an episode of The Prisoner. It was the Planning process that Le Masurier blamed for their decision to abandon plans for a 75m redevelopment next to the Millennium Town Park and that the Co-op have blamed for the failure their own multi-million pound Charing Cross redevelopment. Conversely neither the JIFC nor J1 had an easy passage through the Planning process but both arrived at the other side of it the new Dandara project is about to begin that journey. But all of this is just talk. Even once you ve got Planning permission you still need secured funding to be able to go forward and start work. That means pre-letting the buildings to big prospective tenants and there s only so many of those around. It s no secret that the Royal Bank of Canada is the big prospective client that these developers are trying to attract but there s also talk about BNP Paribas and UBS potentially looking for a new home too. Mergers and acquisitions can also create new demand for sites as it did in the case of State Street buying Mourant s fund administration arm in 2009. But even then there s not a limitless demand for expensive prime office space. And that means that Planning permission or not not all of these schemes will actually go ahead according to chartered surveyor Bill Sarre who is a director of the Jersey office of CBRE Jersey (and the agent for the J1 scheme). Mr Sarre says that proposed new developments and he points out that there are at least two more planned on The Esplanade albeit on a smaller scale will go some way to rebalancing St Helier s office portfolio by creating much-needed prime offices and freeing up some of the secondary space which may be converted to residential use. But all of that is happening against a backdrop of banks being more What companies need is large floorplates so that they can get people together instead of being over several floors and in several buildings they can be together but at the moment there are very few large floor plates available Wembley-size pitches stacked on top of each other or around 75% of the total floor area of The Shard in London. And that s an awful lot of offices and an awful lot of desks. The logic behind all of these schemes is simple yes there are lots of offices in St Helier already but they re not modern. Being modern doesn t just mean new and shiny although there s no doubt that for some companies a new headquarters can be a bold public statement of ambition and intent. But beyond that there s a set of practical benefits too. Modern offices are 22 CONNECT NOVEMBER reluctant to supply funding for major schemes than they were a few years ago. What we re seeing is that corporates are very cautious about committing to new expense and also that they want flexibility but it s very difficult for a developer to give someone a flexible lease because that destroys their valuation the banks won t lend on it he said. What companies need is large floorplates so that they can get people together instead of being over several floors and in several buildings they can be together but at the moment there are very few large floor plates available. We have a classic problem of liquidity in the numbers of people out looking at any one time. Consistency of demand is an issue. For that reason developers are unlikely to take a risk in terms of putting up a building without a tenant signed up they would want a pre-let or part pre-let to achieve that. There is more space in the secondary market than there was before and the market in general is quite split between the prime offices which are holding their own and in short supply and the secondary which is oversupplied at the moment. But Mr Sarre is more concerned about the prospect of the States of Jersey Development Company s plans for the Jersey International PICTURED ABOVE Bill Sarre NOVEMBER CONNECT 23 I m in favour of the States being more active in development but if you look at Fort Regent the Jersey College for Girls site and the old abbatoir they have not done very well SPECIAL REPORT Finance Centre (formerly the Esplanade Quarter). Why he asks would the government be getting involved in the creation of prime offices when there are private companies already doing the job and when there are so many more property areas in which the States have been far less proactive. At the very least he says it shows a strange sense of priorities I m in favour of the States being more active in development but if you look at Fort Regent the Jersey College for Girls site and the old abbatoir they have not done very well. When they go head to head with the private sector when they do not have to pay for the site or answer to shareholders or lenders you wonder whether that is the right thing. What other sector are they doing that in It s like the States opening a supermarket which would of course be madness. There s an arguable point there although with all of the time and money that has been committed to the Jersey International Finance Centre project the States are hardly likely to change their minds about it now. In a briefing to States Members earlier this month the Chief Executive of the States of Jersey Development Company Lee Henry gave a confident view of the commercial property market and the prospects for the Jersey International Finance Centre. He told them that the States of Jersey Development Company were in detailed discussion with companies looking for 150 000 sq ft of office space enough to fill the first two of the planned six towers in their development. To that he added that another 50 000 sq ft of office space would be required by the end of the year and most importantly that they estimated 400 000 sq ft of demand in the next seven to ten years. Add all of that together and it comes to about two-thirds of what the Big Three are looking to provide and that s without the other NOVEMBER CONNECT 25 SPECIAL REPORT In the end it comes down to which developer the States of Jersey Development Company Le Masurier or Dandara are going to be able to land the big clients and secure the money to get started. What is almost certain is that someone is going to miss out. So three major construction projects on the blocks. But how do they stack up Here s the tale of the tape... smaller projects going on around the fringes. Mr Henry ended that presentation to politicians saying that the open competition to provide prime office space was a very healthy thing We recognise that potential supply is greater than current demand however only a few office schemes are able to cater for the larger space requirements he said. Ultimately it will be tenants who will decide which proposition meets their business requirements in terms of space configuration specification and location. It is also a healthy position for the Island to offer tenants choice in their future office building. The Jersey International Finance Centre the States of Jersey Development Company. Sum it up in 100 words In Jersey terms this is office development on an unprecedented scale. After years of talk the final plans have received approval and phased construction work could start early next year with the first buildings opening in early 2016. The site is on the Esplanade car park with six buildings at around six storeys substantial underground parking and large public spaces. Initial plans to drop roads and build on top of the underpass are on ice but the scheme remains controversial. The 26 CONNECT NOVEMBER States development company are now doing the project themselves but there s an ongoing legal case with the previous developers. J1 Le Masurier Sum it up in 100 words This would be the largest single office building in the Channel Islands if it goes ahead and it s been billed by the developers as the greenest office building in the Channel Islands. The two-acre site runs right through from Broad Street to Commercial Street. Plans include a covered public walkway running through landscaping and artwork by a Turner Prize-nominated artist underground parking and bike bays along with publicly accessible restaurant cafe space in the ground floor. Planning permission is already secured but while Le Masurier own the whole site some of it is subject to leases that still have years to run. NOVEMBER CONNECT 27 How big is it Six buildings with a total of 470 000 square feet of offices (or six Wembley pitches). Where is it On the flat car park on the Esplanade further phases might involve dropping the existing road and building more offices blocks over the top of it. What stage is it at Ready to go according to the States of Jersey Development Company who say work could start on the first building early next year. Final plans have been passed for one of the buildings and have been submitted for another and for 520 underground parking spaces. SPECIAL REPORT How big is it 280 000 sq ft of offices (three-and-a-half Wembley pitches). Where is it Between 31 to 41 Broad Street and 19 to 29 Commercial Street on the other side of the block - it would create a public walkway running through from one street to the other. What stage is it at They received full Planning consent in December 2011 the only one of the three developers to have it for their whole scheme. Funding is secured and they re looking for an anchor tenant to start development in two phases. Parts of the current site are already leased out to sitting tenants. Skidmore Owings & Merrill a major global architectural firm who designed the Sears Tower and Canary Wharf. It s going to be built on a pretty shabby part of The Esplanade where designers say it could be a new gateway for St Helier. It may be the smallest development in this context but for Jersey it would still be a major project. How big is it 160 000 sq ft of office space on with ground floor car parking (two Wembley pitches). Where is it 66 to 72 The Esplanade or just between the Grand Hotel and Century Buildings. What stage is it at Very early days. The Planning application has just gone in. It s worth pointing out that Dandara know what they re on about their building at 37 The Esplanade is fully let and was the first office building in Jersey to hit the coveted Very good rating from the BREEAM (BRE Environmental Assessment Method) School of environmental assessment. 66 to72 The Esplanade Dandara Sum it up in 100 words The newest and smallest of the three and has yet to receive Planning permission. It s also the boldest design and has already got the JEP letters page buzzing. It s a curvy modern six-storey building designed by 28 CONNECT NOVEMBER Investment Outcome Room to Roam Tuscany Italy N 43 46 2 E11 13 6 Where will your investments take you Your world isn t confined to a single set of geographic coordinates. Neither should your investments be. We search the globe to find outstanding investment ideas wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 offshore Investments can fall in value and you might get back less than you invested. To us there are no foreign markets.TM Canaccord Genuity Wealth Management is a trading name of Canaccord Genuity Wealth (International) Limited ( CGWI ) which is licensed and regulated by the Guernsey Financial Services Commission the Isle of Man Financial Supervision Commission and the Jersey Financial Services Commission and is a member of the London Stock Exchange and the Channel Islands Stock Exchange. CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered office 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. Why and how we re changing the States By Economic Development Minister Alan Maclean political lead on public sector reform W ith a subject as complex politically-fraught and sensitive as public sector reform we have to recognise that the scale of change we are embarking upon is unprecedented and a lot of work has gone into the design of a model that will deliver real change in an extremely complex organisation. In opening this article credit for the design of the programme must be given to Mark Sinclair the outgoing Director of HR and Public Sector Reform. Mark has worked hard to design the structure that we need to deliver a sustainable reform programme. We need to address issues around effectiveness and efficiency in the public sector we need a lot more of both - because in common with many advanced economies our Island faces a lot of very serious challenges in not-too-distant future. For example we have a rapidly ageing population with all that implies for all forms of healthcare and related support and in recent years our economic growth rate has not been sufficient to support this growing burden. That creates the challenge of the public sector having to do more with less and that s why progress in efficiency is so vital. What we re setting out to achieve is Tomakesurethatour publicservicesarefitforthe challengesofthefuture including theageingpopulation. Toensurethatpayand promotionrewardsgoto those who work hardest andaremostdeserving. Tobecertainthatourservices areeasierforthepublictoaccess andthatwe reworkingtogether forthecommunitythatweserve. Awholesaleredesignofservices to allow departments to work more collaboratively to reduce costs andshareresources toslimdown existingprocessestomakethem lessbureaucraticandtoencourage front-linestafftousetheirexpertise andknowledgetoimprovethe way we serve the public. Those things aren t easy to achieve particularly in a complex organisation such as the States of Jersey that employs a huge array of people from teachers nurses and economists to road sweepers surgeons and police officers. What s more a project like this is a long-term undertaking it doesn t fit neatly into the three-year political timescale. That s why we ve spent the first two years of this preparing the foundations. We ve made a huge effort to bring Jersey s public sector unions into this project and I m very proud to say that union officials are playing a full part in the working groups that are guiding the project. We ve also run roadshows and workshops for more than 2 500 of our staff to find out what they think. What came from that was 66 pages of ideas and 99% of those staff agreeing that reform was essential. Working with unions and staff we ve already streamlined five separate maternity policies into one changed pay progression for prison officers and firefighters so that they reward the skills that individuals have acquired and demonstrated not just how long they ve served and identify how we move 23 different pay structures down to just four. Those are steps on the way to where we want to be but we know that we ve got a long way to go. At the end of this process we want the Islanders who pay for public services to be able to take pride in them. We want to develop an agile flexible public sector that is ready for the challenges 30 CONNECT NOVEMBER ahead and we need to keep our spending under control. And of course a flexible efficient public sector can help our economy by keeping Jersey competitive attracting business here controlling spending keeping taxes low and delivering better services for less. There s an obvious question here is the most prolonged recession in living memory the best time to be doing all of this You could argue that it s probably not. Unfortunately we don t think that we have the option of delaying the work of reforming Jersey s public sector any further. There are two reasons for that. The first reason is that as a community we re getting older. By now everyone s seen the statistics many times but it s worth pausing to consider the implications. By 2020 there will be 35% more people over 65 compared to 2010. That