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SEPTEMBER 2014 ISSUE 30 JERSEY S BUSINESS MAGAZINE Inside THE CHEF WHO S COOKING UP A STORM AT JERSEY POTTERY VIEW ONLINE AT BAILIWICKEXPRESS.COM LOAN AND LET DIE OR A QUANTUM OF INTEREST CONNECT GOES TOE TO TOE WITH JERSEY S BOND PLEASE TAKE ONE The WE MEET THE MAN PROTECTING DATA AND SAVING LIVES ON THE SEA AND ONLINE TICKET CHANGES Stressed out by Gatwick Arrive relaxed in the heart of the capital FREE London City Airport O2 Arena DLR Tube Canary Wharf 12 mins The Shard 19 mins Bank 22 mins Waterloo 23 mins Westminster 25 mins 10 mins 10 miles 5 miles Terms and conditions apply. AN AWARD-WINNING G LO B A L L E A D E R IN TRUST AND FIDUCIARY SERVICES Institutional Trust Company of the Year Citywealth Magic Circle Awards 2014 Best Wealth Planning Team WealthBriefing European Awards 2014 Best Trust Services Jersey and the UK Euromoney Private Banking and Wealth Management Survey 2014 Best Inheritance and Succession Planning Jersey Euromoney Private Banking and Wealth Management Survey 2014 Best Offshore Services Jersey Euromoney Private Banking and Wealth Management Survey 2014 Top 25 Most Admired Companies eprivateclient 2014 Top 25 Trust Companies eprivateclient 2014 To learn more please contact 44 (0) 20 7029 7580 or trustinfo Visit us online at There s Wealth in Our Approach.TM BAHAMAS BARBADOS CAYMAN DELAWARE GENEVA GUERNSEY HONG KONG JERSEY LONDON SINGAPORE The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. TM Trademark(s) of Royal Bank of Canada. Used under licence. Above mentioned services are offered through Royal Bank of Canada or its affiliates. This advertisement does not constitute an offer of products or services to any person in any jurisdiction to whom it is unlawful for RBC Wealth Management to make such an offer. RBC Trust Company (International) Limited is regulated by the Jersey Financial Services Commission in the conduct of fund services and trust company business. The Private Client Fiduciary Services Terms and Conditions are updated from time to time and can be found at terms-and-conditions-British-Isles.html. Registered Office La Motte Chambers St Helier Jersey Channel Islands JE1 1PB. CA 1634 May 15 WELCOME FURTHER INFORMATION BAILIWICKEXPRESS. COM 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 classifieds 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 Lisa Barnes Telephone 01534 510309 Email lisa SUBSCRIPTIONS Email info DESIGN AND PRODUCTION Mark Jackson Email mark Artwork under 10Mb in size may be sent to this address. Should Jersey businesses be scared of the Discrimination Law In our new Viewpoint feature on page 40 you will find five answers to this deliberately provocative question. That s what Connect is here for to give you the information you need on which to base decisions but to do that in a fresh lively and stimulating way. I think that s important as we come into election season and we yet again fail to spot the connection between cynicism and a perennial low turnout. Once again the old-stagers will dress up their nothing ever changes mantra as sagacity which the rest of us are just too na ve to see they will point to the recent ignored referendum as evidence that the entire democratic system is shot and on that basis refusing to case a vote is somehow an effective action. Don t listen to them. Nod and pat them on the shoulder. Smile sympathetically if you want to and walk away. But don t listen. Because the belief that nothing ever changes is self-perpetuating believe it and it will happen and you can then take comfort in your own foresight. It s a neat trick. Or you can break the cycle but as ever that requires a bit of effort. Whatever your political persuasion there is a wealth of information across traditional and new media about the activities (or lack thereof) of our politicians. It really is very easy to be informed. Take this particular issue of Connect in these pages alone you ll find Deadly Diary (page 61) SEPTEMBER 2014 ISSUE 30 JERSEY S BUSINESS Inside MAGAZINE THE CHEF WHO S COOKING UP A STOR AT JERSEY POTTERY M SEPTEMBER S ISSUE VIEW ONLINE AT LOAN AND LET DIE OR A QUANTUM OF INTEREST CONNECT GOES TOE TO TOE WITH JERSEY S BOND PLEASE TAKE ONE WE MEET THE MAN ON THE SEA AND ONLINE PROTECTING DATA AND SAVING LIVES heart of the capital TICKET CHANGES The Arrive relaxed in the Stressed out by Gat wick 5 miles FREE London City Airport DLR Tube O2 Arena 10 mins Canary Wharf 12 mins 19 mins 22 mins Waterloo 23 mins Westminster 25 mins 10 miles The Shard Bank Terms and conditions apply. Here s the Thing (page 54) our lead article on the recent bond to pay for social housing (page 20) the Fool (page 44) and Unplugged (page 34). All of them deal directly with issues that shelter under the broad (and often unwieldy) umbrella of politics. Agree or disagree with the points of view expressed in those articles it matters not a jot. Base your decisions next month entirely on what you read here or reject their words utterly the point is that the actions of our elected representatives really do matter (say it very quietly we d hate them to know) which means when x marks the spot its location on the ballot paper really matters too. I hope Connect drives you to put pen to paper. 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 Bailiwick Express on Facebook Follow us on twitter connectjersey SEPTEMBER CONNECT 03 ON THE COVER MY SECRET LIFE Andrew Eeles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 REGULARS LOCAL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 TECHNOLOGY Julian Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 UNPLUGGED James Baker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Viewpoint Discrimination Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 WHO S THE FOOL ................................... 44 NO ORDINARY DAY JOB Tony Dorris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 iSPY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 GLASS HALF FULL David Witherington ...................................... ................................ 52 54 HERE S THE THING... 46 28 40 14 06 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 MUSING OF A MARKETER Allan Watts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 SPECIAL REPORT On 1 June the States took a major step on behalf of taxpayers they borrowed a quarter of a billion pounds to invest in housing. While the idea of countries borrowing money is far from new it s a novelty here in the Channel Islands where in stark contrast to other nations we re sitting on big cash surpluses not debt. One of the reasons we haven t done it before is the cost. When you tot up the total cost of borrowing 250m the final bill will climb to 626m. So what s the big idea behind the bond Ben Qu r e reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FEATURES LAW Appleby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Parslows Lawyers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 LENDING Skipton International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 04 CONNECT SEPTEMBER 52 CONTENTS 56 32 SEPTEMBER 2014. CONTENTS ISSUE 30. 18 62 34 WANT THE LATEST BUSINESS NEWS TO COME TO YOU Scan the QR code and click to send us your email address. SEPTEMBER CONNECT 05 NEWS Want this magazine delivered to your home or office Email your name and address to info to subscribe Foundation business outstrips other Crown Dependencies High standards of regulation and quality of governance have led to a marked rise in the number of foundation structures being formed according to Jersey Finance. Figures collated by Jersey Finance show that the number of Jersey Geoff Cook CEO of Jersey Finance foundations established in the first six months of this year (33) is just three short of the number formed in 2013 (36). July marked the fifth anniversary of the Jersey foundation and despite the Isle of Man having introduced its own version in 2012 - and Guernsey in 2013 - the monthly formation rate of Jersey foundations has increased in 2014 to reach its highest level since 2011 (5.5) to outstrip both that of the Isle of Man (1.3) and Guernsey (0.7). Geoff Cook CEO of Jersey Finance said The strength of the Foundation combined with its trust and company vehicles means that Jersey provides a good platform that can cater for a broad range of bespoke family philanthropic and commercial needs. Around a third of Jersey Foundations are estimated to have a charitable or philanthropic objective whilst the structure is finding particular favour with clients from EU countries Switzerland Russia South America and the Middle East. The figures also show that as at June 2014 a total of 264 Jersey Foundations have been formed since their introduction in 2009 more than four times the total number of foundation structures in the other Crown Dependencies combined. JT celebrates 10 000th fibre customer Ten thousand Islanders have been switched to the new fibre-optic broadband network currently being rolled out by JT. The landmark installation connected the home of Dr Kathleen Flambard and to celebrate JT has provided her with a 1 Gigabit complimentary service for one year. Dave Newbold JT s Gigabit Director said We are absolutely delighted to have reached this very important landmark in our Gigabit Jersey program which is already revolutionising the way Islanders use the internet and bringing many advantages for Jersey. I am pleased to confirm that we are on track to complete the program on budget by the end of 2016 and would like to congratulate Dr Flambard for becoming our 10 000th customer. Gigabit Jersey is JT s five-year program to switch all households and businesses in Jersey from the old copper broadband network to the new fibre-optic network. The 10 000 figure includes both JT and Sure customers. Dr Flambard said As the 10 000th fibre customer we are being given the Gigabit service for a year which is something we might not have chosen for ourselves but it is very exciting as we now have the opportunity to experience superfast broadband in our own home. I m sure this will change the way we use the internet in the future and we re looking forward to seeing the many new ways we can enjoy it as a family. 06 CONNECT SEPTEMBER NEWS For news stories every day visit to sign up to our daily email news service Global launch of Island feminine care business Jersey-based organic feminine care products company TOTM has launched an online subscription-based service with free worldwide delivery. The business was cofounded by Islander Kate Herbert who says it represents a niche sector of the market by offering only 100% certified pure organic cotton products that are biodegradable. It uses a digital subscription model designed to offer women a simple time-saving solution to purchasing their monthly products. The items are delivered straight to the customer s door. Ms Herbert says The natural and organic movement has come a long way. There are now natural and organic alternatives in just about every category of food beverage and health and beauty products. However those healthier options don t have widespread awareness or availability in the feminine care sector. TOTM offers worldwide delivery of its range of organic products and the company will initially offer 11 individual products under four product categories from its website The company is backed by the former CEO and cofounder of online retail giant Aaron Chatterley. Have your say on Jersey s property tax system A public consultation has been launched to gather Islanders views on Jersey s property tax system. The Property Tax Review consultation was published alongside the Draft Budget Statement 2015. The review aims to ensure that Jersey s property tax system is joined-up balanced and has no unintended consequences while also supporting the States strategic objectives. Treasury Minister Philip Ozouf said a well-functioning housing market was fundamental to Jersey s economic and social future and that an effective property tax system could play a key part in that. The guiding purpose of this review and consultation is to identify principles which will shape a coherent property tax system he said. Fundamental changes to the way we tax property will take time and we understand that some of the issues raised in this consultation may provoke strong reactions. This review is the first step on the road to reforming our system. I would like to reassure Islanders that the primary purpose of this review is not to raise additional revenue but rather to ensure that Jersey s property tax system is put on a sound footing. I would encourage everyone to take this opportunity to contribute to the development of policy in this important area. The consultation paper is available at consult and will be open for public comment until 31 December 2014. Jobseeker figures used to claim economic recovery The latest statistics for the number of people looking for jobs in Jersey reflect a positive trend as businesses become more confident about hiring new staff according to the Economic Development Minister. The latest figures show 1 520 people are currently registered as actively seeking work (ASW) in the Island a drop of 500 from December 2011 and its lowest level for two and a half years. Economic Development Minister Alan Maclean said The figures are encouraging. It does seem to be the start of a trend in falling unemployment but there is still a long way to go. The level of unemployment in Jersey is still higher than we would like to see. The minister attributes the fall to an upturn in the economy and government initiatives which are designed to get people back into work. He said Recent business tendency surveys show that businesses are looking to employ more people and that is feeding into the figures. Businesses especially finance companies are more confident and this is starting to be reflected. However youth unemployment is still a major concern with States statistics showing that 260 teenagers are registered as ASW an increase of 70 on the previous month. Long term-registered ASW who make up one sixth of Jersey s total unemployed fell by ten over the same period to the lowest levels since June 2011. 08 CONNECT SEPTEMBER Where does your organisation s data reside Calligo guarantees data residency and encryption across the globe through our unique Offshore Cloud Network Global Infrastructure as a Service 100% Data Encryption Desktop as a Service Guaranteed Data Residency Software as a Service ISO Certified Disaster Recovery as a Service Secured Web Hosting calligocloud info NEWS Follow us on Twitter connectjersey for the latest local business news Marketing agency celebrates tenth anniversary with acquisition Marketing communications agency Oi has acquired award-winning agency Arcade Creative in Jersey. As part of the deal which took almost two years to complete - Ben Clarke owner of Arcade Creative becomes creative director at Oi with responsibility for managing and growing its creative and digital teams across Jersey Guernsey and London. Mr Clarke said It s great to be joining Oi and working with some good friends and very talented people. I admire what Oi have achieved the work they do clients they work for and their progressive attitude. It s exciting times ahead with expansion plans across both the islands then London next year. So I am looking forward to getting stuck in. Oi s Managing Director Peter Grange said Mr Clarke s traditional advertising knowledge and in-depth digital expertise is exactly what he was looking for in finding the suitable person to drive Oi s creative and digital output forward. Ben is unique in the Channel Islands when it comes to his position expertise and experience. His career has seen him working at a leading London branding agency across some of the Channel Islands leading creative agencies to most recently developing advanced website app and digital marketing campaigns. has been ranked 447th in the world. Only the top hotels with the highest scores are chosen for the Insiders Select list. Oliver Appleyard Group Sales and Marketing Manager for Seymour Hotels which owns the hotel said We have always received the highest praise from our guests and so it is rewarding for this to be formally recognised by such a prestigious worldwide brand such as Expedia. This award is for the staff and management of the hotel and is testament to the hard work and determination of all the personnel to ensure that our satisfied guests return to the Pomme d Or Hotel and Jersey time and time again. Celebrating a decade of advisory excellence Law At Work the Channel Islands employment relations specialists marked their 10th anniversary of advising local businesses in the fields of employment rights human resources and health and safety by holding a series of briefings and training on the forthcoming Discrimination (Jersey) Law 2013. Established in 2004 Law At Work came under Channel Island ownership in 2010 following a management buyout and is today led by Kelly Flageul (managing director) Heidi Gibaut (executive director) Sharon Peacock (technical director) and Richard Plaster (director) who between them have over 75 years of combined legal and human resources experience. Kelly Flageul said We re celebrating our 10th anniversary at a time when significant anti-discrimination legislation is about to be introduced in Jersey and businesses are only too aware of needing to be prepared for it. This has highlighted the value of the service that we offer to businesses large and small who are seeking support and guidance to navigate their way through new laws. Global recognition for Pomme D Or Travel website Expedia has presented the Pomme D Or Hotel with an Insiders Select award as one of the top hotels worldwide. Expedia Insiders SelectTM is an annual award program recognising the very best hotels available in the global marketplace as judged by their customers. Of the 290 000 hotels and resorts on Expedia only 650 hotels are deemed eligible for Insiders Select status. The Pomme d Or Hotel 10 CONNECT SEPTEMBER WITH OUR RANGE OF MORTGAGES YOU COULD MOVE IN FASTER With a same day