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FREE Please take a copy IN MAY S EDITION New HR column top tips for better staff communication o Read online at Jersey s business magazine Y Would you Give up the car R Where next for eGov Addiction On Pause Jeralie own talent Pallot Growing our 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 and subscribe to our daily news service. EDITOR James Filleul editor WRITERS Ben Qu r e ben Martha MacDonald martha Julien Morel julien ADVERTISING Mark Ferns Telephone 01534 510309 markferns SUBSCRIPTIONS info DESIGN AND PRODUCTION Mark Jackson mark Artwork under 10Mb in size may be sent to this address. EDITION37 GET IN TOUCH... Please email editor B eing in the words business it s often the way people describe something which you pick up on first. A prime example is the recent recession. Initially we weren t allowed to call it a recession apparently the official word to use was downturn which had the neat effect of making it all seem less serious part of a normal economic cycle and certainly never anything to do with the decisions of those now ruling on what it should be called oh and by the way downturns don t last very long didn t we mention that Fast-forward six long years and zoom in on Jersey and the words-which-shall-notbe-named are now deficit and tax . According to two very senior ministers we don t have a deficit we have a shortfall - you know the kind of little thing that you had as a child when you desperately wanted to buy a new lego set but you had a shortfall in the amount of pocket money left so the Bank of Mum&Dad made up the difference. And an extra amount of money paid by every employee in the island by law based on the scale of their wages is not a tax - how could it be Silly me. It s a charge of course to make sure we fairly pay our way. Now run along and play with your lego Cyril Le Marquand House The reason I mention those two linguistic vignettes is that they are nothing more than a total distraction. Rather than taking to social media to insist (definition what people do on Twitter when they use CAPS) that s NOT a deficit.. (and even it is it s no problem people we knew it was coming and we have a plan ) as one Minister did this week you might imagine that there was far too much to do implementing the solution which is why this month we focus on the paused eGov project the sort of deficitbusting transformational change we need which will Please recycle this magazine. Like Bailiwick Express connectjersey see the vast majority of the ways you interact with the government done online and therefore we hope more efficiently. The vital word in the above paragraph is paused - with a looming deficit sorry shortfall you might think that a pause at this time was akin to tying your shoelaces in the middle of the road so on page 22 we take an in depth look at what s happened and where we go next. But this month s Connect isn t just for those of you who love words for the more numerically minded I offer you the Fool s equation for Island s current financial travails If (X Z) Y then C D If (X Z) Y then C D Clear Better read page 76. So if you are experiencing a shortfall in your deficit or your charges are becoming taxing read the times of trouble wisdom can often be found in the strangest of places. 01 jsy CONNECT MAY 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. SEll me a life in... 78 REGULARS LOC AL NE WS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 LEG AL MAT TERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 TR ADING PL ACES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 SELL ME A LIFE IN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 HR NEW Becky Hill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 PIC TURE THIS Jersey Post . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 TECHNOLOGY Lisa McLauchlan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 GL A SS HALF FULL Louisa Stokes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 BUSINESS ADVISER John Shenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 UNPLUGGED Kevin Hart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 VIE WPOINT Purpose Rosscot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 WHO S THE FOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 NO ORDINARY DAY JOB Mark Brandon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 MARKETING FORCES NEW Christopher Journeaux . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 LINKEDTO with Jenna McCabe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 HERE S THE THING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 DE ADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 02 MAY 2015 jsy CONNECT 28 FINANCE FEATURES Ashburton Investments . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Canaccord Genuity Wealth Management . . . . . 46 Rosscot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Natwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 PwC CI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 DIGITAL TECHNOLOGY & TELECOMS 54 Logicalis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 JT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Calligo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . JEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 ENERGY & THE ENVIRONMENT PLUS . . . Jersey Post . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Rowlands Cover Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Special Report eGov - proGramme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 You can read this magazine plus the latest local UK and business new online with UNPLUGGED 68 22 54 44 60 32 76 jsy CONNECT MAY 2015 03 NEWS News Bracken rothwell wins at 2015 international Funds award Chartered accountancy practice Bracken Rothwell has been named Best for Finance Industry Accounting Services Channel Islands by Acquisition International in this year s International Funds Award. Alistair Rothwell MD of Bracken Rothwell commented We have been providing a full range of accounting audit and tax services to the finance industry and the Island s trading businesses for the past 50 years and this award is recognition of our hard work and commitment to the industry. AI receives nominations for their funds awards from firms across the globe including small niche practices to large corporations. Winners of the various categories are selected on merit votes received as well as evidence supplied and inhouse research. Sameena Yates Legal Awards Coordinator said Our awards show that the legal world is packed with professionals who are up to both tackling the legal world s challenges and capitalising on the opportunities it presents not just surviving in this often difficult environment but positively thriving. Not just any business can be nominated for one of these awards. Only the most committed forward thinking and results driven firms who have consistently demonstrated a commitment to the very highest standard of service will walk away with one of our prestigious trophies. There s one constant with the news it gets smaller. Back in the olden days national newspapers used to be great big things that spread out like roadmaps full of long-winded stuff about What It All Means instead of just being full of Stuff You Saw On The Internet Yesterday the radio used to be all about interviews and features instead of subMoylesian wittering and the less said about 24 hour news TV channels the better. But that s the way things are and no one can fight it. So Connect is going to go with the flow and imagine a world where every story comes down to a single 140-character Tweet. When this is how the entire news industry works in about six minute s time just remember that you saw it here first... New Hospital rted States B4 construction has sta cles and treasury adjusts its specta for Hospital refurb. squints invoice sies Ah an xtra 50 mil. oop Amal-Grow nix Charlie Like an agricultural phoe the ashes G raises Amal- Grow from t all odds saving 30 49 jobs agains tatersgonnatate Student Loans What student loans Got a suggestion for Tweet Me You know where we are... For all the latest business news follow connectjersey 04 MAY 2015 jsy CONNECT Follow us on Twitter NEWS 661 000 legal costs over 25 000 business shareholding A five-year legal dispute between the directors of the Grafters employment agency ran up legal fees totalling 661 000 over a shareholding worth just 25 000 the Royal Court has heard. A former director of the company has been ordered to pay 7 000 a month in a court judgment on costs that follows his failed case against his former partners for running the company in a way he claimed was prejudicial to his interests . The costs of the five-year battle have been piling up with Mr Kilbey amassing 360 000 in fees and the respondents incurring 301 000 of their own but at the same time the value of the business itself has gone down. Court papers show that Grafters turned over 3.5 million in 2011 but when the UK ended the Low Value Consignment Relief (LVCR) exemption for Channel Island companies in 2012 the fulfilment industry that it supplied with staff took a massive hit. The court judgment on costs stated The subject matter of the dispute was Mr Kilbey s minority shareholding in Grafters which the Court found that following the abolition of LVCR was now worth only 25 000 a valuation which I understand Mr Kilbey accepts. The costs that have been incurred over the five years or so of this litigation have therefore become grossly disproportionate to the value of the subject matter of that litigation. Dominic Kilbey was a director of Grafters from March 2006 until October 2007 when the other directors - James Baker (a former States Deputy and Assistant Economic Development Minister) and Hugh Jones voted to remove him. After that there was a dispute over a company database which the Grafters directors claimed Mr Kilbey had copied to use for his new company he denied having done so saying that he only copied the database to ensure that he received the full value for his share of the business. Advocate Blakeley for the Grafters directors said that because they won the case they shouldn t have to pay the costs of it but Mr Kilbey s lawyer said that the other side had significantly extended the duration and cost of the litigation with unreasonable arguments. The court rejected Mr KIlbey s lawyer s argument and made an immediate order for Mr Kilbey to make an interim payment of 100 000 towards Grafters costs until the full amount he had to pay was agreed. Mr Kilbey is appealing against the court s decision and the court s interim judgment on costs was designed to make sure that he still has enough money to fund the continuing legal fight. another 2 000 new joBs created as economy Bounces Back Almost 2 000 jobs have been created in Jersey in the last 12 months after the economy started to recover from the long recession. There were 400 new jobs in finance and increases in construction and retail but half of all of the new jobs created were under zero hours contracts that do not guarantee any work or pay. There were also 120 new public sector jobs created in 2014 showing the scale of the challenge of filling a structural deficit in States finances. At the end of last year the number of people employed in Jersey was higher than the end of any previous year at 48 970 the biggest employer was finance (12 770 staff) followed by wholesale and retail (8 100) private sector education and health (6 780) and hotels restaurants and bars (5 160). But the States remain by far the biggest employer in Jersey with headcount numbers continuing to rise. There were 7 130 people working for the States States-owned companies and parishes at the end of the year. 06 MAY 2015 jsy CONNECT Chief Minister Ian Gorst has welcomed the figures which were contained in the December 2014 Labour Market Report released this morning Latest figs show 3.5% increase in total employment an indication that economy is on course to return to growth. Montblanc Heritage Spirit Moonphase and Hugh Jackman Crafted for New Heights The Montblanc Heritage Spirit Moonphase features the moonphase complication in the spirit of traditional fine watchmaking. Housed in a 39 mm 18 K red gold case the self-winding Calibre MB 29.14 indicates the moonphase in a crescent-shaped aperture making this refined timepiece a true lifetime companion. Visit and shop at 1 King Street St Helier Jersey 01534 734491 NEWS rBs international supports major landmark acquisition in the midlands RBS International in Jersey has supported one of its longstanding fund clients in a major multimillion pound commercial acquisition near Birmingham. Tristan Capital Partners a London based pan-European real estate investment manager was adviser to the EPISO 3 Fund on the acquisition of the Fort Dunlop building a 375 000 sq. ft. landmark site five miles from the centre of Birmingham close to the M6. The site consists of a mix of Grade A office retail and leisure space including restaurants a 100-room hotel and car parking. It was acquired for 45.7 million. RBS International s Real Estate Team provided a multi-million pound term loan to support the complex acquisition which involved a number of different stakeholders from across RBS International and its wider parent company RBS in the UK. Stephen Reilly Managing Director Corporate and Markets RBS International said Tristan Capital Partners are an existing customer of both our real estate and funds businesses. This latest transaction demonstrates our continued appetite to lend and support the real estate funds sector in the Crown Dependencies through bespoke loan facilities required to meet the investment ambitions of our clients. 1 TAKE FIVE five reasons... accordinG to Focus on your people. True fact The Gorstmeister didn t trust Philip Ozouf before the 2008 election and he didn t want him as his Treasury Minister. But the boy Ozouf got the job anyway and within months he was involved in the departure of former States Chief Exec Bill Ogley with a 547 337 golden handshake. Did the Gorsterino try to leverage him out the job Did he hell. He stuck by him. He also supported the man he beat by just three votes for the top job Senator Philip Bailhache creating a job and a department for him and leaving him as the only one to keep his job in last year s ministerial reshuffle. He manages to stay above petty political squabbles and has managed to avoid being a figure of hate ridicule in the way his predecessors were at various times. What does all this mean He s a smart dude and he focuses on the people around him not shortterm positioning earning their loyalty for the long-term. For a Chief Minister it s pretty hard to find someone on his team with a bad word to say about him. Think that s an accident DD doesn t. You are not your job. Oh sure yeah pretty standard career path dude is born in a remote area of Lancashire he messes up his A-Levels big-time (E s in history and business studies) doesn t go to Uni gets a job in insurance does some youth work qualifies as an accountant becomes Chief Minister of Jersey and the first immigrant to get the top job. Again not an accident. Sounds more like ambition and hard work. deadly diary Why We should all be more like ian Gorst. 2 3 Do difficult things. Pop quiz. Who raised the retirement age to 67 Who set up the Independent Jersey Care Inquiry Who got collective responsibility through the States effectively gagging unruly ministers Who managed to extend a population policy that literally everyone knew wasn t working for another two years This guy that s who. He s not afraid of doing difficult things tackling challenges that other people had carefully side-stepped. In a time in which politicians are desperate to avoid mistakes or scandal when civil servants are risk-averse to the point of paralysis this guy takes on difficult stuff and gets it done. Conventional wisdom says that it s not a smart way to go about things the reality is that he topped the Senatorial poll and became the first Chief Minister to hang on to the job for a second term. Don t sweat the media. The old days of angry phone calls from the former Chief Ministers to journos over a story that they didn t like are over. Finito. (DD can say this safely cos DD don t got no phone). OK he gets his comms chief to do a bit of that sort of stuff but it s nothing like it was under um the other people who have done that job. It s not because he s much more thick-skinned in fact DD hears he can be more than a little moody it s because he doesn t fixate on the press broadcasters. There s more ways than ever in the age of social media to get a message out without playing PR roulette with the local journalism machine. Another is that he lacks the ego to lecture people about how they do their own jobs. Yet another is that he knows that today s front page is tomorrow s chip wrapper just cos UK politics is obsessed with media coverage doesn t mean it has to be like that. 4 Want more read deadly diary on paGe 90 08 5 Dress smart. Go and look up Ian Gorst on Wikipedia. DD will wait here patiently while you do it. Back Cool. See that pic No messing he looks like Bond. Did the last two Chief Ministers look like Bond No no they didn t. Can t see the Gorstmeister getting caught wearing sunglasses on Newsnight can you MAY 2015 jsy CONNECT ADVERTORIAL Montblanc at Hettich It s hard to miss a Montblanc pen with its iconic branding and classic black and white design and from this month you ll be able to catch the latest arrivals from this cult luxury brand in its new home at Hettich. The design and quality that make a Montblanc pen so instantly recognisable have also been translated into a range of watches luxury leather goods and accessories all with the same elegant style synonymous with this 100-year-old brand. Whether you re looking for a gift or just an opportunity to treat yourself explore the Montblanc range at Hettich to discover these exceptional accessories crafted using traditional techniques to create something very special. From the classic Meisterst ck pen with its hand-engraved gold nib to the contemporary new TimeWalker watches along with attractive cufflinks and leather goods take some time to discover the elegant new arrivals at Hettich. And if you re already a Montblanc connoisseur as well as being able to see the latest collections you ll be able to purchase ink refills for Montblanc pens. Hettich is committed to offering genuine VAT-free prices with GST refunds on purchases over 300 available for visitors. Pictured Montblanc Meisterst ck LeGrand Ballpen 267. Montblanc Meisterst ck LeGrand Fountain pen 542.50.Montblanc black onyx and stainless steel engraved cufflinks 188. Montblanc TimeWalker Automatic Chronograph 43mm black alligator strap 3 115. Available from Hettich Jewellers 1 King Street St Helier Jersey Tel 01534 734491 Banking Done. Easy Accessing your personal or business account is quick and easy with our Online and Mobile Banking. And with our Secure Banking Promise you ve got complete peace of mind. Easy. Fast. Secure. Secure Banking Promise online Search for the NatWest offshore app The Royal Bank of Scotland International Limited trading as NatWest (NatWest). Registered Office PO Box 64 Royal Bank House 71 Bath Street St. Helier Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission. Network charges may apply. jsy CONNECT MAY 2015 09 NEWS racism claims just three