s just seven years away but the trend will continue by 2040 there will be 95% more people over 65 compared to 2010. Those numbers are significant. While the Health and Social Services department done an excellent job laying their own foundations for the change that is required the scale of the issue goes beyond just one States department. That older population will need more health services more social care and more pensions than we re funding now. What s more they ll be paid for by a smaller working population. The second reason that we can t put off responding to the challenges of the future is that the old way of doing things is unsustainable. Over the last decade States spending has grown rapidly it has risen around 5% per year for the last ten years. That money hasn t been wasted it has been invested into services that we all rely on and up until quite recently the States income has grown along with it. In the current economic climate however we can t be sure that trend will continue. We have unemployment at near-record levels a prolonged slump in the economy measured through GVA statistics and challenges to our dominant industry. Yes we are starting to see signs of slow and gradual improvement in the economy in terms of new technology business inward investment and some in financial services but in the current economic climate it simply is not prudent to depend entirely on a growing economy to meet growing costs. Those two factors together represent a significant challenge to us as a community. We are sure and the staff who have engaged with us on this project so far are sure that we can meet that challenge successfully. It s not going to be one or two headline-grabbing changes that make the difference it s going to be sweeping reform across the whole culture of our organisation. An organisation s culture affects everything about how that organisation performs productivity level of service creativity and innovation. By culture we re not talking about NOVEMBER CONNECT 31 sector more user-friendly so we will all benefit as customers. Ultimately although the public may not see a huge amount of this above the surface this unseen work will make the whole process more efficient more direct and more logical freeing up backroom resources to push back into frontline services. There is already some progress to talk about by shifting the Property Holdings and Home Affairs departments we have freed up a building in the Royal Square for sale. We have moved services online so that we do not need so many staff processing simple transactions. We are reforming the way that the teams responsible for social housing and the Ports of Jersey fit into the States structure so that they are better able to make their own decisions about how to do their jobs. The fundamental point in all of this is that we don t see staff as our biggest cost we see them as our biggest asset. Already staff from the Health and Social Security departments have gone through LEAN training which gives them the tools to reshape and refine the way that they work. Those staff are already stripping out waste improving the way that we deal with our customers and applying their own experience to redesigning their work. That s what we want for everyone who works for the States of Jersey because we don t just benefit from a more efficient and effective public sector machine we benefit from a workforce which is more engaged and better motivated. Some of this requires investment whether that s in running workshops improving performance management in every department employing KPMG to design the right model for e-government for the States or in retraining staff to do the jobs that we re going to need in the future. As we make more changes in the coming years some posts may be lost but the commitment that we have made is this any reduction in staffing will be through natural turnover and staff whose jobs change will be retrained redeployed and treated fairly. That s the process that we re going through. It s a difficult thing to get across in a 500word news story still less a 140-word character tweet but it s going to have a profound effect on the States of Jersey. It s good news for the thousands of staff who we employ who will have a more responsive and reactive employer it s good news for the thousands of Islanders who rely on our services because those services will be delivered in a way that is better matched to their actual needs and it s good news for the whole Island community who pay for those services because we ll strip out waste and inefficiency to target resources and effort where they can do the most good. Perhaps most importantly it means that as a community we ll be ready to face the challenges of the future. changing HR handbooks or regulations it s more nebulous than that. It s about the feeling of how we do things around here the rules that we all understand but which you won t find written down anywhere. It s about how open we are to doing things differently how managers and staff interact and in no small part it s about whether the workforce feel that they are taken seriously. We have to be honest and say that in the past we haven t always done as well as we could have on those three points but that s all changing. We want the States to live and breathe a culture of continuous improvement we want staff to constantly be thinking how can we do this better more efficiently more quickly This happens in many areas already but it s not consistent. So how will reform make life easier By using the right technology reform will make services more cost-effective and convenient for Islanders and businesses. Innovation will make our public 32 CONNECT NOVEMBER brea FOLLOW FIND O US TO UT MO RE kfastjsy Senator Alan Maclean to headline panel debate on Sunday Trading Friday 15 November Having recently opined about the future of Sunday trading across the island Senator Alan Maclean is now to headline a panel debate on the subject. Hosted by Channel Television presenter Gary Burgess the event will take place at the Pomme D Or Hotel on Friday 15th November from 7.45 am to 9.30 am. Joining the Economic Development Minister on the panel will be David Elliott (Director of Voisins and formerly of Selfridges London) Richard Mackenzie (Town Centre Manager) and Rector of St Clement and St Nicholas Church Reverend Martin Dryden. Such an emotive subject will be sure to spark huge discussion and everyone is welcome to attend to listen to the comments and have the opportunity to ask questions in a Q&A session following the debate. Breakfast format 7.45am - Arrival networking and breakfast 8.15am - Keynote speaker 8.45am - Q & A 9.15am - Final networking 9.30am - Close All our seminars include a hot and cold buffet breakfast including juices bacon rolls pastries croissants and tea or coffee. To reserve your place at these exciting breakfast events please email contact Email contact Terms & Conditions Payment is due once a booking is made and must be paid prior to the event. A full refund credit will be made for cancellations made by telephone email three full working days prior to the event. Thereafter we regret that no refunds can be made. Events hosted by Todd and Associates We would like to thank the following business for their help in making Leonie s Mission The Club Hotel and Bohemia Restaurant Ellis Clothing Jersey Heritage Jonos Watersports Skydive Jersey and Tranquility Hair Salon Photo by Steve Wellum Photography - Promotional Feature Can you break the code... Leonie s Mission starts out when a girl dives into the sea off the coast of Jersey. Meanwhile 14 000 feet above a masked skydiver jumps out of a plane clearly determined to catch up with the girl. Who is she how did she get there and why is she being followed As the skydiver lands the tension mounts as he tries to stop her but she is on a mission determined not to let anyone stop her. With the help of a clever smartphone app will she accomplish her mission or will she be stopped before she can Featuring Leonie Carlisle Ben Richards and Sean Arnold (from the Bergerac series) Leonie s Mission is a fast-paced short action movie that not only showcases some of the best locations Jersey has to offer but also introduces a unique competition. If you do win you ll be in for a treat first you will be picked up from your home (or from the Airport if you don t live in Jersey) by taxi and whisked away for a full hair and nail make-over. You ll then be dropped at The Club Hotel for an overnight stay but not before you experience a regenerating spa package and a first-class dinner. This is a prize not to be missed. All you ve got to do is head to www. to find out more about the movie and the competition. At about five minutes long this short movie is packed with a lot of action and some first-class acting but with an unexpected twist. The trailer (which is out now) gives you an idea of what to expect. Head to to check it out and watch out for the official release of Leonie s Mission on the 16 November 2013. So will you be the one who breaks the code... Why Leonie s Mission Produced by Cyber Digital Systems and shot by Fortress Island Films Leonie s Mission is a first in Jersey. Fred Meyer Director of Cyber Digital Systems says We originally wanted to promote our two new smartphone apps but instead of just doing an advert we came up with this crazy idea of shooting a Hollywood-style movie that would not only entertain people but would bring out a unique competition with a fabulous prize to win. Can you break the code... The slogan of the movie is your hint. On her mission Leonie will encounter an enigmatic message can you help decipher it and maybe win the competition BANKING What has happened since the 1970s is that banks have become larger and less personal. The direct links with customers have in many cases been cut off by the proliferation of delivery channels the ATM and online banking - convenient but impersonal. A return to traditional values Despite the talk of recovery it has been another tough year for many and although consumer confidence seems to be building the fact that America has struggled to bring its own financial house in order has caused worries to resurface. Jim Coupe Managing Director of Skipton International looks at the latest research into our banking system and discovers that the banks need a return to traditional values so they can give customers the peace of mind they need and trust can be regained in the banking system. t is a sad fact that in just 30 years British banks have gone from being the UK s most trusted institutions deemed as being better run than the NHS police and BBC to being the most loathed. That was the finding of the latest annual British Social Attitudes report by NatCen Social research a report which has been backed up by many surveys over the past few years. directly addressed their financial needs . We wholly agree with that at Skipton International and believe that is why we have had such an excellent year in 2013. If you take the five elements that the World Retail Banking report has highlighted as being the way to return to being a customercentric bank the first is understanding the customer and the second providing the most appropriate products . We understand our customers because we are based in the Channel Islands and that includes our underwriting service. We live in the same community as our customers and through our extensive sponsorship of local charities and events we support that community. That understanding has led us to develop our popular Next Generation Mortgage a 100% mortgage with a 15% security guarantee from a family member. We recognise that getting on that first rung of the housing ladder is incredibly difficult especially here in the islands where affordability is key. Rental costs in Jersey have increased by almost a third in the last eight years according to the Retail Price Index but earnings have stayed static for four years meaning saving up for a deposit has been difficult so we developed the Next Generation Mortgage so that families could help each other to buy their own home. Listening to the needs of the local community is also the reason why we are the only lender who is supporting the States Deposit Loan Scheme. We are delighted to be supporting this because it is enabling local couples and families to buy their first property helping not only them I The reasons why banks have lost confidence are clear to see in the newspaper headlines of the last few years but critically despite reform and regulation they seem to be struggling to gain back that trust. The 2013 World Retail Banking Report by Capgemini and Efma said banks are failing to connect with customers The cornerstones of a strong customer-bank relationship have not changed in decades. As was true at the beginning of modern-day banking institutions still earn trust and confidence by putting customers interests first . What has happened since the 1970s is that banks have become larger and less personal. The direct links with customers have in many cases been cut off by the proliferation of delivery channels the ATM and online banking - convenient but impersonal. The report goes on to say One of the most essential elements of a strong customer bank relationship is the bank s understanding of customer needs and preferences. Back in the 1950s banks demonstrated a greater understanding of customer needs and preferences by providing them products and services that but giving a welcome boost to the Jersey property market and ancillary services. So what are the other three elements of that critical customer-centric relationship Trust and confidence comes next on the list that elusive ingredient which appears to have deserted British banking. To regain this the report says that a bank should place customer s interest on top and provide genuine advice. At Skipton International we can tick that box again because we have a 100% record in ensuring mortgage affordability and never having to repossess a property. We work hard to ensure that our customers don t over-stretch themselves and can afford to keep their home. For our savings customers we also believe in complete transparency when it comes to rate changes. Unlike some banks we will always inform our customers if a rate is to be changed whether up or down to give them the opportunity to decide what they want to do with their savings. We seek to establish long-term relationships and gain trust from our customers so we won t keep opening attractive looking rate accounts to encourage new savers and then quickly reduce rates. Fourth on the banking report list is intimacy and relationship . I can promise our customers that they won t be forwarded to a call centre in a remote part of the world. When you call Skipton International you will be speaking to one of my team even myself sometimes. You will be able to talk through any issues you have with people from our community who understand your needs. And finally the report says that banks need consistency across all the channels of delivery. We promise to ensure that our high levels of customer service and transparency are translated across our entire offering because those five elements of customer-centric banking are the core tenets of our heritage. As a subsidiary of the Skipton Building Society in the UK we were established with the ethos of mutuality which is all about putting the customer first. We are a Channel Islands bank which still firmly believes in the principles of putting our customers first which is why in 2013 our mortgage