decision in principle your new home could be closer than you think. Choose from the flexibility of fixed and variable mortgages or the ability to borrow up to 100% of the house value . Call our friendly mortgage team today who will help guide you through the home buying process and get your dream house on its way. CALL US ON 730730 PO Box 509 Fairbairn House Rohais St Peter Port Guernsey GY1 6DS Security guarantee can take the form of an interest earning deposit with Skipton International Limited (SIL) or a charge on another property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Minimum age 18 years. All mortgages are subject to status and valuation. SIL requires a first charge on the property as security. SIL registered in Guernsey 30112 is a wholly owned subsidiary of Skipton Building Society (SBS). SBS established 1853 has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of its own assets and whilst SIL remains a subsidiary of SBS. SIL 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. SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994 as amended. To help maintain service and quality telephone calls may be recorded and monitored. SIL abides by the Jersey Code of Practice for Consumer Lending. NEWS Follow us on Twitter bailiwickxpress for the latest Jersey news Moscow tax event goes ahead despite sanctions Jersey Finance is sponsoring the world s biggest tax planning conference in Moscow this month despite the Island signing up to EU and US-led sanctions against Russia. Chief Minister Ian Gorst said that there was a balance to be struck between legitimate and illegitimate business. He said Jersey has a duty to act in line with the international community in imposing this sanctions regime against Russia. My officials will be working with colleagues in the EU to assess any economic impact that these measures may have. The sanctions which will only apply to new business are targeted and it is not the intention that they should affect future legitimate non-sanctioned business with Russia. The sanctions follow ongoing conflict in Ukraine and the shooting down of MH17 in July - 298 people were killed when an airliner was shot down near the Russian-Ukraine border. It is believed that pro-Russian separatists armed by the Russians were responsible. Jersey Finance say that they will comply with all of the legal obligations placed upon the business community but that they would nonetheless be taking part in the Intax Expo Russia in Moscow on 22 September. Island financial institutions have been asked to check whether they have any accounts funds or economic resources held in the names of a list of people with ties to the Russian government. They have been told that any assets held by listed people should be immediately frozen and reported the Chief Minister s department. Jersey Finance chief officer Geoff Cook said We will of course meet the legal obligations placed upon the industry in its business dealings with Russia and our members will be responding to the Chief Minister s request. SmartOffice launches virtual business services Channel Islands start-up company SmartOffice has launched business support services to help local firms to improve efficiency sales opportunities and customer service. SmartOffice was founded this year by local directors Dan Cattermole and Richard Lowe who had previously been involved in the successful start-up development and sale to a multinational company of a Channel Islands cloud computing business. SmartOffice provides a number of on-demand pay-as-you-go services. These include a range of virtual support options including telephone answering and messagetaking secretarial services and a suite of customer services support packages. Mr Cattermole said We are delighted to be launching our business support services for the benefit of organisations large and small across the Channel Islands. Our virtual support packages allow local businesses to have access to professional services when required and to also benefit from our technology which allows those firms to work smarter and with greater flexibility. 12 CONNECT SEPTEMBER Investment Outcome Char ting your own Course South of France N43 16 38 E7 3 12 Where will your investments take you Your world isn t con ned to a single set of geographic coordinates. Neither should your investments be. Our experts have access to investment ideas around the globe wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 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 Securities Exchange. CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered of ce 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. NEWS For news stories every day visit to sign up to our daily email news service Digital Jersey hosts cryptocurrency debate A panel-led debate involving leading members of Jersey s digital and finance sectors is being held at the Town Hall on 9 September. Organised by Digital Jersey and entitled Cryptocurrencies changing the face of finance the event will provide an opportunity for key stakeholders and members of industry from the worlds of technology and finance to debate divergent perspectives regarding the impact of digital currencies. The debate will be chaired by the Chairman of Digital Jersey s Regulation and Legislation Technical Action Group Advocate Vicky Milner. The panel members will include Jon Day owner of Carpe Diem Accountants and Chief Operating Officer at Moore Management Limited Helen Hatton Managing Director of Sator Regulatory Consulting Limited and former Deputy Director General of the Jersey Financial Services Commission and Will Day sustainability advisor to PwC (London). Bank workers graft for Durrell Employees from ABN AMRO Bank Jersey have been helping to improve the enclosure facilities at Durrell as part of the bank s 40th anniversary celebrations. Four groups of staff have each volunteered their time by contributing to labour intensive tasks and improving various areas of the park including the gorilla and red river hog enclosures. We all worked fantastically well as a team to move a large amount of gravel in a such a short period of time and gave ourselves enough time to move on to the gorilla enclosure as well. It was really hard work but thoroughly fulfilling said Claire Dempsey senior credit structuring officer. Patrick Kielty to host tenth Jersey Construction Awards Jersey Construction Week 2014 will culminate in a gala awards evening with entertainment from Irish comedian Patrick Kielty in September at the Royal Jersey Showground. The event is the highlight of the week and will culminate in the presentation of 11 awards to companies and individuals from all sectors of the construction industry. Awards Chairman David Morris said We are planning a party that Jersey will remember for years to come as we celebrate this milestone for the Council. What better way to mark our tenth anniversary than to welcome Patrick as our star entertainer. Mr Kielty is a regular voice on BBC Radio 2 fronting their BBC New Comedy Awards guest-presenting afternoon and weekend shows and hosting live specials from Nashville. 14 CONNECT SEPTEMBER 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 Find the latest jobs online at sign up to our weekly jobs email and get the latest jobs straight to your inbox Ombudsman Chairman named Ombudsman and advises internationally on financial consumer protection and dispute resolution issues. The Financial Services Ombudsman for the Channel Islands is in the process of being established by law and will have powers to investigate and determine customer complaints. It will be based in Jersey with shared staff resources and premises and funded by the financial services industries in both jurisdictions. Jersey s Minister for Economic Development Senator Alan Maclean said David Thomas brings a wealth of experience from financial and other ombudsman schemes in the UK and worldwide which will be of great benefit to the new ombudsman service. His appointment brings the opening of the scheme another step closer. New director joins Law at Work The Chairman of a new ombudsman for financial services in the Channel Islands has been appointed. David Thomas is a lawyer who was appointed as the UK Banking Ombudsman in 1997 subsequently becoming a Principal Ombudsman with the statutory UK Financial Ombudsman Service. He retired from that service in 2012 though he continues to advise them part-time. He is a board member of the UK Legal Senior appointments at Equiom Trust and Corporate Services Provider Equiom Group has made two senior appointments to its Jersey business. Heather Bestwick joins the company as a non-executive director and Hiren Mistry has been appointed legal counsel. Ms Bestwick was previously the deputy CEO and Technical Director at Jersey Finance where she led delivery of technical services enabling effective consultation and communication between the finance industry the States and the Financial Services Commission on all legislative and regulatory matters. She said Equiom is an ambitious and forward thinking organisation and joining the board of the Jersey office at this stage of its evolution is tremendously exciting I am looking forward to working with the executive team to build on the success of the business locally. Mr Mistry previously held senior associate positions in a number of Jersey law firms. As Equiom s legal counsel he will review new and existing client structures to identify potential for offering added value and provide legal support and advice to the client teams in Jersey. Sheila Dean Group Managing Director added Both Heather and Hiren are very well respected within the Jersey business community and they bring with them a wealth of experience. They are invaluable additions to the senior team at Equiom and I m delighted to welcome them to the group. The Channel Islands leading employment relations specialists Law At Work have appointed Richard Plaster as a director. Mr Plaster previously held the position of HR and Commercial Director with Jersey Electricity plc responsible for Jersey Electricity s strategic and operational Human Resources and Employee Relations activities. He oversaw a number of the organisation s commercial and support functions including the retail and building services businesses customer services procurement and marketing. Richard Plaster joins Law At Work alongside fellow directors Kelly Flageul (Managing Director) Heidi Gibaut (Executive Director) and Sharon Peacock (Technical Director). Kelly Flageul said We are delighted that Richard has joined us to help lead Law At Work as we move into our second decade of operation. In the field of employee relations knowledge is essential but experience is everything and Richard brings with him vast experience at an operational level which is already proving invaluable to our team and our clients. Richard Plaster is a Chartered Fellow of the Chartered Institute of Personnel and Development and a Chartered Director with the Institute of Directors. New marketing head at Radisson Blu Melissa Crowther is the new Director of Sales and Marketing at the Radisson Blu Waterfront Hotel. Ms Crowther said that she was thrilled to have taken up the position and was looking forward to introducing clients to the new facilities which have recently undergone a 1 million refurbishment. Ms Crowther has five years experience in the hospitality industry in Jersey having previously worked for Huggler Hotels and at the Grand Hotel. She moved to Jersey in 2009 from Yorkshire and worked at the Apollo Hotel then as PA to the General Manager at the Grand before moving to the Radisson. 18 CONNECT SEPTEMBER APPOINTMENTS Durrell appoints new Chairman Durrell has appointed local businessman Phillip Callow as its new Chairman. A chartered accountant and a partner at accountancy firm Moore Stephens Mr Callow replaces Jonathan White who stepped down in July after seven years in the post. He has been a Durrell board member since 2010 and says he is confident he can use his skills knowledge and expertise to contribute to Durrell s future growth and success. Mr Callow said I am delighted to have been appointed as the new Chairman of Durrell at an exciting time for the organisation. In recent months we have formulated tools that allow us to demonstrate the impact that Durrell has had on saving species from extinction and we will be using this as a springboard to secure funding to continue and expand our work. Durrell is recognised as a leader in conservation training and we are working on joint initiatives to take our training into other areas where we can have an impact. IndieCoCo appoint Senior Manager Indigo Code Collective has appointed Felicity Goddard as its Senior Manager to oversee all project work and new business client relationships. Ms Goddard has ten years experience in the industry including most recently at online retailer Kiddicare (part of Morrisons Plc) and Boots Plc. She said Bespoke software development and apps are our bread and butter and where our wealth of experience and passion lies so being part of this digital revolution based in the Channel Islands is extremely exciting. New associate director at Hawksford Hawksford has appointed a new associate director to its funds team. Claire Keeney began her career in the offshore financial industry while she was completing her law degree she initially worked in the corporate and funds area of a local independent trust company. In 2004 she joined the Jersey office of an international fiduciary services group and in 2009 she was appointed to head up the funds team at Whitmill Trust. My ambition is to make Hawksford s fund administration team a pre-eminent player in the market. I am delighted to have joined such a prosperous supportive team she said. I think this experience will really help in developing the funds business at Hawksford - I am accustomed to generating business whilst maintaining an efficient and dedicated team of administrators she said. Hawksford s chief executive Maxine Rawlins said Claire s extensive range of experience will be invaluable to our day-to-day operations. She has a proven track record in this area and I am confident that she will help to further enhance Hawksford s reputation and positioning as a market leader. New Head of Business Development and Marketing at Mourant Ozannes centres in Europe and the Caribbean. Mr Byrne has a wealth of experience of the legal and financial services sectors gained in senior international roles at Clifford Chance and Linklaters two of the world s leading law firms and at Barclays Bank Plc. Before his career in legal services he spent ten years in senior business development product development and marketing roles at Barclays spanning the private equity private client and offshore sectors. His roles have covered a broad range of markets including Europe the Americas Asia and the Caribbean. He said I am excited by the opportunities that my role at Mourant Ozannes presents. I have observed the enthusiasm professionalism and commitment that the firm demonstrates in every aspect of its business and I look forward to supporting Mourant Ozannes in achieving its ambitions. New Chairman for Jersey Finance Jersey Finance has appointed Robert Christensen as the new Chairman of its Board. Mr Christensen who has had over 35 years of experience in trust and company management services has been the Managing Director of Volaw Group since 1988 having been a founding director of Volaw in 1982. He was instrumental in the establishment of Jersey Finance and served as a non-executive Director for Jersey Finance from 2000 until 2008. Geoff Cook CEO Jersey Finance said I am delighted to welcome Robert whose international experience and specialist knowledge of the workings of the finance industry have already been appreciated by us for many years through his membership of the board. There are few in the finance industry that has given more to the development of Jersey Finance than Robert and I am delighted that he has agreed to follow on from Jonathan as chairman. Offshore law firm Mourant Ozannes has recruited David Byrne as Head of Business Development and Marketing. The firm s Managing Partner Jonathan Rigby said We are delighted to welcome David to Mourant Ozannes. With his deep knowledge and understanding of the legal and financial services sectors in our core markets he is extremely well placed to help us to achieve our key strategic aim of being the first offshore law firm with real strength in depth in the top tier international finance SEPTEMBER CONNECT 19 SPECIAL REPORT The man with the golden sums On 1 June the States took a major step on behalf of taxpayers they borrowed a quarter of a billion pounds to invest in housing. While the idea of countries borrowing money is far from new it s a novelty here in the Channel Islands where in stark contrast to other nations we re sitting on big cash surpluses not debt. One of the reasons we haven t done it before is the cost. When you tot up the total cost of borrowing 250m the final bill will climb to 626m. So what s the big idea behind the bond Ben Qu r e reports. How do bonds work If you are a big company or a government and you need money you probably need a lot of it more than you might be able to get in a typical loan from a bank. What you can do instead is issue a bond you go to a large investment bank who in turn sound out the market to see if there is anyone willing to lend to you. The market is made up of investors who have cash and want to make a higher rate of interest than they can receive for simply holding that cash on deposit. The interest rate is dependent primarily on the length of the loan and on how likely the borrower is to be able to pay the loan back that s why we hear a lot about national credit ratings to put it simply China is pretty likely to be able to pay off a bond because it s got a huge economy massive reserves and its doing very well Greece or Argentina are less healthy bets so they would pay more interest to compensate investors for that risk. What happens in practice is that the big company or government that we mentioned at the start will go out via their investment bank to the bond market and say I want to borrow X amount for Y amount of time and I am prepared to pay Z% interest on it who wants some Investors who think that sounds like a good The people who hold the bond can trade it around as much as they want and that happens a lot but that doesn t change anything from the perspective of the person who took out the bond all they have to do is keep the agreed payments up. deal and fits their needs will bid to get involved. And what happens then is really simple 1. You theborrower getthemoney (thevalueofthebond). 