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FREE Please take a copy IN EDITION 33 Starting a business We have all you need to know... o Read online at www.bailiwickexpress.com Jersey s business magazine i what does the new Year have In store for st helIer Retail B It s all change at the top... so wIll we have the skIlls we need Education Rory steel Unplugged History is littered with companies entrepreneurs and business visionaries who failed to pass on the company baton successfully. If you want to maximise the value of your business or ensure that the legacy of your business continues onto the next generation seek out the local experts... Although there is no definitive how to manual for developing an effective succession plan our experience shows that certain actions can help the business survive and thrive into the future. Succession planning cannot be approached as a one-time event. Instead it is a process that should begin long before the owners plan to exit the business. Starting early also ensures you can select from the widest range of options available to you. If you want to discuss the right succession planning strategy for you and your business contact John Shenton T 01534 885866 john.shenton gt-ci.com www.gt-ci.com Grant Thornton Ltd is a member firm within Grant Thornton International Ltd (Grant Thornton International). Grant Thornton International is one of the world s leading organisations of independently owned and managed accounting and consulting firms. Grant Thornton International and the member firms are not a worldwide partnership. Each member and correspondent firm within Grant Thornton International is a separate national firm. These firms are not members of one international partnership or otherwise legal partners with each other (with the exception of certain limited instances) nor is any one firm responsible for the services or activities of any other. Each firm governs itself and handles its administrative matters on a local basis. Any and all references to Grant Thornton International are to Grant Thornton International Ltd. o Editor James Filleul Welcome FURTHER INFORMATION PUBLISHERS If you would like to appear in Connect have a story to tell or simply want to receive a copy then please get in touch with the publishers Bailiwick Publishing (LCI) Fox Building Second Floor Suite La Rue des Pres St. Saviour JE1 3UP Telephone 01534 887740 CONNECT ONLINE For the latest news and classifieds straight to your inbox visit www.bailiwickexpress.com and subscribe to our daily news service. EDITOR James Filleul editor bailiwickexpress.com WRITERS Ben Qu r e ben bailiwickexpress.com Gwyn Garfield Bennett gwyn bailiwickexpress.com Paula Thelwell paula bailiwickexpress.com ADVERTISING Mark Ferns Telephone 01534 510309 markferns bailiwickexpress.com SUBSCRIPTIONS info bailiwickexpress.com DESIGN AND PRODUCTION Mark Jackson mark bailiwickexpress.com Artwork under 10Mb in size may be sent to this address. EDITION33 It s not often you see a teacher on the front cover of a business magazine. Yet in Jersey the most important resource we have is people. I Please recycle this magazine. Like Bailiwick Express t is not often you see a teacher on the front cover of a business magazine. Yet in Jersey the most important resource we have is people. The tighter the government vainly tries to close its fist on immigration the more businesses will be focussing on the local education system and the people it is producing for them to employ. Now this is where the debate gets interesting as towards the end of last year various senior politicians (who had already been in office for long enough to do something about it themselves) turned up the heat on local schools and colleges saying the system needed to undergo major reform. Why Well put simply because business as usual can t continue the economy must grow to pay the healthcare costs of an ageing population and to do that we all need to get much more productive. Hence the current political focus on technology and skills as the two most likely drivers of productivity. So far so good. But put yourself in the shoes of the Island s teachers. Suddenly it is up to them to produce (standby horrible phrase approaching...) ovenready employees who can step neatly and with minimal help off the train from school onto the stable platform of a local job. As ever reality is a little different from the political vision. The educational needs vary massively across jobs let alone the different sector requirements. Which begs the question are there common skills which all businesses require For those of you already jotting down some suggestions I bet the words literacy and numeracy aren t far from the top of the list probably followed by IT skills to form the new triumvirate of essential educational needs. All of which leads us to this month s front cover Rory Steel. He is one of the principal advocates of technology tuition in local schools and on page 40 he explains why your son or daughter will soon be able to build their own mobile phone app at the age of 11 quite what that means they ll go on to do by the time they leave school is another matter. And to back that up in this connectjersey first issue of the New Year our lead feature develops the same theme Justin Donovan is the new Director of Education and so is the man who the politicians will be tasking with reforming the system. On page 22 we look at how he might tackle that fundamentally important job. The Fool this month looks at risk and how our attitudes to it are going to have to change fundamentally as he explains on page 46 once again business as usual is not an option. And as the daily rumble of business begins again after the New Year Deadly Diary (page 62) looks at what s in store this month those of a sensitive disposition are advised to quickly turn the page. Finally don t worry if your New Year s resolutions didn t outlive your Christmas decorations. Just like the tree lights no matter how carefully you store them they still won t work next year. Best to recycle them all into one life-changing nailed-on certainty of a road to happiness resolve to read Connect. 01 www.bailiwickexpress.com jsy CONNECT January 2015 Contents NO ORDINARY DAY JOB 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. UNPLUGGED 50 UNPLUGGED VIEWPOINT REGULARS LOC AL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 LEGAL MAT TERS N E W 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 N E W FEATURES BUSINESS START UPS Moore Stephens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Lifetime Enjoyment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Onestop IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Rosscot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 TR ADING PL ACES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 BUSINESS ADVISER John Shenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Rory Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Tax in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 L AW Ogier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 WHO S THE FOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 NO ORDINARY DAY JOB Daphne East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 GET MOTIVATED IN 2015 Gwyn Garfield-Bennett . . . . . . . . . . . . . . . . . . . . . . . . .57 ISPY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 GL A SS HALF FULL Mike Byrne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Special Report Changes at the top a sudden rush of political focus after years of inattention and a buildup of pressure to control budgets and simultaneously improve standards all of this means that Justin Donovan has picked an interesting moment to take up the job of Director of Jersey s 106 million per year Education service. . . . . . . . . . . . . . . . . . . . . . . . . . 18 HERE S THE THING . . . THE ADVISER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 02 January 2015 www.bailiwickexpress.com jsy CONNECT You can read this magazine plus the latest local UK and business new online with Special Report 18 10 16 46 14 21 08 www.bailiwickexpress.com jsy CONNECT January 2015 03 O eac ut h dne We ay sd Happy Monday With over 700 jobs online at www.bailiwickexpress.com and an email service sending the latest jobs straight to your inbox there s no better place to start your job search than Bailiwick Express. Why not sign up today And enjoy your next Monday NEWS Bond returns And this time it s bigger than ever... guernseY has just announced that It has borrowed an eYe-waterIng 330 mIllIon from the bond markets. The move follows Jersey s decision earlier this year to go out and borrow 250 million to invest in refurbishing and building social rental housing. The announcement from Guernsey reveals that they have secured a slightly lower rate than Jersey did but that difference is largely down to changes in market conditions since the Jersey debt was issued in June. Guernsey s debt also dwarfs that of Jersey as a proportion of the island s overall economy Jersey s borrowing amounted to something in the region of 6.8% of annual GDP whereas the amount that Guernsey has borrowed is closer to 15% of their GDP. The short announcement from the States of Guernsey revealed that they plan to use the money mostly to consolidate existing debt. The States of Guernsey said The States of Guernsey (rated AA with stable outlook by Standard & Poor s) is pleased to confirm that it has successfully priced a 330m debut bond issue with a final maturity of December 2046 and a coupon of 3.375%. The transaction is due to close on 12 December and further information will be provided at that point. The net proceeds of the bond issue will be applied primarily to consolidate existing debt which is either directly provided by or guaranteed by the States of Guernsey. Are shops starting to bounce back The High Street in Jersey might be on its way to recovery after the latest figures showed that things were looking up. After a tough couple of years in which retailers have been battered by the boom in online shopping and the cuts in householders disposable income the Retail Sales Index for July to September suggested a very slight improvement. After ironing out the usual seasonal shifts the figures suggested a 1% increase in the volume of sales over the last 12 months and a similar 1% increase in the value of sales. The figures are significant because it s only the second period out of 13 that has seen an increase in the volume of sales since mid 2011 and only the third out of the last 12 to see an increase in the value of sales. The figures which are compiled and analysed by the States Statistics Unit show that it s the predominantly food made up of supermarkets convenience stores and small food stores - sector that is leading the recovery. The value in food sales has been at around 0% or higher since 2007 and so far this year the increases have amounted to a combined 8%. But the non-food sector shows a different story with ten out of the last 13 quarters showing a decrease in value of sales. www.bailiwickexpress.com jsy CONNECT January 2015 05 NEWS Finance industry needs to attract graduates Skills Jersey says more needs to be done to promote the finance sector to local graduates and young people - or face looking outside the Island for qualified staff. a diverse range of career paths Jersey s finance sector presents young people with unrivalled opportunities to work within an industry with genuinely global reach. With an increasing range of finance qualifications now available in the Island including the finance degree programmes offered by Highlands College and Jersey International Business School Islanders can study for technical and academic qualifications whilst gaining professional experience and taking advantage of all that Jersey has to offer. In its first major skills review of the Island s finance industry the body which oversees the development of skills-related initiatives in Jersey concluded that of the 350 new recruits expected to be required by finance firms each year for the next decade 70% would need to be graduates. And with increased pressure on the availability of licences the industry will need to entice more of local graduates back to the Island. Skills Jersey commissioned the review to understand more about the specific skills issues facing Jersey s finance sector. Carol Graham ViceChairman of the board said As well as offering 1 fIve thIngs accordIng to deadlY dIarY. no one Is talkIng about anYmore Edaw. No not a furry monkey-type thing from Return of the Jedi but a report from 2008. And not just any report. A magical one that was going to basically get all cars out of the town centre run a road through Peoples Park for no particular reason make town a fantastic place to live and have us all travelling around town in giant pneumatic tubes (although DD might have made that last one up). Ministers spent 240 000 on it had a think and then carefully put it on a shelf and wandered away whistling. Since then it is conspicuous only by its absence and invisibility. Rather like... The Intellectual Property Industry. Gather round children let DD tell you the tale of the wonderful new thing that was going to come in create lots of lovely highpaid jobs and offer some kind of alternative to the finance industry. The Big New Thing was called Intellectual Property and the gist was about registering ideas concepts designs and brands to protect ownership rights. Sadly someone else seems to have pinched the idea while we were nattering about it which rather suggests that it s not something that we would have been very good at. The Odeon. Used to be a cinema which was a place you went to back in the olden times to watch a film which was a thing that people used to watch back in the olden times before TV got good. There are similar things now but for reasons passing understanding you buy a ticket and have to sit in the seat they give you. AND ONLY IN THAT SEAT. NO OTHER SEAT IS PERMITTED. So a bit like an aeroplane or perhaps a prison. Except it s not an aeroplane or a prison is it It s a cinema. If you want us to pay you to sit down on a numbered seat you could at least take us to Gatwick or possibly London City at a push. Alright Southend final offer... The National Lottery. Ye Gods. The three words that launched a million hopeful headlines will yon National Lottery come to Jersey Will we have National Lottery millionaires here racing go-karts quaffing champagne and cheerfully sinking boats in the harbour Answer came back no . A couple of interesting points you ve got more or less a 1 in 14 000 000 shot of winning the National Lottery only 50% of the money spent goes back out in prizes and they ve got it in the Isle of Man the filthy rotters. A National Gallery for Jersey. The (unimpeachable) logic went a little something like this we ve got a flag we ve got a parliament we ve got a Chief Minister we ve got an anthem we ve got stamps and we ve got our own money. We re a nation. Let s have a national gallery. There s oodles of art and culture hanging on rich folks walls let s take all the pretty stuff and put it in a place where everyone can go and have a look. Had a fairly big backer in Sir P The B (as he used to appear in DD s notepad back in the Royal Court days) but Sir Philip Bailhache has been a bit busy Senatorialising and International Relationeering these days. TAKE FIVE 2 3 Want more read deadlY dIarY on page 62 06 4 5 January 2015 www.bailiwickexpress.com jsy CONNECT YES WE HAVE CHANGED OUR LOOK BUT WE ARE STILL THE SAME PEOPLE YOU CAN COUNT ON 01534 785200 accounts rosscot.com www.rosscot.com Thomas Edge House Tunnell Street St. Helier Jersey JE2 4LU Accounts Preparation Management Accounts Audit & Assurance Taxation Services Bookkeeping & Administrative Services Payroll services Business Start-Up Advice Company Secretarial Services Accounting Software Installation & Support Outsourced Accountancy Support Business Valuation Forensic Accounting Rosscot Secretaries Limited is regulated by the Jersey Financial Services Commission NEWS Funds figures reach five year high The statistics highlight that the net asset value of regulated funds increased by 5 billion in the third quarter of 2014 and by around 5.5% year-on-year to reach just over 205 billion the highest figure since March 2009. This was led by another strong performance in the alternative asset classes with private equity and real estate funds both growing on the previous quarter by over 4%. Headline figures include Total value of banking deposits held in Jersey decreased by 2.3 billion from 138.9 billion to 136.6 billion during the third quarter of 2014. Net asset value of regulated funds under administration increased by 5 billion from 200.4 billion to 205.4 billion during Q3 2014. The total number of regulated collective investment funds increased by 21 from 1 283 to 1 304 fIgures released bY jerseY fInance show the value of the Island s funds busIness Is at Its hIghest level In fIve Years. over the same period. Total number of consents granted in respect of COBO only Private Placement funds increased by three to 30 with a reported total NAV of 696 billion. As at end of the third quarter of 2014 there were 204 unregulated funds of which 133 were active. Geoff Cook Chief Executive Jersey Finance said Overall these figures highlight good performance from our finance industry sectors. Jersey s funds sector is doing particularly well and the private placement route into the EU remains a very attractive option for Fund Managers based outside the EU. Although bank deposits fell slightly they remain stable with over 18% of deposits now emanating from the Middle and Far East whilst the number of live companies on the register in Jersey is at its highest level for four years. Calligo wins international industry award Offshore cloud services provider Calligo has won a key award in the Frost & Sullivan 2015 CIO Impact Awards. Frost & Sullivan recently recognised 44 world-class companies comprised of enterprise teams individuals and technology partners for enabling breakthrough new business models and strategies through the innovative use of transformative technologies. Calligo s Project Global Multi-Jurisdiction Cloud won the honour in the category of Data and Network Resilience receiving high marks from the judges for its strategic initiative to build a full set of cloud services across multiple jurisdictions around the world that have been specifically designed to meet the data protection privacy and residency requirements of offshore jurisdictions. 