lending in Jersey surpassed 300m. In this time of continued economic uncertainty we want our customers to know that they can be sure of one thing they can rely on Skipton International to look after their mortgage and savings interests and to be honest transparent and understanding. PICTURED Jim Coupe NOVEMBER CONNECT 37 E M P LOY M E N T L AW Despite the increased use of zero-hour contracts the longevity of these contracts going forward may be in doubt as both trade unions and politicians are calling for their abolition Zero-hour contracts -what s all the fuss about Is the zero-hour contract a positive tool to create flexible jobs or an employer s dream to sidestep a worker s contractual rights and statutory protection Colette Hunt senior associate in the employment team at Collas Crill looks at this topical issue. an you imagine being an employer with a work force on call no overheads no obligations to pay sick or holiday pay being able to tell your employees when to work and if they don t turn up you simply don t pay them C Surely this sounds like an employer s dream Zero-hour contracts are typically drafted to maximise flexibility for the employee and the employer. Used appropriately zero-hour contracts are an efficient way for employers to manage their staff and time respectively. In theory the employer has access to many employees at any one time who are keen to work the downside is the employee has the ability to accept or decline the work as they see fit. But recent case law and commentary on the subject is starting to question at what point a zero-hour contract begins to entitle the employee to more than just the option to work. For example when does an employer become legally or contractually responsible for the employee in terms of health care maternity sick leave and holiday entitlement - all of the usual entitlements that most employees take for granted Whilst zero-hour contracts are drafted to avoid conferring employment status on employees thereby preventing them from acquiring any contractual or statutory protection as the old adage says actions speak louder than words Case law has recently decided that should the arrangements between an employer 38 CONNECT and employee be one that encompasses a mutual obligation then regardless of what the zero-hour contracts states that employee may be afforded certain contractual rights and statutory protection. The mutuality of obligation is just one of the key ingredients to create an employer employee relationship - specifically the obligation for an employer to provide work and pay in return for the employee accepting the work and performing the services. The Tribunal in Pulse Healthcare v Carewatch Care Services considered this very issue. It looked beyond the terms set in the zero-hour contracts and focused more on the reality of the arrangement between the parties. It decided that caretakers engaged to assist and aid a special needs person were employed on a regular basis and at reoccurring times and intervals as such they were deemed to be employees of the care service and entitled to contractual and statutory protection despite entering into zero-hour contracts. It is very difficult for an employer to pinpoint exactly when this mutual obligation arises. However in Pulse the Tribunal decided that it was the repetition and assumption of work that indicated the mutuality of the relationship. The care services offered the same shifts at the same times under the same conditions which the caretakers readily accepted. The zero-hour contracts were set subsequently aside and the reality of the mutual obligation arose. So not an employer s dream as such more of a cautious tale All employers that attempt to engage staff on zero-hour contracts should be mindful of the potential inference that can be drawn from a mutuality of obligation. You should ensure that the employee is made aware that the employer is under no obligation to offer work. Likewise there is no obligation on the employee to accept the work if offered. Despite the increased use of zero-hour contracts the longevity of these contracts going forward may be in doubt as both trade unions and politicians are calling for their abolition. Some critics feel that the use of zerohour contracts is simply just another way of reclassifying the unemployed and adjusting the unemployment statistics. The insecurity and lack of stability is just too much worry for some and prevents ordinary people from being able to plan for the future there has also been recent debate surrounding the rates of pay. In particular many on zero-hour contracts believe they are significantly underpaid compared to their permanent counterparts. Others feel that these contracts give them the flexibility that they need -particularly those in seasonal trades or those who insert the supplements into newspapers and magazines involving only a few hours of work and only when these supplements are included. Provided that sufficient notice of the work is given to the employee zero-hours contracts can play a positive role in creating working opportunities. In particular parents of young children carers and students may be able to fit the possibility of work around their other commitments and this has a profound impact on the work life balance. Clearly such contracts do have a place in today s modern society but their use is open to exploitation and worryingly an increasing number of employers have jumped onto the bandwagon. The Chartered Institute of Personnel Development conducted a survey within the past year involving 1 000 employers. The survey results showed that almost one in five UK employers retained staff on zerohour contracts despite not being able to guarantee when or what work would ever be made available. These results just prove that such contracts are more commonly used than official UK statistics suggest. The Statistics Unit of the States of Jersey has been tasked with investigating the extent of their use in the island over the next year or so. The topic will then come back to the States for further consideration and the possibility of regulation will be debated if it is considered there is common misuse. NOVEMBER CONNECT 39 MARKETING What s it Worth Rebecca Hardcastle Marketing Accounts Manager at The Refinery discusses how to determine what your marketing budget should be for 2014. It is a question that s always asked at management level at this time of year how much money should I allocate to the marketing budget The honest answer is it varies predominantly by industry business size and your tenure in the marketplace (and if there are multiple products in which you may have to allocate spend based on each product s market share). For example industrial business-to-business companies may spend less than 1% of their total sales on marketing established products whereas consumer products companies can spend up to 50% or more of their net revenue on launching new products to market. Many companies underspend on their marketing budgets with the rationale being that not spending is saving them money. However they should also consider the requirement to spend money to make money there is no escaping that your marketing efforts have a direct affect on your revenue. Strategy is key. Spend your money on a tailored (and measurable) marketing plan aimed at fulfilling your company s objectives for the year ahead. Two main things to consider when setting a marketing budget 1. The development refinement of the brand and the channels used to promote the brand. These include logo website email campaigns sales presentations brochures and adverts. 2. The ongoing expense of promoting and advertising your brand to your customer base and your prospective clients. As a general rule companies should spend around 5% of their total revenue on marketing to maintain their current position in the market. Companies looking 40 CONNECT NOVEMBER to grow or gain greater market share should budget around 10%. This percentage will of course vary by company and industry as previously mentioned but the overall average across the board is between 4% to 6%. The caveat to this theory is that this is based on companies that average at least six figure revenue numbers so for the smaller margin companies you need to allocate a percentage of your net revenue based on estimates of what your competitors are spending. Agreed this isn t always an easy task but your agency should be able to give you a pretty good estimate. This metric encompasses the entire annual marketing spend inclusive of the cost of marketing staff printing advertising and outsourced design. Therefore it is essential to have a plan to make sure you do not exceed your budget. At the end of each calendar year I review the results we have achieved for our clients and then outline objectives for the following year with a month-by-month breakdown of proposed activity and always retaining a small contingency budget. Some companies will see instantaneous return for their marketing investment but there are also many marketing tactics that require more time for effective return. For example a marketing strategy focused on branding will need a longer period to see results than a lead-generation strategy. In general most marketing activity snowballs over time delivering increasing return the longer the tactics are underway in a coordinated diversified manner that covers the right audiences with the right messages. In other words if done properly it will bring back solid return whereas not allocating enough in your budget for marketing could be your downfall. Providing local services to local businesses. We offer specialised and bespoke accounting tax bookkeeping audit and assurance services designed to meet your exact needs and requirements. Our team of professional and qualified personnel will provide you with support and expertise to ensure your experience with us is seamless. For further information please email mail or telephone 44(0) 1534 880088 PRECISE. PROVEN. PERFORMANCE. Moore Stephens is licensed and regulated by the Jersey Financial Services Commission. Which is the best accounts software for running my small business - Quickbooks or Sage Neither. Despite these both being well-known packages there is a revolution going on in small business accounting. So much so that I am predicting the end of bookkeeping as we know it within three to five years. To understand why you need to know that there are basically three types of business which have accounting transactions to record. Firstly the have-a-go-hero business owner who hands in a box or envelope of stuff usually with a bank reconciliation Excel file which has taken huge amounts of time to put together in an attempt usually in vain to reduce the accountant s bill. Next up is the business whose records monitor how much it is owed and how much it owes. Often Sage or QuickBooks is used to prepare invoices and supplier bills are input by a bookkeeper. Luke Smith MD of accountants Foxleigh Knight delivers straight answers to common business questions. Be careful he is blunt uncompromising and if you are sitting too comfortably you may be in for a rather bumpy ride. If you have a question for Luke please e-mail askluke bailiwick transaction to be reconciled. Regular electronic payments can have bank rules which apply them to the right account automatically. The mobile app allows staff to e-invoice customers whilst out on the job. While not all of your customers may have an email address and you may be terrified at the prospect of your staff invoicing a little training and a good process can lead to quicker debt collection and significantly lower admin costs. The app can also record staff expenses with a photo of the receipt thereby massively reducing the admin effort with a copy attached in the system. Xero has two levels of tracking category . If you want to know how much business comes from townies westerners and the east you can - and if you also wanted to review new or repeat customers in each area you can do that too. What s really phenomenal about Xero is the number of add-ons being created. The itunes app store has developers constantly writing bespoke applications and so Xero has a huge number of add-ons one of which will have been written for businesses in your industry. One of these allows supplier bills to be automatically posted another makes direct debit for small Jersey businesses a reality. But what s really exciting for a financial director at least is that we can now integrate website databases (through application programming interfaces) with the accounts and Google analytics to provide useful up to date reporting and analysis. Of course if the internet goes down then you can t use the system but then if the internet goes down it s the end of civilisation anyway Bookkeepers beware software and the internet are coming to get you Lastly a more enlightened group of business owners will use their accounting records to monitor profitability on jobs contracts customers or departments knowing that the extra investment in doing so is well worth it. What they all have in common is information from a supplier or a bank being recorded manually somewhere. New cloud-based accounting packages are enabling huge levels of automation and in my opinion Xero is the best. At the time of writing there are over 200 000 users and the company is valued at 2.2bn - that s bigger than Sky Why is it becoming so popular Give Xero your online bank details and it will feed the transactions into the bank reconciliation meaning that transposition errors become history. When a customer pays or you pay a supplier online Xero highlights the 42 CONNECT NOVEMBER Navigating complex networks Let us do it for you. Contact our account managers at business to talk about how we can help you improve your network performance reduce costs and eliminate headaches. Technology. Is technology learning in Jersey progressing CEO and founder of Calligo Julian Box looks at how the States of Jersey are investing 6m in a new teaching and learning experience across Island schools. ack in the March issue of Connect I wrote about why IT and technology learning was so important for the future of Jersey that was only six month ago but a lot has happened during this period. B Last month Education Sport and Culture launched a vision for IT in education under the banner of Think Differently with the States Treasury adding an additional 3m to the current 3m IT budget over the three years from 2013 to 2016. It cannot be stated strongly enough what a massive step forward (and in a new direction) this is and it underlines the creative and supportive attitude that the States are now demonstrating towards using IT to enhance learning within and beyond the classroom. The underlying principles for the vision are Inspiration-abroadenedand enhanced learning experience. I was concerned that students are bored (especially girls) and uninterested with current ICT in schools because they are being taught how to use applications like Word Excel and PowerPoint rather than being taught how a computer works and how to get it to do what you want it to (aka programming) or using technology as an enabler across all curriculum subjects. Why is this so important Because we live in a software-centric world where everything we use at home and the workplace is governed by software equally businesses both large and small are demanding ever more technology-literate employees who are currently in short supply. 