2. Youpaytheagreedinterestevery yearforthelifeofthebond. 3. Attheendoftheperiod thebond maturesandyoupaybackthecapital. The people who hold the bond can trade it around as much as they want and that happens a lot but that doesn t change anything from the perspective of the person who took out the bond all they have to do is keep the agreed payments up. The bond market is enormous and for a good reason investors like bonds because they tend to be stable and reliable investments that can balance out more risky holdings in a portfolio. The three key features of any bond are Theamountbeingborrowed Therateofinterestbeingpaid Thelengthoftheloan. 20 CONNECT SEPTEMBER How does international debt work The main difference between you borrowing money from the bank and a government borrowing money from the bond market is simple you re probably not going to be around in 100 years time but a country is. That means that countries can do something that you might struggle to get past your mortgage SEPTEMBER CONNECT 21 Why do they have to borrow money SPECIAL REPORT lender they can keep rolling over debt almost indefinitely so when it comes to time to pay back a bond they can issue another one to fund it. That is how most countries get by the International Monetary Fund won t let countries run a deficit so they have to borrow cash quite a lot. Why do they have to borrow money Let s be charitable and say that sometimes there is a really good reason for it in times of economic downturn it might make sense to spend more money on capital projects to keep the construction sector buoyant or in the case of strategic assets or genuine investments that will offer returns on capital investment that might be outside the scope of planned spending. But there s another reason why governments borrow money it is because all politicians love the idea of being able to spend money especially if actually paying for it will be someone else s problem. That s why they are more relaxed than a typical household might be about expenditure outstripping income. Put it simply - whether you re Gordon Brown or George Osborne this is basically free money (and hence free votes) to you. You won t have to account for it because it will need repaying 20 years down the track when you re on the international lecture circuit and it is not your problem anymore. Unfortunately it is not free to the poor schmucks who will ultimately have to pick up the tab but what they are paying for isn t just services that their parents enjoyed 20 years ago it is also billions of pounds worth of interest payments on those services. To put all of this into some kind of context let us take the UK. The latest figures showed that public sector debt in the UK was 1 304 billion that s the equivalent of 77.3% of GDP and by any stretch it is an enormous amount of money. Every penny of that debt incurs interest charges and every penny will one day have to be paid back. But it is important to see it in context after the Second World War national debt peaked at something like 240% of GDP and that was just at the time that the UK government decided to create the National Health Service and the welfare state. It took until around about the 1970s to pay that debt off and get it down to around 40% of GDP which is more or less where it stayed until the credit crunch in 2008 when the most recent rise began. What have the States done The States of Jersey created a bond to raise 250 million for social housing to support the work of Andium Homes. Andium is the name of the States-owned company that has taken over the social housing that the States used to run through the Housing department. SEPTEMBER CONNECT 23 SPECIAL REPORT What sits behind all of this is the most recent Budget which is due to be debated a week before all States Members go before the voters in the 2014 election. That Budget revealed some uncomfortable truths after years of defending what might be politely termed ambitious growth forecasts the States have admitted that we re not going to reach them. There are a couple of reasons for that they need money up front to do work there s a rental income from social housing so there is a revenue stream to pay off the debt and interest rates are at a historic low point so the cost of borrowing is less than it would otherwise be. So a four-day tour was arranged for making presentations to potential investors here and in London and Edinburgh and the upshot is that the States issued a 250 million bond repayable in 40 years at an interest rate of 3.75%. It is a big step for Jersey one of the mantras of politicians here has been that we don t have any public debt and that is not the case now (there is an argument over whether it ever was because of the issue of deficits for States workers pensions but that s another question entirely). The deal has been trumpeted as a major success drawing an admiring cartoon in the international business press and a statement from the Treasury Minister Philip Ozouf that concluded Jersey s strong public finances have formed the basis for this bond the proceeds of which will be used to secure a significant improvement in Jersey s affordable housing stock and to finance up to a thousand much needed new homes for Islanders. Homes standards within ten years but they also need to increase the number of homes. To cover both of those aims the States have established a Housing Development Fund. According to a document setting out the investment strategies for the fund the proceeds of the 250 million bond are going to go into it and then 207 million will be loaned to Andium to fund their construction and improvement works while the remaining 43 million will be used for the provision of affordable housing (within a few months it was announced that some money is going to come out of the fund to help balance the books in the short-term but we ll get to that in a minute). During the States debate that approved the Bond in December 2013 Housing Minister Andrew Green set out the big plan for housing. He said that the money was needed for a) refurbishing and renovating existing stock and b) developing something like 900 new homes. He went on to say that they had an inspirational plan for 161 units in 2019 and 2019 and another 152 homes on the Summerland site. It s worth noting that the proposition was approved by an overwhelming margin with politicians on both sides of the left right axis getting behind it. The final vote was 37 in favour and just six against. How much will it cost That is a surprisingly complicated question but before we get into it here s an interesting fact that point was only raised once when politicians debated whether or not to go ahead with it and the essential question what is this going to cost was never actually answered. Thecostofthebondcomesinthree parts theinterestpayments thefinal repaymentofthelumpsum andthefees foradviceandputtingitalltogether Interest 9.375 million annual interest x 40 years 375 million Repayment Lump sum repayment after 40 years 250 million Fees advice and fees c. 800 000. Total 626 million What will the money be used for There is a problem with social housing in Jersey over years various maintenance budgets had been reduced or cut or simply deferred to try to meet budget reduction targets. Last year the States committed to a target of bringing all of its social housing up to UK Decent 24 CONNECT SEPTEMBER Basically the total cost works out at roughly 2.5 times the amount that we ve borrowed spread out over the course of the loan. Into all of that goes the effects of inflation which reduces the value of the repayment money over the 40-year period but which also reduces the value of the money that we ve borrowed by the same amount. The money to pay off the loan will come from rent increases for social housing rents for social housing were meant to be at 90% of the open market rent for a comparable property. But over the years social market rents have not kept pace with the private sector rental market. A report just over a year ago assessed the current average rent of a social rental home at 70% of the market equivalent but noted that there was a range both above and below that mark. The States are aiming to get that average rent up to the 90% mark 91 million over the course of the year. It does open up part of a trend of using future income to pay for current projects besides the bond the other major spending decision that the States have made recently is to spend something in the region of 297 million on a new hospital to be funded by the income on States current investments. What sits behind all of this is the most recent Budget which is due to be debated a week before all States Members go before the voters in the 2014 election. That Budget revealed some uncomfortable truths after years of defending what might be politely termed ambitious growth forecasts the States have admitted that we re not going to reach them. The shortfall is estimated at 95 million over 2013 2014 and 2015. The response to all of that is a set of emergency measures to raid a set of funds including taking 6.1 million from the Housing Development Fund that the money from the bond is going into grab some money from the States-owned utilities and cut some budgets. That s the sort of thing that might make investors nervous but the Treasury department say that they were upfront with bond investors about the financial position and that the investors saw the full audited 2013 accounts. SEPTEMBER CONNECT 25 What has that done to States finances In a sense not a lot partly because we ve got a lot of money in the bank leaving aside entirely the enormous property assets that the States owns (some 3 billion worth at the last count) there s a strategic reserve that contained 741 million at the end of last year and which grew by LAW The amendment adds muchneeded clarity to Article 115 making it clear that the restriction on distributions does not apply to a distribution which does not reduce the net assets of the guarantor. Long-overdue changes to the Jersey Companies Law Tom Fothergill - an associate in the Corporate & Commercial Group at Appleby who specialises in corporate finance mergers and acquisitions and banking law considers the benefits and practical implications of the Companies (Amendment No. 11) Jersey Law 2014. ntil now barely a week could go by for finance lawyers and trust company directors in Jersey without someone entering into a long-standing debate about whether an upstream guarantee could be a distribution for the purposes of Jersey Law. However that has changed. not a distribution if entering into upstream guarantees on the basis of board minutes only while other directors were advised (or required by lenders counsel) to be more cautious and follow the solvency statement procedure set out in Article 115 of the law. The amendment adds much-needed clarity to Article 115 making it clear that the restriction on distributions does not apply to a distribution which does not reduce the net assets of the guarantor. In normal situations an upstream guarantee would not reduce the net assets of such a guarantor and so we now know for certain that an upstream guarantee does not trigger the requirement for directors to give the statutory solvency statement. U The upstream debate Prior to the introduction of Amendment No 11 to the Companies Jersey Law it was necessary to consider whether an upstream guarantee or other similar arrangement could be a distribution. If for example a guarantee were given to guarantee the obligations of the sole shareholder of the guarantor and the guarantee were to be called upon the next day there would be little in the preamendment law to rule out the possibility that a distribution had been made - although the debate would inevitably rumble on as to whether that were true where the guarantee was not expected to be called upon as would normally be the case. Some directors were advised that it was The cure While helpful in this regard the amendment only changed the law going forward it did not settle the debate that existed under the old law in respect of transactions entered into before the amendment came into force. Therefore where an upstream guarantee was given or other deemed distribution made under the old law without an Article 115 solvency statement it should be noted that the potential breach At last he had found the guidelines he d been looking for would not be cured by the amendment. However it does introduce a court application procedure whereby a previously unlawful distribution can be ratified. Whilst the ratification does involve a court application which can be time consuming and costly it does have the advantage of allowing the distribution to be treated as lawful at the time it was made. unanimous in the context of non-voting and other limited right shares have been removed. On a related note changes have been made to the regime for passing written resolutions allowing for non-unanimity and setting out the procedure for doing so. The articles of association of the relevant company can set different thresholds for different resolutions adding a welcome degree of flexibility to companies while still allowing for a welcome degree of protection for minority shareholders. These changes along with other simplifications - such as the introduction of a solvency statement route for a reduction of capital improvements to the rules on mergers and demergers improvements to the rules on prospectuses and private companies no longer being required to hold an AGM unless they opt-in by special resolution - all serve to update and simplify the law and improve its usefulness to the international crossborder finance transactions it supports. SEPTEMBER CONNECT 27 Resolutions and ratifications The amendment has also altered the law on ratification of directors breach of duty. Under the law prior to the amendment a unanimous authorisation of the shareholders under Article 74(2) was required in order to sanction or ratify a breach. A new Article 74(3) has been added allowing the same procedure to be carried out by ordinary resolution (or special resolution if the articles of association require). Furthermore previous difficulties associated with the meaning of LAW A recent survey of 500 businesses by an insurance firm showed that one in four small- and medium-sized businesses had reduced their prices in the threemonth period from April to June and 15% had had to make redundancies which illustrates the magnitude of the headwinds that Jersey small- and medium-sized businesses must still confront and overcome. Help is at hand hroughout the world it is arguably the small- and medium-sized businesses that form the backbone of most economies. Jersey is no exception to this rule. Advocate Carl Parslow founder of Parslows Lawyers looks at the help available for small and medium-sized businesses in Jersey. T put into place to ensure that your idea has the support to make it a viable business. The old adage that you don t know what you don t know is apt here. However a key factor of seeking advice is cost. There are now States-backed organisations such as Jersey Business who can assist with such issues or firms in the private sector such as Parslows and its associates who can provide tailored solutions at cost-effective rates for start-up and small and medium-sized businesses. Investing in advice at an early stage can prevent serious headaches later on. While a small and medium-sized businesses team such as Parslows SME cannot provide you with advice as to the viability of a business idea what we and others can do is provide you with the foundation blocks in relation to legal and regulatory issues. One important decision is how to structure the business. Not all firms wish to set up limited liability companies. They may wish to consider a partnership or indeed trade as a sole trader. There are pros and cons with each type of set up but consideration should be given to each of these options. Ensuring you structure the business correctly from the outset can save you a lot of headaches in the long run. By way of example one area that is typically neglected is the necessity of entering into a shareholder s agreement or partnership agreement. Whilst fellow entrepreneurs will set out with the best of intentions relationships with business partners aren t always smooth and can deteriorate. For example what would happen in your business if the director or partner who deals with a core part of the business decides to leave - and with that declares that he will be taking his clients with him or indeed what happens if you don t have a mechanism for dealing with sale of a business Ultimately you could end up with no According to the Jersey Chamber of Commerce a clear majority of local businesses some 7 500 fall into the category of small to medium-sized businesses. In the United Kingdom small and mediumsized businesses account for an astonishing 99.9% of all private sector businesses. There appears to be a growing acknowledgement in Jersey for the need for greater support for smaller enterprises in order to help get them moving in the right direction and provide a solid foundation for the Jersey economy. However while Jersey ministers promise less red tape it is a fact of life that regulation is becoming more prevalent not less. There are many challenges facing the Jersey start-ups and small and medium businesses whether it be legal regulatory or financial and that is notwithstanding the main objective of making a success of their