so Far Two employers have been accused of racial discrimination in cases due to go to Employment Tribunal hearings this year. New anti-discrimination legislation came into force in September and three complaints have been made in the first six months of the law being in force although one has already been struck out. The tribunal has warned in its annual report that as other forms of discrimination are included in the legislation on areas such as age gender and sexuality they expect their workload to go up dramatically. The report also stated that last year saw their work dominated by complaints alleging unfair dismissal 13 compensation awards were ordered in 2014 and the majority of claims that went to a full hearing were decided in favour of the claimant. In four cases the amount of compensation awarded was reduced on appeal. Employment Tribunal Chairman Nicola Santos-Costa said Not as many complaints under the Discrimination Law have been received as originally envisaged but it is anticipated that this aspect of the Tribunal s work will increase exponentially as the number of Protected Characteristics under the Discrimination Law increase and also the accessibility of rights under this Law becomes commonplace. Last year saw a total of 173 complaints to the tribunal a small drop on the 204 received in 2013. But the number of complaints that went to a full hearing was much higher at 66 the second-highest since the tribunal was established in 2005. Figures also show that the complaints came from a wide range of occupations including wholesale and retail 17%) hotels restaurants and bars (15%) financial services (11%) and the public sector (10%). The complainants themselves were from a range of backgrounds including skilled trades (30%) elementary occupations (16%) sales and customer service (13%) professionals (12%) and managers and senior officials (5%). evasion. Labour s manifesto includes a pledge to force Jersey into producing a public register of company ownership piling on more pressure from the UK for the Island to reform tax laws. Labour s manifesto essentially covered similar ground but added that they wanted country-by-country reporting by companies to say what they earned in which jurisdictions and to end tax breaks for hedge funds. The manifesto made it clear that if elected to govern Labour would take swift action. It states Our first Finance Bill will close the tax loopholes that cost the Exchequer billions of pounds a year. We will introduce tougher penalties for those abusing the tax system end unfair tax breaks used by hedge funds and others and bear down on disguised employment. We will seek international agreement to make countryby-country reporting information publicly available and we will act at home if agreement is not reached. British Overseas Territories and Crown Dependencies will be required to produce publicly available registries of the real owners of companies based there. 10 MAY 2015 jsy CONNECT Labour We ll make Jersey open the books The pledge was included in the party s manifesto which was released yesterday ahead of the election on 7 May. Jersey already has a registry of beneficial ownership effectively a list of companies that says who really owns them but it s a private document that s only available to regulators tax authorities and law enforcement. But the pressure from all sides of the political spectrum in the UK is building for the Island to open that registry to public scrutiny something that the UK say they re planning to do themselves. Recently the Conservative-Liberal coalition stepped up the rhetoric saying the public register was needed to meet the urgent challenges of illicit finance and tax A more direct approach to optimal cash management If the pinnacle is optimum efficiency we recommend taking the direct route. Equipped with a range of leading integrated cash management solutions fitted to your unique specifications we can facilitate the control of money throughout your organisation. To keep on top simply call us on 0207 574 3247 or speak to your Relationship Manager. Alternatively you can find out more by visiting us at wealth cash Wealth and Investment Management Barclays offers wealth and investment products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Private Clients International Limited part of Barclays is registered in the Isle of Man. Registered Number 005619C. Registered Office Barclays House Victoria Street Douglas Isle of Man IM99 1AJ. Barclays Private Clients International Limited is licensed by the Isle of Man Financial Supervision Commission registered with the Insurance and Pensions Authority in respect of General Business and authorised and regulated by the Financial Conduct Authority in the UK in relation to UK regulated mortgage activities. Barclays Private Clients International Limited Jersey Branch is regulated by the Jersey Financial Services Commission. Barclays Private Clients International Limited Jersey Branch has its principal business address in Jersey at 13 Library Place St. Helier Jersey JE4 8NE Channel Islands. Barclays Private Clients International Limited Jersey Branch is regulated by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law 1987 as amended. Jersey_March 15 NEWS Islands at war as Jersey minister stands up to Guernsey fishing scheme Jersey s Environment Minister is part-funding a legal challenge against the Guernsey government s fishing rules that bar our fisherman from working in their waters. WHAT HAVE YOU BEEN READING a Quick look at the biG stories last month on bailiWick express A Jersey fisherman is taking Guernsey s government to court over their licensing system which effectively bans our fishermen from fishing in their waters while theirs are free to fish around Jersey s shores. The first court challenge failed but now Deputy Steve Luce has committed an unconfirmed sum believed to be around 5 000 and thrown his weight behind the Jersey fishing fleet. He says that he s taken the step to show his support for the industry and to send a clear signal to Guernsey s politicians that he is taking the issue seriously. I am certainly 100% supportive from a political point of view and I would like to think that we can somehow make some progress he said. It s not an ideal situation. I would be much happier if we were not arguing. It is very sad but we are where we are and I am trying to help. Deputy Luce who used to be a major shellfish farmer but who does not have any commercial interest in the fishing industry pointed out that in centuries past Jersey s fishermen have fished away as Gaspe in Canada and Newfoundland. He said it would be crazy to think that all that time ago they went that far but never fished in waters around Guernsey just a few miles away and that history should be recognised with modern-day fishing rights. The latest legal challenge is just the latest step in a 12-year battle over Guernsey s fishing licensing scheme. Around 80 applications by Jersey fishermen were made when the licensing system was introduced in 2003 but only 10 were granted the first court cases began just weeks afterwards. Former cop on indecent child images charge A former policeman is due in court this morning on charges of possessing indecent images of children. http jsy news former-cop-indecentchild-images-charge Police name dead man found in St Ouen Police have named the man who was found dead at St Ouen s Bay on Friday morning. http jsy news police-name-dead-manfound-st-ouen Revealed cuts stealthtaxes and redundancies as States face 135 million deficit Plans for 60 million worth of staff savings and job cuts along with 35 million worth of benefit cuts and user-pays stealth taxes have been revealed this morning as ministers work to plug a 135 million black hole in States finances. http www.bailiwickexpress. com jsy news revealed-cutsstealth-taxes-and-redundanciesplanned-states-face-135-milliondeficit .VTkq9LqVdyE 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. 12 MAY 2015 jsy CONNECT NEWS News RE view We re paying the price for online shopping Jersey Post say that they re being forced to raise prices after the number of letters being posted dropped 11% in a single year. An increase in parcels from internet shopping means that posties are delivering to 1 000 more addresses during the week than they were in 2013 but with fewer stamps being sold for letters Islanders are paying the price for their busier rounds. It now costs you 47p to post a letter under 100g to someone in the Island and 57p to send it off to someone in the UK the Isle of Man or one of the other Channel Islands. Sending a letter to Europe costs you 64p that s up 2p and if you want to send one anywhere else in the world it costs 75p up an extra 3p. Jersey Post s Chief Executive Tim Brown said We understand that price increases have an impact for our customers but hope they will appreciate the reasons for the changes and recognise that we have tried to keep any increase as small as possible. We passionately believe 14 Email us on editor Got News that the services provided by Jersey Post represent great value for money and that these new prices should have a minimal impact on most Islanders the average household spends just 1 per week on postal services. In addition we will continue to look at ways that we can support the community for example offering discounts on key stamp prices at Christmas as well as providing tiered discounts for heavier users of the postage system. an eight pence per share dividend to shareholders in addition to the four pence interim dividend three pence more in total than was paid in 2013. Ravenscroft Limited had an extremely successful 2014 and to see significant increases across turnover profit before tax and assets under administration is testament to the hard work and loyalty of our staff and to the approach the company takes. I will however always say that without the loyalty and support of our fantastic client base none of this would be possible said Group Chief Executive Officer Jon Ravenscroft. The company is now ten years old and is almost unrecognisable from when it began but our commitment to having a simple investment approach that delivers results remains and is the foundation of our success. finance industry leaders about future growth according to Geoff Cook CEO Jersey Finance. The majority of indicators for the finance industry were either positive or strongly positive whilst four of the indicators for Business Activity Profitability Employment and Future Business Activity improved. The three-month snapshot of industry activity is included in the Jersey Business Tendency Survey for the quarter ending March 2015 by the States of Jersey Statistics Unit. Mr Cook said While we should not draw too many long-term conclusions from a three month period we can nevertheless be encouraged by the general positive trend displayed both for the finance industry and the wider commercial sector as the business activity indicator for all sectors was the highest since the survey was introduced in 2009. Business optimism for the finance industry was unchanged from the previous quarter indicating a consistent level of optimism about future growth and particularly encouraging was the profitability indicator for the sector which showed significant improvement once again returning to the positive levels reported in mid-2014. Busy year for Ravenscroft as it publishes annual results Ravenscroft Limited saw a 40% increase in turnover last year according to its 2014 results. The company which is the only locally-owned independent stockbroking and investment management company in the Channel Islands saw turnover grow from 8.1m at the end of 2013 to 11.37m at the end of 2014. Profit before tax increased 55% to 2.35m with assets under administration increasing 26% to 1.62bn. The board is proposing Positive outlook maintained in latest survey figures The most recent Jersey Business Tendency Survey highlights a consistent level of optimism among MAY 2015 jsy CONNECT OUR CLIENTS ARE NOT ORDINARY WE RE THINKING BEYOND THE OBVIOUS CALL TIM CHILDE HEAD OF JERSEY OFFICE TEL. (0)1534 506 070 OR VISIT WWW.QUILTERCHEVIOT.COM Investors should remember that the value of investments and the income from them can go down as well as up. Quilter Cheviot Limited is registered in England with number 01923571. Quilter Cheviot Limited is a member of the London Stock Exchange authorised and regulated by the UK Financial Conduct Authority and regulated under the Financial Services (Jersey) Law 1998 by the Jersey Financial Services Commission for the conduct of investment business in Jersey and by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law 1987 to carry on investment business in the Bailiwick of Guernsey. Accordingly in some respects the regulatory system that applies will be different from that of the United Kingdom. LEGAL MATTERS Legal Matters Carey Olsen advises Aviva on 5 .6 billion takeover of Friends Life A cross-practice and pan-Channel Island team from Carey Olsen has advised Aviva plc on its acquisition of FTSE100 listed Friends Life Group Limited for 5.6 billion in one of the largest ever takeovers in the insurance market and the largest scheme of arrangement to go through the Guernsey court. Shareholders of Friends Life now own 26 per cent of the enlarged group which will all be branded Aviva serving 16 million customers. Aviva acquired all the ordinary share capital of Friends Life on the basis of an exchange ratio of 0.74 Aviva ordinary shares for each Friends Life ordinary share. The Carey Olsen team was led by Guernsey corporate partner Tom Carey who was assisted by senior associates Adrian Sarchet James Stockwell and Natasha Kapp who oGier advises sky on sale of sky bet advised on the Guernsey corporate competition and insurance law aspects of the transaction and David Allen who advised on the Jersey competition and insurance law aspects of the transaction. Mr Carey said This is a very significant deal for Aviva and the insurance market generally and we expect the Royal Court s decision to become the leading judgment on the conduct of takeover schemes of arrangement in Guernsey. I am proud of what our team has achieved for Aviva which further demonstrates that Carey Olsen is the go-to firm for transactions of this nature. Ogier has advised Sky on the sale of an 80% stake in its online betting and gaming business Sky Betting & Gaming (Sky Bet) to funds advised by CVC Capital Partners and members of the Sky Bet management team. The deal valued Sky Bet at 800 million. Ogier teams provided advice on Jersey law issues and laws within the Bailiwick of Guernsey. Ogier group partner Simon Dinning led the Jersey aspects with Alex Curry in Jersey while Frances Watson and James Cooke covered the Bailiwick of Guernsey laws. Simon Dinning said We were delighted to assist Sky and their English counsel Herbert Smith in getting this over the line. This deal further demonstrates Ogier s expertise in the digital and gaming sectors in which Jersey in particular is currently seeing rapid growth. We have a highly skilled team who are able to provide cutting edge advice and support to clients across the range of structuring regulatory and commercial issues affecting these dynamic and fast moving industries. Through our membership of Digital Jersey we are continuing to see fantastic innovation in the Island and we are excited at the opportunities these sectors are generating both here and overseas. Ogier advises on 2.5 billion ICG Europe Fund VI Ogier Jersey has acted as Jersey legal adviser for Intermediate Capital Group plc a specialist investment firm and asset manager in relation to the establishment of its tenth Jersey fund ICG Europe Fund VI which has held its first close having raised 2.5 billion to date. This includes a contribution from ICG s balance sheet of 500 million along with 2 billion of third party subscriptions. Niamh Lalor who 16 led the Ogier Jersey team said This is a very strong first close for ICG and we are delighted to have assisted them in the launch of their tenth Jersey fund. The fund which was established as a Jersey Expert Fund has a five year investment period and carry on investment and ancillary activities with the objective of delivering attractive risk-adjusted returns. MAY 2015 jsy CONNECT LEGAL MATTERS Legal Matters Is Jersey ready willing and able to embrace Online Dispute Resolution By Solicitor Dexter Flynn Voisin Earlier this year the Civil Justice Council in the UK ( CJC ) produced a report concerning Online Dispute Resolution (ODR). The CJC is charged with overseeing and coordinating the modernisation of the civil justice system in the UK. It got me thinking about how this could be relevant to us here in Jersey. Are we behind the curve What can be done and how quickly In essence the aim of ODR is to utilize technology to provide warring parties with a broader access to justice and assist in resolving disputes quickly and cost effectively. Sounds wonderful doesn t it The ODR advisory group was tasked with assessing how technology might be deployed in low value civil claims. It looked at the whole field of online dispute resolution. In short it recommended the following 1. That HM Courts and Tribunal Service should establish a new Internet based court service known as HM Online Court ( HMOC ). HMOC would be a three tier service Tier one would provide online evaluation. In essence this would assist users identify their problems and categorise them. Tier two would provide online facilitation. This would bring a dispute to a speedy fair conclusion without the involvement of Judges. In essence the service would provide online facilitators. Manna from heaven for disciples of ADR. Tier three would provide online Judges who would decide suitable cases or part of cases on an online basis. This process would involve online submission of papers and then the use of telephone conferencing facilities. 2. HMOC will require two major innovations namely 1) that some Judges should be trained and authorised to decide cases on an online basis and 2) that the State Government should formally fund and make available online facilitation and online evaluation services. 