44 CONNECT NOVEMBER Accessibility-providingpupilswith access to an effective IT infrastructure. Safety-creatingasafelearningenvironmentforpupils. Sustainability-investmentinthefutureofIT education in the island enabling continuity. The 6m investment in this scheme has been broken down for use in the following areas Teachingandlearning 2 415 000 Infrastructureandtechnology 3 365 000 Businessandeducation 220 000 At the heart of the vision is the decentralisation of TECHNOLOGY internet usage policies fit for the online and connected society the world has become whilst at the same time pupils will be taught about the risks of using technology and the importance of acting responsibly online. Like all areas of life our children need to be encouraged to use everything available to them but also to understand the risks - not just block access. There is no learning value in blocking anything we don t stop children crossing roads and we teach them the risks and how to avoid being hurt. However I do think there are a couple of important areas not specifically covered by the new strategy that still need tackling. Even though they aren t directly related to IT or technology they are still vital for its success. As a employer in the technology area for many years I m still overwhelmed by the lack of soft skills young adults are coming out of school and university with including things as simple as turning up on time answering the phone properly and having the right attitude to work. IT allowing each school to chose how they want to use technology and teach it meeting their own cohort of students needs whilst aligning to the overarching vision outlined by the education department. This change will also allow schools to bring a new and engaging computing curriculum into the classroom with emphasis on employable skills for girls as well as boys. Students will be able to get to grips with skills such as primary coding and computer theories and be able to personalise their learning experiences. This last point has been the most frustrating as I have given quite a few young people an opportunity only to find that most (over 66%) can t apply a attitude of professionalism to what they do or the right attention to detail. Most importantly they need to be proud of the work they produce for clients. They are more interested in finishing for the day than completing a task for a client this has to change or else Jersey s aspiration to succeed in the new global digital economy will be damaged. We are competing against other jurisdictions where their young adults are coming out of school hungrier more focused and determined to be the best. The second area is to change what currently seems a total focus on how many GSCEs and A Level passes we insist each child gets. I would rather have a young person with fewer GSCEs but a good understanding of technology the ability to problem solve a focus on producing a quality product service and a genuine pride in their own work. High quality teaching will be maintained in Island schools which will be supported by continual professional development. This vision is as much about developing the teachers skills as the students as without good teachers with great skills our children won t realise the capabilities they have - and the potential in them to create and innovate in what is an incredible time in human development and understanding. Schools will also receive upgrades to their infrastructure giving access to high speed and e-safe internet access through new Wi-Fi. This new access will be based on a trust system a massive step forward as until now it s been based on a block all and ask for access policy. Teachers will be empowered and along with the schools students and parents will create I m not saying that qualifications aren t important just that a more balanced education that includes soft skills produces a far more rounded individual and one that is way more employable. Let s mould a learning environment that is not broadly based on a Victorian system and change it so that it is fit for the 21st century. NOVEMBER CONNECT 45 L I N K E D To Home People Contacts Groups Jobs Inbox Companies More People Grahame Lovett Chief Executive of Canaccord Genuity Wealth Management Offshore How does a long-established business maintain a fresh outlook Always looking for ways to improve service and what you offer to clients is vital to maintaining a fresh outlook. Canaccord Genuity Wealth Management was rebranded in May this year from Collins Stewart Wealth Management which has benefit for our clients as we believe their needs will become increasingly global and they now have access to a global offering. We are fortunate to have a superb team who are passionate about their roles and empathise with their clients which results in them constantly looking for ways to provide the very best service. What s the best thing about working in Jersey The beautiful commute to and from work which has been extra special in the good weather this summer. Driving to work from St Brelade is a pleasure even if you are stuck in traffic. I also enjoy working in such a tight-knit community and doing business in a professional but friendly environment. What keeps you motivated Quite simply I enjoy success - success for the business and success for our clients. I have been in the industry for 34 years and have been fortunate enough to work in progressively larger organisations. I now have over 160 people reporting to me either directly or indirectly and I enjoy working with people. What part does Canaccord Genuity Wealth Management play in the local community We support a number of local charities and community initiatives including Headway Jersey First Tower Community Association and we ve worked with the art department at Hautlieu School when the students displayed their fantastic art work at the opening of our new office. We re committed to contributing to the development of young people in Jersey and also supporting local good causes. I think Jersey businesses in general are really good at supporting the local community through donations to charities and employees giving up their time to volunteer at fundraising events. What are you like to work with I consider myself to be a supportive leader and I certainly enjoy getting the best out of people that I work with which in turn motivates me. What is the best advice you have received A manager at Lloyds bank where I used to work once said to me Do to others as you would like them to do to you . What advice would you give to a first-time investor Be realistic. Know what your objectives are whether that s wealth preservation income generation or capital growth and ensure that expectations are set at a realistic level. Also knowing how much risk you re prepared to take is very important as this will help establish your return expectations. 46 CONNECT NOVEMBER D E A D LY D I A R Y Tuesday 5 November The States Sorry Jersey you may have a declining economy rising unemployment a ticking time bomb of prescription drug abuse a looming housing crisis industrial unrest and a gaping hole where the population policy should be but all that s on hold. Why Because the States are talking about eight separate political reform proposals this week. That means that their problems getting re-elected more easily and lengthening their terms of office are just more important than yours. statesman this dynamic dude STILL gets a yellow card for dipping his toe in the noxious puddle of the States reform debate. Fortunately he won t be talking about that he ll be talking about housing an altogether fresher-smelling body of water. But he s been warned. Tuesday 19 November The States This day is the 150th anniversary of the Gettysburg Address that codification of modern democracy (government of the people for the people by the people... etc etc...). How do the States mark it By debating the Draft Shipping (Safety Codes Yachts and Small Ships) (Jersey) Regulations 201-. It s a fitting tribute I think we can all agree. For those in the habit of dazzling us with their lengthy orations they might note than the Gettysburg Address is less than 300 words. That s about the time it takes some States Members to say Happy Anniversary . The States are also debating the Long Term Care Scheme which is actually big news it ll be a ring-fenced 0.5% tax contribution in 2015 rising to 1% in 2016 and frozen at that rate for three years. And judging from the recent history over GST we all know what frozen for three years means don t we It means it s going up on 1 January 2019 guaranteed. Remember you re not allowed to call it a tax. It s an obligatory payment for everyone earning more than a certain amount. Clear Good. Wednesday 13 November Chamber of Commerce lunch London City Airport Chief Executive Declan Collier This month s Chamber lunch held at the Radisson Blu this time features the head of London City Airport. Declan Collier is a former oil executive with a background in the alternative fuels sector who was the Chief Executive of the Dublin Airport Authority from April 2005 to March 2012. That timeframe in the Irish economy is what the ancient Chinese curse of May you live in interesting times was written about. Ok well it should have been. Thursday 14 November House Price Index All statted-out and thoroughly depressed from the recent deluge of gloomy labour market GVA and business tendency figures Hush now relax Kick off your shoes. Let Connect rub your neck and talk to you about house prices...which were at a five-year low when the June figures were released. Not helping much are we Thursday 28 November Scrutiny quarterly hearing with the Chief Minister The boss the Big Cheese il Capo di tutti Cappi el Presidente The Gorstmeister. Here he is live and in person with the Corporate Services Scrutiny Panel. He always drops in a good story and there s been a lot going on with the not a tax haven moment the schmoozing at UK party conferences trade trips to China etc. Expect questions about all of those things and some kind of scoop on population policy. Do not expect to hear him addressed as The Gorstmeister more s the pity. Friday 15 November Scrutiny quarterly hearing with Housing Minister Andrew Green All right. Let s be clear. Andrew Green is awesome. The minister who scrapped his own department can do no wrong in Deadly Diary s eyes. But even this legendary leader this towering Deadly Diary - every month Connect will be flicking carefully through the future calendar of political and business events ...and chewing over what it finds there. NOVEMBER CONNECT 47 Digital Jersey Simon Nixon dropped out of university to sell mortgages. Within a few years he spotted a gap in the market for a mortgage-broking magazine but by 1999 the internet was clearly the medium of the future and Moneysupermarket. com was born. The site expanded to offer comparisons for other finance and consumer products such as loans credit cards and insurance and then floated in 2007 for 850m still the biggest purely internet flotation in Europe. Three years later Simon decided to step down as CEO to become non-executive Deputy Chairman although he still retains 52% of the company stock. He now concentrates on his family office and investments and a new luxury property venture Simon moved to Jersey six months ago - Gwyn Garfield-Bennett went to meet him. Unplugged. Gwyn Garfield-Bennett Why did you come to Jersey Simon Nixon I just love the coast. I was predominantly based in Chester because Money Supermarket s head office is in Chester my family office was in Chester and my family -you know my dad my brother a lot of the friends that I d built up over the last 20 to 30 years - are in Chester so I had spent a lot of time there. The weather was terrible. If you think the weather has been bad here it s twice as bad in the North West. So I was in the UK rain pouring on me thinking the weather is terrible I m paying an extortionate amount in tax my PA has to phone the council once a month because my bins aren t being collected or whatever and I m paying an absolute fortune. I felt that if I d stayed in Chester I could almost guess what the rest of my life was going to be. I was in my early 40s and I just thought I need to do something else I need to push myself so I thought OK where can I move to where the weather is better the standard of living is better. Also you don t realise it but in the North West there s a lot of muggings and so on my house had been broken into a couple of times and safety is a really important thing and you just take it for granted here. I looked at Monaco I looked at Jersey Guernsey Geneva and taking everything into account (at the time you see I had a girlfriend who had two children) we picked Jersey. Don t get me wrong tax is obviously also a reason why we came here. Unfortunately about three months later we split up so now I m here in Jersey on my own. GGB How did you find that whole process of coming as a 1(1)k SN I dealt with Kevin Lemasney he s done a really good job he s looked after me. They have a lot of drinks and dinner receptions and so on for the newbies and you get introduced to a lot of people who are in a similar boat to you and also he s identified a lot of internet entrepreneurs here so there s Simon Perr e from Play and there s Aaron (Chatterley) from Feel Unique and we ve become really good friends got a lot in common. One of the things that has attracted me to Jersey actually is that you ve got an abundance of entrepreneurs here. I ve met a lot more interesting people here in Jersey than I could ever meet in Chester. Even though it s a similar size 80 000 or 90 000 people. GGB Do you think you d ever consider bringing a business here SN I d never bring Money Supermarket here because the company would pay a huge capital gains tax bill to move the intellectual property here and it wouldn t 48 CONNECT NOVEMBER UNPLUGGED NOVEMBER CONNECT 49 50 CONNECT NOVEMBER UNPLUGGED make sense with shareholders so we couldn t do it and also we ve got 600 staff in Chester and 100 staff in London so the staff wouldn t move and you wouldn t want them to because you ve got immigration issues here. GGB There are plenty of people here looking for work SN But there isn t the skills. One of the problems Jersey has got is it hasn t got a thriving digital skills base here. So for example Aaron at Feel Unique his London office is growing faster than his Jersey office because he just can t recruit people with the skills here. GGB Do you think that s going to hold Jersey back SN I know Jersey s approached a number of bigger technology companies and said look you ve got a base in Dublin or whatever now and you ve got 5 000 staff there how about having another base in Jersey with maybe not 5 000 but 500 and the push back at the moment is we don t think we d be able to recruit the people so that is the problem that you ve got. Even the smaller digital businesses here are struggling to recruit people. So if you re a bigger business trying to locate to Jersey I mean from a tax point of view it might make sense but from an employment point of view it doesn t make sense and that s why I guess Digital Jersey have to line that up. They have to get the skills in before they can go to those bigger businesses and attract them over here and that s going to be a challenge. GGB You ve lived in the UK all of your life you must have an impression of how people view Jersey. Is it being taken seriously by people in business and finance SN In business and finance I think it s seen as there s tax advantages to come here. Not necessarily a tax haven because you have to pay taxes