business venture. By way of example research by the JEP at the end of 2013 showed that up to a quarter of small and medium-sized businesses were reliant on hand-outs in order to finance themselves. A recent survey of 500 businesses by an insurance firm showed that one in four small- and medium-sized businesses had reduced their prices in the three-month period from April to June and 15% had had to make redundancies which illustrates the magnitude of the headwinds that Jersey small- and medium-sized businesses must still confront and overcome. Developing an idea for a business is one thing but there is also the legal regulatory and financial frameworks that need to be business at all. Having a shareholder s or partnership agreement in place ensures you can control what happens to the business in the event of such a breakdown. A recent survey indicated that many start-ups do not enter into formal agreements such as shareholder or partnership agreements. Another important factor to consider is whether regulation affects your business. Regulation comes in all shapes and sizes. The mere set up of an undertaking in Jersey requires that you obtain consent to trade. While consent will permit you to employ Jersey residents you may face problems should the skill base you are after not be available in Jersey. This could provide a startup or small medium business with an issue especially if they are seeking to expand. Other considerations that need to be factored in especially as a start-up is how to engage staff - will you take the risk employing full time part time or consider zero hour contracts Having employed someone you need to be aware that if you experience difficulties with employees you must follow procedures to ensure their rights are not infringed. Starting up a businesses or running a small to medium business can appear fraught with difficulty. While it is clear there are obstacles these can all be dealt with as long as the business takes the appropriate advice. This leaves you to focus your mind on the real reason you started a business making a success of your business venture. SEPTEMBER CONNECT 29 LENDING We have been the largest provider of new mortgages in Guernsey for the past four years and this year our Jersey lending has outgrown its smaller sister island and we are probably now the second largest provider of new mortgages in Jersey. From zero to champions of the first-time buyer in five years There aren t many five-year-old businesses that can claim to be one of the leading mortgage lenders in Jersey and to have achieved that during a recession is quite an achievement. Jim Coupe Managing Director of Skipton International looks back on the Channel Island bank s first five years of business life. kipton International was born in September 2009 following an amalgamation of Skipton Guernsey and Scarborough Channel Islands when their parent building societies merged in the UK. It was an interesting year being as it was the first year of the worst global recession in living memory. That certainly didn t put us off and if there s one measure of our success then it should be how we have grown our mortgage book. Back in 2009 it was 388 million it s now 750 million and rising. ownership with a little help from their parents. Last year we were the only bank to support the Jersey Deposit Loan Scheme with the States of Jersey and that saw 51 first-time buyers moving into their own homes. By supporting schemes like this we are playing a key role not only in individuals lives but in maintaining local economic activity. Housing transactions provide opportunities for many other local companies and trades and enable those from whom the properties are being purchased to move up the property ladder. Understanding our local market is important because we all live in the Channel Islands and are part of our local communities. That means we play our part not only economically but through sponsorships and community activities. In Jersey we have supported the Jersey Arts Trust with the Skipton Open Studios art festival in June which saw another record year for those who took part and attended. We also participate in other smaller sponsorships and this year helped the Jersey Epilepsy Association raise awareness of the condition with their Purple Day in March. If our rising customer base isn t evidence enough then the raft of awards we have received in the last five years says it all. For the past three years we have either won or been commended in the Moneyfacts Best Offshore Account provider awards. We aren t resting on our laurels. Earlier this year we launched a UK buy-to-let mortgage for Channel Island residents and we ve just launched a UK expat range of buy-to-let mortgages as we spread our wings outside of the Bailiwicks. Of course we wouldn t be in this position without our customers and we d like to say thank you to everyone we have worked with in the last five years. Watch out for some purple fun on 25 September as we celebrate our fifth birthday in Jersey. SEPTEMBER CONNECT 31 S We have been the largest provider of new mortgages in Guernsey for the past four years and this year our Jersey lending has outgrown its smaller sister island and we are probably now the second largest provider of new mortgages in Jersey. Through our range of savings accounts we support customers in over 100 countries worldwide re-investing those savings back into Jersey through the housing market. So how have we achieved this A lot of it is down to good customer service. We talk to our customers and we are transparent whether that s in dealing with a mortgage or for savings. We have also been champions of first-time buyers because we believe in helping those who aspire to own a home achieve their goal as long as it is an affordable one for them. Affordability is a big concern of ours as it is important that homeowners are able to maintain their mortgages and keep their homes both now and when interest rates ultimately rise. We have local underwriters who understand the local market conditions and so are best placed to take such decisions. We introduced the Next Generation Mortgage in 2009 enabling 160 first- time buyers to realise their dream of home Technology. Cryptocurrency What is it and what does it mean for Jersey By Connect s technology columnist the CEO and founder of Calligo Julian Box T he first thing to say about cryptocurrency is that it is not really a currency - well not at the moment. It is a unit of account in the same sense that a litre is a unit of volume or a gram is a unit of mass. purposes as opposed to currency. This means Bitcoin will be subject to capital gains tax. This ruling has the added benefit that it helps clarify the legality of Bitcoin and other governments are likely to follow. Jersey is also leading the way in this area with the announcement by Global Advisors Jersey Limited of the world s first regulator-approved Bitcoin investment fund which launched earlier this year. So how does it work Well below I have outlined a top-level overview of the main principles surrounding the currency Bitcoinusespeer-to-peertechnologytooperate withnocentralauthorityorbank managing transactionsandtheissuingofBitcoinsare carriedoutcollectivelybythenetwork Theentirepublicledgerisstored redundantly on thousandsofnodesscatteredacrosstheglobe.Creating oneofthemostresilientfinancialsystemsintheworld Itisnotgovernedbyanyonecountry andis independentofpoliticalbiasesorcontrols OnceaBitcoinexists itsentirehistoryistrackedand savedforevercreatingauniqueaudittrailofitsuse YourequireawallettokeepyourBitcoin sin this digitalwalletalsoallowsyoutobuymorecurrency andexchangethemforgoodsandservices. It is not a physical object that you can hold in your hand like a 10 note. That might concern you but it shouldn t because what is important is that it can be can be possessed transferred and most importantly it is impossible to copy. They come in various forms based on medium of exchange designed around securely exchanging information which is a process made possible by certain principles of cryptography. The first cryptocurrency to be created was Bitcoin in 2009. Since then numerous cryptocurrencies have been created but for the rest of this article I ll focus on Bitcoin. Like all cryptocurrencies Bitcoin is a softwarebased payment system designed around open-source technologies. Payments are recorded in a public ledger using its own unit of account which is also known as Bitcoin. Bitcoin lets you exchange money in a different method than what we normally do with debt or credit cards - but ultimately it achieves the same end i.e. you are able to purchase goods and services. They are also seen as a potentially good investment vehicle with the US government (25 March 2014) ruling that Bitcoin would be treated as property for tax 32 CONNECT SEPTEMBER TECHNOLOGY Cost-efficiency With the use of cryptography secure payments are possible without the need for a costly middle layer middle-man of technology and cost. Trust and integrity Bitcoin offers solutions to many of the trust problems that plague banks with selective accounting transparency digital contracts and irreversible transactions. Flexible transparency All Bitcoin transactions are public and transparent whilst the identity of the people behind the payments is kept private by default. Global accessibility All payments in the world can be fully interoperable. Bitcoin allows any bank business or individual to securely send and receive a payment anywhere at any time with or without a bank account. Note There are many wallet options to choose from so be careful and ensure you select a reputable product. Multi-signature accounts Multiple signatures allow a transaction to be accepted by the network only if a certain number of a defined group of persons agree to sign the transaction. But why are cryptocurrencies making so much noise as isn t this just another payment method tool like PayPal or Amex Yes it is another payment method but no it s not like anything we currently use as it has a some very important features - notably that it doesn t cost any money to use it for either the payer or the payee. That means potential savings of thousands to millions of pounds to a business that has traditionally used a payment card system to receive money which all take a percentage of the transaction as a fee. For all businesses this is going to be a game changer its also going to have a fundamental effect on existing payment systems providers. Will they still exist in years to come Probably but they won t look like they do today. With such a powerful system what can we expect from the ecosystem that will build up around it. Firstly it is going to be unprecedented. To give you an idea of what its capable of changing and achieving I ve put together a few of the areas that I believe it will impact on the most. Resilience and decentralisation By its high decentralisation Bitcoin creates a different form of payment network with an increased level of resilience and redundancy. Finally then what does this all mean for Jersey Well firstly it fits easily into the existing strengths of the Island as its another financial sector and with Jersey well placed and already acting quickly to become a location of expertise for all areas of the currency s use such as funds FX exchanges and web-based cryptoservices such as the hosting of digital wallets. It also links the well-established financial sector with the island s new aspirations around a digital sector which will allow the island to become a hot bed of technical as well financial skills around all aspects of this new sector. All in all it has the potential to have a very positive impact on the economy of Jersey as well as creating many new job opportunities across both the financial and technology sectors. SEPTEMBER CONNECT 33 Control against fraud An unprecedented level of security is possible with Bitcoin. Unplugged. Does Jersey have the right conditions for growth Here s something to consider ahead of the elections next month ...from the beginning of 2001 to the end of 2012 the resident population of Jersey increased by 12% from 88 400 to 99 000 persons. Over this period Jersey s total Gross Value Added (GVA) decreased by a sixth (16%) in real terms. As a result Jersey s real term GVA per capita was more than a fifth lower (down by 23%) in 2012 than in 2001. That was taken from the States Statistics Unit report on GVA for 2012 which is the most recent data we have the 2013 numbers are due out next month. It is a broader perspective from which to consider some of the key issues which are bound to come up at the hustings such as population growth skills and jobs. So is the Island now on the right track to deliver future prosperity We put the question to a man who has both a commercial and a political point of view. As well as being the current Assistant Economic Development Minister Deputy James Baker is also one of the founders of Grafters Recruitment Services and Waterless Media. James Filleul asked him how the Island could grow its economy James Baker One of the things I think the Island as a whole needs to recognise and particularly government is that the national international global marketplace has changed significantly over recent years and indeed continues to evolve since the financial crisis of 2008. One of these Jersey needs to do is recognise that other territories have upped their game and copied what we did. Other people have caught up so we re now starting behind rather than being the leader in that field. What has crept in though while we were enjoying our years of plenty was ever growing regulation and it s probably fair to say that it was needed at that time to protect Jersey businesses - but regulation is never a route to establishing growth. We have become to my mind obsessive with regulation and are making our lives more difficult than they need to be so I would say one of the first things we need to do is remove speaking from a small business perspective as much regulation as is practical. So I would say two things need to happen. Firstly accept where the world is now and that we did have something that s pretty promising but others have copied it and the second thing is remove some regulation and just allow the enterprising spirit that was once abundant in Jersey to return. James Filleul Does that mean government actually doing less JB Government does have a function in a prosperous economy. Let s give a good example on the west coast of America the government and private sector have come together and formed a huge innovation park - effectively the companies the start-ups are given an opportunity to start succeed or fail but the point is there are no barriers initially. Get on and develop a business and then we will look at the regulations. In Jersey we can make the life of a start-up difficult particularly from an employment point view and we are hampering growth by doing that. Now of course there will be those that say that it s absolutely vital. We need all these sort of controls. That s fine but let s look elsewhere. Germany is an example the US. Texas has few employment laws and huge incentives from state government. In a speech recently in the States I talked about our forefathers being enterprising. There were the cod fishermen that ventured out to New Foundland whether it was our ship building industry whether it was our farmers our tourism industry and of course our finance industry. Would any of them have got off the ground in the current climate The answer is no. No way. We are so hampered by regulation and 34 CONNECT SEPTEMBER SEPTEMBER CONNECT 35 Photography by Gary Grimshaw 36 CONNECT SEPTEMBER UNPLUGGED I think we need to recognise the good that positive pro-enterprise society does for everyone in society because it actually creates opportunity and creates jobs. JF You ve had three years in the States making these points have you got them across JB It s probably fair to say that there are a number of people in the Assembly that would share a similar end goal to me but it s how you go about doing it. If we look at unemployment as an example of one of the things that the States have tried to lower during this current term and frankly if anyone is saying it s been a success I would have to disagree. They ve gone about lowering unemployment by making the process of being unemployed much more difficult. So what you re actually doing is beating people with a stick who are unemployed into finding work. Well if you are a timeserved carpenter and you re out of work because the business you were working for has folded it is unlikely in my mind that you are going to take too well to being retrained or reskilled as an administrative assistant or a hospitality supervisor. That s not to say that these courses and these initiatives aren t worthwhile and well-meaning but would it not be better to have removed barriers created the growth stimulated the economy more successfully rather than just talking about stimulating it and then sucking people out of unemployment rather than trying to push them out of unemployment with a stick. There is a distinct difference. So why have we not been more successful I m not sure how many people in the Assembly have had P&L (profit and loss) responsibility and or hiring and firing responsibility and or had responsibility to a board to deliver growth or shareholders in a business. In a business there isn t just a large draw marked spare money where you just reach in at the end of the month and think ah that s a relief if things are a bit tight luckily I ve found another 4k for my GST return. You have to work darn hard to create wealth and the line between success and failure is very fine. JF How much is actually changing in Jersey JB I think there are some good initiatives that are around now that I don t think were around three years ago when I was first elected. Whether they are all wholly attributable to the good work of the current Assembly or not I think is a separate matter. But often much of the energy expended by the Economic Development Department is in dealing with other