3. That a pilot system be put in place that a portion of the annual reform budget be applied to the introduction of the system and that all political parties offer in principle support for HMOC. 4. Albeit the CJC s terms of reference were restricted to civil claims under the value of 25 000 it clearly has in mind extending the jurisdiction to suitable family disputes and other appropriate cases that come before Tribunals today. I have often made the point that our current system of small claim resolution in Jersey is inadequate. Frankly a 10 000 limit in the 21st Century is ridiculous. At first blush ODR seems the way forward. As the Minister of the Rolls Lord Dyson commented upon in the foreword to the report ODR is also in harmony with wider changes in society in particular the advances in technology and the large scale use of the online services to transact all forms of business. The Court have some catching up to do..... . For far too long we have heard about the inordinate cost of doing justice in Jersey. Surely ODR will assist in decreasing legal costs Jersey is vigorously marketing itself as a digital hub. Developments such as this fit hand in glove in the marketing of Jersey Plc. To be fair the Jersey legal profession has demonstrated an ability to embrace the online world with the creation of the Jersey Legal Information Board website which quite frankly is brilliant. However a word of warning. As intimated by Lord Dyson the legal profession is notoriously slow in accepting the winds of change. Change for changes sake does not necessarily result in progress. The cost of establishing this system maybe prohibitive particularly when the Jersey Government is staring down the barrel of restricted spending gun. Do we have the breadth of personnel who could engage in this process These are all matters to be considered. What is certain is that now that the justice system has opened up Pandora s technological box it can never close it. Do we fling it open or keep it slightly ajar Commercial Law Property Transactions Matrimonial & Family Law Wills & Probate Litigation Are you looking for a legal bursary Get a head start in the legal world by applying for the Voisin Bursary Scheme. If you are interested and want to know more please contact Emma Stewart - T 01534 500357 E emmastewart 37 Esplanade St Helier Jersey JE1 1AW Channel Islands. Tel 44 (0)1534 500300 Fax 44 (0)1534 500350 mail jsy CONNECT MAY 2015 17 LEGAL MATTERS Legal Matters Changes to Jersey s planning laws Over a decade after it was first proposed Jersey s planning appeal process has undergone radical changes this year with the introduction of a meritsbased right of appeal for planning applications. Keith Dixon from Carey Olsen examines the key changes of the new regime and the impact they will have on future planning appeals. Up until March 2015 the right to appeal a planning decision generally required individuals to initiate an administrative appeal to the Royal Court in a process that bore criticism for being excessively daunting expensive and complex. The Planning and Building (Amendment No. 6) (Jersey) Law 2014 (Amendment No.6) that came into force on March 10th 2015 introduced a new appeals process for decisions made or actions taken under the Planning and Building (Jersey) Law 2002 (the Planning Law ). It is now no longer necessary for individuals to take their appeals to the Royal Court. If a person is aggrieved by a decision or action taken under the Planning Law they can now submit an appeal to the Judicial Greffier who will assign it to an independent inspector for assessment. Inspectors are chosen from a panel of qualified and experienced individuals recruited via the Judicial Appointments Committee. They are able to request written submissions and or to convene hearings for interested parties to assist them in making their recommendation. 18 The inspector s role is to make a recommendation based on the merits of a particular planning application or decision taken. The recommendation is then forwarded to the Minister for Planning and Environment who determines the final outcome of the appeal. The Minister is not bound by the inspector s recommendation but must be satisfied that there are reasons to depart from it. There is a further right of appeal from the Minister s decision to the Royal Court but only in limited circumstances i.e. where a question of law arises from the appeal. In the context of an appeal concerning the grant of planning permission a person aggrieved would also include a third party who retains a right of appeal with Amendment No 6. A third party is in an improved position as they now have 28 days to appeal a planning decision rather than the 14 days allocated under the previous regime. A fee is payable in respect of an appeal under the new process which is set by Order and varies depending on the type of appeal. All parties are expected to bear their own costs as there are no provisions to award costs under the process. A substantial number of planning decisions are subject to the new appeal regime including cases where planning permission is refused either in advance of works being carried out or retrospectively where there is a refusal to grant a certificate of completion or where an application to vary planning permission has been refused. The appeals process also applies to decisions to list buildings or sites of special interest. The implications of Amendment No 6 are therefore wide ranging in the planning context. Notably planning applications that have been subject to public inquiry are not included in the revised process and will still be determined by the Minister. Along with introducing the new appeals process Amendment No. 6 also makes some consequential amendments to the Planning Law. Previously there were various ways in which the Minister could influence planning decisions but under the new regime it is hoped that greater fairness and accountability will be achieved. With first-tier decisions being taken either by planning officers or by the Planning Applications Committee (formerly the Planning Applications Panel) the Minister s powers are reserved to determining the final outcome. The Minister of course remains responsible for implementing and setting out planning policy and guidance. In not giving full power to the independent inspectors to determine appeals Jersey has not gone as far as other equivalent jurisdictions (notably Guernsey and the Isle of Man). It therefore remains to be seen if how and when the Minister will depart from the independent inspector s recommendations and whether Amendment No. 6 will deliver the more accessible efficient and cheaper system that is hoped for. MAY 2015 jsy CONNECT Recapture the excitement of being in a job you love. Call us today to discuss roles that might suit you best whether you are looking for the next step in your career a specific challenge or flexible working hours. Perm & Temp Employment Executive Careers Graduate Services Salary Survey Psychometric Testing Pre Employment Screening Call 626777 jobs Trinity House Bath Street St Helier JE2 4ST APPOINTMENTS Trading places New Associate Director for Quilter Cheviot Quilter Cheviot s Jersey office has appointed a new Associate Director from the team at its London headquarters. Jenna McCabe previously Channel Marketing Manager for the group has relocated to the Jersey team following sustained growth on the island for the investment firm. Jenna who formerly held senior marketing positions at Rathbones and AXA Investment Managers has worked for Quilter Cheviot for 18 months managing the development and delivery of marketing across the firm s central headquarters and 11 regional bases. Her role will predominantly focus on international business development working with the existing team Mo Baluchi and Chris Scott and the global Visit for all the latest business news Want more Old Mutual Wealth teams to offer the island s offshore jurisdiction to international investors. Tim Childe Head of the Jersey Quilter Cheviot office said The appointment of Jenna is a welcome one and a true reflection of the continued success of our team in Jersey. Her role will strengthen our business development offering significantly and working closely with the Old Mutual Wealth group across the globe will open up fantastic new prospects for us as a firm. The new appointment brings the Jersey office to a total of 23 employees. The Jersey office is one of twelve offices within Quilter Cheviot which has total funds under management of 17.5 bn. See page 86 to read more on this story. Digital Jersey looks for new CEO D igital Jersey Jersey s government funded development agency tasked with accelerating the growth of the digital sector is looking to recruit a new CEO. The key responsibilities of the role will be strategic and operational management of the organisation representation of key stakeholders on and off island and representation of Jersey as a digital jurisdiction. The successful applicant will be responsible for delivering long term economic social and reputational objectives together with meeting annual business plan goals to develop Jersey as a recognised jurisdiction for digital growth. Digital Jersey s targets and 2015 business plan can be found here. Digital Jersey pursues its objectives through three strategic work streams Grand Jersey strengthens management team through appointment of new deputy general manager The five-star Grand Jersey has appointed Elizabeth Raine as Deputy General Manager. Miss Raine has 15 years experience in the hotel industry most recently as deputy general manager at Hand Picked Hotel s Rhinefield House a four red-star luxury country house in the New Forest Hampshire. Hand Picked Hotels acquired Grand Jersey in September 2014 expanding its award-winning portfolio to 21 properties and strengthening its presence in the Channel Islands to three hotels Grand Jersey L Horizon Beach Hotel & Spa and St Pierre Park Hotel & Golf Resort in Guernsey. This makes Hand Picked one of the largest hotel companies in the Channel Islands. 20 Miss Raine said This is a unique and exciting opportunity to be involved in the development of one of Jersey s most prestigious hotel properties. The hotel has a fantastic reputation for providing its guests with unrivalled luxury experiences and I am delighted to be joining the hotel at such an exciting time in its history. Hand Picked has an excellent reputation for adding value to its properties and with my experience I hope to harness this new investment to improve the existing standards of excellence at Grand Jersey. Martin Kelly General Manager at Grand Jersey said Elizabeth has a proven track record of success at a range of large and boutique four-star hotels in the UK and abroad. She is a highly qualified and experienced professional and will be a great asset to the team at Grand Jersey. Creating an effective digital ecosystem to support growth Business development activities supporting business growth and inward investment Skills and learning development to meet current and projected needs Chair of Digital Jersey Paul Masterton commented I am proud and honoured to have served as Digital Jersey s interim CEO and have very much enjoyed the challenge. We have achieved many positive outcomes not least the launch of the Hub and have developed much needed momentum for the sector. It is now the right time to appoint a new CEO to take the organisation and Jersey s digital ambitions forward. This is a vitally important appointment and I will be consulting with stakeholders to get the brief for the job exactly right. MAY 2015 jsy CONNECT jg Connecting for Good Growth in Jersey We re bringing our insight about global trends and our deep understanding of the market in Jersey to broker new connections between government and business leaders here. Unlocking new opportunities. We re helping to drive the right kind of sustainable economic growth for Jersey. Ensuring our Island remains relevant in a changing world. Supporting businesses to grow and adapt to change. Shaping Jersey s future good growth. To connect with us for good growth opportunities contact us today Brendan McMahon brendan.mcmahon 44 (0) 1534 838234 Alison Cambray alison.cambray 44 (0) 1534 838337 Neil Howlett neil.howlett 44 (0) 1534 838349 Karl Hairon karl.hairon 44 (0) 1534 838282 2015 PricewaterhouseCoopers CI LLP. All rights reserved. PricewaterhouseCoopers and PwC refer to the Channel Island firm of PricewaterhouseCoopers CI LLP which is a member firm of PricewaterhouseCoopers International Limited each member firm of which is a separate legal entity. PricewaterhouseCoopers CI LLP a limited liability partnership registered in England with registered number OC309347 provides assurance advisory and tax services. The registered office is 1 Embankment Place London WC2N 6RH and its principal place of business is 37 Esplanade St. Helier Jersey JE1 4XA six months aGo a civil servant boldly told connect that they Were on the verGe of appointinG a lead contractor to carry out a transformative e-Gov proGramme that Would save money reform public services and make life easier for the public and for businesses. the project Would be planned by july he said and at some time betWeen april 2016 and january 2017 the neW e-Gov portal Would open up and the Way that public services Worked from tax forms school reports and car reGistration Would chanGe forever. unproductive jobs could be removed savinGs could be made and most thrillinGly you could do your tax form sat on your sofa in your pants. What more could you possibly Want apart from it didn t happen and currently there is no neW timescale for the delivery of the project. ben Qu r e looks at What miGht happen next. it sounded too Good to be true. if you thouGht about the promised timescale for delivery of the e-Gov project and then took the obvious and rational next step WalkinG into a bookies and stakinG a larGe bundle of notes on that not beinG the case you d have been feelinG pretty Good about yourself a feW months later When bailiWick express revealed that actually no the contract hadn t been siGned the chap runninG the proGramme had been moved sideWays the timeframe had been scrapped and it Wasn t clear What the next steps Would be. 2 words Ben Qu r e Among those feeling less than happy about it was Mark Loane the head of major local tech firm C5 Alliance who published a scathing blog that condemned the whole shambles as inadequate and shameful. That blog drew a great deal of attention and led to a lot of heat on what became the first real Jersey News Scandal of 2015. But all is not lost. A new team project manager Jonathan Williams and States Director of Information Services Ian Webb have been put in charge of the e-Gov project and they say that things are moving forward. Jonathan described the recent events not as a suspension of the project but as a chance to using a football analogy pause put your foot on the ball and look around. And he says that there remains a huge amount of will behind making e-Gov a reality. The process is the game-changer for the States he said. Everybody is very lined-up around the questions of what the customer wants and how we can deliver that. When Mike [King the previous manager of the project] described the way that we are going to procure a lead partner to help us with design and implementation work he described the process we anticipated and that we passed on in December last year for a very sensible reason. When the various bids came back in response to us there was not a very clear direction that we could take. The brief that we put out to market was very broad and complex it was a hugely ambitious piece of work and there were different approaches so the board did not have a clear consensus around one direction. There has also been a change in direction for the project driven by two things firstly the need for new IT systems in the key departments of the taxes office and the Social Security department and more importantly the shadow of what s now expected to be an annual deficit of around 130 million in States finances that is currently dominating most of what is going on in the public sector. 22 MAY 2015 jsy CONNECT SPECIAL REPORT urning the T super tanker The prospect of a project that could deliver savings and efficiencies within the States is one that has to say the least caught the prevailing mood on the Council of Ministers. The story of how such an enormous deficit was allowed to grow and grow is one for another day but to put it into perspective to close a 130 million deficit purely through tax measures you d have to double GST fuel duty and stamp duty whereas to close it through cuts you d have to make cuts equivalent to shutting down the entire Education and TTS departments. Neither of those options sounds hugely appealing. And that s why Ian says that there is a huge amount of support for getting e-Gov going. I have been here for six years and when I first came it was about we can t do this he said. Now there is a change of attitude at all levels let s get on and do this. There are components that we know we need to do well which is things like authentication having a user-name and password and the right level of security. The portal itself is another component and we know that we need a service bus to sit underneath that to link it all together. There was a lot of good research and development done last year we are not going to throw that out. We will dust that off and run forward. It s not that e-Gov has stopped. One part of it has. A huge amount of activity has continued. For me the most effective communication is a successful delivery of good services and changed services to citizens. That is what gives credibility to the programme. jsy CONNECT MAY 2015 23 b everybody is very lined-up around the Questions of What the customer Wants and hoW We can deliver that. SPECIAL REPORT SPECIAL REPORT But one of the obstacles was the States itself or rather the fact that there s actually no such thing. The public sector in Jersey is essentially a set of individual departments each one accountable to an elected minister. Getting departments to share that data which is fundamental to the success of e-Gov is dependent on specific detailed agreements. And that s an issue that Jonathan candidly says could slow down the project. But while he refused to give anything resembling a timeline he said that people could expect to see some progress soon. Jonathan said A lot of the work that has been done remains completely sound. The vast majority of that work and planning is all still absolutely usable. The first things that we should deliver will come under the tell us once banner. A couple of things we would hope to deliver soon would be registration of a new citizen and registration of a new business setting up. We have had lots of feedback that those are processes that would be helpful. We ve been speaking to the industry we ve been speaking to citizens speaking to the change management and the digital sector. There has been a huge amount of very constructive criticism where people have said we fully support the intentions but we want you to get on with it . there are components that We knoW We need to do Well Which is thinGs like authentication havinG a user-name and passWord and the riGht level of security. the portal itself is another component and We knoW that We need a service bus to sit underneath that to link it all toGether. at least phase one of a good well-implemented online tax system which could allow some prepopulation of data [so that forms are mostly filled in automatically]. We have got to have good authentication so that the citizen can be logged in securely. We can then target some of the key hard transactions - those things that cause citizens the most pain so forms that they have to fill in such as the housing forms which could be pre-populated and much more accessible. All of that is readily achievable within 12 months. The States are putting a brave face on this at the moment but what s your take on how it s going ML The truth is very much less positive and it shows up lots of faults of government and the civil service in general. Your blog in late February about the issues with the project attracted a lot of attention what kind of impact do you think it had ML I think that its having the effect that I anticipated which is a positive impact on thinking around e-Gov which means it focuses minds right at the top and they seem to be reacting in generally the right way. They are trying to build an enterprise architecture and are talking to internal people the supplier community and representatives from the users themselves. What if anything has