08 Calligo s CEO and cofounder Julian Box CEO and co-founder will accept the award on 10 February at the Hyatt Regency in San Francisco. He said We are very pleased to have been honored by Frost & Sullivan with this prestigious award. It s great to be recognised for what is an ambitious and innovative use of technology which underpins Calligo s go to market strategy and for the recognition of what Calligo has achieved in such a short period of time. January 2015 www.bailiwickexpress.com jsy CONNECT Understanding your local Channel Islands business landscape. It s in our nature. The qualities you need in a local law firm come naturally to us. We provide a broad range of integrated pan-island legal services with a pragmatic commercial approach and we are focused on delivering outstanding client service. To find out how we can assist your business please contact Guernsey Caroline Chan T 44 1481 752215 E caroline.chan ogier.com Jersey Jonathan Hughes T 44 1534 504336 E jonathan.hughes ogier.com ogier.com cilegal Information on Ogier Group and details of its regulators can be accessed via our website www.ogier.com. NEWS Jersey s fibre-to-the-home programme receives national recognition Telecoms provider JT has picked up the Urban and Rural Broadband Networks Award in the 2014 Next Generation Digital Challenge Awards for its Gigabit Jersey project and in recognition of the creation of a full fibre-to-the-home future for Jersey. JT competed in one of five categories which were presented at an awards ceremony during the seventh annual NextGen conference held in Derby in November. Organised by NG Events Ltd in partnership with Groupe Intellex to campaign for better broadband the NextGen conference has evolved to encompass many aspects of the economic and community impacts of digitalisation. Dave Newbold JT s Chief Operating and Technical Officer said This accolade brings further valuable recognition from the industry for our Gigabit Jersey programme for which we are immensely proud. As we progress with our fibre switchover prestigious national awards such as this serve to highlight for those involved in the challenge of facilitating better broadband in their part of the UK and Europe how far ahead we are here in the Channel Islands and indeed Europe in delivering superfast fibre broadband to residents and businesses. David Brunnen co-founder of the NextGen Digital Challenge Awards programme said JT demonstrated that it has significantly contributed to local economic growth and diversity in the Channel Islands through its fibre-to-the-home programme and this made it stand out in its category. NextGen events are designed as the UK s prime showcase and platform to share insights and grow business in the UK s fast moving high-tech innovative and digital development landscape. WHAT YOU HAVE BEEN READING a QuIck look at the bIg storIes In the last month on baIlIwIck eXpress Club thief victim Keep the coat but I need my keys http www.bailiwickexpress. com jsy news nightclub-thiefleaves-mum-stranded Police investigate sudden death of young man http www.bailiwickexpress. com jsy news policeinvestigate-sudden-deathyoung-man Elderly man confronts burglars in his home at 2 am http www.bailiwickexpress. com jsy news elderly-manconfronts-burglars-his-homeearly-hours Batten down your hatches storm warning issued http www.bailiwickexpress. com jsy news batten-downhatches-theres-storm-headingway Beach warning for dog-owners http www.bailiwickexpress. com jsy news beach-warningdog-owners get thIs latest news & classIfIeds straIght to Your InboX Every day we send our top stories directly to the inbox of each of our subscribers that database includes a diverse readership or thousands from senior professionals looking for business news to house hunters in the property market. Our current email services are DAILY NEWS EMAIL Goes out everyday to our largest database keeping them up-to-date with our top stories. WEEKLY RECRUITMENT EMAIL Getting the right staff is key to all local businesses and our Wednesday e-mail is just what they are looking for. WEEKLY PROPERTY EMAIL Targeted at our readers looking specifically for property. Published every Friday it catalogues open viewings over the coming weekend so property-hunters can plan their itinerary. WEEKLY MOTORING EMAIL Goes out every Tuesday to everyone looking for a new set of wheels. Our weekly e-mail makes sure they know the latest deals and are up-to-date with what s on offer. GUERNSEY BUSINESS NEWS EMAIL Goes out everyday to a Guernsey database keeping them up-to-date with our Guernsey business news stories. 10 January 2015 www.bailiwickexpress.com jsy CONNECT New year new business focus. The Moore Stephens Accounting and Business Services team provides a full range of personalised services to support you at every stage of your business whether you are starting up expanding or preparing to sell. Business Services we offer Business set-up or valuation GST & VAT Purchase ledger Payroll Social security and ITIS returns Bookkeeping and Accountancy Debt collection We offer an initial FREE consultation with our team of experts who will discuss your business needs and plan a way forward. For further information please email jo.gavey moorestephens-jersey.com or telephone 44(0) 1534 880088 www.moorestephens-jersey.com Regulated by the Jersey Financial Services Commission. PRECISE. PROVEN. PERFORMANCE. NEWS News RE view Four Jersey charities benefit from community awards Four Jersey charities have received funding from the Barclays Community Awards 2014 to help with projects benefiting young people. The Jersey Employment Trust Words and Numbers Matter Autism Jersey and Brighter Futures all received a share of the 24 000. The annual awards are open to local charities looking to fund a project or initiative that will support and improve financial entrepreneurial and employability skills for young Islanders. Paul Declat Jersey Director for Barclays Wealth and Investment Management said Each year we see some great projects being put forward to the awards and it is wonderful for Barclays to be able give support. These four projects will really benefit the young people of Jersey. due diligence services to provide regulated firms with a suite of solutions which will enable them to cost effectively and efficiently satisfy the increasingly demanding regulatory environment. The first of its kind ID Check which has already been adopted by Elian across all of its service lines simplifies the process for submission of personal client due diligence (CDD) information. Using the app from a phone or tablet any client can now submit their identity information in just five minutes from anywhere and at anytime. Dan Le Blancq director of Elian due diligence services said ID Check is a first of its kind innovation with the potential to revolutionise the way regulated firms collect identity information from their clients. ID Check has already had a massive impact in our own regulated service lines and is available across our global network of offices. brands. Over more than a quarter of a century they have become a byword for quality class and achievement the awards that everybody wants to win. Mr Smith beat off competition from fellow nominees Lee Streeton Executive Head Chef at Brown s Hotel in London and Matthew Tomkinson Head Chef at The Montagu Arms Hotel in the New Forest He said I am beyond delighted to have received this award. The Hotel Cateys are one of the most important industry accolades out there and are the ones that everybody wants to win. Will Thorp Chief Executive (Designate) of Standard Bank in Jersey said This is a tremendous result and reflects the hard work the compliance team has put in. The awards are a further affirmation of the strength of Standard Bank Offshore s proposition and ability to deliver against our commitment to be the leading African-focused offshore wealth manager. This has been an excellent year for the team and for the Bank and the awards are thoroughly deserved. More than the bare necessities Durrell s resident pair of Andean bears Quechua and Bahia are to receive two major upgrades to their enclosure thanks to sponsorship from ABN AMRO Bank Jersey To help mark its 40th anniversary in Jersey the bank has been supporting Durrell throughout 2014. The improvements to the Andean s enclosure will round off the year s activities which have included community volunteer work and a number of event sponsorships. Bilal Majid Country Executive and Head of ABN AMRO Bank Jersey said We wanted to celebrate our landmark 40th anniversary in Jersey with a partnership that reflected our commitment to sustainable banking and to support responsible actions that benefit our clients employees and Hat trick for Standard Bank compliance team Standard Bank s offshore compliance team won in three categories of the annual Compliance Register Awards ceremony in London. The team beat off competition from the UK and farther afield to take Best Financial Crime Team and Best Head of Financial Crime for Michael Smith with team head Se n Flanagan named as Best Head of Compliance. Mr Flanagan said These awards further confirm the great advances made by the compliance team and the depth of strength that is exhibited at all levels in compliance throughout Standard Bank s Offshore Group. Due diligence services launches client app Elian has launched an app that provides a paperless alternative to certified true copies for individual client due diligence purposes. The app called ID Check is one of two services being launched by Elian 12 Bohemia chef wins British catering industry Oscar Bohemia Restaurant s head chef Steve Smith has won one of the top culinary accolades in the British Isles having been named Head Chef of the Year at the Hotel Cateys 2014. The awards referred to as the catering Oscars cast a spotlight on the industry s highest flyers strongest performers and hottest January 2015 www.bailiwickexpress.com jsy CONNECT NEWS Email us on editor bailiwickexpress.com Got News the environment. Durrell s ethical stance seemed a perfect fit to help mark this special occasion and we are all extremely proud of the support we have provided Durrell in 2014 to help conserve biodiversity and endangered species around the world. Patrick Guyomard has become the first health and safety professional in Jersey to be awarded Chartered Fellowship of the Institution of Occupational Safety and Health. Mr Guyomard achieved Fellowship status with Occupational Safety and Health after completing a comprehensive qualifying process and having held Chartered membership for over five years. He has over 20 years health and safety industry experience holds a Masters Degree in Occupational and Chartered Fellow status for health and safety professional Law At Work s Health and Safety Business Partner Environmental Health and Safety Management and is a committee member of the Jersey Employers Network on Disability. He is also Chairman of the Jersey Occupational Safety and Health Association (JOSHA) which supports businesses in their health and safety provision promotes high standards within the field in Jersey and provides networking opportunities for health and safety professionals in Jersey to share knowledge. Kelly Flageul Managing Director of Law At Work (Jersey) Limited said We are very proud of Paddy s achievement and this really highlights the level of expertise and skill that he can offer our clients. Gaining Fellowship status should not be underestimated. It was a lot of hard work and took great commitment and my appreciation must also go out to his family who no doubt went through the process with him. Mr Guyomard said I m very honored to be awarded Fellowship status I regard it as recognition of the part I am playing in the continuing development of the health and safety profession in Jersey and JOSHA in particular. From your first idea we support your innovation journey. Protect & manage your intellectual assets. trademark patent domain design licensing protect. secure. implement. idea. research. concepts. develop. launch. www.onestopip.com copyright Call us on 01534 864318 or email team onestopip.com for advice on how to protect your assets as you set-up your business or expand beyond the island. www.bailiwickexpress.com jsy CONNECT January 2015 13 LEGAL NEWS Legal Matters Carey Olsen advises on 50 .6 million fundraising Carey Olsen has worked with international law firm CMS Cameron McKenna LLP on the launch of River and Mercantile UK Micro Cap Investment Company Limited. This is a new Guernsey closed-ended fund which raised 50.6 million on its listing on the premium segment of the London Stock Exchange in December. It is designed to achieve long-term capital growth from investment in a diversified portfolio of UK micro-cap companies. River and Mercantile Asset Management LLP has been appointed as portfolio manager. Advising on all aspects of the fund s establishment as a Guernsey structure as well as on the required regulatory approvals Carey Olsen s corporate team included partner Ben Morgan and senior associate Annette Alexander. Advocate Morgan said It was a pleasure to work alongside CMS Cameron McKenna and to advise River and Mercantile on this significant and successful LSE listing before the close of 2014. CMS Cameron McKenna partner Cathy Pitt said There were some complex structuring issues to resolve on this transaction. As ever the Carey Olsen team worked side-by-side with us to deliver a fund structure meeting our clients requirements. careY olsen advIses on telegraph hQ deal Carey Olsen has advised property company Kennedy Wilson Europe Real Estate plc on the acquisition of the Telegraph Media Group s London headquarters. Carey Olsen partner James Mulholland and associate Stephanie Nisbet advised on the Jersey aspects of the transaction. The firm acted alongside Goodwin Procter who provided the UK legal advice. The property 111 Buckingham Palace Road is a landmark Grade A 227 165 sq ft office building immediately over Victoria station. It was acquired from Kish Holdings Limited part of Green Property Ventures and in addition to the Telegraph other tenants include TV and internet content group Scripps Network. Kennedy Wilson Europe Real Estate plc (KWERE) is a closedended collective investment fund incorporated in Jersey that invests primarily in real estate and real estate loans in Europe. Carey Olsen s involvement in the transaction follows recent advice to KWERE on its 1 billion London main market initial public offering and approximately 350 million secondary equity issuance. Mr Mulholland said We are proud to have had the opportunity to continue to support a client such as KWERE on its acquisition trail so soon after their successful secondary raise in the equities market. They are going from strength to strength. Mourant Ozannes advises on equity raises Offshore law firm Mourant Ozannes has advised four FTSE 250 companies on their recent equity placings which have raised a total in excess of 495 million. The transactions for Big Yellow Group plc Cable & Wireless Communications plc Informa plc and Workspace Group plc all involved a Jersey cash box structure. Storage company Big Yellow Group raised funds to acquire the 66.7% stake it did not already own in Big Yellow Partnership from its joint venture partner Pramerica. Telecommunications company Cable & Wireless Communications raised funds to part finance its acquisition of Columbus International Inc. Publishing and events company 14 Informa raised funds in connection with the acquisition of Hanley Wood Exhibitions. Finally business premises provider Workspace Group raised funds to extend the company s ongoing refurbishment pipeline and progress acquisition opportunities. Various teams in Mourant Ozannes Jersey office advised on the placings which were led by partners Simon Felton Robert Hickling and James Hill and senior associates Paul Martin and Jon Woolrich. January 2015 www.bailiwickexpress.com jsy CONNECT Works the way you work. The only system you need for wealth management. NavOne is the world-leading wealth management system delivered by Touchstone and powered by Microsoft Dynamics NAV technology. Used by small to large trust and fund administration companies family offices private equity firms and specialist legal and accounting practices across 20 global jurisdictions NavOne helps increase operational efficiencies and reduces administration costs. For more information call 01534 818900 or visit touchstoneOne.com Delivered by Powered by APPOINTMENTS Trading places Barclays appoints new director to focus on private clients Barclays has appointed a multiaward winning trustee as a director in the bank s global investments and solutions trust division in Jersey. Norson Harris will focus on building and maintaining the existing complex fiduciary relationships with Barclays clients based in Europe the Middle East and Far East. Ashley Cox director at global investments and solutions trust said Norson has extensive experience of the international finance industry and has a detailed understanding of many business areas including private banking fiduciary and family office. He is an excellent addition to the team. Mr Harris is a law graduate and barrister. He is an Associate of the Chartered Institute of Bankers a member of the Society of Trust and Estate Practitioners and Fellow of the Chartered Institute for Securities and Investment. He has more than 25 years of experience working in the international financial services industry as a fiduciary company director and wealth manager. He said I m looking forward to working with the entire trust and wealth management team at Barclays which has a strong and established reputation in the wealth structuring and fiduciary arena. Charlie Roger new cI ceo for ravenscroft S tockbroking and investment management company Ravenscroft Limited has appointed a new Channel Islands Chief Executive Officer. Former Elizabeth College pupil Charlie Roger is a Chartered Fellow of the Chartered Institute for Securities and Investment and holds the Diploma in Company Direction. Jon Ravenscroft Group CEO said I am delighted to welcome Charlie to the board of Ravenscroft as Chief Executive Officer Channel Islands. Charlie is a wellrespected individual with a proven track record within the local wealth management industry. Mr Roger said Ravenscroft is at a very exciting stage in its development. The challenge as ever will be to continue exceeding client expectations in an ever competitive world but I am confident that Ravenscroft s ethos and principles and more importantly its people will ensure we continue to do that. Collas Crill strengthens corporate team on Russia the CIS and other emerging markets jurisdictions. Partner and head of the corporate team in Jersey Advocate Paul Wilson said Nick joins at an exciting time for the firm as we welcome Cayman to the fold. With our other offices in Jersey Guernsey London and Singapore the firm now has real global reach and Nick will look to cement and further develop this. Finance and corporate lawyer Nicholas Davies has joined Collas Crill from magic circle firm Freshfields as a group partner. Mr Davies has extensive experience in corporate finance having advised on international debt and equity capital markets cross-border structured finance and banking and corporate transactions with a particular focus 18 Mr Davies said he was delighted to be joining Collas Crill at such a progressive stage in the firm s development. The firm s ambition culture clientfocus and multi-jurisdictional outlook are very attractive and provide an excellent fit for my practice. I look forward to working with Paul and the rest of the team to further strengthen the firm s international corporate and commercial offering he said. January 2015 www.bailiwickexpress.com jsy CONNECT APPOINTMENTS Visit www.bailiwickexpress.com for all the latest business news or subscribe to get the latest news straight to your inbox Looking for more Business News Elian appoints Group Chairman Chairman at FTSE 100 companies G4S plc and Amec Foster Wheeler plc. Elian CEO Paul Willing said John s financial services experience is second to none and his skills and knowledge will be a major boost to Elian. With our ambitious growth strategy we are committed to building a strong global business consolidating our presence in existing markets and expanding into new markets. Mr Connolly said he was looking forward to working with the board and the executive team helping shape and implement the strategic plan. He said Elian is incredibly well positioned for rapid growth as a result of the company s recent management buyout of Ogier Fiduciary Services and the subsequent launch of their new brand. PwC CI welcomes back team leader Elian has appointed John Connolly as its new Group Chairman. Formerly Global Chairman and Global Managing Partner of Deloitte Mr Connolly has 44 years experience in professional services. Since retiring from Deloitte in 2011 he has served as Marbral Advisory appoints principal consultant Mike Byrne has returned to Jersey following a twoyear secondment with PwC Singapore where he led the range of services in alternative funds. Having built up this part of PwC s business in Singapore he returned to Jersey as Asset Management industry leader for PwC in the Channel Islands with a personal focus on private equity and hedge funds. He will continue to work closely with the PwC Singapore Asset Management team visiting regularly to maintain relationships and to support clients both in the region as well as European alternative asset managers and service providers seeking to enter the South East Asian market. Brendan McMahon Senior Partner PwC Channel Islands said We are excited to have Mike back in our senior leadership team. His specialist knowledge absolute commitment and contribution to PwC both in South East Asia and here in the Channel Islands coupled with his extensive connections and his ability to foster dynamic collaborative relationships are invaluable in supporting clients both locally and further afield. 