States departments which I find peculiar. You can t imagine a situation where you had subsidiaries of a parent company trying to prevent the other from prospering or likewise you couldn t imagine the situation where you had directors working against each other or board members not broadly aligned. JF What are you pleased with and what do you wish you d been able to achieve in your time as Assistant Minister JB I m proud to have been sent overseas on I think five or six delegations. I very much hope that I ve given a positive angle on Jersey and I have come across as a polished professional with a commercial background and I understand what I m talking about and I think that our exposure on the international stage is vital. It surprised me really surprised me as I travelled how other countries whether it was Qatar whether it was Scotland or whether it was Toronto to give three examples were out there touting for very similar business to ours. Those three places are offering the same if not better in many areas and we need to up our exposure internationally and we need to be proud and positive and show absolutely what we can do. I would like Jersey to be a proenterprise island and stop navel gazing in the Assembly or talking about Guernsey and or the UK I think one has to cast the net a lot wider and get out there and show what we can offer. I think also at ministerial level it s important to be able to put across a business perspective and I am confident that we will see small business exemptions come In a business there isn t just a large draw marked spare money where you just reach in at the end of the month and think ah that s a relief if things are a bit tight luckily I ve found another 4k for my GST return. You have to work darn hard to create wealth and the line between success and failure is very fine. SEPTEMBER CONNECT 37 UNPLUGGED on properly to the agenda for the States during the next term. I think another thing that I would like to just flag up is supporting some of the good civil servants that we have. I have been surprised at some of the derogatory and demeaning phraseology and terminology that some politicians have chosen to use against or aimed at our civil service and I think it s totally inappropriate. I think what has to be achieved and I don t think Baker is the man to deliver it right now but we have to be prepared to roll up our sleeves and deliver public sector reform. I don t know how many times I ve heard that phrase. I shudder to think. Hundreds. But frankly but if there was an appetite to do it it would have been done. Simple. It just needs to happen. They need someone who has the experience and the ability to do it but instead there s discussion. There s negotiations. There s discussions with the union bodies. There s no action. We need to draw a line in the sand and say we are the employer - we are spending taxpayers money we need to deliver this. This is the change - these are the new terms. You can talk about striking but actually you re not actually going to strike. If you strike well we reserve the right not to rehire you so it s a big gamble. We need to front up to this whole sort of we need to do this slowly we need to do it gradually . Once it s done it s done and everyone can move forward. It s not fair for civil servants who have a pay scale that lacks any agility to reward or penalise good or bad work. It really is demotivating and demoralising and we need to break the idea that the civil service is often a job for life. We should try and have a situation where private sector workers would want to go temporarily and I stress the word temporarily into the public sector and then come back out again because they ve got a lot to offer. Instead this slow moving march through the world of public sector life seems to attract people and they stay there forever. JF Do you get support from the business community JB Being in the States is not straightforward and therefore if there are ministers who you don t think are doing a good job rather than standing on the sideline and calling the person an idiot try and engage with them and find out really what is going on and if you can be supportive of them. It is only a cast of 51 and it s all very well to berate Minister A B or C and say they re useless or hopeless but remember if Minister A B or C is removed they will be replaced with somebody else. Don t listen particularly to what people are saying at election time. Don t say oh yes their manifesto is fantastic or I saw them at the hustings and they were fantastic because someone else may have written the manifesto. Find out what they ve done to date. Find out what their career has been and ask are they effective people Have they delivered JF What would you say to those who are reticent to vote because the States ignored the recent referendum JB I say they re wrong. It was inconceivable to me that the States wouldn t honour the outcome of the referendum. Utterly inconceivable It would never have even crossed my mind that people would be so obsessed with self-interest and dress it up as being best for the electorate. Absolute rubbish. There was a referendum. Some people liked it. Some people didn t. That I m afraid is tough. That is life and there was a clear enough outcome to effect that change but I m afraid much of it came down to self-interest. So no it is even more important than ever to vote. Just be quite clear about what the people stand for because if the wrong people get in Assembly then I m afraid Jersey will no longer be a place to even consider starting a business and employing people. 38 CONNECT SEPTEMBER Being in the States is not straightforward and therefore if there are ministers who you don t think are doing a good job rather than standing on the sideline and calling the person an idiot try and engage with them and find out really what is going on and if you can be supportive of them. SEPTEMBER CONNECT 39 Viewpoint. Should Jersey businesses be scared of the new Discrimination law Viewpoint puts forward a key question facing one of the Island s main industry sectors and then a group of leading practitioners will give their take on the answer and what it means for the Island. If you would like to be included in a future panel of experts just e-mail editor This month Viewpoint poses the question Should Jersey businesses be scared of the new Discrimination law which comes into force this month with the first protected characteristic of race. Five industry experts give their views. Huw Thomas Of Counsel Carey Olsen The Discrimination (Jersey) Law 2013 will ask questions of employers in two key areas in employing staff and in the provision of goods and services. The Employment (Jersey) Law 2003 - although by no means perfect - has resulted in employers in Jersey taking a more considered and constructive approach to the management of their employees. Whilst the Discrimination Law will pose new challenges for employers it should also encourage them to set new and better standards of management and improved standards of behaviour among employees. A proactive approach to diversity and equality issues can also result in significant benefits to employers. Finding and retaining the best talent in Jersey has always been a challenge. Removing barriers to the recruitment of employees irrespective of characteristics such as socioeconomic background nationality gender age and disability means that employers are more likely to be recruiting from a broader pool making them more likely to be able to find and recruit talented individuals. Are there risks for employers Changing workplace cultures and management practices is not something that can be achieved overnight. Certain employees may be very resistant (or may simply be unable) to change. Solving those issues can be a challenge but one that it is important to get right. The Discrimination Law also applies to the supply of goods and services giving rise to additional challenges for Jersey businesses. However anything which encourages businesses to remove barriers to people buying their goods and utilising their services is likely in the long run to be of benefit to businesses in Jersey. NEXT MONTH... Nextmonthwe ll beaskingthe question Ifyou couldmakeone changetoJersey s fundsregime what woulditbe Ifyou dliketo takepartcontact editor bailiwick 40 CONNECT SEPTEMBER VIEWPOINT Sharon Peacock Technical Director Law At Work The Discrimination (Jersey) Law 2013 provides for four types of discrimination 1. Direct discrimination 2. Indirect discrimination 3. Victimisation 4. Harassment The nuances vary but the key to understanding discrimination is to distinguish unfavourable treatment (treating employees badly) from less favourable treatment (treating some employees better than others on the grounds of their race). If an employer treats any employee unfavourably it will not be a discriminator. If it treats any employee less favourably it will be. As it is early days remedies for well-founded claims (decided by the newly constituted Jersey Employment and Discrimination Tribunal) include compensation for victims of up to 10 000 an amount that broadly accords to the average awarded in discrimination cases in the mainland. Lest such amount strikes you as inconsequential be advised the law expressly provides for a review of the same. That said racism or indeed discrimination per se in Jersey is necessarily undocumented. The number of cases of sex discrimination in Guernsey (which has been in force for almost a decade) is arguably negligible. Overall therefore the scope for the law s bite is a moot point. Cynics of the law argue its introduction is essentially political introduced not to make good suspected discriminatory treatment of foreigners women homosexuals trans people the disabled the old or young but to safeguard the jurisdiction s financial industry s need to be and be seen to be compliant with Jersey s international legal obligations. Early indications at shop floor level across all industrial sectors however vary and suggest that employers will at the very least need to audit their workplace profile and practices roll-out some equal opportunity training curb employee banter and mitigate risk by supporting victims and disciplining offenders. After all no one wants the notorious accolade of being the first to be prosecuted. Katey Wood Associate Mourant Ozannes On the contrary the new legislation should be embraced by Jersey businesses. For the first time Jersey has enshrined into law principles of fair and equal treatment which for the vast majority of Jersey businesses is likely already to be part of their company s cultural DNA. Indeed many businesses already have equal opportunities practices in place which go much further than protecting against discrimination by reason of a person s race which is currently the only protected characteristic under the new Jersey law. Jersey is in the fortunate position to be able to draw from the experience of both the UK and Guernsey discrimination law the Jersey law seeks to balance the concerns of business the need for the Island to be recognised as a progressive commercial environment and respect for individuals whether employed or not. For employers it is in everyone s interest for there to be a diverse and happy workforce study after study shows that this is good for business. The Discrimination Law is there to facilitate that aim not to complicate employee relations. While the new Discrimination Law currently only protects against discrimination on the grounds of a person s race it has already been proposed by the States that gender will become the next protected characteristic in September 2015 with age and disability pencilled in for subsequent years. This is in addition to the new familyfriendly rights (maternity paternity and adoption leave and the right to request flexible working) recently approved by the States. Jersey is fast catching up with the UK and the rest of Europe this new law is therefore a great opportunity for Island businesses to promote these important values with its customers and employees. SEPTEMBER CONNECT 41 VIEWPOINT Michael Little Managing Associate and Daniel Read Associate at Ogier Preventative medicine is often portrayed as the best way to avoid illnesses or diseases from developing as it focuses on early intervention risk assessment and screening. It is a more cost-effective way of managing healthcare as the disease is prevented from taking root in the first place. The Jersey Discrimination Law if applied properly is the preventative tool for the workplace. At the heart of the new legislation is the need for good employee relations and recognition of the fact that discrimination of any form should not be tolerated. Businesses that apply and enforce clear policies monitor the workplace and employees and assess their own practices should be in a strong position to prevent and protect themselves against any potential claims and to minimise costs. These businesses will also benefit from a more positive work environment. Businesses should only be fearful of the discrimination law if they do not consider the new law - or do not take steps to prevent discriminatory practices from developing or occurring. This will open businesses up to claims and if there is any evidence to support a claim for discrimination then the burden will be on the employer to show that the actions were not due to the employee s race. As prior acts of discrimination are relevant to future claims even those acts that occurred prior to 1 September 2014 are relevant once the disease has taken root it is difficult to defend against a claim. Prevention really is the best cure. Daniel Edmunds of Rossborough Businesses should be scared of the upcoming Discrimination Law but only if they re not adequately prepared for it. If you are in this position don t worry just start making sensible decisions regarding staff training as well as putting the correct insurances in place. When facing any risk the best way to mitigate any potential problem is to undertake thorough preparation and planning. The risks to businesses of all sizes - and in all sectors - are certainly very real. We work with a highly rated insurance partner AXA which has extensive UK industry experience. Drawing on this knowledge we predict that the introduction of this law in Jersey will result in a flurry of claims. As this law doesn t just cover employees businesses will be exposed to claims from customers suppliers and contractors too. 42 CONNECT SEPTEMBER Strange as this is for me to say insurance is not the only answer. An insurance policy although in our opinion essential is a last resort businesses should be focused on training their teams at executive level and on the ground floor to ensure breaches are not made together with suitable policies and procedures being put in place. If however a claim is made the insurance cover provides peace of mind that the impact of this will not send the business into bankruptcy (a realistic possibility for small businesses) and will provide the financial assistance to defend the claim and make the payout if one results. A management liability policy should also be considered but I d strongly recommend you have a conversation with your broker to ensure you have appropriate coverage for your business. Would you work with this business TWITTER FACEBOOK LINKEDIN Put a face to your business. We all know the importance of creating a good first impression. At Photoreportage we bring fresh photography to the world of advertising and PR. Working with many of the Channel Islands top corporate companies to produce high quality images that not only support their communication and creative teams but enhance the perception of their business. If you re looking to raise your profile... Contact Gary Grimshaw on info or call 01534 858 571 CO RPORATE C OMM ER C IAL WEDDING JOURNALISTIC 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... Relationship mismanagement Given that I have willingly signed over ownership of Fool Towers in a strange exchange which sees them lend me money to buy myself out of penury I occasionally have reason to pop into the local clearing bank staffed by nice people suitably neutral uniforms good teeth behaviourally-regulated to within an inch of their lives you know the sort. By a strange dint of timing it appeared that my visit coincided with me having a few quid sitting in my account before its monthly casting to gods of light heat and shoe retail and consequently I was asked by the presentable young chap behind the desk if I had ever thought about investments Ever have that delicious feeling when the dinner party bore starts pontificating on a subject about which he knows little but which is your life s work As any fisherman worth his salt will tell you the skill is not getting the fish on the line it s knowing when to strike. Stifling as best I could a grin that would have given the game away I reflected on the fact that in their voracious appetite for knowledge of my personal circumstances (see first paragraph) tax status (atheist) religion (still looking) and all manner of other seemingly trifling details my actual job title (the reason for that monthly transfer of a few quid into the shoebox they hold behind the counter on my behalf) seemed to have passed them by. Now on the basis that I wouldn t attempt to sell my mate Dave the Farmer the contents of my own little miserable vegetable patch perhaps the inclusion of investment in that job title should have served to dissuade them from taking the conversation any further. But no. Now I don t blame the poor chap behind the desk because he only had access to the information that his X-Box gnarled fingertips could dig out of the computer in front of him. Things however took a turn for the worse when he informed me he was in relationship management . Now this may come as a shock to some readers (and maybe even a few relationship managers) but if the rewards of your job depend on you selling people stuff you re not a relationship manager. You re a salesman. (If you re confused about your role tell the boss at the end of the year that you ve successfully managed all your relationships but revenue is down 50% from the previous year. If you have a new relationship with Social Security things may be a little clearer). relationship management is largely a title invented by banks that both hides from the customer that they are being sold something and distracts the regulator a little when they are in looking for the bodies. But back to the conversation. Would I be interested in their range of innovative investment products Now for the uninitiated if you re buying anything from a clearing bank the likelihood is that you are about as far removed from financial innovation as you could ever wish to find yourself. The innovative end of the market is populated by a collection of charlatans snake oil salesmen and other associated ne er do wells (and I admit to falling within the lower echelons of this motley bunch). The game we play amongst each other resembles at its heart a version of pass the bomb where we get paid high returns for 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 . 