it s not free to come here but I think people see it as an opportunity to mitigate taxes. You wouldn t come here for any other reason because it s quite small. It s a very beautiful Island but you would go to Cornwall because it s got what Jersey s got but it s not cut off from the UK so yeah I think people see it definitely as a tax advantageous area even though you don t necessarily want to openly market it as that because it will aggravate the UK government. GGB What about the future of Jersey s finance sector SN For the banking sector in Jersey in my opinion it s a slippery slope. GGB Why do you think that is SN Because of pressure from the UK. There s not as many advantages as there were potential tax advantages. GGB Is that because Jersey has had to be more transparent SN I think so and also the banks are struggling as well. The banks were booming up until Lehmann s and now they re contracting they re contracting everywhere. GGB But the banking sector is just one area of finance we ve got a lot of trust companies and family offices here .... SN I think they could struggle as well because they re very expensive compared to other jurisdictions very expensive. You know it sounds terrible but they re not good value for money. I hear a lot of people locally say I won t use anyone in Jersey and Guernsey because it s too expensive I go to X or Y to get better value . GGB So what can Jersey do SN It has to get more competitive. I think basically it s made hay while the sun shone I ve only been here six months but what I hear from business people is that people expect their 100 000 - 200 000 a year salary for doing 9 am 5 pm or whatever and actually in the real world you have to work a lot harder than that or (be) smarter than that and things are going to get tougher. Put it this way we compared prices here because I ve got an offshore trust here and it s ridiculously expensive compared to other jurisdictions. I mean we re sticking with it for the convenience at the moment but we ve renegotiated with the trust company and their fees have come down massively. So I think they re either going to have to adapt and live off smaller margins or they ll lose business. It s the same with the lawyers and accountants they charge a fortune compared to the UK. They charge corporate London prices for conveyancing here it s just very Even the smaller digital businesses here are struggling to recruit people. So if you re a bigger business trying to locate to Jersey I mean from a tax point of view it might make sense but from an employment point of view it doesn t make sense and that s why I guess Digital Jersey have to line that up. NOVEMBER CONNECT 51 UNPLUGGED very expensive I was surprised. The world is getting more competitive. GGB Could you ever see yourself putting a business in Jersey SN Basically my goal well my shortterm to medium goal is to be able to work remotely wherever I want and that s why I stepped down as CEO of Money Supermarket because you can t work remotely as a CEO of a Plc. I m now in the position where I can do that because through the family office we do a lot of venture capital so we invest in a lot of tech businesses and a lot of tech venture funds mainly in Silicon Valley but probably about 20 to 30% are in Europe and the UK. I don t think I want to set up my own business because there s just the heartache and the hassle and the 18 hour days. I think where I am in my life I want to get the right balance between work and doing my own thing enjoying myself as well. GGB What sort of things are you interested in investing in SN There are a lot of price comparison businesses that I m investing in in different parts of the world because I understand those businesses and the market that they re in might be six years less evolved than the UK so I can see where that market is going to go. But the big tech businesses that I ve got quite a bit of money in and I just think are absolute safe bets are Google Amazon and Facebook. So from an equity point of view I ve got quite a lot of money in those three businesses because I just think long term they re going to really dominate. They re dominating now but they are in a great position to really dominate going forward and I can t see how people can compete with them because they ve got such a head start. We have a big bond portfolio so we ll be trading four or five bonds a day so it s very active. We have about 15 or 16 stocks but they re convictions stocks. They re stocks that we totally believe in for the long term. I don t think you can have more than 15 stocks because you just don t understand them if you ve got more than 15. So I believe in the sort of one above it approach. If you pick 15 world class companies that are going to keep growing and growing and growing and take a long term five-to-ten year view and if there s a crash in the stock-market well actually it doesn t really matter because they re still fundamentally great companies and actually you should take that as an opportunity to go and buy more of them. We also do a lot of bridging finance in central London because the banks have retrenched back from bridging finance. We are into the Lloyds re-insurance markets and I just like the risk reward there. We do a lot of high-end property development in London. GGB What other advantages does Jersey have SN The restaurants are way better than Chester. Put it this way Jersey comparing it directly with Chester has got a way higher and better standard of living. There s a lot of very interesting people here. The climate is better the coastal walks are absolutely stunning and whenever I start to take them for granted I invite some friends over and they ll just say oh my god and remind me how beautiful those coastal walks are. Most people in the UK have to drive 300 miles or 400 miles to do that at a weekend as a treat. So I like all that I like the cycling the fact that I m less likely to get killed because the speed limit is 30 to 40 miles an hour. What else do I like about it There s a real community here and the safety thing is a big thing that people just take for granted and safety is really important and also for me to get into southern Europe and so on it s easier. In the North West I was 500 miles north so from here I can get to Geneva I can get to Paris I can get to the south of France quicker than I can from there which is a real advantage. The only reason I may move in the future if I do because I m happy at the moment would be to go further south to get better weather. I haven t had the winter yet and people tell me that January through to the end of March is awful here. 52 CONNECT NOVEMBER One of the problems Jersey has got is it hasn t got a thriving digital skills base here. So for example Aaron at Feel Unique his London office is growing faster than his Jersey office because he just can t recruit people with the skills here. NOVEMBER CONNECT 53 PUBLICi. Painting by numbers Jersey s chief economist Dougie Peedle doesn t fit the stuffy highbrow stereotype of a government economist and even more surprising than that when he paints a picture of the recession and the prospects of recovery he manages to do so in plain English. Ben Qu r e went to meet the civil servant whose job it is to put the (social) science into politics. Gross Value Added and Gross National Income Business Tendency Surveys the Retail Price Index Budgets and business plans manpower reports unemployment statistics and retail price comparisons for an Island measuring just nine by five there s a Cyril Le Marquand House of (mainly gloomy) economic reports and statistics out there. Just be grateful that it isn t your job to go through them understand them understand how they fit together and use that understanding to form a coherent economic policy that balances (deep breath) the needs of competing sectors social pressures the impact of the wider world economy technological change covering short medium and long-term demands and meeting political ideology with economic reality. I mean that job would be impossible right What kind of person would want to do it Who needs the pressure that comes with that kind of responsibility Who would want to be the guy who has to explain to some politician that their latest brain-wave isn t going to raise anything like as much as they think and will cost four times as much as they want it to Meet Dougie Peedle the States Chief Economic Adviser. 54 CONNECT NOVEMBER As an adviser to States departments Ministers and Scrutiny panels it s his job to see the underlying picture in the economy and form a stable objective view and policy not to be bounced around by each new set of stats or competing ideas. The most recent Gross Value Added figures which measure the overall size and health of Jersey s economy - recorded a 4% contraction in 2012 for example. That figure is clearly important and relevant but its relevance only goes as far as being part of that overall picture that takes in employment interest rates profits and productivity along with a lot of other factors. The bit that often gets lost when you look at the GVA forecasts is that everyone has a favourite number says Mr Peedle. Yes there has been five years of decline. But it is important to look underneath the headlines and understand what has been going on. We know that the low interest rate environment particularly impacts on Jersey banking as we upstream deposits to the UK and it squeezes the margins that the banking sector gets. It is a very big hit to banking and financial services. Employment has held up pretty well. It is down slightly from the peak but we have not been creating enough jobs and we Yes there has been five years of decline. But it is important to look underneath the headlines and understand what has been going on. NOVEMBER CONNECT 55 have seen unemployment rise. We have lost banking sector employment without a doubt we have seen financial services as a whole cut back their spending in the local economy. It is just that the headline probably does not paint a true picture. Financial services earnings have been squeezed in four out of six years inflation has been higher than earnings unemployment has been very high and has increased there has been a real impact and for many people either through the squeeze in the economy or those unfortunate enough to have lost their job there has been a real impact. From an economist s perspective earnings have adjusted to the economic climate. Although that means people in employment have been squeezed it has maybe helped to keep employment close to the peak. Like everyone else we feel the squeeze but from an economy-wide perspective it helps to keep employment up and to keep us competitive. What s most important is that the overall picture appears to be shifting says Mr Peedle albeit that the shift is a slow and gradual one. 56 CONNECT NOVEMBER We are picking up a consistent picture that we know that 2012 was a difficult year probably marginally more difficult than was expected but the Fiscal Policy Panel were forecasting quite a wide range in terms of GVA they said between -1% and -3% and the actual number was -3.7% he said. We knew that profits had not grown and that earnings had been squeezed. From an economist s perspective earnings have adjusted to the economic climate. Although that means people in employment have been squeezed it has maybe helped to keep employment close to the peak. There is some reason to be cautiously optimistic but that must be put into context given the performance last year and the performance since the financial crisis and the GVA trends. In terms of this year so far we have the Business Tendency Survey results out and they are a sign that confidence is returning. The headline figure is the highest that it has been since the survey began in September 2009. There are limitations with a qualitative survey of that nature but in the UK these things are reliable and are drawn on as evidence. There is a change in sentiment which I think had been reflected elsewhere. We have seen Geoff Cook at Jersey Finance saying that there are signs that business is picking up PUBLICi and that is reflected in our figures as well. Average earnings data from 2013 is the first time that we have seen real growth in earnings above inflation and that is an important component of GVA. The evidence we have at global level although the picture in the US is changing day by day from the OECD and IMF is that they are picking up improvements. The consistent picture is that 2013 is panning out better than 2012. The fallout is going to be there for years to come. It s not going to disappear overnight or in the short-term. Recoveries after a major financial crisis take time particularly when government is indebted and having to pay off that debt it does take time. Coming from Mr Peedle it all sounds pretty straightforward. That s presumably what you get from an economist who worked for the Confederation of British Industry international mining giants Rio Tinto and manufacturers organisation EEF and who worked closely with key British government figures in Whitehall. Where it starts to get complicated however is when economic trends collide with wider structural change. That s what he says is happening in the Island s troubled retail sector which is feeling a little unloved by a States that has been far quicker to lend support to finance construction and the emerging digital sector. Actually says Mr Peedle the structural change created by the rise in internet sales puts the retail industry s position in a slightly different light. It s hard to argue with that the stats for the high street make for pretty depressing reading with one-in-ten full-time jobs disappearing since 2007 and total sale volumes down 2% last year but that s not just the recession talking it s the recession and the wider trends away from the high street. We have had a difficult period for retailers said Mr Peedle. A big chunk of that is probably not related to the financial crisis but in the structural change in the way that people shop. The subtle difference in Jersey is that in the UK if people go from bricks to clicks they may well be purchasing from a UK business with the decline in fulfilment the vast The real question for retail for me is where are the gaps in terms of what is happening in retail where government could and should have a role majority of what we purchase from the internet we are purchasing from the UK. I know that retailers are making a concerted effort to limit that and all credit to them. From that perspective you can see why retail has been impacted. We know that construction went into the crisis period at a peak and we have seen fairly strong evidence that they were going to come off that peak and the first round of fiscal stimulus probably helped them although it is always difficult. The fact that we were spending money on a lot of construction business last year must have helped. They say GVA fall last year and we have seen employment in construction fall. It s always hard for governments to fight structural change and that is one thing to bear in mind but at the same time there is more than just a structural change going on. The real question for retail for me is where are the gaps in terms of what is happening in retail where government NOVEMBER CONNECT 57 Everyone wants a fit-for-purpose St Helier and high street but that does not mean it should be the same as it was 20 years ago. Government should not fight the change but should respond to the change in the right way. 58 CONNECT NOVEMBER