19 Marbral Advisory has appointed Kenan Osborne as a principal consultant to lead a team of project and business analysts to delivering business change. Mr Osborne who was educated in Jersey and graduated in the UK with a BA (hons) from Leicester University is a programme manager who specialises in both business and technology change. He has worked as a consultant for the last ten years in finance trust and local government. He said I am delighted to be a part of Jersey s largest change management team. I am looking forward to developing the business and delivering transformation programmes for clients. www.bailiwickexpress.com jsy CONNECT January 2015 B ack to School changes at the top a sudden rush of polItIcal focus after Years of InattentIon and a buIld-up of pressure to control budgets and sImultaneouslY Improve standards all of thIs means that justIn donovan has pIcked an InterestIng moment to take up the job of dIrector of jerseY s 106 mIllIon per Year educatIon servIce. Get education right and you solve just about every other problem too. If the skills coming out of the schools and colleges match the requirements of employers then unemployment drops and we don t need as many immigrants to come here and bring their skills. If young people are properly taught about healthy lifestyles then the Health department has to do less to look after smokers the obese and people with drinking problems. If young people have a sense of community and a work ethic from a young age they ll be happier adults and they ll both experience and cause fewer social problems. If young people are encouraged to think creatively and find a way to enjoy learning we ll be a more flexible entrepreneurial and diverse society. Let s run through those benefits again less unemployment fewer immigrants less spending on health living longer happier population fewer social problems a more 20 January 2015 www.bailiwickexpress.com jsy CONNECT flexible workforce and more entrepreneurs. If Jersey had a shopping list that would be it. Those are literally exactly the things that we need. But for the last ten years education has been the one subject that politicians have been desperate to stay away from. Aside from the occasional flare-ups of the 14 transfer Hautlieu debate or the ill-judged and ill-fated attempt to cut the States subsidy to fee-paying schools in 2011 this is a subject that generates as much political enthusiasm as a double maths lesson. But things are starting to change. Last year a pre-election debate billed as a major discussion on population policy ended up being hijacked by the subject with Jersey s current system described variously as shameful shocking and under-performing as speakers including CICRA head Mark Boleat Senator Philip Ozouf and former chief civil servant John Mills lined up to take their shots. A few weeks later the former Education Minister left office complaining that last-minute demands for a SPECIAL REPORT 2 words Ben Qu r e A PICTURES Gary Grimshaw SPECIAL REPORT 2% cut in this year s budget made hypocrites of those who pretended to support the cause warning that the cuts would hit frontline services and demanding reforms to set up a sixth form college at Hautlieu. And then the four most important jobs in Education in Jersey changed hands over the course of a few weeks there s now a new Education Director at the helm of the 106 million-per year service a new Headteacher at Hautlieu a new Principal at Highlands College and a new Education Minister. The department s remit has also been changed responsibilities for sport and culture have been shifted across to the Economic Development department leaving Education solely focused on...education. And now finally add one more thing a Chief Minister who has pledged to raise academic standards and vocational opportunities and who in his introductory pitch for the job said pledged that his new Council of Ministers ...would spend considerable time supporting Education . Into that mix steps Justin Donovan who has taken over the job of running the Education department. The Island s new Education Director arrived in Jersey this summer after ten years running Hertfordshire County Council s education service a service that included 527 schools around a quarter-of-a-million children and a budget of around 1 billion. His time there was a successful one under his leadership the percentage of children leaving school with five GCSEs at A -C including English and maths went from around 60% to 85% significantly higher than the national average. Mr Donovan a former teacher who started his career working www.bailiwickexpress.com jsy CONNECT January 2015 21 SPECIAL REPORT with children with special needs in West Sussex said that he was completely clear on what was at the top of his to do list. The first priority is standards he said. What has happened in Jersey on standards if you look at it as a whole over the last 10-15 years they have improved slightly. It has moved in terms of English and maths and it has moved probably by a few percentage points. Back at the turn of the century Jersey was one of the top performers in Europe. But what has happened is that since then in the UK there has been a huge amount of political will and huge investment has gone into education systems and standards have risen not that you d believe it listening to the UK media who love undermining the system. The UK has gone ahead of Jersey. We have gone from being ahead to below. We need to move along and that is a big issue. There is also the curriculum and there are two issues there. While there is some really good stuff going on we don t consistently organise the curriculum to reflect the Island s history and culture. There needs to be an entitlement. There is not a lot of evidence to suggest that we are tallying Jersey s economy and the education system. There are some great links but nobody has actually looked at the curriculum and aligned them together. Our system is really good at taking some kids and helping them to reach their potential the number of kids getting A s and As is really impressive and they go on to university and have really good careers. But we have got others who do not and they are leaving with a good education but not necessarily the skills and qualifications our industries want and they are losing out. We need to get that conversation going. We need to do that urgently because it will take a year or so to get that straightened out. With the construction course for example there are a couple of issues one we do not do enough of it. Secondly when we do it we do it with UK methods without reflecting Jersey. So we have young people doing brick-laying courses. But we don t use that here we do block-laying and steel work. So why on earth are we teaching these kids about bricks My view is that if you can t teach in Jersey you re in the wrong job. We have got fantastic children they re enthusiastic they re polite they re just fantastic. Compared to the UK they re a delight to work with. We ve got some of the best headteachers that I ve worked with and I ve worked with hundreds. They re committed and skilful. And we ve got some of the best school buildings there are one or two that need replacing Les Quennevais needs replacing urgently but some of the schools are excellent. He goes on to talk up the staff at the department citing for example Jerseyman Sean O Regan an award-winning headteacher who is in charge of early years education and saying that he wouldn t change any of his team and that he s got the right group to get what he needs done. So that s great kids great schools great headteachers and a great set of staff there s one fairly glaring hole in that list of assets. It s the structure. This is where things tend to come a bit unstuck in Jersey saying that changes to the structure of the education system are controversial is a bit like saying Mike Tyson was a bit good at hitting people in the face. In 2011 the then-Education Minister tried to reduce the taxpayer s contribution to fee-paying schools over a period of several years. One States veteran described the resulting backlash in terms of public meetings news coverage and floods of furious calls and emails to politicians as like nothing he had seen before in decades in the Chamber. The proposition and the political career of the then-minister were stopped pretty much dead in their tracks. But that was then this is now. Next month the Education department will unveil a major plan. Mr Donovan isn t giving anything away about that he doesn t even explicitly say whether it will cover the question of reform and structure but he does say that part of his job is to make sure that any debate that happens does so on b the number of kIds gettIng a s and as Is reallY ImpressIve and theY go on to unIversItY and have reallY good careers. but we have got others who do not and theY are leavIng QualIfIcatIons our IndustrIes want and theY are losIng out wIth a good educatIon but not necessarIlY the skIlls and www.bailiwickexpress.com jsy CONNECT January 2015 23 the basis of evidence and facts not lazy ideology on either side of the spectrum. He said There is a lot of interest in the system lots of discussion around fee-paying and nonfee-paying schools and about the 14 . My job is to be neutral in that. It s not for me to come in to Jersey and tell everyone what its system should look like. The current system is really good for very able children. But overall the results across the system are not good enough. I think that we can improve results with the current system without making structural change. I think that what s important is that we as a department squeeze the best possible results out of whatever the system is. And then talk about the system itself. Our instinct is not to tell everyone what we re doing it s not to tell everyone. You have to find out. But we are going to publish this plan next month and it will allow the public to hold us to account. My job I think is to have an informed debate with information and evidence and at the moment these debates spring up every so many years and they happen mainly in the media. I think that it s our responsibility to have that discussion but bring some evidence to it. If people decide to change the system and the 24 January 2015 www.bailiwickexpress.com jsy CONNECT Island decides to do so it will take a number of years. I m the Director of Education so I want people talking about education. If talking about the system does that then I m OK with it. We are talking literally about the Island s future. What all of that talk tends to end up with is whether or not we should abolish the 14 transfer and turn Hautlieu into a sixth-form college and a question of whether or not the balance between what the taxpayer and the parents pay for feepaying education is right. At the moment there s effectively a two-tier system with four non-fee-paying secondary schools teaching up to GCSE level with an option for some children to transfer to Hautlieu at 14 if they meet academic criteria to do GCSEs and A-Levels. Running parallel to that is a feepaying sector where the States and parents both contribute to the cost of education which includes the Catholic schools. Vocational courses and some Universityaffiliated degree courses are run at Highlands College which also covers day-release courses and evening classes. The three elements to that structure that cause tension are a) the creaming-off of some academically-talented students out of the mainstream secondary school system at 14 b) SPECIAL REPORT views you hold on the subject of education generally there is only one way to view what has happened at Grainville and Le Rocquier schools since then which is to say that results have skyrocketed. In 2011 just 12% of pupils at Grainville achieved the benchmark of five GCSEs at A -C including English and maths in 2014 that percentage was 45.5%. At Le Rocquier 45.29% of pupils achieved that benchmark this year compared to 24.38% the previous year. By any standards and against any benchmark that improvement is remarkable. Mr Donovan has a simple plan for squeezing even better results not just from those schools but from all of the others as well. He says that he wants to empower headteachers to make their own decisions and take more responsibility rather than rely on more central authority from his staff at the department. It was this approach he says that was responsible for a significant part of the improvement that he oversaw in Hertfordshire over the last decade. He said I m asking our schools to be daring bold ambitious and imaginative. To do that they need headteachers who can lead not just manage. We need freedom to make decisions. the balance between parents and the taxpayer in the cost of providing education in the fee-paying schools and c) the balance between vocational and academic education. And to say that they cause tension is putting it very very lightly. Mr Donovan acknowledges the reticence of his department but it comes to something when a subject is so sensitive that even the extraordinary success story that two States secondary schools in particular have seen in the last few years is quietly brushed under the carpet. A few years ago the media published exam results broken down by school for the first time and only after forcing the release of the information through the Code of Practice on Public Access to Official Information. Those results showed a poor set of results in some schools that did not square with the rosy picture painted by the Education department. The selective nature of Jersey s system where some academically talented pupils are removed from the system and the fact that a much higher proportion of children are in fee-paying schools were both factors that contributed to a major gap between exam results at secondary schools here and secondary schools in the UK. Whatever view you hold of that and whatever www.bailiwickexpress.com jsy CONNECT January 2015 25 SPECIAL REPORT At the moment we are very controlling centrally not just as a department but also as the States of Jersey. That is for good reasons in terms of economies of scale and efficiency but we need to temper that against schools ability to feel free and make decisions particularly around their budgets and their staffing. If you can t control your budgets and the people that work for you then you are going to struggle to lead. I m simply talking about schools flexing their muscles and being imaginative. That will create all sorts of problems there will be inconsistencies and mistakes but I would rather deal with those problems than the problems of stifling imagination and creativity. At the end of my first day I printed off all of my emails and put them in a drawer. On 1 September next year I ll do the same again and we will see what has changed. Am I still getting emails where I m being asked to make decisions that I think should have been made before they got to me Are my emails about change and standards Or are they still about buildings and money problems I m hoping they re about changes and standards. At the moment I ve got too many asking my permission about things that should have been sorted out before they got to me. 26 It may be that when his first anniversary rolls around Justin Donovan will already be focusing his attention on some much bigger questions. END b there Is a lot of Interest In the sYstem lots of dIscussIon around fee-paYIng and non-fee-paYIng schools and about the 14 . mY job Is to be neutral In that. It s not for me to come In to jerseY and tell everYone what Its sYstem should look lIke. the current sYstem Is reallY good for verY able chIldren January 2015 www.bailiwickexpress.com jsy CONNECT ADVERTISING FEATURE Graduate internship programme If you re a local graduate then Yellow Brick can provide you with access to a range of paid internship opportunities across a breadth of sectors in Jersey with a focus on pro-actively identifying specialised project opportunities. The programme also aims to facilitate the development of skills there will be opportunities for graduates accepted as Yellow Brick interns to undertake project management training and in some cases role-specific training. Furthermore throughout the internship programme mentoring support will be offered to the intern and the employer in order to secure quality results at an individual and organisational level. In recent years there has been a tendency for local graduates to delay their return to the island following graduation the Yellow Brick programme will look to engage with students and undergraduates alike as well as those who have recently graduated to raise awareness of the range of employment opportunities on the island particularly those outside of the traditional professional services. We are particularly eager to work with local employers who have very specific needs as well as with graduates who are eager to have the opportunity to apply their degree within a practical context. The programme is already proving popular with digital businesses the creative industries specialist service providers and agricultural production based operations. As the economy in Jersey starts to show signs of growth it is clear that graduates who wish to return to the island have a real opportunity to apply their learning in exciting project roles. They can do this secure in the knowledge that they will be supported whilst being stretched. Sally Gallichan Programme Manager for Yellow Brick has a proven background in commercial recruitment combined with business experience at both operational and strategic level. Mrs Gallichan said Yellow Brick offers an opportunity for graduates and employers to combine their energy and passion in a structured manner that delivers real benefits at a personal business and community level. Her role combines facilitation and mentoring from the point of initial enquiry through to successful completion of an internship. Employers wishing to become involved with the Yellow Brick programme will be offered support through all stages of the recruitment and selection process as they select the right intern for their project. Once an intern is appointed support will be provided as-and-when required. The internships will vary in duration from 3 to 12 months but must be structured so that they deliver tangible benefits to both parties. The programme is ongoing therefore placement opportunities are welcome at any stage in the year but normally open to graduates who have graduated within the last 24 months. During early December we will be hosting a number of drop-in sessions for those looking to find out more about the internship opportunities currently available. These sessions will offer more information about the programme access to application documents details of current opportunities and current training courses. The programme is already proving to be very popular so undergraduates due to complete their studies in 2015 are also welcome to the drop in sessions. We welcome the opportunity to speak with employers who would like to hear more about the programme and how we might be able to provide support for a project-based internship. The programme includes as standard a thorough vetting process of all prospective interns so that the integrity of the programme can be maintained at all times. Initial enquiries are welcome so please do get in touch and we will be happy to discuss how a Yellow Brick intern could make a difference to your organisation. 