44 CONNECT SEPTEMBER holding onto the device for a short period in the hope that we have managed to pass it on to another sucker before the inevitable explosion takes place. If we serve any valuable purpose I suppose we act as road testers for financial products before they metamorphasise into a sanitised version for the retail market. So what was I offered A product where I receive a low rate of interest in exchange for giving them my money for three years and everything will be fine as long as the stock market doesn t crash Mmmm almost return free risk. I passed on that kind offer on the basis that the non-clearing bank down the road could offer the same thing without exposing my cash to the vagaries of the stock market. How about a range of stock market funds that appear largely to have performed in line with or slightly below their underlying markets Given that I could buy an index tracking fund on virtually any market which would give the same performance for one-fifth of the fee of the bank s fund again it was another product whose charms I sadly found easy to resist. Or perhaps I would like an insurancebased product where it appears I could tell the bank who would tell the insurance company what I wanted to invest in Given that I could approach that same insurance company directly myself it was difficult to see other than a layer of fees what benefit the bank were offering And then the light-bulb came on. What the bank were offering were largely things I could quite easily do without their intervention in the whole process. Needless to say in the best traditions of the old News of the World your reporter made his apologies and left. But the experience of sitting on the other side of the desk had filled your humble Fool with conflicting emotions. If you are a regular reader of these musings you ll know this isn t the place to come for deep philosophical consideration of the ethics of the business we call finance but this thought stood out a salesman pretending to be something they re not with an understanding of his products (and potential customers) akin to a cat s comprehension of the offside rule and a range of financial products almost designed to make it hard for clients to make a buck while providing total immunity for the seller. All courtesy of your caring sharing clearing bank. And I m supposed to be one of the bad guys Care to buy a relationship Photography by Gary Grimshaw N O O R D I N A R Y DAY J O B No Ordinary Day Job. Spinning Plates You might not know it but you re probably a bit of a fan of Tony Dorris already. Specifically you re probably a fan of his sandwiches - and his soups his salads his flatbreads and his wraps. And that s before you get to the restaurants Banjo the Crab Shacks and the Oyster Box and then there s the whole outside catering business. So how does a top chef make the transition from the kitchen to the office The culinary mastermind behind the Jersey Pottery empire sat down with Ben Qu r e to explain how its done. Ask Tony Dorris to sum up his job and the answer sounds pretty simple. I look after the food for Jersey Pottery he says. But simple it ain t. The Chef Director for Jersey Pottery is a 45-year-old Londoner responsible for up to 50 kitchen staff a set of sites that span the whole Island and most importantly probably the most recognised food brand in Jersey. That s a pretty big job and at any given moment he might be talking to suppliers planning next season s menus experimenting with recipes briefing staff or behind a stove on a lunch or dinner production. He has been with the company for 20 years having arrived as head chef at a very young age after two prestigious sous chef (effectively deputy head chef) jobs at the glamorous Ritz Hotel in Piccadilly and Ch teau Le Chaire in Rozel. During that time the business has changed dramatically they ve moved out of Gorey Village and expanded the food and hospitality business to an almost unrecognisable level. For all that time Tony has been the architect of what s going on in the kitchens. And as he explains that s a lot of work. I get involved in all of our backof-house operations I m based at Banjo and I m involved with all of the menus costings liaising with our other sites talking to suppliers and trouble-shooting he says. In the last two years the role has evolved a lot. Since we moved out of Gorey my role has moved to more of an office role I m not totally based in the office but the role is more about structuring and getting things in place rather than putting out fires. I started with the company 20 years ago I was a very young head chef [he was just 25 at the time] I was very inexperienced although I had a good background. Dominic [Jones one of the three brothers who own and run the business] is very keen on me not calling myself a chef he says I m a restaurateur but everybody knows me as a chef because I ve always been involved in the backof-house not really the front. Each of our restaurants has got a slightly different feel. One of our good customers who goes to all of our restaurants says that they re the same but different and I thought that was quite clever actually. Crab Shack is more of a family restaurant slightly simpler food than Oyster Box and Banjo but none of our food is fussy it s all got three components to it. The outside eating has got a little bit more to it it s all very bespoke. Weddings completely bespoke any wedding that we do will be completely different to someone else s wedding. The thing about Jersey is that you are always having to do new things. Some of our customers are using us 12 times per year for events and for corporate customers you have to give them something different. But in all of these areas we re trying to create an identity that SEPTEMBER CONNECT 47 N O O R D I N A R Y DAY J O B we offer good well-cooked food using simple ingredients using as much local produce as possible that s what we do. The truth is that all of that sounds a bit heavy on the director and a bit light on the chef but he says that while he s making the change he s still putting in the hours in the kitchen. He said My job is managing everything but I quite often cover for things - what I quite like is staying a little bit hands-on it s only by doing different jobs around the place that you can keep up to date with what s going on. If you don t do that you don t see things. It has been a difficult transition. The bottom line is my talent in cooking and I have had to work much harder to get into the management side of it. As a cook you re not sitting next to a computer all day long but once you get through that and start to understand how it all works in the office its not too bad. But it is quite daunting when you first start doing it. I mean I wrote a cookbook by hand The Jersey Pottery book [Handmade Homemade Recipes from Jersey] that went out five years ago I hand-wrote and then someone else typed it out for me I would not dream of doing that now. Now that we are this size it s better to have someone in the company overseeing and working in To be in this industry you have got to understand the hours and accept it. You ve just got to be the kind of person that doesn t want a structured life. I think it s easier here in London you might have an hour and a half to get to work but in Jersey you re ten minutes away. I ve just moved I ve got a ten-minute commute not four minutes But I can finish service at 10.30 pm and be home for 10.45 pm in London it s not like that. 48 CONNECT SEPTEMBER the middle of it. I still structure my week so that I can be involved in the cooking towards the weekend. No week is the same here one week we might do 50 to 60% more business than another how many businesses have to cover that kind of different output It is a funny industry sometimes. With deadlines in an office you can sometimes put people off or get some extra time I can t say to someone oh I m having a hectic week can we put your wedding back a weekend Our timelines are very real we have to get the job done we can t just leave it in the in-tray. In day-to-day terms he s mostly focused on the next three weeks in terms of talking to suppliers planning staff menus and transport for bespoke outdoor events and weddings and freshening up menus. The ideas for new recipes whether it s a fish dish for Banjo or a new soup or sandwich for the caf s also come from him so on a recent holiday to Ibiza he cheerfully admits to having driven his family mad by snapping pictures of different local dishes with his iPad. But it s not just recipes it s also about the science behind the cooking and making it work one former chef describes him as being uncanny with temperatures and timings and another described him in more straight-forward terms Tony Dorris is a genius. All this started with a 16-yearold coming out of school in south London without a lot of qualifications under his belt and going to work as a fishmonger at Tesco. From there he went to Carshalton College where he was late to enrol and was offered a choice of just a couple of courses including car mechanics and cooking. He chose cooking but it wasn t until the second year of the course that he says he got hooked his tutors were still keen on him working as a waiter ( front of house in restaurant speak) but the teenager had made up his mind. And the long hours didn t put him off. From when I was 16 I worked night and day I was working part-time in local hotels he said. To be in this industry you have got to understand the hours and accept it. You ve just got to be the kind of person that doesn t want a structured life. I think it s easier here in London you might have an hour and a half to get to work but in Jersey you re ten minutes away. I ve just moved I ve got a ten-minute commute not four minutes But I can finish service at 10.30 pm and be home for 10.45 pm in London it s not like that. I came here in 1991 and you couldn t have said that Jersey was behind. There s things coming in and out that make it cosmopolitan. The thing about Jersey Pottery is that we are still quite traditional but we want to evolve. There is definitely more choice in different things because the whole Island has become more cosmopolitan. We ve got better supermarkets now we ve got Waitrose there s more cookbooks lots of Jersey chefs are producing cookbooks - and there s more people talking about food. I come up with the recipes with the chef supervisors. We re looking for ideas we re researching what other businesses around the world are doing and we change the caf menus four times per year. The Ibiza holiday has already inspired a citrus chicken dish for Jersey Pottery and he starts musing later on about a recipe for John Dorey in a light curry sauce that he s just seen in a book. He s recently moved house with his wife Donna and children Emma and Charlie and has had to thin out the cookbook collection from 500 to a more manageable 200 he has a quick laugh at the thought of sticking all that on a Kindle but what s very clear is that he s still focused on details. He said The provenance has become very important for us it s very important. We work really hard to make sure that we use local produce when it s available. The fish isn t a problem there are some really good fishmongers out there. Getting local meat can be quite hard work it s really difficult to get it in on a regular basis the logistics of supply SEPTEMBER CONNECT 49 N O O R D I N A R Y DAY J O B can be difficult here. In the UK the logistics are different. It s not a lost cause in Jersey we try as hard as we can but it always has been difficult. When I went back to London after being here the first time [he did a stint at the Granite Corner at Rozel now The Navigator before going back] the fishmongers had a nightmare with me. I had never seen anything like the fish that you get here we were at Rozel and the fishermen were bringing in beautiful fresh bass the kind of thing that you d be paying three times the price for in London. So I went back and I was sending fish back to the fishmonger they were on the phone saying there s nothing wrong with it . The fresh fish we get here is great it s fantastic. At the moment we ve got big tides which is a bit of a nightmare for crabs or so they tell me. So I m ringing around everywhere it s a bit difficult to have a restaurant called the Crab Shack without crabs. The other important material that he needs apart from food is skilled people and he said that there s a steady stream of those coming off the production line too. There are more locals we have still got people from outside of the Island working with us but we have more locals than we have ever had he said. The thing about catering is that because of the hours and the time you have to be really open to it. You have got to be open to doing it. You can have a good life being a chef if you try not to worry about it. You ll be working the weekends but you can go and meet your mates on a Tuesday or go fishing on a Monday. The catering department at Highlands College is fantastic and it has been for years. I went up there to do my advanced pastry when I first came here for the size of the Island the quality of the place is pretty unbelievable really. The facilities are pretty unbelievable and the standard is fantastic. He s come a long way from the Tesco fish counter. Whether he s working on a menu plan from behind a desk or on a main course behind a stove Tony Dorris is definitely doing No Ordinary Day Job. I came here in 1991 and you couldn t have said that Jersey was behind. There s things coming in and out that make it cosmopolitan. The thing about Jersey Pottery is that we are still quite traditional but we want to evolve. 50 CONNECT SEPTEMBER iSPY Welcome to iSpy a new columnist whose role is to observe and comment on those who normally do all the observation and commentary the media. Nothing is sacred from their seat in a local newsroom iSpy will be turning skeptically through the pages of Connect and Bailiwick Express too as well as the work of agencies and the chatter on social media. DID YOU HEAR THE ONE ABOUT THE SENATOR... It is game on for Jersey s general election next month. At the time of going to press a few politicians have clarified their intentions. There s the Deputy standing for Senator. The Deputy hopping from one district to another. Oh and the Senator denying he s intending to oust a Constable (Philip Ozouf is rumoured to be wanting the St Saviour gig in case you were wondering). Elsewhere the Reform Jersey party that ragtag collage of left-wingers ranging from the fair-minded through to what you might unfairly term a lunatic-fringe has also announced the first tranche of new candidates. Remember we mocked Ukip a few years ago and look how far they ve come so don t under-estimate Reform Jersey. Some of them may be in what I would call cloud cuckoo-land politically but iSPY predicts a good showing for them come polling day. TROLLING THE NET This column has covered at length the pros and cons of twitter throughout this year. Twitter is great for breaking news. It s not great for nuance and depth. But it is superb for getting an instant reaction to almost anything. Some of that reaction adds to the debate giving you a sense of what really matters to people but it also exposes people s prejudices and - in some recent cases - their instinct to offer up personal attacks rather than engage in any meaningful conversation. iSPY was intrigued to see ITV Channel TV journalist Gary Burgess described as a mindless media parrot paid from the neck down to churn out the party line by one local blogger following his report on the history of child abuse in Jersey to coincide with the launch of the Jersey Care Inquiry. Those who know Gary will recognise that you can fairly accuse him of many things but churning out the party line of other people is not one of them. Either way it s good to see journalism sparking a reaction. It might also be nice to see bloggers who interact with each other (a small pool of a dozen or so in the Island with perhaps a few hundred around the world) using their time to engage constructively and perhaps boosting their image as a credible source of information rather than doling out vitriol to those they disagree with - but then labelling those who dare challenge their assertions as trolls . It would be amusing if the subject matter in question wasn t so tragic. DO NOT READ THIS ARTICLE If you are one of those who think of Jersey s government as some closed-shop quasi-dictatorship where the real power lies somewhere lower down the food chain than the lofty heights of the Chief Minister it s got nothing on what one government department s up to in Guernsey. That island s Environment Department has developed a taste for unwriting history. It issues press releases but then adds expiry dates to the words in them. Put another way it wants to erase history within weeks of making certain announcements. This bonkers dictat attached to the press releases it sends to the media across the islands is dutifully ignored by