changed since then ML It s a bit sad that it takes a 130 million deficit to focus minds but it s a good time to be getting on with some of these things that they need to be getting on with. Now we really have a burning bridge so now there is an energy that there wasn t before. In the past these things have happened in the commercial world because everyone knew that their competitors were doing them and unlocking efficiencies productivity improvements and better services. But government is different. As a citizen in Jersey I cannot go anywhere else for government services I can t go anywhere else to pay tax jsy CONNECT MAY 2015 25 mark loane One of the more vocal critics of the lack of progress on e-Gov has been Mark Loane the CEO of the C5 Alliance Group whose business is one of the Channel Islands leaders in software development and business process re-engineering. To put it another way his business is all about delivering e-Gov type projects for major international clients. CONNECT There have been repeated delays to this project. If they really knuckled down what could be realistically be achieved in say 12 months MARK LOANE In 12 months we could put in place the enterprise architecture this communication between siloed systems and departments the back-end systems. We could achieve a log-in and Citizen ID and they could achieve certain exemplars such as a Tell us Once system and online tax forms. We could achieve b We ve been speakinG to the industry We ve been speakinG to citizens speakinG to the chanGe manaGement and the diGital sector. there has been a huGe amount of very constructive criticism Where people have said We fully support the intentions but We Want you to Get on With it access social services or fill in a drainage report. And they have never been under pressure in the past no serious pressure to reform or become more efficient. How does e-Gov fit into that backdrop of the deficit and the pressure that the States are under to find savings ML Now more than ever the budget deficit situation is really focussing minds. The appointment of Kevin Keen to review costs is bringing a fresh perspective he is going to be asking fundamentally difficult questions about where the biggest costs are and whether they are using people well. Some of that will be pretty unpleasant reading and realising as he put it that you have to be both ruthless and compassionate. It is not their job to employ people it is their job to run a good and efficient government. It is their job to supply services to us the taxpayers. They are not there to make jobs. If it ends up being another piece of consultancy work that sits on the shelf and gets largely ignored by chief officers industry leaders are going - and taxpayers in general are going to be pretty unhappy about that. I like what change. je is trying to do and what others are trying to do it s about citizens calling our government to account and send the message that when they promise to do things they actually have to deliver. 26 MAY 2015 jsy CONNECT What is holding the project back ML Technology is the enabler here not the barrier. This target of 75% in five years is nonsense we can do a huge amount in a very short time for very little money. The falling cost of computer power means that technology as an enabler is incredibly fast and incredibly low-cost. The speed barrier to e-Gov is not the technology it s going to be about the people and the culture and the business processes. It s the bureaucracy not the technology. e-Gov timeline december 2012 States Chief Executive John Richardson promises a Chamber of Commerce event that a massive reform of the public sector using technology to deliver services online will begin within six months. SPECIAL REPORT october 2014 Economic Development department chief officer Mike King who is leading the States e-Gov project tells Connect magazine that a lead contractor for a massive e-Gov reform will be appointed by the end of the month with the system to be designed by June 2015 and to be working between April 2016 and January 2017. february 2015 Bailiwick Express reveals that the 7 million e-Gov project has stalled Treasury Minister Alan Maclean confirms that Mike King is no longer running the project that the key deadline to appoint a lead partner has been missed and that the project is on hold pending a re-think. march 2015 Chief Minister Ian Gorst tells the States that the process of engaging a lead partner has been paused but that a timetable is being developed so that we can be held to account for delivery . He does not give a timescale for the start or completion of the project. END november 2013 A Scrutiny panel hears from John Richardson that e-Gov is about to start with delivery starting certainly in the early part of 2014 being rolled out in 2014 . He says that work will start with the Social Security and underlined that the project would be up and running in the early part of 2014. january 2014 John Richardson tells a Scrutiny panel hearing that the e-Gov delivery roll-out will start in April. He adds that the final business case from KPMG had been received after a four-week delay and that it looked very promising . He says The good news is we do not have to significantly change all of our technology computer platforms. There is quite a lot of updating and modernising required in order to have the structures which was to communicate effectively with the public. march 2014 Chief Minister Ian Gorst tells a Digital Jersey event that ...the inconvenient truth is that today we transact about 7% of our customer interactions using digital channels. Within four years I want to see that increase by a factor of ten. A presentation at the event sets a timescale for initiating the project by September and the end of the first phase of implementation by March 2016. jsy CONNECT MAY 2015 27 CAREERS o By MARTHA MACDONALD W ith the mounting pressure on young people to get better grades go to university and climb the career ladder I decided as a real life young person to go out into Jersey businesses and investigate the employment opportunities available in the Island. The world of work can be a scary place and contrary to popular belief career paths aren t always neat and tidy. I ve done the school thing the PE lessons the cringeworthy proms I ve worked hard for my grades and now I m claiming my right as a school leaver to ask the question What can this industry offer me If you re fresh out of school or uni and you feel as lost as I did when suddenly no one was structuring my time for me anymore this feature will hopefully show you the diverse ways in which you can arrive at the same employment goal. The month of May brought me a life in PR. I headed to The Refinery and Natasha Egr and Ed Le Gallais took up the challenge of convincing me why a bright-eyed and bushy-tailed youngster like me should do what they do. Ironically the people with the worst PR are often people who work in PR but they seemed lovely to me. Is it all glitter and lies Does PR really stand for Perfidious Rabble-rousing No. Of course it doesn t. Let s find out everything there is to know about publicly relating things and see if they can sway me over to the dark side... 28 Natasha Egr Director anD HeaD of Public relations MM Talk to me briefly about your role and responsibilities as Director and Head of Public Relations at The Refinery. NE My role is quite diverse I have a portfolio of PR clients and I have director responsibilities that require me to concentrate on operational issues and staff management. I also oversee our social media department and publication division so it s pretty hectic I work as an extended member of their in-house team developing reputational strategy dealing with crisis management shaping their business personality and communication material and working with their stakeholders. MM Is PR something you ve always wanted to do NE Actually it wasn t. From about the age of 14 I aspired to be a journalist and I studied Multimedia Journalism at Bournemouth University. I wanted to come back to Jersey and I landed a junior journalist role with Channel Publications. A few years later the division was sold and one of the marketing companies I d come into contact with asked me if I d consider PR. No one was more surprised than me to discover that PR was the perfect fit MM PR is definitely a growing industry what kind of opportunities are available for budding PR people in Jersey NE There is so much opportunity in this sphere. PR is growing in prominence respect and is finally becoming part of the integral senior structure of all successful companies. If you are interested in the agency side then you will be able to work across a variety of industries one day you ll be writing a brochure for a law firm the next day you ll be launching a new product for an e-commerce client the following day you ll be hosting a VIP party for a restaurant. The other option is to work in-house for a single company - there are great opportunities within politics our major utilities companies finance firms MAY 2015 jsy CONNECT CAREERS Sell me a life in... PubLic relations and international companies with bases in Jersey. MM What would you say are the main skills you employ on a daily basis NE Writing to purpose people skills and organisational skills are paramount. In an agency you have numerous deadlines to meet campaigns to juggle strategic PR plans to shape and you still have to find time to lock yourself away and write copy. I also think the ability to problem solve is pretty vital I ve worked on large projects where millions of pounds are at stake for a client and you have to think outside normal parameters to come up with a solution that will drive their reputation and see them come out on top. MM As social media becomes a bigger part of the working world how has the industry evolved over your career NE The social media landscape is evolving at a rapid pace and new technologies innovations and tools emerge on a weekly basis. This presents challenges for our industry and we have to be flexible and adapt quickly. I believe every company has a place on social media and can use it to their advantage you just need to set strict objectives rules and give it the time it deserves. MM One of the popular views about PR is that it s about spinning or stretching the truth is that fair NE PR is about communication not spin. It s about influencing opinion and behaviour by looking after reputation and establishing goodwill. I respect the journalists I work with by providing them with honest copy if I didn t they would stop working with me and I d be out of business There is a lot more to be done in regards to the reputation of the industry and I am on the committee for the Channel Island branch of the CIPR one of our main goals is to ensure everyone is following best practice and that PR gains the respect it deserves. MM This feature is called Sell me a life in... so sell it to me Natasha NE Working in an integrated marketing company is a wonderfully creative and diverse experience. You are surrounded by ingenious people from different spheres and that is inspiring. Additionally I get real pleasure out of helping my clients achieve their business goals and seeing their success recorded in print broadcast and digital media. A life in PR can be hard work and demanding but it also opens up multiple opportunities to meet interesting people travel attend awe-inspiring events and help shape the news agenda it s powerful it s exciting and it will never stand still. Martha s verdict Natasha is a great example of just how malleable career paths can be. Hardly anyone goes onto to do exactly what they set out to do when they were 14. Apart from me it s Princess Martha if you don t mind. We know almost nothing about what kind of working environment we will thrive in and only the throws of life can steer us in the right direction. PR sounds like a diverse and challenging industry one that is often undermined. So come on people make like Lennon and give PR a chance. jsy CONNECT MAY 2015 29 CAREERS Ed Le Gallais PR Account Executive MM What first sparked your interest in PR Could you briefly explain what path you took to get to where you are now ELG I was looking for an interesting career where I could develop people skills and work closely with the growing digital sector. After undergoing a few internships I decided PR and Marketing was the route I wanted to pursue and went on to study a joint Marketing and PR degree. After graduating I returned to Jersey to join The Refinery as an intern and after a few months I was offered a job at the agency. I now work closely with Natasha providing clients with PR services. I also have my own responsibilities managing clients social media accounts creating content providing advice taking photos and assisting the marketing team. MM Give me an idea about the kinds of different clients you work with would you say this line of work demands a certain amount of versatility Does this give way to any challenges ELG We have a very varied client base this is typical of agency life and 30 it s great because it makes my job really interesting. Our clients operate in a number of different industries and include everything from leading hospitality brands such as Longueville Manor and Ormer restaurant to financial services businesses such as Qi Finance and Rosscot chartered accountants. It can be challenging keeping up with changes across so many business sectors but you need to stay ahead of the game to be effective in PR. MM I d really like a practical insight into this industry could you talk to me about the hours the people and the salary ELG The hours are good it is rare that I am needed to work overtime and when I do it is because I am helping to manage an event or press launch. You meet interesting creative people in this industry and the nature of the job means I also regularly speak to business leaders which I find really inspiring. Starting salaries are basic but if you work hard developing a client base you will be rewarded with bonuses and there are plenty of opportunities for career development. If you also take part in continued professional development you can climb the ladder quite quickly to the next level. MM The stereotype about this industry is that it s all about glitzy parties and networking is this true ELG No unfortunately not I would say that the majority of my time is spent in the office or out visiting clients. Planning client liaison and media relations play a huge part in my normal working day. However we are lucky to be invited to a number of events and networking is a key part of my job too I do find it genuinely enjoyable and that is one advantage of working in this industry. MM Do you think you ve made the right choice ELG Yes especially working where I am. It could lead to anything even my dream job as Communications Director of the RFU MAY 2015 jsy CONNECT CAREERS Martha s Top tips Go with the flow - Career paths can take wild turns that no one can plan for. Just ask Robert Frost. Unpredictability is almost always fun it teaches you more about yourself as an employee and a person. You can better judge your own strengths and weaknesses. And if all of that fails at least you ll have something interesting to talk about when you re on Desert Island Discs. Work experience - You ve got to be experienced to have experiences everybody knows that. Especially in an industry as varied as PR any working knowledge will prepare you somewhat for what this lifestyle throws at you. Martha s verdict I m going to dispel all myths about people in PR right here right now. These guys are as straight-talking as they are refined. Get it The Refinery I don t suppose anyone will be looking to sell me a life in comedy anytime soon... It seems that a life in PR takes more than just chat you need business prowess innovation and probably the apple shop on speed dial. Times are a changing and PR consultants across the globe are having to adapt to advances before they even happen. Oh yeah did I mention you also have to be psychic That s what the P stands for. Dress sharp - I know this isn t what PR is all about but you do get to go to some snazzy parties sometimes and image is everything. To really understand the ins and outs of this industry I ve decided to go shopping. You had me at ball gown. FEATURE Solving Jersey s Graduate Problem by jeralie pallot manaGinG director roWlands recruitment The last six years have certainly been an unstable time for graduates everywhere but Jersey has its own issues in this area. Whereas in the UK there has been fierce competition between hundreds of graduates for a limited number of positions in Jersey there is the opposite problem of too many positions and not enough graduates to fill them. At Rowlands we ve found that we can t get enough graduates to meet demand although admittedly there are basic criteria which not all graduates meet concerning the quality of their degree and its suitability to a given industry. Businesses in the finance sector will be looking for an Honours graduate with a 2 1 or above - but they have been more flexible around this in recent years taking into account the subject of the degree for example a 2 2 in physics will still have a greater maths component than a 2 1 in some other subjects. It s important for employers to take these variables into account understanding that not all degrees are equal. More employers are willing to open up the lower level roles to a good graduate whereas previously there was a need for evidence of experience in the field. By good graduate they mean an individual with a strong degree and something about them a good work ethic interpersonal skills articulate focused and or determined. The lack of graduates is a situation that Jersey s employers are all too familiar with and as an Island we need to find ways to attract and retain the best and brightest young people. Employers need to be proactive going out to schools and meeting students before they leave for university and showing them the possibilities that are here for them at the end of their studies. Having spoken with a number of young graduates I ve found that they perceive Jersey s economy as almost 32 MAY 2015 jsy CONNECT FEATURE CAREERS totally financial services-oriented with creative positions few and far between. Marketing departments and creative agencies could play a part here too letting students know the other options that are available. Another issue that graduates face is uncertainty about which direction they want to go in. I ve had many conversations with bright young people who just don t know what they want to do - this is a normal thing for 22 year olds Employers should get the message across that their graduate positions are not getting the candidate stuck in one industry for life but rather building their personal development and marking the start of their career journey. Linked to this is the fluidity I see in twenty-somethings lives they often want to have the option open to travel and are reluctant to settle on the Island. Having left the Island for 3 years to go to university they often get accustomed to living in the UK and are not necessarily prepared to return to their little Island Jersey is small so they want to keep the door open to escape often to London. They are however open to changing their minds if they land a job that they see taking them places. We also see graduates