27 Contact us Sally Gallichan Programme Manager Yellow Brick Graduate Internships Call 07797 813821 Email enquiries yellowbrick.je Yellow brIck creates the opportunItY for talented graduates to secure paId project-based roles on the Island. the programme has been desIgned to nurture local talent and encourage busIness growth and wIll support the selectIon and recruItment of graduates so that partIcIpatIng organIsatIons can remaIn focused on theIr core busIness. www.bailiwickexpress.com jsy CONNECT January 2015 FEATURE Start-ups need support to succeed Setting up a business is a daunting yet exciting experience. Alongside a winning business idea there are many other things to consider such as organising finance writing business plans choosing the right business structure creating a business name developing marketing strategies and of course ensuring compliance with certain legal and regulatory obligations. The most creative business idea can be scuppered by a lack of careful attention to the details. Launching a business requires careful planning organisation and management. 28 January 2015 www.bailiwickexpress.com jsy CONNECT busIness set up Creative idea in hand - the next step is to get help if necessary. Speak to experts and professionals who can support you every step of the way. Once you have the financial backing you need determining the appropriate legal entity comes next whether this is a company partnership or sole trader. There are legal requirements to establish and incorporate a legal body which require submission of documentation to the Jersey Financial Services Commission and you will also need to obtain a business licence to trade from the Population Office which also enables you to employ staff if required. jo gaveY assocIate at moore stephens eXplores some of the Important steps busInesses need to most of theIr entrepreneurIal Ideas. take to make sure theY make the FEATURE well as putting a strain on their time by constantly chasing for payments. You may wish to consider third party assistance for these tasks which will allow you to focus on developing your business. paYroll socIal securItY & ItIs returns Your requirements will no doubt change as your business grows and develops. You may decide to employ staff which means having to deal with payroll which involves registering with the Social Security department as an employer and making the necessary quarterly submissions. You will also need to register with the Income Tax department and submit monthly ITIS Returns for employees. Ensuring your staff are paid on time with the correct amount and a pay slip is essential but can take a lot of organisation. Professional help can establish and run payroll systems including calculation of overtime payments and deductions preparation of wages and salary slips together with ITIS and Social Security payments. BUSINESS START-UPS fInancIal support When looking at options for raising third party finance you may well need to prepare a business plan which will enable you to focus upon market analysis staffing requirements and financial projections. goods and servIces taX If you anticipate that your business will have annual taxable supplies of 300 000 or more then you will also need to register for Goods and Services Tax (GST) and complete quarterly GST returns. If you are self-employed you must also register with the Social Security department as you may be liable for Class 2 contributions. You also need to contact the Income Tax department to advise them of your change of circumstances and to organise a payment plan for your personal tax which will also require you to submit trading accounts with your personal tax return. get advIce to get ahead All types of businesses large or small can need help when first setting up. In the early days of trading entrepreneurs may think it will save money to do everything themselves. However these things need careful planning and organisation and this may be the one of the times in life where you shouldn t scrimp on professional expertise if you want your business to have a successful future. 29 fInancIal plannIng & development It is important to continually check that your business is on track. The best way to do this is to prepare budgets cash flow projections and management accounts on a monthly or quarterly basis highlighting any variances between projected and actual amounts. busIness support Another day to day task that can take up time is keeping on top of payments to creditors and also collecting payments you are owed. Unfortunately not all clients will pay on time and this can create stress and worry for business owners as www.bailiwickexpress.com jsy CONNECT January 2015 FEATURE BUSINESS START-UPS Lifetime Enjoyment a new web-based companY has been launched bY local busInessmen trevor and In simple terms this means the house is sold for a reduced price taking into account theoretical life expectancy and the seller or sellers remain living in it until they die or perhaps move into permanent care. Trevor Gray said I have worked in the finance industry for nearly 40 years and throughout that time have been approached on a number of occasions by older friends and clients looking to sell their property in this way in order to free up capital and enjoy their money in retirement. It was almost impossible to find potential buyers as most people like to keep this sort of thing confidential and advertising was often out of the question. With the advent of the internet social media and so on I hit upon the idea of creating a website that would introduce potential buyers and sellers to each other as discreetly and confidentially as possible. People considering selling their property in this way can use the site to get a rough idea of what they may receive based on their approximate life expectancy. If this is of interest they can register basic details of the property for possible sale. Those interested in buying in this way will have registered on the site and will receive an email each time a new property is listed. If they would like to view the property they advise us and once we have expressions of interest we provide the list to the vendor who can choose who they wish to view. This ensures that sellers can vet the person who may own the property they will live in for the rest of their lives it could be a neighbour relative or colleague they wish to avoid From this point onwards we are no longer involved in the process and the price terms and conditions of the sale become the responsibility of the two parties and their chosen professional advisers. Oliver Baudains of Level Media Ltd built the online platform. He added When Trevor approached me to set up this business it was based on a concept I had not heard of before. However I quickly saw the benefit of using digital technology to bring buyers and sellers together in a simple and confidential way. The website has been designed with its older target audience in mind and is very user-friendly. Interested buyers and sellers can also use our phone service should they require more information. olIver baudaIns to graY brIng together older people consIderIng sellIng a reversIonarY Interest In theIr house and those Interested In acQuIrIng local propertY In thIs waY. 30 January 2015 www.bailiwickexpress.com jsy CONNECT Do you want a more comfortable retirement If you are over 65 and you would like to raise a tax free cash sum to see you through your retirement you could sell your home through Lifetime Enjoyment and continue to enjoy living in your home until you pass away or until you need to move permanently into a care home. For more information about our service or if you have any questions please call us on 01534 888818 or email info lifetimeenjoyment.com www.lifetimeenjoyment.com A LOCAL FIRM PROVIDING A SERVICE FOR LOCAL PEOPLE 01534 888818 info lifetimeenjoyment.com www.lifetimeenjoyment.com DISCLAIMER Lifetimeenjoyment.com does not provide any legal or financial advice and we strongly recommend that you take professional advice before proceeding with any transaction. FEATURE Protecting your assets Intellectual property impacts our lives on a daily basis countless times even before we have brushed our teeth in the mornings. The products we use the music we listen to the websites we visit are all likely to have been legally protected to maximise the value to their owners and discourage copying or exploitation by others. According to a recent study of over 130 countries the UK has become the most entrepreneurial economy in Europe and forth in the world thanks to innovative products and unique services. By combining strong business acumen with innovation and design UK entrepreneurs are achieving success in domestic and global markets. The Jersey business community has contributed to this unfolding success story by creating value from the ideas and services that they have created and manage - this is intellectual property. Intellectual property (known in short as IP or IPR for intellectual property Rights) can consist of many different areas from logos and branding through to the novelty of the products services and processes that make a business unique. With the growth of the internet it is now much easier for people and businesses to copy what you do and make. Companies of all sizes are at risk of having their unique ideas infringed upon even if they are on the other side of the world making IP protection even more important than ever in our global economy. When you have a great idea there will always be people who will want to duplicate your success and sell your ideas as their own. Depending on individual circumstances you can gain protection with patents trademarks domain names or copyrights all of which cover different areas of intellectual property law. These can be used to prevent competitors or anyone else from using your ideas for their own profit without your consent. Limited protection for original work is automatic in some cases (copyright) and it s possible to file for protection yourself with the relevant authorities. However a qualified patent or trademark lawyer can guide and advise you through what can become a complex process requiring technical expertise and experience to assess the correct course of action and overall cost. After securing your IP in the jurisdictions that are relevant to your trading areas what next Well it then becomes very important to ensure your rights are maintained correctly and are not infringed in any way by third parties. It s important to remember that no one else will check to see if your intellectual property has been infringed so you need to manage this yourself or engage a specialist service provider who can act on your behalf. It may seem initially daunting and time consuming but protecting yourself is well worth the time and effort. It isn t as difficult as you may think especially if you choose to work with an IP specialist who will take the trouble to understand your business and innovative ideas and set out the options and choices available to you. A recent example of how this can work successfully is with a new company called Dappercap who have designed a helmet for styleconscious leisure cyclists filling a gap in the market for good-looking head protection. Their unique branding product design and web-based shop front has created a great deal of interest. The potential value gained through years of development and investment has been protected via patents secured domain names trademarks and registered designs in UK and European jurisdictions. Following a launch in summer 2015 and the release of new funds the plan is to seek protection is US and Far East markets where sales potential and interest in cycling is huge. BUSINESS START-UPS startIng a busIness or runnIng a trust tempted to put-off protectIng Your Intellectual propertY matthew hIves from one stop Ip eXplaIns whY You need to thInk agaIn 32 January 2015 www.bailiwickexpress.com jsy CONNECT ADVERTISING FEATURE Ever thought about skills training If You work for local sme You could be elIgIble to receIve a grant from the states of jerseY whIch Is currentlY provIdIng fundIng support for emploYees of local busInesses to undertake traInIng. Launched by Skills Jersey in September 2013 the Skills Accelerator has helped hundreds of local employees over the last year to access training that might make a difference to the viability or diversification of their employer s business. This has included support for personal development vocational or specialist training and training for employees looking to progress to a new role. Supporting the States of Jersey s aim to encourage innovation diversification and workforce development within Jersey businesses the Skills Accelerator has provided support for a range of training from industry-specific qualifications to courses in areas such as IT customer relations leadership and management. Successful applicants are offered a grant of up to 75% of the total balance of their training costs up to 4 000. Speaking about her experience of applying to the scheme Business Development Manager of the Cosmetic Dental Group Jayne Sproson said The application was straightforward as was the follow up and any queries were dealt with in a most efficient and friendly manner. Our employee who undertook the training in question has returned from her course with specific goals and actions and has already been able to implement changes with a confidence that makes the process worthwhile. Most importantly our patients are thrilled with the service and are consequently taking up more of our professional recommendations benefiting their oral health and wellbeing. This is an excellent initiative that we would highly recommend. Other beneficiaries of the scheme Ros Byrne-Shore and Clare Le Gallais of the Self-Advocacy Project commented As a small independent organisation in the voluntary sector wholly supported by a local charity we have struggled to keep up with training that is usually only accessible in the UK. We are most grateful that this training initiative exists to help those of us without big budget training packages to become as skilled as the community we serve deserves. In order to be eligible applicants must be able to demonstrate their residential status and organisations must have been trading for a minimum of six months. To find out more about this initiative please call Alistair Blair for an informal conversation on 440657. Alternatively further information about the Skills Accelerator and how to apply can be found at www.gov.je SkillUp www.bailiwickexpress.com jsy CONNECT January 2015 27 FEATURE Starting a Business Can you afford not to read this Starting a business is like any major life event as is the case with planning a wedding or moving house there is likely to be euphoric highs and nail biting lows. You could steam in like a rhino and deal with the damage limitation later or you could get the right advice and support straight from the off. In this article I hope to explain the basics of business start-ups. For that we must start at the very beginning are you eligible to set up a business in Jersey The answer is yes if you have lived in Jersey continuously for five years or are entitled licenced or entitled to work. You are also eligible if you are the spouse of someone who is entitled licenced or entitled to work. Your next decision is key as you have to identify whether you should be a sole trader partnership or limited company. They all have their own attributes and features as described below sole trader It s just You Setupcanbecheaperandsimpler Youcanproducesimpleaccounts Youcanformalimitedcompany later Youarepersonallyliableforallyour businessdebts Yourabilitytoraisemoneyis limited Anapplicationforabusinesslicence isrequiredviathePopulationOffice Youcanregisteratradingname withtheJerseyFinancialServices Commissionforasmallfee Youneedtoadvisethetaxesoffice andSocialSecuritydepartment bY sean o flahertY dIrector rosscot chartered accountants partnershIp You are goIng Into busIness wIth at least one other Twoormoreself-employedpeople worktogetheraspartners sharing profits Settingupcanbesimplerand cheaperthanalimitedcompany 34 January 2015 www.bailiwickexpress.com jsy CONNECT FEATURE BUSINESS START-UPS Youcanproducesimpleaccounts Youcanformalimitedcompany later Youmaybeabletoraisemoneyby introducingnewpartners A sleepingpartner willcontribute capitalandhaveashareinthe profitsbutwillnotbepartofthe managementofthebusiness Youareliableforallthepartnership businessdebtseveniftheother partnerwasresponsiblefor incurringthem Canbeeasiertoraiselargesums ofmoney ortosellpartofthe business Canbeeasiertodealwith successionissuesasownershipis passedontofamilymembers others instalment system (ITIS). Additionally if taxable turnover is likely to exceed 300 000 per annum you will need to register for GST and complete quarterly returns thereafter. You will also need to complete bi-annual manpower returns. Your liabilities do not stop there and you must consider the policies you need to adopt and the level of insurance required. You will need adequate insurance to protect against any claim made by a member of the public (public liability insurance) or a client (professional indemnity insurance). If you are employing staff you also need to have employer s liability insurance in place. If you are holding data on clients and even your employees you will need to notify and register your business with the Data Protection Office. All employees are employed under the minimum requirements of the local employment laws so you will need to If you are going to be self-employed (whether via a sole trader partnership or company) you must register with the Social Security department before you start trading. A self-employed person is ordinarily liable to pay Class 2 contributions there are two bases of Class 2 contributions for new businesses. The next stage is to contact Income Tax to advise them of the change in circumstances sole trader partnership limited company. Sole traders will need to produce selfemployed trading accounts. If you set up a limited company your director s fees and dividends will impact your personal tax liability. If you are employing staff you will need to register for the Income Tax understand what is expected of you to remain compliant. You are required to put in place an adequate Health and Safety policy if employing five or more staff and there are strict guidelines on employment contracts and how the payroll is administered. It s vital to seek guidance from an accountant early on to ensure you have the correct advice and structure in place from day one. This will save you time and money and offer an extra supportive network to your new business that you will need from time to time. Once you ve dotted the i s and crossed the t s you can really start to enjoy what you have created. Just make sure you do what you enjoy in my experience this is the backbone of every successful business. 