could and should have a role The new Innovation Fund is there to support right across the board. If retailers have innovative solutions they are just as able to apply for funds as a digital company that is just starting up in the Island and of course we have Planning policies in place. Everyone wants a fit-for-purpose St Helier and high street but that does not mean it should be the same as it was 20 years ago. Government should not fight the change but should respond to the change in the right way. Although Mr Peedle is full of praise for the States Statistics Unit led by Dr Duncan Gibaut and his team for the quality of their work he says we don t have a similar amount of statistical evidence and research to support looking back into the last period of significant structural change in the Island economy back in the 1970s. That period saw a boom caused by two factors a significant rise in the working population and the shift from low-value jobs (tourism) to new high-value jobs (the beginnings of the finance industry). He says We do not have detailed data going right back to the 1970s. We saw very strong economic performance up to 2000 and that was built on low valueadded activity when we were a tourism economy moving to high value-added activity supported by population growth. One of the challenges if we take those two things and start looking forward is that you cannot expect to go through that in terms of another finance industry it s a large part of the economy and it faces its own challenges as well. You cannot expect that level of structural change. In terms of the ageing population everyone talks about the doubling of the over-65s. But the other aspect is that people of working age that pool of people is going to have a significant fall over the next 20 years. With moderate changes to inward migration of up to 350 people per year you can work against that but you do not get to a position where the working population is growing significantly. The fact that the States and the Island want to minimise inward migration mean there is only two ways of doing that. We have really got to focus on productivity growth what we make per employed person. How can we do that We can do what we do better and more efficiently and properly but we need structural change as well and that s where the digital economy comes in. We have really got to focus on productivity growth what we make per employed person. How can we do that We can do what we do better and more efficiently and properly but we need structural change as well and that s where the digital economy comes in. On the back of Gigabit Jersey if we can attract high-value businesses to the Island that can create employment opportunities for local people in particular then that has got to be a win-win. If you look at inward migration there has been a tendency for it to be focused on lower value sectors. If you were looking at it from a pure economic perspective and running a business you would say that s a lot of resources to be devoting to a low value area that s not maximising opportunity. There is a challenge there which every time says it has got to be about productivity and the two factors are a move to higher value and looking at the ways that we do what we do. It s a clear success to make Jersey s economic situation seem so simple and straight-forward but that s just the theory. The practice might be a little harder to achieve. The good news is that for Mr Peedle the signs indicate that we may be on the right track. NOVEMBER CONNECT 59 Connect s insider in the finance industry sits at a desk somewhere near you. He s unspinnable unbiddable and very strictly anonymous. Don t expect marketing speak don t expect a rosy feeling inside and don t expect to like him (we re not entirely sure about him ourselves). Only expect this every month he ll bring you the unvarnished truth from the heart of the finance industry... Everybody loves a freebie. Whether it s the supermarket twofer lunch when the boss pays or some other unearned benefit the thought of getting something without having to give up anything always brings a wry smile of satisfaction. Politicians may be more or less venal than the rest of us (a word which I find looks even funnier on paper than it sounded in my head) when it comes to receiving the metaphorical free lunch but they are certainly unmatched in their ability to promise some new free benefit when by pure coincidence the question of their re-election is imminent. We wilfully ignore the fact that the cost of the free third tin of beans is actually covered by the higher price we pay for the first two or that the lunchtime grilling describes both the cost and the benefit of the time spent with the boss. And we stand aghast at the generosity of politicians who despite a history of fiscal rectitude that even Shylock might describe as a tad careful suddenly lower our tax burden. Except of course like sitting on an alreadywarm toilet seat we feel uncomfortable at our supposed good-fortune because we know that there is no such thing as a free gift. We instinctively know that in order for us to benefit somebody else has to pay even if at first glance it is difficult to work out who our benefactors are. For the last 20 years it has not been lost on Western governments that the vast majority of their electors being simple animals prefer instant rather than delayed gratification. The accumulated effects of borrowing to finance the gap between the cost of this year s benefits and this year s actual tax receipts has been one of the reasons why this recession has been so protracted. And yet while the IMF lavish praise on the current UK government for their efforts at reducing their deficit the deficit continues to grow. Real austerity measures such as perhaps spending less than you are earning do not win elections and thus the recipients of today s benefits are wittingly or unwittingly shifting the burden of paying for those benefits to future generations. A cost-free return for the present recipients a return-free cost for their descendants. Which is why on reading Jersey s latest Budget the Fool s hackles begin to rise. Jersey has been remarkably restrained in recent years in largely matching the costs of services with the income received. Whatever one s political persuasion avoiding the temptation to borrow has left the Island in a strong relative position unbeholden to the rapacious banks and other investors whose willingness to lend money often comes with more than just financial strings attached. Two major projects are identified as requiring funding during the next ten years. The first the redevelopment of our hospital will apparently cost 297m. The latest Budget proposes that investment returns from the Strategic Reserve will be utilised to pay for this which of course sounds fine and dandy and in the words of our esteemed Chancellor delivers a new hospital fully-funded with no debt and no tax increases . Is that a free lunch I smell The Strategic Reserve is presently worth around 720m so a 41% return over the tenyear period is required to completely cover the hospital costs which if you say it quick enough doesn t sound much. Until you realise that the current risk-free rate of return the return of cash held on deposit is 0.5%. Based upon the Bank of England s own projection that interest rates won t rise for three years that leaves the Island requiring eight times the risk-free rate of return for the first three years of the project for the strategic reserve fund to break even on the hospital costs to that point. (One of those years 2016 is estimated to require 55m alone a required return of 7.6% in that year based on the fund s present value.) DEFINITION The Fool A privileged position held at an ancient king or queen s court the fool was not taken seriously by the high and mighty but was the only person able to speak the truth to power. The Greater Fool Theory The belief held by one who makes a questionable investment with the assumption that they will be able to sell it later to a greater fool . 60 CONNECT NOVEMBER There are certain facts about investments that do not change 1. The larger the rate of return needed in excess of the risk free rate the bigger the risk one must take to achieve it. 2. The larger the risks one takes the larger the variation of return one sees from the average each year. 3. Investmentreturnsdonot come in a straight line. We are therefore faced with the likelihood of greater risks being taken with our money to earn more volatile returns without any guidance being given on how funding will be achieved when the fund faces a year of losses. Is that free lunch beginning to look a little pricey The other major capital project will be the building and renewal of States Housing stock for which it is proposed that the States borrow up to 250m. Now whilst the Fool is not averse to a little speculation in search of accumulation it appears that politicians are about to cross a line in committing future generations to paying for near-term benefits. Whilst promises of low interest rates and longterm repayment schedules are all well and good we are essentially talking about taking out a 250m loan to throw at the Island s public housing stock the costs of which will be met by rental income from those same properties. That fabled free lunch again Which of course it isn t because our children will be responsible for ultimately paying back that 250m despite the Budget s claims that a separate fund will be built up to meet the requirement. That payback of course will come from precisely the same rental income that will also meet the interest costs. Politicians promising us something for nothing - especially ahead of an election - isn t a new phenomenon. What many countries have discovered especially in recent years is when the bills for those promises start to arrive both the politicians and any likelihood of actually meeting the costs without drastic cuts being required elsewhere have long since left the table. Photography by Gary Grimshaw 62 CONNECT NOVEMBER N O O R D I N A R Y DAY J O B No Ordinary Day Job. Getting it Sorted The sorting room at Postal Headquarters is always a busy place and at this time of year it s about to get even busier as Paula Thelwell discovered when she met Jersey Post s Director of Postal Operations Andy J han. Andy J han observes the daily activity at Postal Headquarters at Rue des Pr s Trading Estate from his office just off the shop floor of the cavernous sorting room. More years ago than most would care to admit to he was a cog in this busy hub where man and machine combine to sort the Island s mail for local delivery and dispatch to the UK and all over the world. Andy appreciates every detail of the postman s lot having worked his way up through the organisation he joined 34 years ago. Educated at the old St Helier Boys School on St Saviour s Hill he left before his 15th birthday and worked for a painter and decorator before he was old enough to join what was then the States of Jersey Postal Administration. At the age of 16 in October 1979 kitted out in a smart and distinctive three-piece uniform with a peaked cap that now sits on a shelf in his office Andy embarked on a two-year stint as a telegram boy. It was a busy job in the days before the fax email and mobile phones delivering telegrams for special events birthdays births weddings and anniversaries. Posties no longer have to be keen cyclists but back when Andy started his passion for cycling was an asset. For such a young lad came a responsibility far beyond his years or life experience. The hardest job was delivering bereavement telegrams which had a little black cross on the envelope. I was 16 years old and I had to knock on the door and tell someone the telegram contained bad news and then I had to wait while they read them and then ask them if they were OK he said. At 18 which was the minimum age to deliver the mail Andy became a postal worker. For the next 13 years he worked rounds first in Roseville and Green Streets and then in St Ouen before being made a postman with responsibility for registered post. Andy s first step up the management ladder came in 1994 and he played a key role in the move from Mont Millais to Rue des Pr s. Today he is responsible for the day-to-day collection processing and delivery of the post and a team of 269 people 200 full-time and 69 part-time. My day-to-day responsibility is making sure we deliver a quality service and do that in a timely and cost-effective way. I am also part of the executive team looking to the future planning for new products and services he says. He is a member of the Chartered Management Institute and is currently studying for the IoD diploma in company direction. Jersey Post has come a long way from the 18th century when the movement of mail between the Island and the mainland was an informal process. Items of post would be handed to a local merchant who would pass it to the captain of the next ship sailing for England. The service was formalised in 1794 when retired army officer Charles Le Geyt who resided in a substantial town house in Hue Street (now the Post Horn pub) was put in charge of the postal service between the UK and Jersey. The Island s postal service has been independent of the Royal Mail since 1969 when it also began to produce all its own stamps which are very much in demand by collectors the world over. Following incorporation in 2006 Jersey Post has grown into the Jersey Post Group a company wholly owned by the States of Jersey. The group comprises a number of different businesses including 21 post offices the logistics division serving major e-commerce businesses operating in Jersey online shopping delivery service Ship2me digital printing and NOVEMBER CONNECT 63 N O O R D I N A R Y DAY J O B mailing solutions division Promail and the Philatelic department. Jersey Post continues to serve the community by delivering core postal services to the Island under the universal service obligation as set out by the Channel Islands Competition and Regulatory Authority. The advent of the 21st century and all its technology advances and changing habits in communications has been a challenging time for postal operators everywhere to say the least. The withdrawal in the 2012 UK Budget of Low Value Consignment Relief (LVCR) for exports to the UK dealt a severe blow to the Channel Islands fulfilment industry. For Jersey Post the fallout was massive as it lost one-third of total revenues in 2012 and further significant reductions in 2013. Fortunately the group had already prepared for a radical shift in the bulk mail market but it was a very painful process. A threeyear cost-cutting transformation of the business initiated in 2009 produced savings just shy of 3 million but resulted in significant job losses and pay cuts across the group from the top to the bottom. Andy says the process put Jersey Post on a better footing to deal with the fallout of the loss of Even though we have got hundreds of television stations to watch magazines and radio stations we have only got one letter box. And it is a powerful medium for advertising. LCVR. Moreover a new market in mail is helping to plug the gap. Staff morale has improved and the continued growth of packages we re delivering as more people buy online from the UK is helping us to get through it. Last year package deliveries in Jersey increased by 28% while outward mail fell by 17% - not including loss of LCVR traffic - and overall mail fell by about 7%. We re evolving and are moving into a more