journalists everywhere who roll their eyes and smile at the fact the communications team just don t get it but consider what could happen if said department tries to actually enforce its request. Imagine a government being in a position where it could ask the media to erase information put in the public domain. To unpublish articles and quotes posted online. To pull down TV and radio reports from web searches. It is truly sinister. You could put it down to the over-zealous best intentions of a lifelong pen-pusher who wants to win gold at this year s inter-departmental Brown Nose Awards . Or you could keep a watching brief to see if this is the thin end of the wedge. The EU has approved an individual s right to ask for certain aspects of their history to be erased from web search engines. If governments get in on the act we really should begin to worry. If you re a journalist iSpy wants titbits from your newsroom if you re in the headlines iSpy wants the inside track of your media encounter if you re a reader viewer or listener let iSpy know if you ve stumbled across something that s worth sharing. Email in confidence to ispyjersey SEPTEMBER CONNECT 51 GLASS HALF FULL Glass half full with... Despite the ongoing challenges facing Jersey s workforce there is much to be positive about writes the Chairman of the Jersey Skills Board David Witherington. DAVID WITHERINGTON TwentypercentofJersey s workingagepopulationhaveno qualifications comparedto22.7% inEnglandandWales.Andafurther 20%ofourworkingagepopulation areeducatedtodegreelevelorabove thisfigureis27.2%inEnglandand Wales ResearchconductedbytheSkills BoardpredictsthatJersey sdemand forgraduateswillexceedthesupply fromthelocalpopulation TheIsland sworkingage populationispredictedtoshrink by11%overthenext20years.The InterimPopulationPolicyplansto mitigatethistrendbyaccommodating annualnetmigrationof325plus. Effortstoattract highvalue workers andindustrieswillneedtobe accompaniedbyinitiativestoraise theproductivityandperformanceof thelocalworkforce Companiesrecentlylisted staffskillsasaoneofthreekey issuesfacingthelocalbusiness environment. In response to these issues Jersey s willingness to consider innovative interventions and to maintain core programmes has been robustly evidenced Arangeofvocational qualificationsatHighlandsCollege canbeaccessedby14to16yearolds duringtheirGCSEstudies Localstudentscanparticipate inawiderangeofwork-based learning rangingfromTrident Young Enterprise work-shadowingschemes andundergraduateinternships co-ordinatedbyCareersJerseyand industryandprofessionalbodies ThesuccessfulAdvancetoWork andAdvancePlusschemes which werepioneeredbytheSkillsBoard in2008 havegoneontoformpartof BacktoWork scoreinterventionsto assistjobseekers BacktoWorkhascontinuedto devisearangeofprogrammesto assistjobseekerstoaccessparticular industries mostrecentlyUnder Constructionwilltrainupto200 candidatesforon-siteroles In2012 Trackerswaslaunched asare-imaginedapprenticeship programmebasedaroundacore propositionofpersonalmentoring. The threat of a skills crunch has received considerable publicity in recent weeks following the publication of research conducted by The Prince s Trust and HSBC which found that 73% of UK employers anticipate a skills crisis arising from current shortages. Whilst the skills issues facing Jersey don t fully mirror those found on the mainland the encouraging reduction in local unemployment figures indicates that we are moving in the right direction. The unique profile of our labour market gives rise to many of the challenges we face Jerseyhas3 400single-person businesses whichaccountforalmost halfofallundertakings Over350studentsenrolinhigher educationeachyear withinten yearsaround60%ofeachcohortare workinginthelocaleconomy 52 CONNECT SEPTEMBER Therearecurrentlyaround180 Trackersapprenticescombiningpaid employmentwithtuitiontowardsa tradequalification Localhighereducationprovision hascontinuedtoexpand enabling Islanderstogainadegreeinthe Island Islanderswantingtodeveloptheir skillscannowuseSkillsJersey s CourseFinder( courses) tosearchover1 000trainingcourses deliveredlocally ThepublicationoftheIsland s skillsstrategy SkillsforSuccess earlierthisyear willensurethe continuedfocusandinvestment neededtoeffectivelyaddresslocal skillsissues. In addition to these public and private sector initiatives the Skills Board has continued to update our understanding of Jersey s skill requirements. We recently commissioned a major study to benchmark the quality of leadership and management in Jersey against that found in the UK. Business Innovation & Skills research has shown that a single point improvement in management practices (rated on a five-point scale) is associated with the same increase in output as a 25% increase in the labour force or a 65% percent increase in invested capital . As such we will be seeking to raise awareness of the interventions that will assist local firms to similarly increase their productivity1. The Skills Board will also shortly be publishing the findings of research into the skills issues facing the local finance and construction sectors. Early results confirm that both industries are struggling to recruit the skilled people they require whilst both predict that their workforces will need to grow in coming years to meet demand. In his introduction to The Skills Crunch HSBC s CEO Antonio Simoes notes both the threat of the skills gap and the opportunity of filling it.2 We should all seek to emulate this attitude in recognising what must be done and the enormous potential we have to act on this knowledge. 1. Department for Business Innovation & Skills (BIS) Leadership& Management in the UK The Key to Sustainable Growth July 2012 p.5 https government uploads system uploads attachment_data file 32327 12-923-leadershipmanagement-key-to-sustainable-growth-evidence.pdf 2. The Skills Crunch Upskilling the workforce of the future p.5 http pdf SkillsCrunch.pdf SEPTEMBER CONNECT 53 P O L I T I C S 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 Ifyouwantto contactBenQu r e pleaseemail ben bailiwick o there was the 2008 US election that was about change. There was the one in 2010 in the UK that was about the economy technically but really it was about getting rid of Gordon Brown. Going back a bit there was the one about who runs Britain in 1974 the one in America in 1972 that was basically about fear and crime and there was Reagan s brighter future shtick in 1980. But what s the underlying theme of next month s election here in Jersey going to be What s it all going to be about Here sthething. The answer is nothing. It s not going to be about anything. The truth is that they never are. There s various things that various candidates want them to be about or perhaps want to say that they re about but there s no sense at all of any kind of underlying narrative to these things and that s because they happen in such a weird way. There s no parties lining up to set out how they can make things better (and how the other lot will definitely definitely make everything much worse) there s no big debate or moment where the key players come together to fight it out no fact-checking of the insane mass of paperwork dropping through letterboxes at your own expense and no real sense of a central conflict to the whole thing from which electors can make an informed choice about what they want. That s partly because an election here is actually anything up to 30 separate elections (potentially one Senatorial 12 for Constables and 17 for Deputy districts but normally around 20 because so many candidates are unopposed) covering different districts with different electorates involving different candidates and different voters. Take the Senatorial hustings three years ago just about each one had a question on the development at Portelet and one on States reform. People have strong views on both of those subjects and that s a good thing. But you could hardly say that either one of them affects your life in a real and immediate way. The Portelet development had been built until the National Trust demolishes it it s done. And the States reform issue is of incredible importance to you if you re a politician or a wannabe politician but to the rest of us it s scarcely going to affect our lives one way or the other. S And in any event that s just the hustings there s maybe a couple of thousand of people at the hustings if you roll around 30 meetings all together (and a ludicrous proportion of those are people who for reasons passing understanding go more than once). But that s maybe a couple of thousand people out of almost 30 000 votes. Ah but it s 2014 it will all happen online right Um no. The internet is literally the last place in the universe where you would want to have a debate. It s awful. If you manage to get past the pictures of cats it s all just people shouting insults ignoring each others questions going on about how brilliant they are and how anyone who disagrees with them is either idiotic evil or both. So not the internet. The real shame about all of this is that there are things that the election could be about. There s a new black hole of 95 million in the accounts over 2013 2014 and 2015 do we fill that through cuts or through taxes That right there is an authentic election question it s a known and quantifiable problem with alternative solutions that people with different political views will have different ideas about. Or how about house prices The average price for a three-bedroom house in Jersey is back above the 500 000 mark. I think that s a terrifying number but maybe it s not. Maybe we should do something about it maybe we shouldn t. But what could we do How do we fix it Might that not be of more interest to young voters than the finer points of the all-Island mandate How about the economy It has shrunk by 16.4% since 2007. If you listen to people talking these days they say it is all on the rise but that s only part of the story the number of people employed by the finance industry is still back at December 2006 levels or at least they were in June 2013 which is the last point in time we ve got reliable stats for. And why is that Because our new population immigration system has screwed things up so violently that the Stats Unit have just thrown up their hands and walked away refusing to use the data from it for any of their releases. Hardly enough to fill you with confidence about something as important as the new immigration system is it How s that for an election issue If the people who obsess about States reform were genuinely serious about it this would be the kind of thing they d be thinking about rather than the never-ending turf war of trying to reshape the left-right balance in the Chamber to fit their own agenda. 54 CONNECT SEPTEMBER Photography by Gary Grimshaw Disaster Recovery Andrew Eeles day job as Hosting Centre and Business Continuity Manager at JT means he always has to consider how to protect his clients vital data. But he extends that vigilance into his spare time too when it becomes life itself that he has to preserve. Paula Thelwell went to meet the former apprentice telecoms engineer who is now a senior helmsman on the St Catherine s Lifeboat. Andrew Eeles was 24 when he volunteered for the Royal National Lifeboat Institution (RNLI) Jersey and like most lifeboat crew the sea was in his blood. He has played fished and competed on it since he was toddler. In fact he found his sea legs before he could walk. Today he is the St Catherine Station s senior helmsman and one of the Island s most senior sea-going lifeboat crew members. In January this year he received a long service award from the Lieutenant-Governor General Sir John McColl to add to the commendation letters he received in 1996 and 2003 and a letter of thanks from the Chairman of the RNLI in 2000. More importantly since he joined St Catherine s Lifeboat Station the crew has saved over 60 lives. The RNLI Jersey comprises two stations St Helier and St Catherine. Since 2011 the RNLI has provided the lifeguards cover in the summer in St Ouen and St Brelade s bays Pl mont and at Gr ve de Lecq. Jersey had its first lifeboat in1830 and its first RNLI station in 1884. The St Helier lifeboat moved to its current location on the Albert Pier in 1993 the same year that Andrew joined the St Catherine crew. The first St Catherine station opened in 1969 and is now located by the Martello tower in St Catherine s Bay. The RNLI is a charity and operates without any form of government funding so fundraising is as important as operating the core services. We have some great support from the community and without the support of the RNLI Ladies Guild we could not go to sea. They do the most amazing things from organising coffee mornings to keeping the shop open and organising different events. Without them we could not do the job we do he said. What makes the RNLI s contribution to the communities it serves even more outstanding is that all the lifeboats crews from the most northern to the most southern extremity of the British Isles (Jersey) - are volunteers who are ready to put their lives on the line to save those in danger on the sea. St Catherine s Lifeboat has three crews comprising 15 sea-going crew and five support staff. The St Helier Lifeboat has a 30-strong crew. Each St Catherine s crew member is on duty for a week from midnight Sunday to the following Sunday at midnight then two weeks off. Andrew s day job is Hosting Centre and Business Continuity Manager at JT. He joined the telecoms provider as an apprentice engineer at the age of 18 and has now worked his way up the company ladder. He describes his reason for choosing JT over the other three job offers he received on leaving Highlands College Within eight days I got four job offers but JT were paying 75p a week more. I took JT because of the My Secret Life. It is so easy to define a person simply in terms of the one frame through which you meet them but does the job that we do today really cover all that we are - or have been Even in a small community like Jersey you can find a wealth of interesting histories hobbies and experiences sitting just beneath the surface of the person you thought you knew so well. It is those stories that we will be telling in this new series of features My Secret Life. Ifyouknow someonewho shouldfeature here pleasee-mail editor bailiwick SEPTEMBER CONNECT 57 75p more that was how I determined my career JT has been great to me and was definitely the right choice for a teenager interested in electronics my career was mapped out by just a few pence. It has proved to be a wise decision. Now in his 28th year with the company he travels the world and deals direct with clients in Jersey the UK in North America and Asia. It is rarely the classic 9 to 5 job due to the time differences with the different regions. He is grateful to JT as the company s support has enabled him to not just volunteer for the RNLI but also for the States of Jersey Ambulance Service. JT has been excellent for me they have always supported the RNLI as they do retained fireman who work for them and we have quite a few working in different departments. Being a Jersey company wholly owned by the States they are always trying to support the community which is really good he said. Notwithstanding employers support and flexibility the RNLI is under no illusion that volunteers jobs have to come first. It is a fact that your job has to be your priority that is what pays your bills and keeps a roof over your head. But saying that Jersey employers are very good at supporting their RNLI volunteers and most employers are willing to accommodate us and we all like to make up our time he explained. Andrew is a Jerseyman but typical of his generation not on both sides. His mother s family is Jersey through and through but his father Harry hails from London. He came over 55 years ago on a cheap weekend break Sealink return sea journey and one night in a B & B and never went home. Andrew is also a true Grouvillais. He went to Grouville Primary School and Le Rocquier before studying electrical and electronic engineering at Highlands College. His first family home he is married to Karen and they have two children Helena (20) and Harrison (17) was in Gorey Village and they now live on Grouville Coast Road close as you can get to the beach he says. The vast expanse of the Royal Bay of Grouville is Andrew s backyard where he sails his boat fishes takes his Cocker spaniels Haze and Honey for walks and swims with the dogs and Harrison as the incoming tide fills the gutters a potentially treacherous activity and not recommended for the uninitiated but a safe and exhilarating activity for those who understand and respect the power of the sea. The sea has always been in me I have always had boats from my early days he said. His other passion is photography mostly on a marine theme and he s the local RNLI s volunteer photographer. Many of his images have been used by the media and have even been published in books and used on post cards for the national RNLI. After a day in the strictly environmentally controlled environment of a JT data The sea has always been in me I have always had boats from my early days 58 CONNECT SEPTEMBER SEPTEMBER CONNECT 59 centre the freedom to roam the lunar-like landscape of La Rocque is his way of recharging the batteries. It is quite a nice life he said with more than a modicum of understatement. We live close to the beach and I ve spent the last two nights walking the dogs to Seymour Tower barefoot in a tee shirt and shorts so I can just swim with the dogs when I want to. Harrison who is studying for A-Levels at De La Salle is a frequent companion on these low water adventures. He will be following his father into the RNLI. By the time he is 18 he hopes to be a fully operational crewmember. Andrew s fatherly pride shines through when he recounts how Harrison rescued some tourists from the rising tide at Seymour Tower (and that Helena had just started work at PwC). As the tide rose they were beginning to panic but Harrison guided them safely back to La Rocque. One of the first