35 Taxadvantages It smorecostlytosetupthana soletraderorpartnership Annualcostswillbehigher requiringthecompletionofan annualreturn Therewillbesomecostsinwinding upthecompanywhenceasingto trade Anapplicationforabusiness licenceisrequiredviathe PopulationOffice YouneedtoadviseIncomeTax andSocialSecuritydepartment Apartnershipagreementis recommended Anapplicationforabusinesslicence isrequiredviathePopulationOffice Youcanuseyourownnamesor registeratradingnamewiththe JerseyFinancialServices Commissionforasmallfee YouneedtoadviseIncomeTax andSocialSecuritydepartment lImIted companY Thisisaseparatelegalentity distinctfromitsshareholders directorsandemployees Increasescredibility Yourliabilityislimitedtothe amountyouagreetoinvestin thecompanybybuyingitsshares. Exceptforpersonalguarantees(e.g. company sbankoverdraft) Doesnoteliminateliabilityfor wrongfully or fraudulently trading youwouldbepersonally liableasadirectorinthese circumstances www.bailiwickexpress.com jsy CONNECT January 2015 FEATURE The modernisation of Jersey s Charities Law jerseY Is well placed to succeed In developIng Itself as a centre of eXcellence In the fIeld phIlanthropIc structures. In of admInIsterIng hIgh value steve meIklejohn partner In ogIer s trusts advIsorY group takes a look at some of the factors that wIll be Important to the Island If It wants to fullY achIeve thIs goal. thIs artIcle advocate In the report to the new Charities Law (the new Law) adopted by the States this summer is the statement that the purposes of the new law are two fold firstly to put in place a modern legal framework that will enable Jersey charities to flourish and secondly to help support the growth of the charitable trusts and foundations market in Jersey so as to enable the Island to position itself as a centre of excellence for philanthropic wealth management . In terms of our sell the new law itself would be the centrepiece. It does indeed represent an excellence framework. When it is enacted it will introduce regulation to a previously unregulated field. The combination of the Commissioner with an Appeals Tribunal above should be a cost effective means of introducing regulation to this field. The key will be for the Commissioner to get the balance right between creating a robust system which prevents abuses (recognising that charities can be used as a front for hiding proceeds of crime for instance) and having a sufficiently flexible and light touch approach so as to enable innovation in the administration sector to flourish. One other aspect of the introduction of the new law and its associated regime which will be vital relates to the treatment of charities which do not wish to be registered. It will surprise many to know that there will probably be a large number of charitable entities administered in Jersey firms which will not seek to register. Why might you ask The reason is that because they are charities which are privately funded do not hold assets in Jersey and do not typically make donations or award grants in Jersey there are no tangible benefits to registering. Because of their lack activity in Jersey they have no need for tax reliefs from the Comptroller no need to call themselves a charity and no need to be registered to obtain equivalent status in some other jurisdiction. Nonetheless this book of business needs to be allowed to continue to operate largely unaffected by the new regime but with certainty of its position and treatment so as not to run the risk of the business 36 January 2015 www.bailiwickexpress.com jsy CONNECT FEATURE LAW when It Is enacted It wIll Introduce regulatIon to aim to ensure that if any incoming individual has any philanthropic aspirations that not only are they encouraged to set up a structure with a local service provider but in a sensitive way we let it be known outside the Island that our incoming high net worths are utilising the Island s administration services in this way. Secondly I know that trust companies are investing heavily in technology. I would like to see the development of software which enhances the services offered by our trust companies could a package be developed that not only allows for accurate reporting on assets (whether held by the administrator or not) but also perhaps enhances the way charities distribute (and monitor the success of in terms of end product) its grants and awards. This would mark Jersey out. Thirdly and building on my second point there is extensive know how which has been developed by the larger and more long standing charities in places like Europe and the US in terms of the whole process of distributing funds. It occurs to me that if the Island were to become something of a specialist centre in terms of the know how around giving (coupled with enhanced technology) we could be demonstrably different to our competitors. My fourth point relates to the distinction between a charitable and philanthropic purpose. Many objects will be both. However even with the new modern definition of charity or charitable purpose under the new law there will inevitably be very worthwhile causes which high net worth individuals will want to benefit which will be philanthropic but not meet the charitable test. This could be because the purpose does not fall into the list of charitable purposes in the new law or is not analogous to one of those purposes or because there is insufficient public benefit with the purpose. At the moment under the new law such structures will not get any tax benefit and will not be registerable. However if we want to embrace this charitable and philanthropic sector we will need to find a way to accommodate and indeed allow to flourish these non-charitable entities. Again it will be important in marking ourselves out. Finally industry and government will need to successfully market our talents in the right place and to the right people. In conclusion at a time when ironically the fight against offshore centres is being led by the charitable sector (such as Oxfam and Actionaid) I believe we could do the reputation of the Island s finance industry a power of good by getting ourselves known for our excellence in this area. For Jersey to be the home of a handful of major charitable and philanthropic entitles with international reputations would be a truly marvellous thing. the combInatIon of the commIssIoner wIth an appeals trIbunal above should be a cost effectIve means of IntroducIng regulatIon to thIs fIeld. fIeld. a prevIouslY unregulated moving. Thankfully the authorities make clear in their addendum to the new law itself that this message has been taken on board and that through guidance and regulation the position of these unregistered charities will be protected. How do we build though on this strong foundation I can think of five possible areas to focus on. Firstly it is the case that the ultra high net worth community at large take philanthropy and charitable giving much more seriously now than ten years ago. It is more widespread as a practice. Furthermore through the hard work of the authorities here we are seeing some extremely wealthy people coming to live in the Island. Whilst giving can be a very personal thing we should You can now donate to a Jersey Charity at www.bailiwickexpress.com Make someone s day www.bailiwickexpress.com jsy CONNECT January 2015 37 BUSINESS ADVISER Business Adviser GET IN TOUCH... If you ve got a business question you would like to put to John please email editor bailiwickexpress.com Do not let 2015 pass D ecorations are down and taxes are up. You have been pressurised by friends family and colleagues to make New Year resolutions that you hope you will keep but deep down you probably know that failure is on the cards. The usual list will have been looked at lose weight stop smoking drink less spend more time with the family save money etc. In fact the same resolutions that you have contemplated for years....you know they are important but something normally gets in the way business So if you cannot keep your personal resolutions due to work commitments maybe a few New Year resolutions for your business may help you Just like yourself you need to keep your business 38 you and your business by ... nimble healthy fit current and profitable. As pressure grows from all sides whether that is red tape through government or regulatory interference increased competition changing consumer attitudes staff issues or lack of liquidity you need to plan ahead and act decisively to leave your business stronger at the end of each day. So where do you start What do we all normally miss Before addressing the concerns that you may have already with your business keep abreast of the matters on the horizon (or a little nearer) that might just derail you in the short term. Although businesses have many threats and opportunities I would suggest that the States of Jersey has the power to materially affect your business for better or worse within a couple of hours. We have some opportunities in Jersey that are not open to competitor businesses in larger places. Government is readily accessible and the opportunity to engage should be taken. If your business has a problem then so will other businesses if you have concerns so will your neighbour. So do not wait for someone else to fight your corner engage and take the debate to government either directly or through your trade association or professional body. We are all critical of States policy in all areas that affect our businesses. However we forget (and may I say so do they on many occasions) that our politicians and their civil servants are not experts in everything they need help January 2015 www.bailiwickexpress.com jsy CONNECT BUSINESS ADVISER expertise and guidance and not just from highly paid consultants but from the people who are affected 24 hours a day 365 days a year. So the first resolution must be to get involved before it is too late. My experience is that they do listen and appreciate comment and feedback. At the end of the day the aim is the same - to make Jersey a better place for all. Take an active part - subscribe at gov.je and respond. If enough people participate the messages should become clearer to the people making the final decisions. Hopefully the final outcome will be fit for purpose. If one engages early enough then policies can be influenced and attitudes changed. If the outcome is not favourable then by taking part in the debate hopefully you will have the time and the knowledge to steer your business through the problems and still emerge stronger. From my business perspective the new Property Tax Consultation is a perfect example. I understand what they are trying to achieve but the ideas seem flawed and one would suggest impractical costly and disjointed. The consultation runs to the end of January take the time to read it and the other consultations and respond. The key is to be proactive and look forward - which takes you to resolution number two probably in all honestly number one and if you only have one resolution then this is the one.... succession plan. It is all very well to have built up a great business and look at it as your pension pot but have you considered the potential pitfalls Is there someone there to take over the business Is there a market to sell it If not then your valuation may be widely out. If your business needs you then your business may be worthless or your world cruise on retirement may have to be downgraded to a ferry to Guernsey. Who is taking over from you How old are they Do they have the expertise both technical and interpersonal Do they have the cash What are you doing to keep them Have you considered the position from where they are What is the time frame What happens if you are ill Succession planning is the key. At Grant Thornton I have seen many disappointed clients who want to retire but they do not have the planning in place to do so. To me it is simple seek assistance and plan properly. The risks are too great to be ignored - no planning could equal no money or no retirement. So approach January with enthusiasm - plan for the near future and become involved but more importantly plan for the long term - it is the most important thing to do now. February is the month for romance so we can consider your cyber relationships then.... 7 Business o Columnist JOHN SHENTON Grant Thornton It s all FREE There is no catch So sign up at www.bailiwickexpress.com today and turn your unwanted items into cash Bailiwick Express Classifieds www.bailiwickexpress.com www.bailiwickexpress.com jsy CONNECT January 2015 39 RORySTEEL o Photography By Gary Grimshaw In with the IT crowd UNPLUGGED Y Unplugged T he story goes something like this with the finance industry facing challenges from higher costs tougher regulation and increasing competition the Island looks to develop a new economic focus digital technologies. Digital Jersey is set up to help deliver the change. So far so good. But with tighter controls on migration how does our new industry find the people to grow Well in the short term that s a real problem. In the longer term the answer takes you back to where it all began school. With a new IT strategy recently launched the Island s schools are responsible for bringing through our digital divas of tomorrow. James Filleul met Rory Steel Assistant Head in Charge of Curriculum and Technology at Beaulieu Convent School and asked him how far that new strategy had progressed RORY STEEL I d say there s definite movement. The schools infrastructure is obviously the first thing to change and that can be the slowest to happen just because of its physical needs but schools I know like Le Rocquier have changed. Beaulieu was lucky in the fact that we d made that change over two years ago now. We were lucky enough to get the JT gigabit service and that is a significant help to us. b busIness wants verY specIfIc skIlls and jerseY and guernseY are In a unIQue posItIon because we can decIde our own currIculum a verY brave move would be to have no general Ict QualIfIcatIons reQuIred at keY stage 4 so theIr gcse Years and replace those wIth dIfferent courses whIch theY can specIalIse In much more I know that the Education department is in talks about the (ISP) service they ll be receiving because that infrastructure and that speed is essential - but the real change from what we would call desk top computing into coding has been the main driving force in the UK and over here. We don t always have to (because we have our own curriculum) follow exactly what the UK is doing. Guernsey for example has done less coding and more logic based subjects whereas Jersey is continuing down the coding route. The real driver for that has been industry. Industry has seen a real void in skills. www.bailiwickexpress.com jsy CONNECT January 2015 41 Got a story to tell Get in touch email us at editor bailiwickexpress.com JAMES FILLEUL Is it better to have specific skills when children leave education or are you looking to create a broader understanding of computing and then get specific later RS Well the coding curriculum is split into three parts. There s digital literacy you ve got the traditional IT skills and the computing. What I think people get hung up on is the wording coding itself. Sometimes when people say in the press that a school is doing coding they re not technically actually in my opinion doing coding they re doing languages like scratch which is an application very drag and drop. They re not writing the code from scratch themselves but you ve got to get there and it s no good saying that these kids in Year 7 and 8 (11 and 12 years old) need immediately to learn to code when they ve not had the building blocks of logic all the way from primary. So here at Beaulieu we decided to teach the same fundamentals to everybody with different levels of ability starting with that logic and eventually we ll move to code. I have kind of set myself an ambitious target for the Year 7s to write their own application that will go on their phones by the end of the year. I ve been highly surprised particularly in a girls 42 January 2015 www.bailiwickexpress.com jsy CONNECT school at the uptake with that kind of coding element because they ve really gone with it. They ve been producing websites from scratch within 40 minutes with only maybe four hours instruction before that so the want is there from the students and the enthusiasm is there so it should bode well for the future in business I think. JF So is the aim to produce business ready employees who are ready to work as soon as they walk out of Beaulieu RS They should certainly be able to walk in and very quickly be able to start in the workplace but it s difficult to please all of business all the time. When I ve asked which language is best for the students to use I get very different answers depending on the people I m speaking to so that made me decide that actually you just need to focus on the logic the understanding of computers and the ability to adapt very very quickly. What we ve been trying to encourage is for businesses to actually directly get involved with the schools to show what they do. So if your business is a web design business come in for an hour and show us what you do and the kids will do whatever you want. An hour is a bit of a short amount of time to do UNPLUGGED b something big but what you can do is give them a flavour and get them interested and I think that s key. All the geeks out there that ever did anything learnt most of it themselves. I remember taking out a book from the library and typing in my code on my ZX Spectrum. That s how we learnt. But the students today have a unique opportunity where they ve got things like You Tube which are much more explicit. If you re stuck someone s actually speaking to you so what we need to do is show them all the doors or a vast majority of them and hope that they get excited by one and then walk through it because ICT was a very narrow field 20 years ago but now it s so vast it s impossible for a school to teach it all. Business wants very specific skills and Jersey and Guernsey are in a unique position because we can decide our own curriculum a very brave move would be to have no general ICT qualifications required at Key Stage 4 so their GCSE years and replace those with different courses which they can specialise in much more so if you like photography go off and do photography if its coding then go down that coding route or video or applications. For me it s about showing them all these different ideas but then being able to guide the struggle