returning to Jersey having formed relationships over the 3-4 years at University only to discover it s made very difficult for their partners to find work. The fiveyear rule limits the opportunities open to graduates from overseas and we end up losing both the non five-year and the local graduate as in order for them to develop a career and stay together again this can often mean moving to the UK or abroad. It s clearly a difficult balance controlling the population size while at the same time building a quality workforce to meet the demands of Jersey s job market. However I think we must continue to think seriously about what we can do to attract more talent from further afield and keep hold of our skilled young people. More employers are willing to open up the lower level roles to a good graduate whereas previously there was a need for evidence of experience in the field. By good graduate they mean an individual with a strong degree and something about them a good work ethic interpersonal skills articulate focused and or determined . jsy CONNECT MAY 2015 33 Investment Outcome Char ting your own Course South of France N43 16 38 E7 3 12 Where will your investments take you Your world isn t con ned to a single set of geographic coordinates. Neither should your investments be. Our experts have access to investment ideas around the globe wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 Investments can fall in value and you might get back less than you invested. To us there are no foreign markets.TM Canaccord Genuity Wealth Management is a trading name of Canaccord Genuity Wealth (International) Limited ( CGWI ) which is licensed and regulated by the Guernsey Financial Services Commission the Isle of Man Financial Supervision Commission and the Jersey Financial Services Commission and is a member of the London Stock Exchange and the Channel Islands Securities Exchange. CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered of ce 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. HR No one is a mind reader Tips for successful employee relationships M any busy business leaders fall into the trap of expecting employees to know exactly what they want and then being surprised when employees don t deliver. Becky Hill of HR Now explains how it doesn t have to be like that. Relationships fail because of unspoken requests. But by taking time at the start to explain and communicate exactly what you need working relationships and employees can thrive. Misunderstandings are sadly all too common. A good example is when business leaders expect employees to perform to their own standards but fall into the trap of expecting employees to know exactly what those standards are. If you don t explain then how can anyone know On a day to day level we often assume employees will achieve a goal or task but don t take into account their strengths weaknesses lack of knowledge and understanding of what is required of them to do. Naturally this leads to disappointment and frustration when they don t deliver. No one not even the most insightful employee can read your mind. Subsequent conversations to tackle why jobs aren t done or expectations met can be difficult and are often avoided. Worse we feel the person will automatically understand why we are frustrated and what they did wrong and eventually get it right. Don t stick your head in the sand Not addressing issues at the outset will only make the matter worse. When employee relationships become strained they can end up in disciplinary grievance or even dismissal. And no one wants that. It s expensive and upsetting for all concerned courts will take a very dim view if an employer wasn t able to prove that expectations were clearly stated at the outset. It seems improbable that a simple lack of communication and statement of clarity can lead to such drastic outcomes. Not so. Here are three very recent examples we have seen 1. An assistant manager assumed that a senior officer would be directly reporting to them. But the senior officer had been asked to take instructions from the senior manager instead. The result The assistant manager felt undermined and frustrated. She resigned resulting in recruitment costs more work for the team and considerable stress all round. 2. During their appraisal an employee was told that their performance was unsatisfactory and that they were now subject to a capability plan. No prior feedback had been given. The subsequent grievance brought by the employee resulted in a considerable cost settlement being agreed. 3. An employee breached a health and safety policy. Because that policy was not set out clearly or communicated effectively the costly disciplinary action that followed resulted in the relationship becoming irrevocably broken. Sadly these scenarios are not uncommon the breakdown of working relationships between employer and employee is something we hear about every day at HR Now. The trick is not to let it get to this point and to set the right expectations right from the very start by having the right conversations. Here s how 1. Conversations for relationships define how you need to work together and align your employee needs and deliverables to your business commitments. 2. Conversations for possibility (the what) generate ideas make it safe for employees to speculate without criticism agree commitment to the possibility of delivery. 3. Conversations for opportunity share conditions of satisfaction and agree how you ll know when they are delivered 4. Conversations for action (the how) make promises outline what needs to be done how and when it needs to be delivered. 5. Conversations for breakdowns make it safe for them to declare something isn t going as planned then start again by realigning commitments requests and promises. 6. Conversations for accomplishment with clear objectives you ll always recognize success acknowledge and share it. With the pressures of business life and so little time to explain it s easy to see how relationships employers and employees can become strained. But if business leaders take the time to explain what they need communicate how things should be done and the standards they expect employees and your business will thrive. jsy CONNECT MAY 2015 35 HR o Columnist BECKY HILL HR Now PICTURE THIS Jersey has a long postal service history with the first post master Charles William Le Geyt introduced in 1733. Then in 1852 Jersey was the first place in the British Isles to introduce post boxes of which there were four. When you flick throuGh these paGes you ll notice a particularly interestinG statistic. in an averaGe includinG month (so basically not december) JERSEY POST handles 20 per rouGhly tWo million items of mail. that s about islander. so next time you a declininG postal service hear someone talkinG about or the fact that everyone uses e-mail these days Go on point that out to them. it s not to say that the postal business isn t chanGinG irrevocably it just means that the team Who make sure our 20 items of mail each month all Get to the riGht place aren t sittinG around fiddlinG With their inboxes. this month s picture this tells their story. (for more on jersey post see paGe 62). PICTURES Gary Grimshaw 36 MAY 2015 jsy CONNECT PICTURE THIS A picture this On average Jersey Post now receives over 50 000 inbound packets and parcels per month. jsy CONNECT MAY 2015 37 PICTURE THIS Despite the global trend in declining letter mail volumes Jersey Post still handles more than 2 million items of mail every month although this increases to 3.5 million in December. 38 MAY 2015 jsy CONNECT PICTURE THIS Jersey Post employs over 375 full and part time members of staff just over 200 of which are postal workers. Jersey Post delivers letters and parcels to more than 44 500 addresses in Jersey five days a week an increase of around 1 000 addresses in the last 18 months. jsy CONNECT MAY 2015 39 PICTURE THIS Due to customer demand Jersey Post introduced two alternative delivery services for packet and parcels Text & Collect and SecureDrop. These services provide quicker delivery for customers and 25% of the island s households are now signed up to one of these. 40 MAY 2015 jsy CONNECT PICTURE THIS During 2015 Jersey Post will be rolling out banks of secure parcel lockers at key locations around the island to provide greater customer convenience for the collection of packets and parcels. jsy CONNECT MAY 2015 41 TECHNOLOGY Connecting Things a brief introduction to the Internet of Things o Columnist LISA MCLAUCHLAN Head of Commercial Operations Sure T he Internet is everywhere. Since the first smartphone came onto the market the growth in the mobile Internet has been phenomenal to the point that today we carry Internet access around with us in our pockets or bags. The reality however is that while many of us are connected 24 7 there is still a long way to go until everything is connected. You see the next stage of Internet growth won t happen because more people get online but because more things are put online creating the internet of things . The truth is that the internet of things is already a reality particularly in industries where the tracking of objects or monitoring of equipment is important. Now that 4G mobile broadband is upon us and as we mentioned in last month s Connect 5G will be coming in just a few years time what is today just a small proportion of objects is set to grow exponentially and the next ten years will see this happen. Machine talk The internet of things enables objects to connect with each other but to do so each one needs an IP address. Thanks to the latest address protocol IPv6 we now have enough unique addresses available to us to provide an address for all the objects in the world many times over. To do this we will need networks to carry an enormous amount of data an amount far greater than is being sent around the globe today. This is one reason why the development of 4G and 5G is so important. Already more Gadget an apple to Wear With nearly 1 million people ordering an Apple watch on the first weekend of pre-ordering it looks like Apple could have got their first foray into the world of wearables just right. The Apple watch hit the streets towards the end of April and is available in three models Watch Sport Watch and Watch Edition with each one presented in a number of styles. Apple have focused their early publicity on the intimate nature of a watch drawing consumers to the depth of personalisation and providing a range of prices that will suit a variety of wallets. Prices start at 299 for the Watch Sport 499 for the Watch and up to 13 500 for the luxury Watch Edition in 18 carat yellow or rose gold options. Needless to say the latter comes bedecked with a number of precious metals. You ll be pleased to know that the Apple Watch doesn t just tell the time. It acts as an extension to your iPhone indeed an iPhone is a necessary prerequisite to using a Watch so you can receive messages emails and view images just as you would with a more traditional handset. Interestingly for the extremely romantic you will be able to send a visual representation of your heartbeat to the person you love Naturally Watch comes with a fitness tracker and it learns as you use it enabling the tracker to more accurately measure your performance the more you use it. Early demand suggests Apple Watch is set to be another winner for the brand that is a byword for combining style with technology. Only time will tell whether people get fed up with their wrist buzzing every time a message comes in 42 MAY 2015 jsy CONNECT TECHNOLOGY than 90% of the world s land mass is covered by mobile networks and when these are all capable of transferring vast quantities of data then machines sensors tags any form of electronic circuit will be able to transfer data between itself and other connected machines. w Technology About us Whilst this sounds interesting it doesn t necessarily sound useful. What benefits will there be in putting every object you own (including yourself) onto the Internet Well starting with yourself any health sensors you use or medical implants that need tuning or monitoring will be able to send reports and updates on a 24 7 basis. Your doctor could know that you are suffering from an illness before you have developed the first symptoms. Beyond health businesses will benefit because they will have precise up-to-the minute data being sent in and analysed on a constant basis. This means that a company that operates a fleet of vehicles will be able to remotely monitor the roadworthiness of their vehicles. Equally firms will be able to monitor stock levels or employee activity in real time. Parents can monitor babies when they are away from home or hospitals and nursing homes will be able to keep tabs on vulnerable patients at all times. The internet of things however won t just be about monitoring and tracking. It could give us reality search where Google moves beyond showing us webpages and towards a world in which it can let us know where we left our credit cards or how many people are on the bus that s approaching. Ultimately the internet of things is a constantly connected world. It is hard to envisage just now in the same way that the ubiquity of the Internet would have been hard to predict at the start of the 1990s but it is already here and it is only going to grow. Visit for all the latest technology news or subscribe to get the latest news straight to your inbox jsy CONNECT MAY 2015 43 Looking for more Technology News FEATURE Africa paul clark african eQuities specialist at ashburton investments charts the enormous diversity of a continent of Land of Opportunities 54 countries When considering the growth narrative for Africa many observers understand the potential of the continent especially the favourable demographics increasing urbanisation and the rise of the middle class African consumer. However they are sceptical of the improved political stability over-emphasise the importance of mining and commodity prices to these economies and do not have enough understanding of the enormous diversity of a continent of 54 individual countries. Apart from South Africa (which is a rather developed emerging market) the rest of the African economies could largely be termed early-stage emerging economies with each country at a different level of political and economic maturity. The result of this is that news flow about the continent regularly reports on smaller countries and economies where political and economic issues are often not dealt with in the same way as in larger more progressive countries. A recent example is the devastating outbreak of the ebola virus in three West African countries. Without making light of the human tragedy for those affected it is important to see this in the context of Africa as a whole where the World Health Organisation has declared more than 50 African countries Ebola free since October 2014. The three countries still affected by the outbreak make up 0.6% of Africa s GDP and only 2.2% of West Africa s GDP. The direct effect on Africa s overall growth is therefore limited but this may not be the impression one got from the news flow and does not make it any less tragic. The recent commodity and oil price slump has focussed attention back on Africa s resource reliability. Despite a similar collapse in commodities in the second half of 2008 growth in Africa s GDP remained above 4% for both 2008 and 2009 at a time when most of the world was experiencing 44 MAY 2015 jsy CONNECT FEATURE FINANCE With all these positive chanGes happeninG across the continent as Well as the innovative and entrepreneurial nature of african businesses and Governments it is no Wonder that the international monetary fund ( imf ) expects that seven out of the ten fastest GroWinG economies over the next five years Will come from africa. Monetary Fund ( IMF ) expects that seven out of the ten fastest growing economies over the next five years will come from Africa. With such positive developments it is not surprising that African businesses are investing in growth opportunities. This is evidenced by the use of stock exchanges to list and also to raise additional capital through rights issues which are becoming more frequent. Many African businesses are also expanding regionally or across the continent. Nigerian banks have regional strategies with United Bank for Africa for example having 18 operations in other African countries as far afield as Mozambique. We expect that these trends will continue across the continent. The improved (and improving) macroeconomics combined with favourable demographics and increasing stability in political environments should form the backdrop to a continuously improving operating environment for companies across Africa. The increasing urbanisation that we see (Africa as a whole is more urbanised than India and similar to that of China) and the rise of the middle class African consumer will lead to growth in disposable income and spending on goods and services. In summary investors should consider the exciting investment opportunities on the continent of Africa as these can offer diversified and high growth investments and after all Africans themselves are already investing there. 