package-based business than a letter business he explained. Local retailers have not been overlooked especially when so many Islanders shop online outside Jersey. Working with local web design agency Webreality Jersey Post has set up the website which pulls together more than 110 local shops who enable Islanders to do business with them online. There are a number of other similar initiatives which Jersey Post is also supporting. As the postal industry worldwide continues to face market changes and challenges the new streamlined Jersey Post is focusing on its core business. Andy says any further diversification has got to utilise the organisations strengths and what it does best. Delivering this year s telephone directories is an example of where postal staff were able to provide a good service by utilising their knowledge of the established delivery network. The network of 44 000 postal addresses is an attractive prospect for advertisers and one which Jersey Post is keen to develop as Andy explains Even though we have got hundreds of television stations to watch magazines and radio stations we have only got one letter box. And it is a powerful medium for advertising. However it isn t all about using the network to generate new business it s also about the special role of the postman in any local community. Having worked at the coal face of the postal industry for 15 years he knows at first hand the fondness there is among the community for postmen. Working with Health and Social Services Jersey Post is developing a community care service called Call and Check - the first of its kind in the British Isles. The service will entail postal workers making regular calls as they do their rounds on Islanders who for a variety of reasons are housebound or who need support. Other divisions of the group are also responding to the challenge of restoring profitable growth from opening new markets to the local fulfilment industry. The range of financial services available in the post office is being increased and there have been new stamp issues such as the issue featuring Jerseyborn actor Henry Cavill in his screen role of Superman in Man of Steel. If his passion is his family cycling and serving the Parish of St John his home of 20 years and where he is a Procureur du Bien Publique and a trustee of the old people s homes and the recreation centre then his mission in life is to get Islanders sending letters post cards even notelets as long as they go by post. That and one day cycling from Land s End to John O Groats having cycled London to Paris a couple of years ago. Interestingly Andy says it is the business community that still generates and receives the most mail even in the face of competition from email. It s domestic mail that needs a boost which is why Christmas can t come early enough because on some days the volume of delivery literally doubles. As the last posting dates loom to ensure cards and parcels arrive in time activity in the sorting room steps up several gears to cope with increased volumes of incoming and outgoing mail. To generate even more festive post Jersey Post has a number of incentives up its sleeve. Last Christmas we introduced late afternoon and early evening deliveries and as we have also introduced new rates for packages we brought forward the purchase of new vans so we did not have to hire as many vehicles. We re providing a more detailed service to enable us to deliver 64 CONNECT NOVEMBER more packages first time and more than 20% of local addresses have now signed up for our SecureDrop service. By nominating a safe place to leave a parcel if not at home when we call our customers can avoid having a trip to a collection point to pick it up. We ve also introduced a text and collect service so you can have your item taken to Rue des Pr s or Commercial Street which is often more convenient for customers and we ll text you as soon as it arrives. And we re continually looking at the use of technology to deliver more packages and provide better information for customers. We will have our Christmas promotions again this year so cheaper postage for Christmas cards posted between 17 November and 11 December as that was well received last year. As it is the traditional season of goodwill when friends and families come together we like to encourage people to keep in touch and instead of texting or sending an email as they do all year round to make time to write a letter or card. We take on additional staff at Christmas and we also require our staff to work extra hours. We extend our opening hours and allocate extra space on our links with the UK. A lot of work goes into planning that and there is a contingency plan for bad weather when anything goes wrong as we inevitably get set back he said. He even has a preference for the day on which Christmas falls The public get lulled into a false sense of security thinking they have another week to post so they generally write their cards on the weekend before and post after the weekend. Our favourite Christmases are those that fall on a Saturday and we ve got the whole week to make sure cards get to their intended destinations. A postman s life doesn t get easier after Christmas. The traditional New Year sales and the increase in online shopping means that January can be very busy. Jersey Post has recently invested in a new track and trace service on signed-for mail. An investment in hand-held trackers for the 80 driver delivery rounds will improve the information available to both sending and receiving customers. The technology is also being extended to collection rounds to track when post boxes are emptied. Andy s career progression from telegram boy to the man responsible for the day-to-day collection processing and delivery of the post shows the benefit of staying with one employer for your working life. He is grateful to Jersey Post for giving him the opportunity and for the friendships made along the way. I may no longer be one of the lads but I hope that I ve earned their respect over the years. And I am lucky enough to have some very good friends who I have worked with in some cases for more than 30 years. My door is always open and everyone is welcome. he said. NOVEMBER CONNECT 65 GLASS HALF FULL Glass half full with... What s your favourite clich of this year The tough economic climate The fast pace of change in technology businesses How about the extent to which the internet is changing our lives All are true and all are repeated across the media with the frequency of an empty political promise at election time. We are bombarded with these meaningless statements every day to the extent that we start to filter them out and if we succumb to that temptation there is the chance of missing something quite important. Because if you draw those strands together you start to weave an opportunity. We took the view that the perceived difference between the mainstream media in Jersey which is essentially their delivery channel radio tv or paper has now become so outdated its accuracy has fallen away. There is a much simpler way to look at it can you produce engaging content and if so are you going to publish it on paper (newspaper or Bailiwick Publishing magazine) online (pictures sound photography or text) or both When we looked at it that way the three main problems of the media business in 2014 were easier to solve advertising rates reducing at a time when competition is increasing and technology is fragmenting the delivery channels. Our solution will be launched in January and we hope you enjoy it as much as we have enjoyed building it. The ethos is simple great content doesn t just work on paper. Put it online and it becomes interactive accessible and full of opportunities. From day one we have published a digital edition of Connect which allows contributors to include rich media such as video audio and animation. For the last year Connect has been supported by a daily news update e-mail which is sent to our database of nearly 4 000 senior professionals and decision-makers. Both those products have proved popular with advertisers who are looking for the lower price-points of digital products combined with the opportunity for brand integration across video audio and imagery and instant accessibility across a broad market. But right at the heart of the proposition are our readers. They tell us they want a premium content platform available any time on any device. They are active and informed they are looking for us to tell their stories in a rich and engaging way. So from next year onwards we will be delivering just that. We ll be announcing full details a little nearer the time but the core concept will be a platform which blends the traditional strengths of a newspaper (incisive editorial great photography and a range of informative services) with the new digital opportunities created by high-speed broadband. Given the tight budget scrutiny which every successful company is now conducting as standard practice we will be including a full reporting suite so that our customers will be able to accurately measure the value of their investment. 66 CONNECT NOVEMBER This month... DINE Ormer WINE Victor Hugo Wines TECH Sure LUXURY GIFT GUIDE Hettich Jewellers TRAVEL Dani Jewell NOVEMBER CONNECT 67 DINE Celebrate in style this Christmas Enjoy the exclusivity of Ormer s private dining room or the sophisticated ambience of the main restaurant this Christmas. The Michelin starred restaurant by Shaun Rankin has delectable set menus for the festive period from a 3 course Christmas Lunch ( 29) to a 3 course Christmas Dinner ( 39). If you want to make your Christmas party truly memorable then book the luxurious private dining room for up to 14 guests where you can enjoy dedicated service your own private bar and bespoke menu choices (from 55). All Christmas parties are welcome from Monday 18th November to Saturday 21st December. For menus please visit WINE For over 200 years the family-run company of Maison Louis Latour has been celebrated for the quality of its wines. The village of Lugny with its limestone soils and warm climate produces the most coveted white wines of the region with the vineyard of Les Geni vres being one of the best. It was also the only village planted with Chardonnay 30 years ago. At under 10 the M conLugny Les Geni vres 2011 available from Victor Hugo Wines offers an elegant golden colour with distinctive aromas of white fruit laced with fresh almond. Round and ample on tasting appealing and intense muscat aromas will charm you. TECH Once you hold the brand new Nokia Lumia 1020 in your hands you will be a professional photographer - unbelievably the 1020 has six lenses and a six times optical zoom making its photos as good as a DSLR camera. The Nokia 1020 uses Qualcomm dual-core 1.5 GHz processor phone is 4G ready and comes with Windows Phone 8 and Live Tiles keeping all your messages emails news and social feeds from your friends in one place. So whether you want to work on Office documents play Xbox games against your pals or become an expert photographer you are sure to fall in love with this incredibly smart phone. Available free on FREE on the 46 m smart plan from Sure. A DSLR camera in your pocket the Nokia Lumia 1020 ESSENTIALS LUXURY GIFT GUIDE Treat yourself or someone special with hand-picked gifts to treasure from HETTICH JEWELLERS Time for a Rolex Your brand new Rolex at prices as attractive as your new purchase. Rolex watches are renowned for their instantly recognisable designs flawless precision engineering and for being one of the best watch brands to retain their value. Buying a new Rolex from Hettich guarantees you easily-verifiable VAT-free prices on the latest models and a watch in perfect condition with no hidden surprises. Your new purchase also comes with a two-year international guarantee and the assurance of buying from the only official Rolex supplier in Jersey. The brand new Rolex Ladies Datejust 36 steel and rose gold with chocolate dial and diamond detailing 7 700 at Hettich Jewellers. Striking gold Luxe accessories you won t want to take off. These flexible smooth Fope bracelets are made entirely from gold and just slip on for effortless elegance. Add a sparkling diamond rondel for stylish understated luxury. Fope Flex It range in three kinds of gold from 3 579 at Hettich Jewellers. Take it up a gear Refined design and a discreet nod to the world of car racing make these stylish darkened palladium Chopard cufflinks a winning gift. Chopard gear-stick cufflinks in darkened palladium 190 at Hettich Jewellers. Colour me beautiful Did you know rare fancy-coloured sapphires can be found in a rainbow of naturally beautiful colours Wear the whole spectrum with these striking unique pieces at Hettich. Multi-coloured sapphire and diamond pendant 5 230 and multicoloured sapphire and diamond ring 3 560 at Hettich Jewellers. All available at Hettich Jewellers 1 King Street St Helier. Tel 01534 734491 or visit Planning your dream holiday I can arrange it all for you Whether it s a European faraway or tailor-made holiday I have the experience and passion to provide the complete travel solution. I can meet with you at your convenience to give your dream holiday the personal touch. Dedicated and totally personal service Specialist in luxury and tailor-made holidays Impartial advice and wide choice of destinations Expert knowledge with 17 years experience ABTA and ATOL financial security Special recommendations for a luxury break Dar al Masyaf Dubai Arabian Summer House - Arabian Deluxe 5nightsonhalfboardbasis PriceincludesflightsfromJersey Complimentarypassesto Wild Wadi water park FreeWiFiinroom Departuredatesfrom 1stto20thJune2014 (subjecttoavailability) Only 1169 per pe rso n Specialoffertobebooked by20thDecember2013. For further information and to book your next holiday call me Dani Jewell on 618181 or 07797 751656 or email dani.jewell ESSENTIALS H O L I DAY W I T H O U T T H E H A S S L E In challenging economic times the travel industry is similar to many other industries but so too are the fundamental principles that are needed especially where service is still something that is valued and appreciated. It also helps when you enjoy what you do and that the passion someone has for their business is ever present. ravel is my passion and I consider myself to be extremely fortunate as I spend my days arranging holidays and creating personal tailor-made itineraries for my clients. I set up my business as a personal travel agent in 2009 because I understand how important a holiday is Many consider or talk about a holiday as being a luxury but from personal experience and working with my clients the reality is that it s a necessity and a well earned one at that. It is the only time families and couples enjoy quality time together without unwelcome interruption from the outside world. T This is why I offer a truly dedicated professional and personal travel service and 17 years experience in management and sales in the travel industry in Jersey have taught me that service knowledge and after sales service are so vital but often overlooked in favour of a bottoms on seats mentality. My clients have access to me 7 days a week whether it is for consultation visits to their home or office by email or phone or just to bounce ideas around for their next dream holiday. I have the backing of the UK s largest independent travel agent the Midcounties Co-operative. This partnership provides me with ABTA and ATOL membership resulting in my clients finances being 100% secure and I have access to a