Is the skIlls of the teachers themselves. what I was verY happY to see from the states was moneY put towards traInIng because teachers that traIned 20 or so Years ago were traInIng for a subject that Is now completelY changed Into codIng. them down those routes and then I think we ll have many more students that are specifically trained for specific areas rather than a general kind of knowledge of ICT which is really no good to business. A company came to Beaulieu two years ago with the specific idea to head hunt and we were all very honest about it and we even told the students ...this business is coming in to show you some skills but they re also looking to see if any of you are any good . And they really rose to the challenge and they actually were drawn to one of the girl s skills particularly because she was taking on board the clients needs whereas the boys in the group were I m not generalising but those specific boys were very focused on the output. www.bailiwickexpress.com jsy CONNECT January 2015 43 UNPLUGGED Technically they were better but it wasn t the specific need that the business was looking for and that student has now gone on and is now working with that company. JF Is there a limit to the number of businesses that you could work with RS No no in fact the struggle is we ve got too few. My A-Level class is 22 strong so I need many more businesses to get involved. Maybe businesses can lend a hand to make that connection and the schools can be there to help that relationship grow and hopefully we can see students stay in the Island rather than leave. The schools just want the right option for the students and if that s walking straight into a job without going to university because they can t afford it then that s fantastic for us. JF How well equipped is the education system to deliver on what the Island needs at the moment which is the diversification into the digital sector RS The struggle is the skills of the teachers themselves. What I was very happy to see from the States was money put towards training because teachers that trained 20 or so years ago were training for a subject that is now completely changed into coding. I d be generalising but I d say 50% of the teachers have those coding skills and then there s 50% who don t and that has to be managed in the same respect. Now the training has started. JF There will be parents reading this wondering why they got their children an iPad for Christmas because they just play Minecraft on it. Are games part of learning RS There is a whole scheme of work based on Minecraft now. Minecraft is fun and it is a game but the skills within Minecraft are phenomenal and if you ve ever spent the time looking at what your daughters or sons have created in Minecraft you ll see that its a bit more than a game. It is so creative and I challenge anyone to just google Minecraft for education and you will see that there is significant value. One of the things when the iPad first came out was oh no kids aren t going to open a book but when you actually ask the students they read more using the digital devices than they did before because the books are much more accessible. You ve got students here that are actually published authors through iTunes. So has technology hindered literary I d say it s improved it. Now when it comes to game playing there is a whole aspect of education now called 44 January 2015 www.bailiwickexpress.com jsy CONNECT gameification. It actually has a name the ability to make games play games and assess them and that s about logical skill. We ll let them play games at Beaulieu if they ve created them themselves They ve earned that little bit of a playtime at the end of making a quite complex game. Students now come to me and say Here s a game. It doesn t do what I quite want it to do. Can I make this game and can I change it do what I want They re actually getting excited about technology realising that no longer are they going to be just the viewers of technology or the users of it. They re going to be the creators. That s where I look at Minecraft and I say it s not a passive game where they re just clicking a few buttons and dealing with what the computer throws at them. Everything they ve done they ve created and creativity is one of the greatest things that students and learners can do and that s how I view Minecraft If you let them play Minecraft for five hours a night then you ve got an issue but it has a place. My daughter is just four and a half she learned her letters through an application that I had on my iPad. The technology has moved on and the students require a higher level of quality from their learning. JF The education system has had over recent months both from a and from a political level so what to those businesses that have been profession some criticism business level would you say critical of your RS I would say be direct about what your criticisms are because at the moment it s a general criticism. No one has been able to focus exactly on what the issues are. Coding for example is not the fix it s an element of the fix another skill that students need to learn so business needs to engage with schools and schools need to engage with business. Everybody has their own agenda and I don t mean that in a kind of difficult way. Business wants employees that go out and work straight away but schools need to prepare them for life in the same respect there is cross over but I think both sides need to appreciate that they have different needs and different wants but ultimately we want Jersey to improve. Businesses can t complain if they re not getting involved. END Unplugged VIEWPOINT E Viewpoint TAX IN 2015 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 jerseY. If You would lIke to be Included In a future panel of eXperts just emaIl edItor baIlIwIckeXpress.com C partner taX pwc channel Islands Wendy Dorman ross-border business carries tax risks The international tax environment is becoming less and less benign as countries search every nook and cranny for tax revenues. Crossborder activity can quickly lead you into tax complexities be it corporate tax personal tax VAT or transaction duties. Be aware of the risks and manage them. For example the UK residence rules changed recently do you understand the changes and the impact on you Taxshouldnotbethetailthatwagsthe dog the tax result should follow personal or commercial objectives not be an objective in itself. Once you know what you want to achieve look at how to tax optimise that outcome. There are plenty of unhappy people in tax exile living a life of splendid isolation from family and friends. Documentationisking Makesure youareontopofwhattaxfilingsand paymentsaredue andwhen don t leave it to the last minute. Make sure all relevant documentation is in place and supports your position. Revenue authorities are delving deep into all available evidence when investigating taxpayers and in this day and age there is little that can t be found by interrogating IT systems. 2 015 A new year new taxes new worries One month into the new year the consultation process on proposals to amend property taxation in Jersey will end. The proposals range from abolishing stamp duty to introducing Land Development Tax ( LDT ) an anagram of DLT the UK tax which failed so spectacularly to do what it was supposed to do in the 1980s. This consultation affects all Jersey property owners and occupiers you should read it on the States of Jersey website and comment on it. It asks for comments on only 11 questions but the answers you give may affect you for many years to come. To comment please go to http www.gov.je Government Consultations Pages Taxation-of-landand-buildings-in-Jersey.aspx Recently new taxes GST and the long-term care charge were both introduced at very 46 low rates (relative to EU jurisdictions) as the best of limited options available for dealing with difficult and sensitive issues. Fiscal authorities like them because they are effective and efficient and more importantly their rates can easily be increased to collect more tax. No increase is envisaged for 2015 but future increases may be necessary to cope with the Island s demographics and infrastructure requirements. The Chancellor s UK Autumn Statement announced the introduction of a number of measures to counter evasion and aggressive avoidance including giving the UK power to implement the OECD model for country-by-country reporting. Under these rules global organisations will be expected to provide information to HMRC on their allocation of profits taxes paid and economic activity in a country which is likely to bring jurisdictions such as Jersey into increased focus. Will Jersey yet again have to defend its reputation eY head of taX channel Islands Peter Willey January 2015 www.bailiwickexpress.com jsy CONNECT VIEWPOINT A Luke Smith founder purpose ny changes to your share capital can create tax issues You can really disadvantage yourself if you are buying selling or issuing shares and do not know the tax consequences of what you are doing. There are taxed profits untaxed profits pre-2008 profits deemed profits capital gains and all sorts of issues you can get yourself into only finding out after it is all too late. If a contract is worded wrong you may even have GST to worry about. You may want as much in the balance sheet as you can When unsure if a recent expense for something goes to the profit and loss account or the balance sheet it used to be that if there was any justifiable argument for both it should go through profit and loss to reduce taxable profits. As most Jersey companies don t pay tax anymore it may now be more beneficial to help with funding supplier credit checks and customers to show a stronger balance sheet and less expenses to those looking at your books. There may be little benefit in being a sole trader any more Sole traders pay tax on profits but shareholders in Jersey companies other than a few exceptions do not pay tax unless they have received a taxable distribution from the company. If you are a sole trader with large debtors stock or work in progress you could be paying tax on cash you ve not had so it could be worth incorporating a limited company. M aintain your records in good order - Regardless of whether you are a business or an individual it is essential that you maintain records to support any tax return being submitted. Good records will make your life easier when you or your accountant prepares your accounts and tax return and if you are subject to an income tax enquiry or a goods and services tax audit you will have everything to hand you do have an obligation to maintain records under income tax and GST legislation. Staycompliantanduseyour allowances - It is in your interest to file your tax return on time and pay any tax owed. If you fall behind with these the tax authorities are likely to take an interest in you and the cost of carrying out the work after the event tends to be more expensive than if its done at the time. For many taxpayers there are not many personal allowances left where possible and sensible consider using them. TakeAdvice - For business owners the Jersey tax regime is not as straightforward as it used to be with potential pitfalls for those who are unwary. Take advice before making any major business decisions whilst there is a cost attached to this the advice often more than pays for itself. Andy Bougourd dIrector rosscot onset of the Common Reporting Standard will most certainly be high up the to do list of businesses operating in the finance sector whether that be banking fiduciary or asset management. The real push in 2015 will be on ensuring systems and processes are future-proofed and fit to enable reporting to the Jersey Income Tax. More generally we expect Jersey businesses will be thinking more specifically about how the OECD s Base Erosion and Profits Shifting (BEPS) initiative will impact them in practice. 2014 has seen a number of the 15 Actions developed in initial papers and in 2015 we expect to see more of the detail. A key area to watch will be the extent to which non-OECD parent companies (such as those in Jersey) will become involved in country-by-country reporting. I Paul Woodman dIrector and head of taX deloItte jerseY n the UK HMRC has confirmed that non-UK owners of a UK residential property will potentially be subject to UK capital gains tax on the sale of that property after 5 April 2015. Only gains arising after that date will be caught therefore any increase in value to date is locked in and outside the charge. Owners will need to obtain a value at 6 April 2015 on which to base future charges but may elect for original price or time apportionment if beneficial. The rate of charge will depend on the nature of the owning entity with companies probably paying 20% trustees 28% and individuals 18% or 28%. Certain reliefs and exemptions will apply. Draft legislation was released on 10 December. The next stage of FATCA compliance and the NEXT MONTH Fintech-whatopportunitiesarethereforJersey If you d like to take part contact editor bailiwickexpress.com www.bailiwickexpress.com jsy CONNECT January 2015 47 WHO S THE FOOL Who s The Fool When an irresistible force such as you meets an immoveable object like me you can bet as sure as you live - something s gotta give. Frank Sinatra o Illustration By Mark Jackson W 48 e may or may not recognise it but the game of risk and reward is something that dominates almost every aspect of our lives. Whether one is attempting to arrive at the office sometime before nightfall having negotiated the Stalinist speed limit regime of some of our country parishes jimmying all the Christmas lights to run off single plug socket (sorry dear) or running a multi-billion pound offshore bank we all generally understand the concept of upside and downside - and a burning fuse board. (Again I m sorry.) What many people fail to grasp however is that the relationship between risk and reward is rarely symmetrical. In the case of our speeding driver is the benefit of arriving January 2015 www.bailiwickexpress.com jsy CONNECT at work five minutes earlier because of a willingness to break a speed limit really worth the potential downside of a 150 donation to the Parish of St Mary s Christmas party fund If you enjoy the regular company of a certain Mr William Hill or much less respectably you ve managed to hold down a job anywhere near the trading end of a financial services business for any reasonable period of time (strangely the Venn diagram for the co-relationship between these two pastimes shows a remarkably large intersection) the likelihood is that your sense of risk and reward will be more finely tuned than the average man on the street. In the absence of inside information the likelihood of the WHO S THE FOOL average punter beating the bank or Mr Hill over a long period in either pursuit is pretty close to zero. The horse is 100 -1 for the same reason you re buying the latest whizzbang social media stock on 10 000 times its earnings. The price is high because the likelihood of failure is high. And because I m worth it here s the science. In financial terms we view every return in relation to the risk free rate. This is essentially what the Bank of England would pay you for holding cash on their account. The reward you get is low because the chance of getting your money back is high. Stepping up the risk curve bonds should give a little more return than a bank account as the risk of loss goes up slightly whilst stock markets can provide any combination of risk and return your heart might desire. But whether you re clipping the coupons on your Eurobonds or betting the ranch on the aforementioned Twitsappbookface stock you should judge your return relative to the risk free rate. In other words did the risk you took justify the return you got Now when the risk free rate starts to fall (as it has done in recent years as interest rates have fallen to the square root of not much) strange things start to happen to the amount of risk you need to take just to stand still. If the risk free rate is 5% and you need to earn 5% you don t need to take any risk. If the risk free rate falls to 4% and you need to earn 5% you have to start taking risk. And if the risk free rate is 0.5% as it is now and you want that same 5% return you need to earn ten times the risk free rate. And that s quite a long odds bet (remember risk is the likelihood of losing your capital). That horse that was an even-money bet five years ago suddenly needs to win at 10 -1 if your earnings are to stay the same. Banks perhaps unsurprisingly understand this. Among their other nefarious activities they earn a fair percentage of their profits by paying you one rate of interest on your deposit account and lending your money out to others at a higher rate. This is called interest margin. And as interest rates fall the margin (and profit) they can earn also falls. So interest rates fall banks make less money and we all shed a tear for the bankers. Except of course the banks are owned by the intolerant bunch that we call shareholders. Explaining at your AGM that profits have fallen because interest rates have fallen but you still want that same bonus as last year is a tough sell. And hence banks take more risk just to maintain their earnings and at the extremes people get marched off in handcuffs. Now at a local level this places two of our important local organisations in a difficult position. If you are the Jersey Financial Services Commission you recognise that those companies you regulate are taking more risk than they used to just to maintain earnings and that makes your job harder. If on the other hand you are Jersey Finance responsible for growing the industry (and ultimately the tax take we need to keep the Island ticking over) you are having like the industry itself to look outside of our traditional markets to attract new businesses. While western governments struggle with sluggish economic growth and a greater regulatory and tax burden significant new wealth is being generated in such places as Russia the Middle East and Africa. And whichever way you slice it doing business with these regions entails more risk. However as The Stranglers so sagely recognised ...but the money s so good. The bottom line is that if the finance industry is going to survive in a low interest rate environment then such ideas as a new digital currency fund which was warmly welcomed by Jersey Finance earlier this year is exactly the sort of business we need even though we may have been slightly less enthusiastic five years ago. Finding myself sympathising more with a government quango than a profit-hungry public-owned corporation brings me out in a strange rash however HSBC s recent decision to close the accounts of the Island s first Bitcoin fund should be viewed for what it is. It s not about the risk per se. It s that the reward at the present time doesn t justify that risk. (I would question whether the bank would have chosen the moral high ground had the fund been generating annual profits for the bank of 1 billion ) If HSBC and the industry as a whole are to prosper whilst the risk free rate of return is so low then how we think and feel about risk is going to have to change. Time it would appear looks set to make fools of us all. WHO S THE FOOL 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... 