45 flat or negative growth. In addition McKinsey have estimated that only 24% of Africa s growth from 2002 to 2007 during a commodity boom cycle was due to resources. Although the current weak oil price negatively affects the oil exporters most of Africa s economies (making up more than 50% of the continents GDP too) are net importers of oil and petroleum products. Some large countries that will benefit from lower oil prices are South Africa Egypt Morocco Kenya (and the rest of East Africa) Tunisia Ghana and the Ivory Coast. These observations highlight the risks of considering the continent as homogenous although the growth and development narrative is true in aggregate and over time. On the political front we have seen significant changes and improvements across the continent over the past few years. In 2013 well run Kenyan elections followed a new constitution that devolved more government functions and accountability to local county level thus deepening the democracy in the country. This should lead to improved allocation of state resources and enhance the growth of this key East African economy. Not only is the political environment improving across Africa in general but so is the business environment. A regular traveller to countries across the continent will notice this improvement from year to year but the World Bank studies this in detail in their annual Doing Business analysis. Their data shows that even as the world has become easier and easier for businesses Africa has improved faster. Despite setbacks in some countries we are encouraged by the trend in the leading economies and regional powerhouses where the pace of improvement tends to be increasing. More importantly in the World Bank s latest analysis out of the top ten improving countries globally over the previous year five were from Sub-Saharan Africa. Sub-Saharan Africa countries also accounted for the largest number of regulatory reforms in the year with 70% of these economies having at least one reform that improves the business environment. With all these positive changes happening across the continent as well as the innovative and entrepreneurial nature of African businesses and governments it is no wonder that the International jsy CONNECT MAY 2015 FEATURE Are government policies causing a global pension problem senior investment manaGer canaccord Genuity Wealth manaGement by richard pemberton 2015 has picked up where 2014 left off in terms of the ongoing strength of government bond markets. While the US Federal Reserve were true to their word in ending their programme of US Treasury purchases last year the liquidity baton was ultimately passed to Japan and Europe who both increased their own monetary stimulus efforts. Within the confines of a relatively low growth economic environment there are acute fears that the 50% slump in the price of oil could heighten deflationary pressures above and beyond any temporary impact on headline inflation figures. In essence many central banks are hugely concerned that a deflationary spiral could yet evolve and have taken action in an attempt to pre-empt this danger hence the fact that over 40 nations have eased policy so far in 2015. The broad outcome has been that virtually all bonds have benefitted but with yields now nearing zero in many cases the longer term implications are taking on greater significance. To illustrate Switzerland has just issued a 10-year government bond with a negative yield which is the first time any country has done so over the 500 years of global bond issuance. German 10year yields are now at 0.17% and are also on a march towards zero. Conceivably investors could soon be facing a deluge of negative bond yields if you consider the graph with 10 nations offering less than 0.50% per annum to lend them money for a 10-year period. Why buy bonds with a negative yield It is certainly a bizarre concept as to why anyone would want to pay for the privilege to lend money to any government guaranteeing themselves a loss at maturity in the process. The primary rationale is often that investors have little choice with their portfolio or fund mandate which generally determine a certain level of investment to bonds and even to certain sectors or country of issue. Equally if a yield is expected to be driven even lower then on a short term basis at least there is the potential for a trading profit. There is also some logic to the value of a negative yield if the inflation of that country is expected to be even more negative for the length of a bond s term 46 MAY 2015 jsy CONNECT FEATURE FINANCE i.e. the real yield is positive. Similarly less negative yields of one bond market would also have greater appeal versus more negative yields of alternative markets. Meanwhile the other low risk alternatives are not necessarily practical or offer other risks such as the physical vulnerability of bank notes or the illiquidity of fixed deposits. This ugly contest perhaps only underlines the prevailing dynamic of the bond market bubble which is without precedence. Logically when cash rates are very low or negative money chases yields across borders as well as across asset classes so each market gets swamped with money simply because you have positive yields which usually has very little regard for fundamentals. As the graph illustrates the ongoing actions of all major nations has resulted in there being very few high quality sovereign bonds that offer a 10-year yield of much appeal. Should this be sustained there are worrying long term implications and especially for those with long-term liabilities such as pension funds that are obliged to hold bonds. Impact on Pensions In 2014 UK company pension scheme deficits more than doubled rising by over 200 billion as pension liabilities increased by a net of around 15%. These liabilities are increasingly challenging to meet if bond yields keep falling as they have continued to do in 2015. As gilt prices have driven pension deficits up pension advisers have increasingly recommended that the risks of the pension schemes should be reduced which typically equates to buying more bonds and selling shares whatever their long-term value. In 2006 pension funds held over 60 per cent of their assets in equities but it is now only 35% while holdings of gilts and bonds have risen from 28% to 44%. This clearly only worsens the situation as the demand reduces long bond yields even further and so the problem perpetuates. The resulting deficits have already caused serious problems for corporate UK but so far the Bank of England has shown little concern for such negative impacts of its policies. The trouble with bubbles is that they are so damaging when they burst. Yet the dangers seem to have been ignored by the central bank which is continuing to buy more of the long-dated bonds sought by pension investors. But crucially even if they did take action to address the situation there is very little that can be done about other nations actions and the potential impact of foreign demand for gilts. Suffice to say this has the potential to be the next big thing to unsettle the relative calm in markets enjoyed since the great recession of 2008-2009 with no obvious solutions. Why buy bonds With a neGative yield it is certainly a bizarre concept as to Why anyone Would Want to pay for the privileGe to lend money to any Government GuaranteeinG themselves a loss at maturity in the process. the primary rationale is often that investors have little choice With their portfolio or fund mandate Which Generally determine a certain level of investment to bonds and even to certain sectors or country of issue. jsy CONNECT MAY 2015 47 FEATURE Cloud Accounting Explained cloud accountinG is becominG more it is or hoW it could benefit them. sean professionals still aren t Quite sure about What common but many business oWners and o flaherty director of local accountancy firm rosscot explains Why it s time to embrace the cloud. 48 MAY 2015 jsy CONNECT FEATURE FINANCE The cloud is a platform to make data and software accessible online anytime anywhere from any device. Online accounting means small business owners stay connected to their data and their accountants. Recent years has seen a growing move towards cloud accounting which has opened the door for Virtual FD services. Designed for the small to medium sized business a virtual finance director basically does what a full-time finance director would do but more costeffectively on a part time basis. Your accountant can now access your data from the cloud and actively monitor performance enabling cash flow forecasting risk management evaluation and identifying issues before they become a real problem. People are fearful of change and the cloud is no exception but what really is it Simply put the cloud enables you to access your data online anytime anywhere and from any device very little to fear there. There are also numerous trusted cloud accounting providers including Xero and QuickBooks Online. Data storage is a typical concern but contrary to common belief the cloud is more secure than most technological wizardry you already use - the providers archetypically surpass required data protection laws and have high level security. However nothing is perfect right So what are the disadvantages of cloud accounting Firstly smaller businesses may pay more for a cloud online accounting package over a period of years when compared to a desktop accounting package. This is usually because people only buy new desktop versions every few years. However the advantage of Cloud is that your software is always up to date as all upgrades are carried out by the supplier at typically no extra cost. Additionally the provider does all of the software maintenance for you as part of their monthly fee version upgrades maintenance etc. If you spread the cost of the software by making payments by monthly subscription instead of one lump sum this can be a great solution. The other possible negative to consider is that having your data in the cloud means you don t have control over where in the world it is. It could be held in the UK America or anywhere else. Each provider does however provide information on this and conform to relevant data protection or the US Safe Harbor framework. In my opinion the positives of the cloud far outweigh the negatives. Of paramount importance is that cloud accounting enables real time insight to your business this is invaluable in understanding your current financial position. Online accounting means small business owners stay connected to their data and their accountants. Additionally multi-user access typically comes as standard making online collaboration with your team and advisors easy. When your accountant can access your data in real time they can help you with problems post year-end journals and there s no need to mess around with creating and importing backup or accountants copies. You re also likely to be suffering from the drawbacks of traditional accounting software. A main concern is how quickly it goes out of date and the complication of keeping backups (if done at all). It s also expensive difficult and time consuming to upgrade the software and customer support can be slow. A main disadvantage for clients has always been that traditional systems often only work on one computer (or as many licenses as you originally purchased) therefore additional licenses are then an issue when your version becomes out of date. There are also security issues with traditional methods as data is transferred from place to place by USB or similar devices. In the medium term it is expected that accounting software providers will now focus primarily on their cloud versions rather than their desktop versions. Ultimately the cloud is here to stay and savvy businesses are embracing the opportunities it affords. It can t be beaten on scalability and ease of use and it s totally flexible so you can run your business from work home or on the go and from any device. The way we now work is finally being reflected in accounting technology and I think we re still yet to see the full benefits of working from the loud. in my opinion the positives the neGatives. of the cloud far outWeiGh importance is that cloud insiGht to your business this your current financial position. is invaluable in understandinG accountinG enables real time of paramount jsy CONNECT MAY 2015 49 FEATURE by steve camm manaGinG director natWest Managing your finances has become a 24 hour possibility whether you are paying bills over morning coffee or transferring funds to family or friends when you get home in the evening modern technology has changed how and where we bank. Although the traditional bank branch still has its important place in the community gone are the days where bank opening hours dictate when you can access and manage your finances. In the UK more than six million customers of RBS and NatWest are now choosing to do all of their banking digitally and in a single hour between 7 and 8am every morning around 167 000 people log on to their mobile apps. The pattern is also similar in Jersey where the busiest time of the day for logging on to accounts is between 8 and 9 am. The growth in use of smartphones is one of several factors driving customers towards money management on the go. Convenience speed and control are the key benefits of digital banking for customers who value their time and the ability to regularly monitor their finances quickly and securely features that apply equally to both retail and business customers. rapid GroWth At NatWest we are the only bank to offer dedicated apps for both retail and business customers. First launched in 2011 usage of the service has increased radically to date. Latest figures show that in the first quarter of 2015 there were no fewer than 1.9 million log ins by our customers across our four jurisdictions of Jersey Guernsey the Isle of Man and Gibraltar more than all the log ins undertaken during the whole of 2012. Enhancements to the app are added regularly such as the introduction of Get Cash where digital customers can request an amount of cash using their mobile which they then obtain from any RBS or NatWest ATM 50 MAY 2015 jsy CONNECT FEATURE FINANCE Round the clock banking in the digital age using a specially generated six digit PIN especially helpful if out for the evening without a cash card or if you find your card has been lost or stolen. In the first quarter of 2015 more than 160 000 was withdrawn from cash machines using the Get Cash service. For business customers the iPhone app enables them to easily access and manage their business finances on the move. Their relationship manager remains on hand when they need to talk through development plans lending requirements or to provide support through difficult decisions but the app gives them greater control of their money so they can focus more on running and growing their business. Meanwhile our online banking system eQ remains a fundamental tool for financial intermediary institutional and corporate clients enabling them to view and manage multiple accounts and perform payments in real time including foreign exchange and online money market deposits. Quality service Acting as a fair customer focussed and reliable bank will remain at the heart of what we do whether it is through our online and digital channels that are becoming increasingly popular or through the High Street branch counter services cash machine facilities or in face-toface meetings. The most important advantage of the digital revolution for the branch is that our colleagues can spend more face-to-face time with customers when they need dedicated services so there are benefits for everyone. Banks increasingly have to supply services to a cross section of personal and business customers with varying needs and across a spread of five generations. It is undoubtedly a testing marketplace as there still remain customers who are not as comfortable with the digital age despite its robustness and popularity. Over the longer term the challenge for the banks will be to strike the correct balance between traditional and digital so that they successfully bring all their customers with them into this new and exciting era of banking. at natWest We are the only bank to offer dedicated apps business customers. for both retail and first launched in 2011 usaGe of the radically to date. service has increased jsy CONNECT MAY 2015 51 FEATURE Managing cyber risks in an interconnected world by pWc senior manaGer david carney ci There has been a dramatic growth in the cyber threat in the last 2-3 years clearly evidenced through The Global State of Information Security Survey 2015 - a worldwide study by PwC CIO and CSO. The latest survey reports that detected incidents soared to a total of 42.8 million 48% up on the prior year and outpacing growth in global GDP and smartphone users combined This comes at a great cost with financial losses attributed to security compromises increasing by 34% over the previous survey. Alarmingly at most organisations surveyed the Board of Directors remain uninvolved. Many have not updated critical information security processes and technologies and of those that have employee training needs are often overlooked. In some cases it appears that information security programmes have weakened due to inadequate investments in information security. Why the increase in incidents Put simply low cost high powered access to more devices. Attack groups (Amateurs Organised Crime State Sponsored Insiders or Hacktivists) now have easy access to much improved processing power through for example cloud services. Criminal marketplaces are also quickly evolving allowing groups to quickly exchange sensitive data for financial gain. Along with freely available encryption techniques this further increases the ability for groups to claim plausible deniability for their actions lessening the risk of capture with higher reward. In this digital age of social media mobile devices wearable technology big data analytics and cloud computing the Internet of Things is really turning into the Internet of Everything. And with the power of 52 MAY 2015 jsy CONNECT FEATURE DIGITAL TECHNOLOGY & TELECOMS A client asked a great question a few months ago which I regularly refer back to. I have an IT department of two people and I m hearing that I m constantly being attacked by nation states with almost limitless access to resources. What hope do I have The solution needs to come from the boardroom. Cyber security is more than an IT challenge - it s a business imperative. social media the impact of attacks is significantly amplified in terms of reputational damage and political visibility. So how do I respond A client asked a great question a few months ago which I regularly refer back to. I have an IT department of two people and I m hearing that I m constantly being attacked by nation states with almost limitless access to resources. What hope do I have The solution needs to come from the boardroom. Cyber security is more than an IT challenge - it s a business imperative. Our boardrooms need new skills management tools and language to lead in the digital age. Cyber risk is just one of our current gaps. Daunting though it seems it can be managed by implementing a riskbased approach that prioritises your most valuable assets and proactively addresses your most relevant threats. From that point of view the theory is remarkably similar to managing any business risk it s the specifics that differ. To allow boards to begin to understand how to manage the risks of cyber-attacks PwC have developed a simple model to approach the topic 1 People Compromises by insiders - current and former employees as well as third parties with trusted network access - continue to rise. In fact 35% of incidents in our survey are now being blamed on current employees. Such threats need to be carefully managed through robust employee screening and tailored training to help your employees understand the threat. Technology Ensure your IT infrastructure is regularly reviewed to ensure it is fit for purpose and carefully maintained to deal with the latest threats and vulnerabilities. Connections Customers suppliers and service providers you are probably dealing with all your third parties using digital technology and internetbased communications they all therefore have the potential to expose your systems data and your critical business processes to cyber-attack. You are only as strong as the weakest link in your network therefore it is increasingly important to ensure that you have robust policies and procedures both internally but also contractually enforced upon business partners. 4 5 Risks Managing the cyber threat is an extension of good risk management. Understand the threats and the risks they introduce and ensure that you have an appropriate strategy and control environment in place to address them. Crisis Response It is an old clich however it is no longer a question of if you will be attacked but rather when. Be prepared. Organisations that are ready to respond to an attack will greatly minimise the impact particularly if they have focused on critical assets and taken appropriate precautions to minimise the loss. Maintaining your reputation in times of crisis is critical. 2 3 6 Priorities Identify what is important to you and invest wisely in protecting it. This does not need to be complex it s about understanding what is critical to your business and to your strategy and allocating budget and resource accordingly. Just like any other business decision. 