pictures of me is on the slip at St Catherine s with my dad and his boats when I could barely walk said Andrew. It is hard to believe that from growing up at St Catherine s I am now a helmsman of St Catherine Lifeboat his boats when I could barely walk said Andrew. It is hard to believe that from growing up at St Catherine s I am now a helmsman of St Catherine Lifeboat he said. Not that unusual when you think of all the generations of crew who since the very early days of the RNLI have given their time - and in many tragic instances their lives serving their community. It is not uncommon to find the names of fathers sons and brothers on the honour roll of lifeboat crews who have died in the service. On-going training maintaining fitness levels and passing medicals are annual requirements and every Sunday you ll find Andrew and the crew at the St Catherine Station where the public are welcome to drop in. It s my church I say I am going to church and everyone knows where I am going he said. Lifeboat crew never go anywhere without their pagers even when they are not on duty they are still on call. If the message is crew assemble they may still be needed in case a member is late or gets stuck in traffic. If the message is Launch ILB that means life is at imminent risk a boat is sinking or on fire or a person is missing so everyone responds whether they are on duty or not. If crew aren t needed at sea they could be required on shore. That means when on duty the crew needs to stay in the east of the Island with the boundary line marked by Queen s Road if work takes them past that line they have to get a colleague to cover. We have to know what we are doing from Sunday to Sunday so if we need to launch we have to make sure there is always someone with the necessary skills ready to go. It restricts what you can do in that week but on your two weeks off you can go to the west side of the Island or take the kids to St Ouen. Likewise if Andrew has to take an important client call he asks a crew member to cover. However other matters have to wait like the times he has left the family in a restaurants midmeal or when he had to dash away from the barber with his hair half cut. Just as well we wear helmets on duty he said. His helmet came in very useful when the crew sadly had to deal with a double fatality. They had to recover the bodies of two fishermen and bring them back home at Rozel Harbour on a hot summer s day when the beach was packed and children were playing building sandcastles. Following the recovery of the second fisherman he sat exhausted on the slip people came up patted him and the crew on the back and dropped donations in his upturned helmet. The is the first time I cried as an adult in public and really felt proud to be part of this beautiful Island and call myself a Jerseyman he said. I asked him if they d thanked him but he just shrugged his shoulders and said he didn t know because he just headed home Andrew said. The adage Like father like son is repeating itself. Harry combined a career as a builder with chartering boats from St Catherine and his son helped out from an early age. One of the first pictures of me is on the slip at St Catherine s with my dad and 60 CONNECT SEPTEMBER D E A D LY D I A R Y 4 September Chamber of Commerce lunch Treasury Minister Philip Ozouf You know in one sense this sell-out lunch is perfect timing. There are big questions that need answers how much is this bond actually going to cost us Can we really rely on this level of return on the Strategic Reserve investments What really happened to the Treasurer and what kind of payoff did she get Where did this new 95 million black hole come from How come there s money for Pl mont but basically nothing else How can our finances really be stronger if the finance industry is going backwards (see GVA numbers) and we re borrowing money for the first time If you pay for something from the income from the Strategic Reserve how can you also call it free (the new hospitals) Sadly in another and far more real sense it s a complete waste of time. Expect no answers to any of those questions just the Senator talking about all of the important meetings that he goes to and saying everything s brilliant in increasingly threatening tones... angry. The last one pointed out that a pint costs 49p more here than it does in the UK and that on average fresh fruit is two-fifths more expensive fresh vegetables a third dearer and meat costs about a sixth more here. Let s play a game - DD will lay cold hard cash that some desperate drooling lackwit politician will convince one or other of the media to run a story about how he she it wants a thorough investigation into shopping prices so that it can get his her it s disgusting features in front of the public with five weeks to go before polling day. Who s in for a fiver 17 September Ye gods it s the Retail Sales Index. Has it really been three months old friend The last report (for the first three months of the year) showed that the volume of sales was marginally lower than the same time last year but that the value of those sales was flat. Interestingly it also showed that in the predominantly non-food sector volumes were about a sixth lower than the peak in early 2008 that s what a recession does to retail. 9 September The States So it s come to this. Come and marvel at the wonder of democracy and ask yourself what might have possibly convinced politicians barely a month from an election to set up a series of grandstanding debates about increasing funding for a child contact charity increasing widows and widowers benefits providing funding for the Women s Refuge allowing medical use of cannabis and securing public open space at Springfield Stadium. DD would say that they should be ashamed of themselves but we know that they re long past that point... 22 September The Budget There may be words for how stupid it is for the outgoing States to debate the Budget three weeks before an election and so tying the hands of the new Assembly but DD can t find them. The Budget showed that a lot of money has disappeared somewhere in the strange netherworld between what the States say is going to happen and what actually happens here on Planet Earth. They need to find 95 million to plug that gap and a whole set of emergency measures including raiding special funds and utilities and cutting department budgets has been proposed. In reality there are two things to do address how the forecasts were so violently and ludicrously wrong and either push up taxes or cut spending to sort it out. Alas there s basically two ways that our politicians might realistically react either with a mighty wailing and gnashing of teeth accompanied by no real action or by completely ignoring it and hoping it goes away. 10 September UK Jersey Price Comparisons June 2014 At last something with a passing resemblance to some factual information the UK Jersey Price Comparison is a cracking report if you re a fan of feeling 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. SEPTEMBER CONNECT 61 MUSINGS OF A MARKETER The brilliant thing about Words All writers love words and all writers have their favourites - long ones simple ones rounded ones and sharp ones. I keep a little store cupboard of bon mots that I pull out at a moment s notice when I have to rustle up something simple yet satisfying like a meal made of staples and left-overs. My store cupboard is neat and tidy with spicy words I keep for robust rejoinders on the top shelf sweet words for a little personal persuasion in a special jar and plain English ones in baskets for those moments when you want to communicate with the minimum of fuss and bother. My love of words comes from reading and performing Shakespeare but I know that s not everyone s cup of Darjeeling so I thought I d share some words from across the ages that I think are just brilliant. I am going to start before old Will himself with that master of early pornography Geoff Chaucer. Chaucer was the father of English literature and he invented a few phrases we still use today such as nothing ventured nothing gained and patience is a conquering virtue - but my favourite is What is better than wisdom Woman. And what is better than a good woman Nothing. So true. My next hero of the English language William Shakespeare left us with more than a million words of text many of them completely new to the English language and several of them probably not even understood by the playwright himself - after all they smoked a lot of strange things in Tudor times In Hamlet alone Shakespeare added 600 words to our vocabulary including frugal horrid leapfrog lonely and zany along with countless others including countless (with thanks to another great wordsmith Bill Bryson). The really brilliant thing about words though is that we keep coming up with new ones and they stick. Some come from objects that man in his brilliance has invented like hoover or microwave (both objects that have become common verbs). A whole language has arisen from social media - such as Google. If you don t believe me Google it But some of the best ones have come from the street - language developing as it has always done through conversation and popular culture the media of regional understanding. How about fluff which in New Zealand is slang for breaking wind in Australia is rubbish or nonsense and in the UK means a pretty but vacuous woman Be careful how you use our words when travelling. A great one from the Urban Dictionary at the moment is rendezbooze getting together with friends for a drink after work which just happens to also be one of my favourite pastimes. SowhataremyfavouritewordsthatIliketo pluckfrommystorecupboardonaregular basis Toomanytomentionbutmyfivepop picks(thanksAlan Fluff Freeman-notsure which fluff thatis)are 1.wonky-it sjustsoplayful andyetsimple initsdescriptiveness 2.rump-fedronyon-fromMacbeth sucha deliciousinsultandjustreallygreattosay 3. delicious-sayingitalwaysbrings somethingreallytastyorsatisfyingtomind 4.brave-becauseIamnotparticularlysoit isfullofaspirationforme 5. plum-becauseIcanneversayitonce I alwaystryitseveralwaysandeachway makesmesmile. I think everyone should have a cupboard of words which they should open on a regular basis and try to make something new and different with. Connect s marketing columnist this month is Allan Watts founder and director of Channel Islands communications consultancy Orchid. This month he explains his passion for words. If you have a question for Allan please e-mail info bailiwick Words are one thing complete phrases another. How about pomp and circumstance blinking idiot budge an inch or vanish into thin air All WS - and all still used now. 62 CONNECT SEPTEMBER THE ADVISOR Without Prejudice The words without prejudice abound in legal practices and are often found on letters from lay people when writing a letter containing a threat of legal action. A judge once remarked In some quarters of the community there is a belief amounting to a superstitious obsession that the expression without prejudice is possessed of virtually magical qualities and that anything done or said under its supposed aegis is everlastingly hidden from the prying eyes of a court. But what do the words mean and what is their purpose It is not a simple topic. Accordingly what follows is really only the briefest of overviews. In a very basic definition without prejudice refers to a particular type of privilege (there are others) in which parties to a dispute can make offers of settlement including concessions and admissions without the fear that those statements will be used against them or referred to in court. It is a cloak that guards things said or written when trying to make a settlement being relied on by another should the attempts at settlement fall apart and fail. This means that it s not going to protect you if you write a letter making a legal complaint demand you are not trying to settle a dispute (quite the opposite). Neither will it help you to keep secret communications written trying to strike a deal in a commercial matter it must relate to a dispute that is in existence. Because of the way it works it can apply to part only of a letter and not other parts. For instance a party who is claiming the loss of 10 000 revenue for a breach of a contract can say without prejudice I d settle for 7 000 without worrying that their acceptance of a much lesser sum would be brought to the court s attention. But it is interesting how the privilege first grows its teeth. It was once postulated that it was an agreement between warring parties - a contract. This makes perfect sense when two lawyers sit down and say to one another shall we discuss this on a without prejudice basis and agreement is struck between them. It is a contract. But that argument falls apart when someone writes a letter marks it without prejudice and posts it off to an adversary. The adversary hasn t agreed to discussions on that footing. You can t impose a contract. A contract comprises an offer and acceptance in this case the other party hasn t accepted anything. However the principle is well enshrined and as I am about to tell you closely guarded and held sacred. Courts are very keen to ensure that the without prejudice privilege is protected. Their keenness is because of public policy to encourage parties to negotiate and settle disputes and avoid lengthy and costly court battles. The privilege is important because without it parties would not be open with each other and so the chances of settlement being achieved are unlikely. So the law gifts the protection of the privilege in the hope that with that backdrop parties will be open and honest and achieve resolution. If the protection is removed it is believed that settlements will be a thing of the past and therefore the privilege must be maintained and protected. But do the courts protect it too much I think so. There is an exception to the protection of the cloak of privilege and this occurs when a party uses without prejudice discussions negotiations to make threats of blackmail or other unambiguous impropriety . In a well-known case one party believing what he was saying was protected said that he would lie in court and would pay witnesses to lie for him unless the other party agreed to pay a sum of money. Unfortunately for him his threat was unveiled and the protection that would otherwise attach was whisked away. But lately the courts have been very strict about removing the protection. It appears that an admission of wrongdoing on its own made in without prejudice discussions will still be protected. I find this very unpalatable. It means that a party who is going to stand in court and say I didn t agree to that can say in private discussions of course I agreed that but I m going to deny it when I get in the witness box. Will the Jersey courts approach the matter in the same way It appears so. In a judgment still to be issued (the decision has been issued but the written reasons reserved) the Bailiff refused to allow a party s alleged admission of wrongdoing in without prejudice negotiations to be referred to at trial. It will be interesting to see his reasoning. For my part while I accept the public policy of encouraging negotiations and agree that such a policy should be maintained I do not accept that it should trump the truth. I find it totally unacceptable that a party can step up to the witness box and give evidence when so many in the court know that what is being said is nothing more than lies. I also find it totally incomprehensible that courts place so much importance on affidavits containing the truth the whole truth and nothing but the truth yet are willing when it is revealed that they contain lies and untruths to allow those lies to remain and be considered by a court as evidence just because the truth was disclosed under a cloak of without prejudice . In my mind that cannot be right. Let s wait for the judgment and see the Bailiff s thinking. Olaf Blakeley is an Advocate specialising in litigation and commercial law Ifyouhavea legalquestionyou wouldliketoputto AdvocateBlakeley pleaseemail editor bailiwick 64 CONNECT SEPTEMBER mbitious A Prepared What an international business should be John Carroll Head of International Santander UK Connected International trade can unlock significant growth but is often complex. So whatever your sector our Trade Portal has been developed to help you identify the largest markets understand local regulations and connect with potential customers and suppliers on the ground. And with access to Trade Club an exclusive online community for international businesses we could give you the best chance of success overseas. To see how far your business could go visit tradeportal email Stephen.OBrien or call Simple Personal Fair What a bank should be Helping Businesses go Further GET CONNECTED WITH MORE THAN ANY OTHER INTERNATIONAL BANK 5 million customer source Santander Group internal data. You need to be an online banking customer of Santander Corporate & Commercial to gain full access to the Trade Portal and Trade Club. Santander Trade Portal is provided and managed by Export Entreprises S.A. Santander provides access to its client companies but is totally unrelated to the database contents which are the responsibility of Export Entreprises S.A. Santander Corporate & Commercial is a trading name of Santander UK plc registered in England company number 2294747. Registered o ce at 2 Triton Square Regent s Place London NW1 3AN. Santander UK plc Jersey Branch is regulated to carry on deposit taking business under the Banking Business (Jersey) Law 1991 by the Jersey Financial Services Commission. Its principal place of business in Jersey is at Third Floor 19-21 Commercial Street St. Helier Jersey JE2 3RU. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme o ers protection for eligible deposits of up to 50 000. The maximum total amount of compensation is capped at 100 000 000 in any five year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website dcs or on request. Santander and the flame logo are registered trademarks. CCBB SEP HT