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 . www.bailiwickexpress.com jsy CONNECT January 2015 49 g No Ordinary Day Job From dustbins to diamonds ok so You mIght not thInk that takIng a job whIch depends on the success of the Island s shops would be the best career move just now. wIth the sIren song of the Internet lurIng shoppers back home wIth Its convenIent melodY and tIme-savIng rhYthm for some the future of brIcks and mortar retaIlIng Is as bleak as a uk hIgh street. well not for former chef daphne east. st helIer s new town centre manager Is used to workIng In hot envIronments she told paula thelwell whY chrIstmas In st helIer Is a dIsh best served cold. o Words By Paula Thelwell D aphne East says her job was perfectly summed up one day before Christmas when she had to deal with a complaint about a dustbin before a meeting with a town jeweller who described her job as covering everything from ...dustbins to diamonds . o Pictures By Gary Grimshaw As the chef who brought fusion cooking to Jersey it is apt that her day ranges from a sophisticated business lunch to a cup of tea in a polystyrene cup on a walkabout with the Constable Simon Crowcroft. It s a little dramatic but essentially Daphne s job is to save the town from the growing threat to local trade from the global reach of internet shopping and partly from the nature of the town itself or rather how it is viewed by the very people it needs to survive the people of Jersey. Not that St Helier is in imminent danger of descending into a neglected and unloved retail ghost town with boarded up shops but it is acknowledged that it needs to attract more shoppers - of both the local and visiting kinds. Contrary to misconceptions and St Helier is the victim of quite a few - the town centre compares quite nicely with the UK when it comes to empty 50 January 2015 www.bailiwickexpress.com jsy CONNECT NO ORDINARY DAY JOB BIO name daphne east tItle town centre manager companY st helIer town hall Born in the Irish city of Waterford the daughter of politician and mayor Oliver Clery Daphne trained as a chef augmenting her training with a spell at the finishing school of Irish cookery Ballymaloe. That polishing of her skills was instrumental in landing a job with Worrall-Thompson in London. When he opened a restaurant in the Island 16 years ago Metro she moved here. Sitting in her ground floor office in the Town Hall she reflected on her good fortune I have been very fortunate in my career to be in a particular place at the right time. It is true what people say it is not what you know but who you know. After Metro Daphne opened the first fusion restaurant in Jersey Cyrano s at The Revere in Kensington Place with Paul Doran. Having learned the art of making fresh sushi at Worrall Thompsons Drones Restaurant from an Australian chef she introduced it to local diners. When she met and married husband Chris she hankered after regular hours so she tried her hand at teaching at Highlands before joining Cimandis. In fact she worked for the Channel Islands food business twice leaving Jersey in between for a three-year stint in the nationwide wholesale food business in I saw the posItIon and Input mY father had In our cItY and that InspIred me whIch Is whY I want to make good In thIs job. mY mother alwaYs saYs to me that You are verY much Your father s daughter and I am verY much lIke hIm shops. On the mainland the average ranges from 10% to 15% depending on the region. At the moment just 4.5% of St Helier s retail space is standing empty and this statistic has never risen above 5% during the on-going recession. The role of blowing a breath of fresh air through our town s streets and enticing Islanders away from convenience home shopping to doing what people have done for millennia and making the journey to the shops has landed in the lap of a softly spoken Irishwoman. Countless incomers from all over the world have made Jersey their home over the centuries and for a variety of reasons. For Daphne East it was her one-time boss celebrity chef Antony Worrall-Thompson then on the ascendance in the culinary world. the UK to enhance her experience with jobs at Premier Food and Park Cakes. When daughter Millie came along Daphne and Chris decided to move back to the Island. Daphne found out about the job of Town Centre Manager through her role with the Tourism Development Fund. Colleagues suggested she apply and the rest is history. She was fascinated by the job description. Moreover it presented her with the opportunity to walk in her father s shoes by taking pride in doing a good job in a civic role. Daphne lives and works in St Helier and very much sees her role as instilling that same pride in Islanders. And none more so than those who are disillusioned with the town and what it has to offer. www.bailiwickexpress.com jsy CONNECT January 2015 51 NO ORDINARY DAY JOB I saw the position and input my father had in our city and that inspired me which is why I want to make good in this job. My mother always says to me that you are very much your father s daughter and I am very much like him. She reports to the Director of Parks Gardens and Open Spaces Tony Andrews and the Constable Simon Crowcroft retail therapy - that they will all tread the same path. Just over three months in the role Daphne is confident that everyone will want to work together though she accepts there will always be detractors. I will do whatever I can to bring people on board but if they don t want be involved then I can t force them she said. comIng Into the role mY outlook has completelY changed bY meetIng the retaIlers and the people behInd the facIas. town tradIng Isn t just about beIng In busIness. retaIl workers are the face of st helIer and of the Island so theY have an Important hospItalItY role to plaY. who she meets every day. The pair can frequently be seen walking around the town checking first-hand on issues such as street cleanliness and engaging with residents and traders. Naturally there are regular meeting with traders and partners as she regards face-to-face interaction as very important. Her role also sees her working closely with Transport and Technical Services Tourism Economic Development Planning and Jersey Business and town traders and retailers in their many diverse forms and trades. It could be described as akin to herding cats. Nonetheless she hopes with new ministers in post and everyone seeming to want to work towards the chief goal of making the town centre a more attractive work rest play - and above all indulge in Her role is to drive change and to make that happen she needs to increase footfall. Key to that is accessibility to the town by whatever means and that includes the car but it isn t just about making it easier to park she has to dispel the longstanding misconception that there is nowhere to park. Drivers moan about the lack or parking TTS say there is capacity so could it be more a case that the spaces aren t exactly where people want to park Car parking needs to be revisited and the retailers are telling us that parking is an issue in our traders group meetings. It is TTS s view that there is spare car parking spaces so we need to communicate that better she said. Just as she intends to get the message out that shopping www.bailiwickexpress.com jsy CONNECT January 2015 53 NO ORDINARY DAY JOB to get where they want to go or helping little old ladies across the road which I would do anyway she said. Back in the heyday of tourism the town precincts would be alive at night as the shops opened late in the summer. And until the States spending cuts forced departments to slash budgets street entertainers were a familiar sight in the town centre. Daphne wants to revive the street entertainment and is keen to encourage later or more flexible opening hours which suit retailers and shoppers alike. The late night Love Shopping campaign on Thursdays is paying off and some shops are considering later morning and evening openings to match their sales levels. Daphne also hopes the market traders will drop their traditional half-day and open on Thursday afternoons. We all need to work from a balanced point of view and there needs to be a realistic look at where we are most likely to make our money. However we can only suggest later opening and the traders need to work it out. It is a question of balance for everyone she said. And what of that perennially contentious issue Sunday trading Sunday trading needs to be down to the retailer if they are getting the sales and if it is viable to open. And it would be good to get some vitality into St Helier on a Sunday. But is should not be by law as to when who will open or when who will close it should be down to the individual retailer and whether it is viable for them she said. online and outside Jersey is not good for the local economy jobs and business. Retail isn t just about selling it is about customer experience inside the shops and outside in the streets and the experience and support Island traders who are there to give a personal service can make shopping much more than the exchange of money for goods. She is enjoying getting to know the town traders and the characters who make any town a place people want to visit. She attends a variety of traders meetings from key strategic groups to those focused on a particular town locale. Some like the MD of Jersey s independent and family-owned and run department store Voisins David Elliott are highly knowledgeable of the industry. His impressive CV includes we all need to work from balanced poInt of vIew and there needs to be a realIstIc look at where we are most lIkelY to make our moneY. however we can onlY suggest later openIng and the traders need to work It out. It Is a QuestIon of balance for everYone Coming into the role my outlook has completely changed by meeting the retailers and the people behind the facias. Town trading isn t just about being in business. Retail workers are the face of St Helier and of the Island so they have an important hospitality role to play. Retailers from the little shops to the large stores need to give a great customer experience and accessibility is key she said. Daphne is one of 88 Islanders who recently took part in professionally led workshops run by town centre improvement partner Jersey Business to qualify as retail ambassadors for the Island. Their job is to be the friendly face of Jersey and to help others and not just behind the counter. We are here to help people and that includes helping tourists 54 January 2015 www.bailiwickexpress.com jsy CONNECT Retail Operations Director of the world-famous Selfridges. Others are the latest line of old Jersey families to run a business entrepreneurial young Islanders or members of one of the Island s immigrant communities. All their views will matter in the retail strategy for St Helier being worked on this year. Having got her feet firmly under the table Daphne is optimistic that 2015 will see the beginnings of a brighter and more vibrant town centre. It is time for us all to pull together and push for change and be positive about our town centre instead of being negative she said. END W iSPY elcome to iSpy a 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. J FREEDOM ersey is now open and transparent. No really it is. The new Freedom of Information law is live. If you want to know stuff about them now s the time to get your question in. In reality most people will never make use of FoI. But for the Island s journalists who had previously been blocked by jobsworths over-promoted incompetents or by those who work within government - and who forget they serve all of us - the time has come to attempt to shine light into some dark corner. There are limits to the new law. You can t make ridiculous requests. You can t ask for information that you plan to use for malicious purposes. And you can t ask for anything that will take more than 12-and-ahalf hours for the government department you approach to find. What Really Yes... if the jobsworth reckons it ll take longer than 12.5 hours to get the information you ve requested they can legitimately turn down your query. Not only that but the law has determined that the said jobsworth is earning 40 iSPY hopes the first round of FoI requests include one focusing on exactly who earns what doing what within the States including those working in a whole new mini-department set up to deal with all these questions from journalists and Islanders alike. WHAT PRICE an hour. Or to put it another way a salary of around 83 000 a year. CRYSTAL BALL TIME Well 2015 is underway but what does the year ahead have in store iSPY was tempted to offer up some predictions but our success on that front is rather limited. Instead some key things to watch out for The Jersey care inquiry should get complicated and interesting. Its first five months focused on alleged victims. This year will look at the police politicians and others in a position of influence. Who knew what who did what and who contradicts whom We need our journalists top form to pick up on the nuance which is where some of the truth will likely lie. The JEP s digital march rolls on and this is the year they can consolidate their early tentative steps. Can the business find a way to monetise our appetite for getting news online on the go on our phones and tablets and with a decreasing reliance on traditional newspapers For ITV Channel they get to move to their new Waterfront HQ. Will that mean more of the Given this new States is also inventing new quangos on the sly (not least a whole new ivory tower complete with all the ministerial perks) yet none of the ministerial scrutiny for the former Treasury Minister (including taxpayer-funded long weekends in London which nicely suits his social life) a few FoI requests which drill down on some of those numbers would be most welcome. It will be interesting to see if the journos at the JEP Beeb et al make the most of Freedom of Information. It ll also be interesting to see over time which States departments do and don t answer those questions. There s a lot of political pressure for this law to work and for it to be seen to be working. We re watching same but from a new base or do they have any tricks up their sleeves We ll be watching. Over at the Beeb will they get out of the rut and start offering their target audience what they want With radio audience in steady and longterm decline they ve still not woken up to the output with a few notable exceptions being pretty cheap and nasty. Perhaps they ll put fewer child presenters on air and reflect the people they suppose to serve. What of Bailiwick Express It s been up and running for a fair while now. 56 January 2015 www.bailiwickexpress.com jsy CONNECT My get up and go just got up and went o By Gwyn Garfield-Bennett It Is January you ve festIvely over-Indulged the nIghts are long and It s cold and wet. what can possIbly motIvate you and your employees at thIs tIme of year well how about a man dubbed by a former australIan prIme mInIster as the rock star of publIc speakIng gwyn garfIeld-bennett went to get InspIred by vusI thembekwayo. Have you set your New Year s resolutions If you haven t then don t bother because they are unlikely to succeed or motivate you. University of Hertfordshire research says 78% of us fail to reach our New Year goals. Critically says the research those who were successful had broken the goal down into smaller achievable steps while those who failed focused on the downside of not achieving the goal. Being positive is one of the mantras of Vusi Thembekwayo. Vusi was ranked number one in Africa for public speaking by the time he was 17. He is now a successful entrepreneur who travels the world delivering motivational presentations. He was invited to Jersey by Standard Bank and he spoke both to their staff and to clients at events towards the end of last year. Vusi s first tip is to forget New Year s resolutions Give yourself a list of perpetual goals with time lines and leniency and so if you don t achieve them they can be extended within reason without defeating the purpose. You have to admit you re living in the real world but a lack of achieving something doesn t mean failure it s just a delay. A set back is a set-up for a come back. However you re operating you should learn from any set backs and then have the tenacity zeal and drive to get back on it and keep doing it. The organisations and individuals who make it are those who have persistence. Vusi s second tip for business success is that you need everyone working together Every person in the business is customer facing even if they re working in HR because each person needs to understand the business. There needs to be clarity on results and roles. The team must set each other up for success just like in a Formula One pit stop where it means they can take just three seconds to complete the job because each man has his own clearly defined role. Connecting people to the purpose of the business is vital says Vusi. It s really important you understand the emotional connection the staff should have with the business and the clients. It has to be driven by the purpose of the business and not about making a buck otherwise they won t understand the intent and drive behind the company. Nowadays there are all sorts of apps we can get to help keep our New Year s resolutions on track or give us a constant source of motivation. There are budgeting and finance apps thousands of healthy eating dieting and exercise apps and there are to do lists and productivity apps such as 30 30 which helps you keep track of the tasks you re doing and allots specific time for each. Maybe the best thing to do though is to turn off the phone ignore Facebook Twitter and the emails and just get on with it. After all if we want to connect staff with each other and the business actually getting them to talk face-toface and not just communicate through technology would be a good start. Finally it s Employee Motivation Day on 21 January which is your chance to put this into action. And if that fails Well then you can always take advantage of Global Belly Laugh Day on 24 January at least it will cheer your staff up this dark chilly winter s day. It promised lots of big exclusives but still hasn t done much of that. But it now has a fair following and we predict one or two decent defections from other media outlets this year. A bit more firepower combined with a bit more marketing savvy could make the difference. While over at Channel 103 the sleeping giant quietly gets on with its business - a massive audience superb revenue an excellent news service and a consistency that its users love. Despite all that the fusty old politicians don t realise what s under their noses. This radio station matters. And Jersey knows it 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 live.com www.bailiwickexpress.com jsy CONNECT January 2015 57 This month s Glass Half Full is with Mike Byrne a director with PwC Jersey who s recently returned from two years living in Singapore. Here he considers what Jersey could learn from Singapore and other global centres as it seeks to retain its place as a high quality finance centre. I GLASS HALF FULL WITH MIKE BYRNE s it possible for Jersey to be both a great place to live and also a great place to run a global hedge fund It seems that the answer is a resounding yes given the small but significant number of hedge fund managers who now call Jersey home . For many New Yorkers tired of Wall Street and seeking a better environment for both work and family the attraction of leaving the Big Apple and moving to towns such Greenwich in Connecticut ticks many boxes. This