53 jsy CONNECT MAY 2015 FEATURE Redefining cloud services for the offshore market ceo and co-founder of cloud services provider calliGo julian box by All businesses have something to learn from offshore cloud computing even those based onshore. Organisations running all or part of their business offshore have certain expectations of the jurisdictions in which they operate. In turn the jurisdictions set out the requirements to be met by cloud service providers. We can consider these requirements in three groups data service and governance as follows. Data security that meets stringent criteria of confidentiality integrity and availability and offers protection against external attacks and internal breaches. Client privacy of prime importance to all businesses ensures restrictions are in place to determine whether a provider can view the data contained on their servers. Data protection backup and archiving capabilities to assure data can be recovered if lost and meets an organisation s data retention requirements. Data residency needs to be guaranteed on a jurisdiction by jurisdiction basis including support for clients who have data in more than one location without reducing protection in individual locations. Data movement provides the ability to move data between jurisdictions if and only when permitted (when operations are in more than one jurisdiction). Data and trust requirements For offshore organisations data is king. Cloud service delivery therefore needs first-in-class data management to cover aspects such as 54 MAY 2015 jsy CONNECT FEATURE DIGITAL TECHNOLOGY & TELECOMS A number of pan-industry initiatives are underway to address these areas including the Trusted Cloud Initiative (TCI) from the Cloud Security Alliance. This sets out both key criteria for cloud service provision together with approaches and tools to help organisations adopt cloud services in a way they can trust. However they still fall short in areas such as data residency and movement. Architectural flexibility to allow providers the ability to support integration between in-house hosted and private public clouds architectures. Criteria such as these impose demands on providers to assure responsiveness and transparency particularly around management and operational processes which themselves need to be tightly defined followed and controlled monitored. Data ownership requires clear stipulations and guarantees. SaaS providers have been known to change their terms and conditions to suggest they own the data being stored by their systems. Financial and structural stability. A provider not only needs to be able to demonstrate how it can assure continued delivery of service and data protection but also set out recourse mechanisms in case the provider should no longer be able to operate for whatever reason. For example in terms of data copies with third party provider(s) or data escrow procedures. While this stringent set of criteria historically has not always been considered a necessity for every business or indeed for all data types it is undeniable that it will set the new bar that which is acceptable to meet the demands of the new data protection and privacy laws that will be introduced by the EU later this year and by the Channel Islands shortly afterwards. Service requirements Alongside data guarantees offshore organisations want to be sure that service levels meet expectations particularly around such aspects as Service availability and stability for global businesses the expectation is now 24 7 with minimal downtime. Service consistency Performance response times and so on need to remain constant whatever the load and however many users are trying to access the service. Service scalability it should be straightforward to scale a service up and down add or remove users or increase or decrease resources and capacity. Service management and monitoring organisations need visibility into the services they are using. Governance requirements A provider must be able to demonstrate that it is in full compliance with the jurisdiction within which it is operating. This includes criteria such as Data retention including for example assurances around data deletion which can be fixed according to policies set by the offshore company. jsy CONNECT MAY 2015 55 FEATURE delaney head of business solutions at loGicalis by andy Whether your business is one user 25 users or 200 users the use of an eDMS brings significant benefits. These benefits enable you to work more productively become more efficient and lower your operating costs. In today s world of collaborative working information seems to be expanding exponentially. This growth is making it harder to effectively and securely store information while still providing easy access to those who need it. An eDMS is the answer it brings order to this chaos by organising and categorising your information. Covering all the various types of documents you work with it provides a controlled secure organised and audited solution giving you the ability to find your information quickly. Each sector has its own sets of requirements and challengers including the need to lower their risk exposure ability to find information quickly a requirement for increased security be able to act and respond quickly to disclosure requests increased demand for compliance requests ability to store and process invoices store and manage the increasing quantities of emails. By using an eDMS all of these requirements can be addressed in a straightforward and simple way. Increased productivity and cost effectiveness eDMS cover a wide variety of features and functions. Fundamentally it enables a user or business to quickly and intuitively file share and retrieve information. The result of which increases productivity and provides the foundation for you to service your clients more efficiently and cost effectively. reQuirements Whether you re storing invoices emails correspondence agreements or any form of multimedia an eDMS is adaptable flexible and can be used across many different industries. These include but are not limited to financial services banking legal utilities retail medical government and insurance. 56 MAY 2015 jsy CONNECT email A specific challenge which businesses across all industries are facing is the increased volume of email. The main reason for this is that email now covers more than just a replacement for the physical paper. It has become the main communication tool for general correspondence FEATURE DIGITAL TECHNOLOGY & TELECOMS Electronic Document Management systems (eDMS) what s it all about updates and information. Our In boxes become overloaded with information and we are then required to spend time filtering prioritising and managing the emails we receive thereby reducing overall productivity. The problem is you are only able to see what you have sent and received which is the same for all users in your business. This creates problems with finding and tracking correspondence from others as well as issues with compliance audits and information transparency. An eDMS provides easy to use tools that enables the management of email to become a more responsive and intuitive process. By using these tools it enables the user to store information centrally quickly and in a controlled secure manner. information managed centrally and one available search tool which enables you to quickly find what you are after. You could search for any word in any document by date by reference by document type by application or even search by excluding words you don t want to appear. Imagine how much quicker that would be. Imagine knowing that your search will look through everything and imagine the customer service you could provide if that information was instantly available on your screen. All this is a reality by using an eDMS. any records being kept leading to costly and time consuming exercises to recreate them. In the event of a regulator client or lawyer requesting information this can be extremely onerous as identifying information held in separate stores such as filing cabinets email file shares desktop hard drives and Dropbox can be extremely time consuming. There is also no guarantee that the disclosed information is 100% accurate and even other client information may be handed over by mistake. An eDMS reduces risk significantly by providing an audited controlled fully searchable store of all your information including emails scanned docs and file shares. risk Like most businesses large or small you probably don t initially see how an eDMS can mitigate risk. Risk can be measured in many ways however when risk results in the loss of business lost revenue fines or the loss of a trading license managing the information you hold becomes a much higher priority and focus. After all this information is a significant asset to your business. Risk can be reduced by lowering your dependency on physical paper and turning your records from physical to digital. This brings significant benefits as it improves your Disaster Recovery position as there is only one copy of a physical record. Paper records could be lost misfiled or even destroyed without security With an increased awareness and focus on security it is vital that information is stored in a manner which reflects the security needs of the business. Increasingly businesses are seeing information being saved in areas that are not sufficiently locked down or users are moving losing or deleting information. An eDMS provides multiple layers of security giving the business greater access control and most importantly it provides an auditable record of all users activities at a document level enabling the business to provide complete transparency and visibility on its information. 57 searchinG Finding information can be a significant challenge in current IT systems especially when faced with deadlines compliance requests or information disclosures. We often find ourselves searching across multiple data stores such as emails or the H L or M drives our financial systems or even physical filing cabinets. Sometimes we may not even know where the data may reside. All of which is time consuming costly and does not guarantee we will find what we are looking for. Now imagine having all of your jsy CONNECT MAY 2015 FEATURE Why JT is leading the way in roaming technology FEATURE DIGITAL TECHNOLOGY & TELECOMS head of roaminG and carrier relations jt by cara murphy to deal with a smaller agile company than to cut a deal with their competitors. The result is that JT has a widely spread network of 550 direct roaming agreements that cover multiple networks in virtually every country in the world that coverage rivals and indeed surpasses in some cases some of the major established players in the global telecommunications industry. This is a major asset to be proud of as by contrast some of our domestic rivals have around a third of that number. Secondly the volume of traffic that passes over our network is vast predominantly due to our growing M2M business and wholesale roaming products that allow smaller operators to access our roaming interconnections. For example JT has recently partnered with two global organisations to help provide their customers with enhanced roaming services which run into the millions Thirdly we have recently invested 12 million in a state-of-the-art 4G LTE Advanced network in the Channel Islands to ensure we have the latest innovative technology. Combining the quality of our roaming coverage the volume of traffic carried over it and launching our own 4G network has meant that much larger operators are now actively beginning to approach us. Having a roaming agreement with us allows them to benefit from JT s existing roaming traffic and in turn it means that our growing volume of data traffic will also pass over their network. More importantly it means they re able to set-up a 4G roaming agreement with us. Why are they so keen Because they are already beginning to see customers move their business purely on the basis of who can provide them with 4G roaming. That alone has placed operators big and small in fierce competition to establish extensive 4G agreements quickly. To give an example at an event last month our roaming team were invited to meet with the second biggest player in the business a company with more than 216 million customers and revenues of 35 billion because they are keen to negotiate an agreement with JT to capture the growing traffic we have currently and predict for the future based on the growth of our M2M and wholesale roaming products and ekit the innovative roaming telecommunication specialists who JT acquired in 2011. The agreements between operators are set-up to ensure we can easily add-on further services as technology progresses however these new services still need to be tested and launched which has become the JT roaming teams priority for 2015. We are currently on the threshold of announcing our first 4G roaming agreement with the UK and will have 4G roaming in place across Europe Asia and the US by the end of the year. JT are for the first time leading at an industry level. The fact that our 4G system is built on a future-proof LTE Advanced network that is essentially the highest-grade 4G system available today means we re a very attractive business partner. But why is all this important for you our local customers Firstly the work of teams involved help to bring valuable revenue back to the Island which means we can continue to invest in our infrastructure locally and is good for the overall economy of Jersey. Secondly through the relationships that have been forged over years means our local-customers can roam with confidence knowing that thanks to JT they can be assured of best pricing and superfast worldwide roaming. 59 Analysts predicted earlier this year that by 2019 global mobile data roaming will be worth an eye-watering 31.8 billion more than half of the total value of current roaming revenues. Growth of data roaming demands in Europe and Asia is being driven by a simple factor we re growing more accustomed to accessing data connectivity at all times to the extent that it s simply accepted that we can make video calls access Cloud platforms and rely upon quick download and upload times. Our expectation is that data services are available wherever we are 24 7 and now that 4G mobile networks are being established globally and accessed widely this is becoming a reality. At JT we have seen these developments emerging and made certain we re at the forefront of the roaming revolution for three reasons Firstly over the last 15 years our team of dedicated roaming experts who sit in the wholesale division here at JT (distinct from the part of the business that offers domestic residential and business services) have focused significant efforts into developing a network of roaming agreements with operators from all over the world. JTs independence and that we operate our own infrastructure has become an asset because major foreign operators are more prepared jsy CONNECT MAY 2015 FEATURE Plugged into the environment by jersey electricity ceo chris ambler The subject of Energy and the Environment often focuses on the carbon emissions created in the process of producing useful energy. But with two undersea supply cables to France and a third Normandie 1 planned now providing Jersey with one of the cleanest electricity supplies of any island community Jersey Electricity also places many other environmental considerations at the top of its agenda not least in the design and routing of the cables themselves. When La Collette Power Station started generating electricity in November 1966 headlines prophesised 25ft-long giant squid menace in St Helier Harbour and killer sharks basking off Havre des Pas lured by magnetic fields produced by generators . Amusing though these claims seem today protecting the environment now requires serious science in which Jersey Electricity invests considerable resources. Meeting increasing demand for electricity with reliable supplies calls for continuous investment in sophisticated infrastructure. But no matter how urgent the need we strive to maintain the highest environmental standards. The construction of a new substation such as St Helier West at Westmount can take months of environmental analysis and consultation. In the case of the subsea supply cable Normandie 3 (N3) installed last year environmental issues and investigations took up much of the 10-year planning process. We are going through the same process for Normandie 1 and again our Environmental Studies are all pointing to low or negligible impact. It s something which many customers are largely unaware. As generator distributor and supplier of power our biggest responsibility to the environment is to reduce the drivers of climate change by supplying low carbon electricity. But the manner in which we transmit distribute and occasionally generate that power 60 MAY 2015 jsy CONNECT FEATURE ENERGY & THE ENVIRONMENT must also not adversely affect our precious Island environment. Our business model allows us to take a long-term view and we invest considerable resources over many years to ensure that remains the case. The 32km N3 cable is buried up to two metres beneath the seabed and comes ashore at in the Royal Bay of Grouville which forms part of the South East Coast of Jersey Ramsar Site - a wetland of international importance. JE commissioned extensive Environmental Impact Assessments (EIAs) for the subsea cable section and both Jersey and French landside sections of the project years ago. Brown May Marine reported their conclusions of the marine assessment in 2009 with reference to almost 150 research documents from crab migration in the English Channel to the effects of noise and vibration on wildlife from offshore wind farms. Tidal flows currents and sediment transport were studied in minute detail with sonar and video deployed to analyse the very complex sediment movement between Jersey and France. Two years after a Reconnaissance Survey by OSIRIS Projects Ltd the same company undertook a full Geotechnical Survey. A comprehensive Marine Ecological Survey was carried out by Titan Environmental Surveys Ltd to characterise the benthic fauna and map the distribution of sensitive species such as Maerl and sea grass. The Institute Francais de Recherch pour l Exploitation des Mers (IFREMER) requested that if Maerl was found its quantity condition and abundance be charted by the onboard marine biologist. Grab sampling sieves drop cameras and echo sounders were deployed and more than 50 core samples between one and six metres long taken from the seabed. Maerl was located only in the final portion of the cable route French side but its condition was deemed unhealthy commercial fishing having contributed to its long-term decline. The decision to land the cable in Jersey at the more northerly Fort William point instead of Fort Henry avoided the Sea grass beds found at the latter. Disturbance of flora and fauna on the dunes at Armanville in Normandy and the Fort William landing area here was avoided completely using horizontal directional drilling under the dunes and use of ducts instead of open trenching. As commercial fishing plays such an important role in the economies of both Jersey and Normandy Brown and May assessed the cable s impact on all forms of aquaculture in a broad area between the east coast of Jersey and Lower Normandy as far back as 2006. The report was distributed to Fishermen s Associations here and in France and approved. It concluded that due to the discrete and temporary nature of the project static gear fishing vessels would suffer only very limited interference and while a 500m exclusion zone would be in force either side of the cable route until the cable lay was complete the route corridor avoided established towed gear fishing grounds to the south that were of primary concern to fishermen. As burying the cable would be a short-term process any habitat disturbance was foreseen as considerably less adverse than that sustained from trawling and dredging activities. As the cable route does not fall over productive shellfish grounds the residual impact on these species was considered negligible and as the landfall site at Fort William avoids the aquaculture concessions in the area the impact on those was also deemed negligible . As Jersey is an important migratory refuge for a number of the 172 bird species listed in AfricanEurasian Waterbird Agreement (AEWA) N3 s EIA applied the Bonn Convention on the Conservation of Migratory Species of Wild Animals. In consultation with several ornithological experts in the Island including the Soci t Jersiase five years of bird monitoring data was studied. The EIA concluded that as the cable installation process was short term and its location predominantly submarine the impact on seabirds would be negligible . In addition the installation was to take place during spring and early summer when the most sensitive birds were those that winter here. In all 24 species researched the magnitude of the cable s potential impact was negligible . Five years of marine mammal sightings were analysed. Those most regularly seen were the Bottlenose Dolphin Grey Seal and Common Dolphin. There were no reports of negative impacts upon marine mammals during the installation and operation of JE s two earlier subsea cable links. As Bottlenose Dolphins and Grey Seals were often seen close to boats it was advised that the noise does not adversely affect them. As noise from the cable burial would not exceed levels already emitted in the area it would not interfere with their communications. So as Jersey benefits from meeting virtually all the Island s winter demand for electricity from clean low carbon sources we can be confident that the means of achieving this has passed the most stringent of environmental scrutiny. 