wide choice of holidays at the most competitive prices. I specialise in European and faraway luxury holidays and creating tailor-made itineraries and these cover all natures of holidays including sun ski and cruises. My impartial advice and recommendations come from my own personal experiences and from the strong relationships I have built and enjoy with quality tour operators. For more information on this travel service that I offer please contact me at any time on telephone numbers 01534 618181 or 07797 751 656. Or email dani.jewell With today s busy lifestyle professional and personal time commitments many people do not have time to plan their holidays often they will not have the time to spend an hour or more visiting a high street travel agent sometimes waiting in a queue. Nor is it everyone s cup of tea to spend their evenings and weekends searching the internet especially when there will be little or no service to back up their proposition. Special Offers The Residence Maldives Saving over 3000 Price from 2169 per person which includes flights from Jersey seven nights in a Beach Villa with breakfast daily. Upgrade to All Inclusive from 689 per person Departure dates are between 11 January and 31 March 2014. Book by 30 November 2013. Zilwa Attitude Mauritius Brand new hotel Price from 1899 per person which includes flights from Jersey ten nights in a Superior Room on All Inclusive basis. A true Mauritian experience with four beaches and two private islands to enjoy. Departure dates are between 24 May and 7 July 2014. Book by 30 November 2013. Ruthie Hawkesford is a director at ba Studio a creative design and advertising agency. When times are tough in the economy many businesses will cut back on their communications spend including brand management. Ruthie argues that this is short-sighted and in the long term can prove damaging to a company s prospects. The reality is that many businesses have had to cut budgets and so can t spend much on branding and marketing. Soapbox. Ruthie Hawkesford How important is a brand really A brand represents a major part of a company s worth and is a great asset which creates preference and therefore should be maintained and guided carefully through difficult times. Look around you there is no denying that every successful business is driven by a strong brand... Apple BMW Coca-Cola... the list goes on. The most powerful brands in the world have a brand promise that makes them unique and engaging. The value of Apple s brand has soared in the last few years with a significantly higher brand value than Microsoft and that is why they can sell their products at premium prices. A brand is like you and me they have a character personality values and get pretty miserable if they are neglected and not looked after properly. In an increasingly crowded world and as we begin to climb out of a recession at ba Studio we ve seen businesses begin to struggle with how to market themselves as budgets are cut and marketing strategies have to be rethought. In doing so brand values are sometimes neglected in favour of cheaper options or reactive promotions and they then begin to lose what makes them special and valuable to people. If you are a premium brand customers would start to question if you started to talk about price. If exclusive luxury brand Louis Vuitton slashed the prices of their leather goods and started to sell in Tesco they would no longer be seen as exclusive or luxury. Their continued success can be attributed to consistently upholding its core values and authenticity. On the other hand lower cost brands should push their price as this is their selling point and part of their brand promise. 72 CONNECT NOVEMBER Our studio was founded in a recession and has continued to grow and succeed we believe because we are true to our core values to create original campaigns that meet our clients objectives and budget you adapt your strategies to suit the changes but retain key values. If you do have to cut marketing costs make sure you cut the right ones. Think long-term as cutting advert spend or not engaging with customers may cause long term damage to your business and you will lose the reputation you fought so hard to build in the first place. So how do you keep to a tight budget We have found the most effective campaigns use a mix of marketing activity appropriate to their target audience. Make sure you know your figures and demographic for the media audience and that it s appropriate for your advertising. Media prices fall in times of recession. This is a unique opportunity to strike a better deal and rise above the competition which may have lowered their budget. Build good relationships with the media and they will look after you. Emotionally engaging campaigns are the most memorable and prove to be more successful even in a recession. Do something unusual or just plain barmy and generate a direct media response Facebook and Twitter can get people talking offline and online and help spread the word for free Look at Red Bull s smart sponsorship of Felix Baumgartner s Stratos Space jump. The livestream attracted more than eight million people and set of three hashtags on Twitter spacejump redbull felixbaumgartner. What if your brand and company are in trouble IBM and its brand were failing in the 1990s they were perceived as a hardware dinosaur but investing in a brand reinvention in the last decade has rocketed them in to one of the top five brands in the world. It is all about how you present yourself to the customer whether you are a small one-man-band or a big corporate like IBM. informed... P O L I T I C S Tax exemptions are up by 1.5% the marginal rate of tax is down from 27% to 26% allowances for parents of university students are going up and the stamp duty discount has been extended. Hang on there s more we re getting a new hospital it s not going to cost as much as feared and we re investing 250m into social housing. Ye Gods what next What more bounteous gifts will the States shower upon us What s to come in this glorious land of milk and honey Here s the thing. Delete the above. This is the real question what as Mrs Merton might have put it was it about the last Budget before next year s election that could have possibly driven the Treasury Minister to reverse decades of economic policy and start throwing money about Could this be the same chap who pushed up GST in 2010 after solemnly giving a categorical assurance that he wouldn t do so during the elections two years previously Could it be the same chap that just months ago was admonishing political colleagues for the folly of the last big pre-election giveaway free prescriptions for all The same chap who has been harping on about how good it is that we ve got no public debt The same chap who based a three-year spending plan on an economic recovery starting in 2011 forecasting economic recovery and growth of 1.2% in 2011 and 1.4% in 2012 some distance away from the continued 5% economic contraction that we actually saw over the period. You know the answers to these questions. But what the Budget has done is answer another one is Philip Ozouf standing for reelection Of course he is. And he s announced it with a Gordon Brown-style Budget. The Budget sets out some 579m worth of capital spending a new hospital ( 297m) upgrading and creating new social housing I t s good news. No scratch that. It s great news. ( 207m) and investing in the sewerage system ( 75m). And how are we going to find more than half a billion pounds for all of this stuff between now and 2024 Magic. Interest from the Strategic Reserve (hospital) borrowing (housing) or spreading payments over an extended period so you barely notice it (sewage). See how quickly that word borrowing popped in there If there s anything that the events of the last few years or even the last few weeks in the US have taught us it s that state borrowing is not consequence-free and isn t something that should be glided over. You can t imagine that the next generations are going to be full of gratitude to the recent ranks of US politicians and voters who have colluded in passing along the bill for billions of pounds worth of public services and benefits while our c 207m housing project is not on the same scale it s still significant. Those figures incidentally put the tax cuts in the right perspective. Of course they grab headlines we haven t seen anything like them in a while. But the total value of the allowance rate cut and university support is 11.2m that s less than 2% of the total tax take. Put another way leaving aside income tax company tax GST stamp duty tobacco duty beer duty cider duty and fuel duty it s actually slightly less than the combined revenue from the duty on spirits and wine. Of course we need a hospital. Of course we need decent social housing. Of course we need working sewers. Of course tax cuts are good. Of course parents of university students are finding it tough. Of course all of these things are true. They are true. They ve been true for a while. What s ridiculous about all of this is the cynicism of combining tax cuts support to families and free capital investment all as we go into an election year. This is right out of the Gordon Brown playbook an election year Budget with headline-grabbing tax cuts spending promises spread out over the mediumterm and borrowing to fund spending. It s like the last five years never happened. Connect s political columnist Ben Qu r e spent far far too long covering the States during his 13 years as a noted news reporter and commentator. In Here s The Thing... he takes on a key subject each month drawing on his experience knowledge and contacts to lift the lid and stir things up If you want to contactBenQu r e please email ben bailiwick 74 CONNECT NOVEMBER connected... THE ADVISOR Drinking and Driving With the Christmas holidays not far away we will soon see an increase in police road checks. It is common that during the festive season people are tempted to drive after drinking alcohol. So what should you know about the offence of drinking and driving The law is well developed. It will not come as a surprise that the courts have heard all manner of arguments from people charged. Those cases assist in understanding how the law operates. First there are clear units of measurement to decide whether a driver has drunk alcohol over the legal limit. This is measured differently depending on whether it is calculated by reference to a sample of blood urine or breath. A driver suspected of having committed an offence will in normal circumstances be given a roadside breath test. The device used to take this test gives an indication of whether you may have excess alcohol. Following a positive reading further tests will be required at the police station. The normal official test is another breath test using a more sophisticated machine. If the result is positive for excess alcohol the person will be charged. As alternative tests blood or urine can be sampled and sent for analysis. In certain cases blood can be taken from a patient in hospital. Driving while unfit because of taking drugs is also an offence. Many people refuse or fail to provide a sample hoping to avoid evidence being obtained. However there is a separate offence of failing to provide a specimen without reasonable excuse. Reasonable excuses for the most part relate to health issues an asthmatic may not be able to provide adequate breath or a haemophilic unable to supply blood. In such situations other specimens can be taken. A word of caution if you fail to provide a sample the eventual penalty could be worse. I pause to tell a story of a case I came across in the UK. A man suspected of drink driving gave a urine test on leaving the police station he managed to take the sample with him leaving the police with nothing to test. He couldn t be charged with failing to supply because he did. He couldn t be charged with stealing his own urine. A charge for stealing the plastic container may have held water (excuse the pun) but was not pursued. Alcohol can also be back calculated . So while you may be caught at one point with alcohol of a relatively low level it does not mean you may not be calculated to have had a higher level when driving earlier. This is important for the hip flask defence when a driver manages to get home and then when the police arrive he claims to have only drunk upon arrival. Offences are not limited to actually driving. You can be charged with attempting to drive (some offenders are so drunk they are incapable of actually starting their cars) or being in charge of a vehicle while over the limit. This last offence can catch the unwary because it is not a prerequisite that you actually drive mere control in certain situations is enough. The offences also cover riding leading an animal. The law does not say what leading an animal is (although there is probably case law on the point) but dog owners are safe since dogs are excluded. However if leading is given it s normal meaning then I hope that the person I saw the other day walking a ferret on a lead (I really did see this I promise) reads this article and takes note since any excess alcohol in her body whilst taking that fury creature for its walk could result in being charged under the law. In fairness from what I witnessed the lady was being led by the ferret rather than the other way round. Incidentally the law does not cover wheelchairs. There are defences available to the various offences but they are few and far between. For the offence to operate the driving must be on a road or public place. Private land is excluded in the main. But again caution is required because public place is given a wide definition and so includes hotel car parks (generally) and in some cases private roads estates. It is also possible to claim special reasons . This is not a complete defence but can affect the sentence passed. Special reasons generally relate to driving a short distance for a valid reason where risks to others are very unlikely. My advice is simple do not drink and drive. If found guilty you will face a mandatory ban which increases depending on how much alcohol you ve consumed and you can be fined and also sent to prison. If it s a second offence within ten years then the penalties are increased. You ll also find subsequent insurance very expensive. Don t enter into the territory of I am still under the limit after having a couple of drinks and convincing yourself that the fillet steak lunch you had mopped it all up . Avoid carrying your car keys with you if you know you are going out and will be drinking. Leave them at home. If you ve left your car in a car park and are tempted to move it or put up a parking card after you ve been drinking don t. Simply stay away from the car and enjoy your time out. If you have a ferret which you take for walks drink when you get home afterwards. Olaf Blakeley is an Advocate specialising in litigation and commercial law If you have a legal question you would like to put to AdvocateBlakeley please email editor bailiwick 76 CONNECT NOVEMBER online Click and win at Are you looking for a fresh start Are you ready for a bright new opportunity If you re feeling the squeeze in your current role and would like to refresh your career we have a range of exciting positions in various business sectors. Call us today to find out more. Let s work together Visit us at Trinity House Bath Street St. Helier JE2 4ST Call us on 626777 Email us at jobs Search at Like us at rowlandsjobs Keep updated Register for our vacancy alerts