route is well established for asset managers not driven by tax or regulatory advantages but by quality of life access to great schools shorter commuting times and a sense of community. This too is the attraction of Singapore in an Asian context offering a strong alternative to Hong Kong Beijing or Tokyo. What would it take for Jersey to be seen as the Connecticut or Singapore for those looking for a change from London and what would this mean for existing island residents The Island has an abundance of natural attractions a vibrant business community together with great transport links to the UK English speaking and in a globally connected time zone. So far so good. But is this enough to attract and retain globally mobile people and businesses and what improvements could Jersey make to benefit all residents 58 The ease of doing business index . produced by the World Bank shows Singapore as the most business friendly jurisdiction in the world with the UK in eighth spot. Marry these qualities to those required to feature highly in the best place to live charts and you ve got a pretty exceptional location to live and work. Although Jersey is likely to be out of scope of such reviews this index is an excellent benchmark for government policy makers and regulators to consider in designing the blueprint for Jersey as it seeks to attract high value businesses and individuals to the Island. PwC in conjunction with Demos produce a Good Growth Index comparing 12 indicators across 37 cities in the UK annually. We recently ran the data for Jersey and found that it compares very positively to other mostly much larger cities and travel-towork areas in the UK falling just outside the top ten when compared to the 2013 Index. If Jersey is to maximise its attractiveness and build on its existing qualities I believe three key factors need to be considered. Firstly greater government and private sector investment into capital projects including sporting facilities music and the arts public spaces - is likely to be required. Whilst it is difficult to compare Jersey and Singapore one area which the Lion City has excelled in is the use of the country s reserves to make long term investments providing a double bottom line return of both financial gain and improving quality of life for Singaporeans. Examples would include Singapore Airlines or more exotically Singapore Zoo visited annually by millions of locals and visitors alike. Secondly as Singapore s population has increased the government has been clear in its policies that this increased level of economic activity should improve the quality of life for all and not impinge on it. Investment in public transport health facilities and education are central to this funded through increased tax revenues from international businesses and high value residents. Thirdly Singapore makes all visitors both tourists and long-term workers feel extremely welcome and makes living and working as easy as possible. Jersey is famous for the warmth of its welcome and for a fantastic community spirit but this is not always reflected in the popular media. Anyone researching a move to the Island could easily be forgiven for questioning whether they will be made to feel welcome and the restrictions imposed on housing and labour do little to positively influence this. In conclusion Jersey has got so much to offer and I am proud to call the Island my home but to take its place on the list of truly great places to live and work there are changes to be made which could truly benefit all. January 2015 www.bailiwickexpress.com jsy CONNECT Entertainment and Leisure Insurance Services (Jersey) Ltd offers Jersey residents a choice of competitively priced products with comprehensive benefit s backed by a high level of customer service. E&L is a well-known and established provider of personal lines niche cover and has over 75 years experience in the insurance market. 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Visit www.eandl.org.uk bex or Call 08448 547 614 Entertainment & Leisure Insurance Services (Jersey) Ltd is regulated by the Jersey Financial Services Commission. Here s Here s the Thing And so it begins. A new era. The Chief Minister is riding an unprecedented wave after topping the poll securing a historic second term unopposed drafting in all his chosen picks to ministerial offices (again the first to do so) and facing a States Assembly less ideologically split than any for years and years. It s all looking up a rock solid mandate a united team and a parliament less likely to oppose for opposition s sake. Here s the thing. Directly in the path of all of this momentum lies an obstacle. A significant one. The rude interruption for the new Council of Ministers is the demand to cut 2% from their budgets as of right now to fill 12.1 million of the hole in States finances caused by the gap between the rosy forecasts of an early economic recovery and the considerably less rosy reality of a prolonged recession that we re only just beginning to emerge from. That 2% cut comes on top of a 1% cut in pay budgets overall and is part of a package of emergency measures that the States agreed in the Budget ahead of the last election that also involved raiding utility companies and other funds. And what that does is force the ministers all but two of whom are just weeks into their jobs as complete newcomers to dig deep and ask themselves some tough questions about what really is and is not important to them. Fortunately a document filed just a month after the election contains a few hints about what s coming up and an indication about the impact of what a 2% cut means in practical terms. And those hints do not match up with the feelgood rhetoric. At Economic Development for example the proposal was to cut budgets for Intellectual Property as well as reducing the grant for Jersey Finance skills and rural grants does that sound like full-throated support for diversification and our most significant industry Over at Education the view was that the cuts were likely to have a direct impact on our ability to maintain frontline services particularly in the areas of standards and plans for apprenticeships. How does that fit with Senator Gorst s promise that the new Council of Ministers would spend more time on education The Environment and Transport departments weren t messing about either they both dropped fairly heavy hints about their own plans saying that until their work to identify potential savings was complete they couldn t really say whether any additional user-pays charges might need to be considered. Run that past the new Treasury Minister s 60 January 2015 www.bailiwickexpress.com jsy CONNECT promise that revenue raising must be a final option after all cost-cutting avenues have been exhausted. Last but not least was the Health department for which a 2% saving is a fairly considerable 4.7 million cut. At the time of the report they couldn t say for sure what they planned to do either but felt there would be some impact on a range of areas including waiting times patient satisfaction slipping behind UK standards for technology treatment and drugs reduction in provision of unidentified services and delays in other planned developments as well as potential delays in plans to reform the whole healthcare model that the States agreed in 2012. To put it another way that could touch on pretty much everything that they do including the ongoing reform work. And that s just the deficit for this year. It is worth remembering that the gap between taxation revenues and spending might not be nearly as temporary as ministers would have you believe the panel of expert economists on the Fiscal Policy Panel that we pay to advise us on questions like this came to the view that...they couldn t tell. Might be a temporary blip that you can fill by the fiscal equivalent of looking down the back of the sofa (essentially what we ve done so far) but it might also be a structural imbalance that means we re going to have to either pay more for what we re getting now or get less for what we re paying. And if that doesn t sound like any fun it s because it is not meant to. But what s more interesting is that this process forces the new ministers to define who they are what they prioritise and what they don t in a genuine and authentic way. In the past it has been all too easy for these characters to fall back on bland statements wishy-washy nonsense and everything s a priority to me waffle without taking the simple honest step of demonstrating what s actually important to them and what isn t. Their response to the 2% cuts will do that. If you want to know who these ministers really are and what s really important to them here s an opportunity ignore literally everything they say but watch what they offer up to meet the funding shortfall. That s where the truth is. Have your say... Connect s political columnist Ben Qu r e spent far far too long covering the States during his 13 years as a noted news reporter and commentator. In Here s The Thing... he takes on a key subject each month drawing on his experience knowledge and contacts to lift the lid and stir things up If you want to contact Ben Qu r e please email ben bailiwickexpress.com 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 photoreportage.co.uk or call 01534 858 571 CO RPORATE C OMM ER C IAL WEDDING JOURNALISTIC 1 January Implementation of the Freedom of Information (Jersey) Law There is really no description of You idiot. You naive foolish irresponsible nincompoop. at the imbecility of it. DD begins stupidity no matter how vivid that is adequate. I quake leader of all time Tony Blair on 2015 by quoting the Labour party s most successful in the UK. From DD s reading of the the introduction of the Freedom of Information Act for introspection or self-doubt came foregoing it seems that old Tone not typically one And so ten years to the day after the to the view that it hadn t been the greatest of ideas. law enables journos campaigners law came into force in the UK we re doing it here. The to see government documents and anyone else who fancies it to enforce legal rights disciplinary records letters or just which might mean previously secret repor ts emails in the direction of making this work about anything else. Oodles of cash has been lashed wrong by the States DD asks you what could possibly go 16 January Ian Gors Chamber of Commerce Lunch Chief Minister t a great Chief Minister or the There is a question that drives DD. It is this Ian Gorst Or Ever Could Be We ll let you be the judge. Just Greatest Chief Minister There Ever Was The Gorstmeister is giving a rare kidding we won t DD is squarely in the latter camp. erce presumably emboldened by poll-topping public audience at the Chamber of Comm job and having all his ministerial election performance unopposed return to the top ic mandate all the political muscle he could picks in place. This is a guy with an histor DD says we re in the Age of the want and a team entirely of his choosing around him. months he ll have to start explaining exactly Gorstmeister over the next weeks and what that means hopefully starting with this lunch... 17 January RPI December 2013 Roly Poly Ironclad No you silly Risky Penguin Interaction Relevant Pregnant Iguana saw a 1.9% increase in the 12 months old things it s the Retail Price Index The last one its head above the 2% mark was leading to September. The last time that inflation poked rs under that point since then. Last December 2012 we ve had seven successive quarte clothing were pulling the overall time around the costs of fuel household goods and es pushed it upwards. number down while fares fags and household servic Deadly Diary wIll be flIckIng carefullY through the future calendar of polItIcal and busIness events ...and chewIng over what It fInds there. everY month connect 62 January 2015 www.bailiwickexpress.com jsy CONNECT 20 January The States ation (according to nearly everyone Three months since the Bigges t Election for a Gener little beavers are back to work after and until you know the next one) these industrious hearts. By this point the ministers a mere six-week break for Christmas. Bless their little their depar tment s spending after will have figured out how they re going to slice 2% off be nice to hear about that. DD has last year s minor 95 million budget boo-boo so it ll e remember the time that Health money on the usual bleeding stump nonsense anyon save cash except turning down the said there was literally nothing that they could do to this is a big job particularly given thermostat in the maternity unit but in fairness year will be 20 days old so it s that nine of the 11 ministers are new to their jobs. The started to take shape by now not unreasonable to expec t that these plans will have will tell you a lot more about their real precisely what the ministers cut from their budgets DD s Golden Rule ignore what they priorities than the hot air you tend to get remember say watch what they do... 22 January Business Tendency Survey US is stalling. The UK is dodgy and Let s see if we can sum this up. China is stalling. The e is going to hell in a handcart. Germany is it s still running whopping deficit s. Europ aren t allowed to lend any money starting to look like it can t hold it all together. Banks politicians and governments are any more commodity prices have fallen off a cliff and erm solutions stretching beyond electoral showing about as much interest in long-t But hey whatever. The last version cycles as a Great White Shark has in the DFS sofa sale. warm rosy feel was returning with of the Business Tendency Survey suggested that a non-finance sectors repor ting that things more respondent s from the finance and let s see if that was just the were improving than were saying it was all getting worse Christmas sherry talking... Want more read take fIve on page 06 www.bailiwickexpress.com jsy CONNECT January 2015 63 I am one of two sons. My mother died several years ago. When my father died more recently his whole estate was left in his will to my younger brother. I was told that this is illegal. Is that correct N Q&A The Advisor Olaf Blakeley is an Advocate specialising in litigation and commercial law If you have a legal question you would like to put to Advocate Blakeley please email editor bailiwickexpress.com A ot quite. In respect of any real property (houses land etc.) your father left to your brother you have no claim or ability to challenge that decision. Your father was entitled to leave the whole of his real estate to your brother. The situation is not quite so simple in respect of your father s movable estate (money shares motor vehicles and all other items which are not real property). In your specific family situation the law entitles you and your brother to l gitime allowing you both to claim a total of two-thirds of the net movable estate. In simple terms to comply with Jersey law your father should have left two-thirds of his movable estate to be shared between you and your brother. The remaining one-third could be left to whoever he wanted including your brother at your exclusion. This means that under Jersey law you were entitled to one-third of your father s movable estate (being two-thirds divided between you and your brother) and that you did not receive this you could bring an action to claim that part of which you were deprived. However some words of caution I have answered your question on the basis that your father died domiciled in Jersey. If he died domiciled elsewhere different rules will probably apply (which could be less or more advantageous). Also you have a time limit in which to bring an action to claim your portion. Under your father s will he would have appointed an executor who will have applied to the court for probate. Your time limit in which to claim your portion expires a year and a day after probate was granted. t the back of my house there is a pathway which I am told is owned by my neighbour. He uses it to go to and from his shed in his garden. Recently he has erected a gate with a combination lock at the top of the path attached on one side to the back wall of my house and the other side to the wall of his property. Is he allowed to do this Answering questions concerning property and boundary issues is always very difficult without seeing the contracts of purchase concerning the property. However a point raised in your question did make my ears prick up. You said that the gate was attached on one side to the wall of your property. I understand this to mean that one of the gateposts is affixed to your wall. If that is the case it is unlikely that he is permitted to do so. It is possible for a wall to be a party wall (shared) but in your case you seem to be indicating that the gate is attached to your house and that it appears your house is detached from his (it must be since there is a path between the two). I would think it more likely than not that he does not have the right to bolt bits of gatepost to your wall. My advice go and see your lawyer or perhaps make an appointment at the Citizens Advice Bureau for some free legal advice. The Jersey branch is very helpful and run legal clinics on certain lunchtimes at which you can consult with a Jersey lawyer free of charge. If you have your property deeds bring them along with you. When you instructed your lawyer you should have been issued with an engagement letter. You may have also been issued with general terms and conditions (because you are dealing with a lawyer you can safely bet that those are found on the document with the most pages and the most writing ) It is probable that those terms refer to a lien allowing the lawyer to retain your files until such time as all fees are paid up to date. This is standard amongst the profession. In fairness to the lawyer if you agreed to pay his or her fees and you haven t done so there is no good reason why you should be entitled to the fruits of his work. However I acknowledge that you may have a genuine dispute over fees but - if you do - that needs to be resolved. You can obtain advice from the Law Society here in the Island. Once the issue over fees is resolved the lawyer will I m sure release the files to you. They are yours. You have paid for them to be created and you are entitled to them. If fees are resolved and the files are not forthcoming then again you should contact the Law Society. In respect of incorrect advice once you have your files you may consider obtaining a second opinion from another lawyer. If your new lawyer s advice is that you were incorrectly advised originally then you may have a claim against your first lawyer. You shouldn t delay in resolving these issues not least because there is a time limit in which to bring such a claim probably ten years from the time you received the advice (I always advise people to work on the basis that the time limit is three years because it s safer). But beyond that you need closure on the point. There is no point carrying round a niggling resentment that you may have been given wrong advice. You should find out for sure one way or the other. Do it soon and don t let it affect 2015 I was represented by a local lawyer in a legal dispute and I eventually gave up the fight. However I now think that at the time I was given incorrect advice and I have asked my lawyer for my files. My lawyer has said that unless I pay an outstanding invoice (which I dispute) he is entitled to keep my files. 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