61 jsy CONNECT MAY 2015 FEATURE Jersey Post investing to grow by tim broWn jersey post chief executive Technology is frequently labelled as the grim reaper of postal operators worldwide. The rapid advances in communications applications and online portals coupled with the increasing ease of access to them via tablets and smart phones are causing dramatic declines in traditional mail volumes as customers opt for those communications channels which are deemed to be quicker and more convenient. As little as seven years ago due to the amount of mail being posted postal workers would regularly visit every house on their delivery round with at least one or two items of mail for delivery. Today that picture is very different. Postal workers infrequently deliver an item of mail to every household on their round and this poses a real threat to Jersey Post. Our bread and butter is being rapidly taken from our plate and we have to find viable ways to replace these expiring services both on and off-island. 62 MAY 2015 jsy CONNECT Investment to grow Following a period of business and financial stabilisation our organisation is now embarking on for the first time since incorporation in 2006 a period of significant financial investment in technology and automation projects that will complement facilitate and expedite the evolution of our business. Automation for expedition For almost 20 years Jersey Post has run an automated letter sorting machine that is able to read both postage and addressing details on a letters. In November 2014 this machine was upgraded to a more sophisticated machine that processes more letters per hour (around 40 000) as well as a number of other technical advancements that previous machines were unable to do. FEATURE Within the next twelve months Jersey Post will also be automating packet and parcel sortation. The selected machine will sort around 4 500 items per hour and will be able complete several other complex and normally time consuming tasks that are ordinarily completed by postal workers. It can capture images of packets and parcel as they are processed read address labels and scan barcodes for any special instructions that are associated with the item. At present there are two banks of lockers on trial one at the General Hospital and one at Commercial Street. These trials are due to finish at the end of May and June respectively and at this point once any necessary amendments have been made to the service the additional banks will be rolled out for customer use. International expansion In addition to the packet and parcel strategy the other key area of growth for Jersey Post at present is international expansion. We have already established trading locations outside of the Channel Islands including Hong Kong Newark LA and Chicago in the US and Basildon in the UK. We also have plans in place to cover the Middle East and South America by the end of 2016. Working directly with postal administrations around the world in this way has enabled Jersey Post to build its own global network that can provide delivery services to over 190 countries with a comprehensive range of supporting specialist worldwide distribution routes. This expansion means that we can provide on and off-island logistics management for any size or type of item in order to support our clients own business development and growth. Track and Trace The final piece of the parcel jigsaw is the visibility of customer consignments throughout their postal journey. Whether the customer is sending something from Jersey or has ordered something that will arrive for delivery in Jersey there is one thing in common the customer wants to know where it is at any point in the delivery process something that isn t possible at present. To change this Jersey Post is currently working on a track and trace project as part of the parcel automation and delivery work already mentioned. This project will integrate with the parcel sorting equipment and pulls on both website development and mobile application technology and is due for completion in 2016. Three-dimensional mail As rapidly as traditional flat mail declines large three-dimensional postal items in the form of packets and parcels are rapidly increasing in volume. The customer demand for goods purchased over the internet is dramatically and quickly changing the shape and fundamental purpose of postal service providers. Whilst this is indeed great news it also presents a new series of business challenges. These items are bigger heavier more complicated to store sort and process unable to pass through the customer s letter box and are required more quickly by the customer than ever before. Intelligent Shipper Sitting behind this work on the international development of trading locations and services is JP Global Shipper. Working with software development company Intersoft Jersey Post has developed this piece of software which offers all customers locally based or otherwise the ability to select the most appropriate or cost effective option from a comprehensive range of postal services. The customer can then print the relevant carrier label and use the tracking details to monitor the delivery progress of items through the network. Parcel lockers The most recent addition to Jersey Post s alternative delivery options is the introduction of parcel lockers. These are secure banks of lockers that are accessed by registered customers with a PIN code. They will be placed at various convenient locations around the Island for customers to use as their parcel collection point of choice. The lockers give customers added convenience as they will be accessible 24 hours a day 7 days a week and will be placed at locations with high footfall such as supermarkets so that customers can complete multiple tasks in one journey. Alternative delivery The next challenge that postal operators face with packets and parcels is that of failed delivery. With so many residents at work during the day successful delivery of items too large to fit through a letter box is increasingly problematic something that all postal operators are experiencing. To assist with this situation Jersey Post has already successfully introduced two customer options for alternative delivery (SecureDrop and Text & Collect) that help to ensure customer are united with their items more quickly than through the standard delivery process. Technology for survival So whilst to some technology may seem like the catalyst to the postal operator s demise to the postal operator technology can actually be the catalyst to growth expansion and innovation for long-term profitability and survival. 63 jsy CONNECT MAY 2015 GLASS HALF FULL Exploring roles in Geology GLASS HALF FULL WITH Louisa Stokes I n recent years Jersey has seen an increase in the number of mining natural resources and related businesses setting up a presence in the island with the sector now creating a growing number of local job opportunities. I am now employed as a geologist in Jersey This is something I found difficult to imagine when I made my A-Level and subsequent university choices a decade ago. Growing up in Jersey one is never far away from pristine and exciting geology. It was this that inspired me to qualify as a geologist and follow my passion as a career. By the end of my undergraduate degree I could see positive changes within the emerging Jersey natural resources sector and it was from here working for a Jersey-headquartered company that my career started with geological field-work in minerals exploration in Eastern Europe. My fascination for rocks and hunger for further career development together with a quirky sense of adventure led me further afield to work on some exhilarating minerals exploration projects before coming full-circle back to the island. I write this article in between the evaluation of a couple of North Sea oil fields from the St Helier office of Jersey Oil and Gas E&P Limited ( JOG ). 64 JOG was established in early 2014 by a close-knit and experienced team of oil industry professionals with a wide range of skills and international experience. Locate Jersey saw JOG as fitting in with their objectives to broaden and diversify employment in the natural resource sector and they were key in providing the necessary business licences and assistance to JOG s senior management to relocate to the island. With its excellent communications and world-class business infrastructure Jersey is a great location from which to operate an oil company and we have all of the other great well-known lifestyle benefits close by providing an excellent work life balance. As Exploration Geologist for the company my role entails a wide range of responsibilities covering the company s technically-driven pursuit of production assets. Initially we are looking at acquiring oil and gas production from established North Sea fields but we are also looking at possible development and exploration projects in some other parts of the world providing an opportunity to travel. Working as a member of a small team with enthusiastic leadership and onthe job-training my focus can quickly shift between geological commercial and economic evaluations to facilitate investment decisions. It is thrilling to be so closely involved in such highpowered decisions. I feel that I am part of a company which is making an exciting contribution to Jersey s growing reputation as a centre for resource companies. JOG has great plans to increase staffing levels to employ both graduates and non-graduates in a range of disciplines including geoscience and engineering its requirements would also broaden the skill-sets of finance and legal practitioners in oil and gas. Employees would be targeted from residents but also from Jersey s highly qualified diaspora. I m looking forward to having a wider range of colleagues in the JOG office but I m also delighted to be Employee Number 1. I am also working on plans for Jerseybased geology field trips for students who have some interest in geology (or physical geography). I want to be able to demonstrate that studying geology could lead to an interesting and rewarding career with employment opportunities on the island. There is more than granite on this geological microcosm. I am really happy to be back in Jersey and working in an oil company using my skills knowledge and experience and being part of a growing industry which I feel has so much to contribute to the development of our great island. For me the glass is more than half full. MAY 2015 jsy CONNECT PERSONAL. PROFESSIONAL. QUALITY. We ve been dynamically growing over the past 40 years so we can offer you experience you can trust combined with the innovation of our team delivering a fresh and energetic approach. 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 01534 785200 accounts Thomas Edge House Tunnell Street St. Helier Jersey JE2 4LU Rosscot Secretaries Limited is regulated by the Jersey Financial Services Commission BUSINESS ADVISER Business Adviser GET IN TOUCH... If you ve got a business question you would like to put to John please email editor low broad and simple. Our tax system is anything but If your affairs are complex seek help even if it is just to reassure yourself that you are following the new rules correctly. If you go wrong the consequences could be very costly. When most countries are looking at simplifying their tax regimes we are making ours more and more complex. Instead of taking a fresh look at the relevant issues of the 21st century we seem to simply bolt pieces onto a law that is now over 50 years old (and itself based on one from several decades earlier). I appreciate that the States of Jersey are a little slow at times but B y the time you read this most of you will have less than 28 days to file your tax return. The deadline for filing before the 200 penalty kicks in is 6pm on Friday 29 May for those of you using tax agents the deadline is extended to 31 July. The annual filing of a personal tax return used to be fairly straightforward a few numbers here and there followed by a bill in early September and payment in December. However this has all changed in recent years and you now have to consider ITIS payments on account late filing penalties interest charges benefits in kind long term care contributions intermediary service vehicles loans to shareholders loans to related parties (even if not resident) a whole new regime on what is a distribution the remnants of the deemed and interim distribution rules underlying tax payments taxed at source income and substantial demands for additional information. The notes to the tax return now go to 20 pages Those of you with an interest in a trust or a company have incredibly complex rules to follow simply to ensure that the correct amount of income is taxed. Jersey does not tax capital but I suspect that the majority of taxpayers who have an interest in a corporate entity will not have managed to file their personal tax return correctly and on the most tax efficient basis for the past couple of years. One has to keep a careful note of corporate income from 2008 onwards so as each year passes the complexities worsen. 66 taxation taxation on capital profits or increase the tax payable by disallowing legitimate expenses for the unwary. Our politicians keep stating that the tax system in the island should be low broad & simple. One cannot argue with this statement but as with many things in relation to our government it appears to just be empty rhetoric the current Jersey tax system is certainly anything but low broad and simple. The lack of spending controls and increased red tape has forced the effective rate of tax up substantially over the past few years. Maybe the 20% headline rate has not changed but by the time you consider the increases in social security the long term care contributions the restriction of personal allowances and last but not least GST tax is nowhere near as low as it has been. Tax has risen but are we seeing any tangible benefit or have living standards actually decreased There is an upward trend of tax increases here and without some skillful fiscal management now one can only see this upward trend continuing. Raising taxes when the economy is sluggish is universally accepted as not being a recipe for success politicians please take note. Tax should be simple to administer simple to collect innovative and set at a rate that represents value for money. Think about this when filling in your tax return over the coming weeks. 7 o Columnist JOHN SHENTON Grant Thornton Business the world has changed and instead of spending time creating red tape navel gazing and maximising their own employment numbers and those of the quangos they fund surely some consideration should actually be given to the Laws that effectively allow the States to function at all. With no tax the island has little income. Maybe I am being naive in my thoughts and that the States have conned us into thinking that they have created a mess but in reality it is a master stroke as the complexities they have created only seem to assist them. If the rules are not followed closely they create double MAY 2015 jsy CONNECT Improving businesses through the innovative use of technology Business Continuity We haven t just got it we ve proven we can use it On 4th January 2015 we successfully supported a local business through a business continuity activation with zero downtime. Shared suites Dedicated suites Diverse telecommunication solutions Structured office environments Do you have a plan for when disaster hits We have proven that we can get clients back up and running quickly in the case of an emergency Dedicated Business Continuity Suites guaranteed availability can also be used for training throughout the year Shared Business Continuity Suites cheaper flexible office space including telephony and printing services Professional advice to find a solution that best fits your budget and your needs On site teams around the clock so we re here for you 24x7 reducing the risk of delayed access CONTACT Antony.Allen or our Datacentre and Business Continuity team facilities for a tour of our business continuity suites c5alliance c5alliance VISIT managedservices Pages BusinessContinuity.aspx to see what we can do for your custom Business Continuity plan photos c5alliance c5alliance company c5-alliance c5alliancegroup KevinHart o Photography By Gary Grimshaw Shall we drive UNPLUGGED Y Unplugged In each edition of Connect we enable someone in the news to speak directly to you in their own words... Unplugged. What you are about to read is a transcript beyond minor changes to punctuation and syntax to aid clarity these words come directly from the person who uttered them. G o on be honest. What would it take you to walk right past the car in the morning stroll to the nearest bus stop and share your journey into work with your fellow islanders instead Can t listen to music Try headphones. Can t make calls Actually you just don t need a hands free kit. Can t put your make-up on with people watching Ok you ve got us there. On the face of it why wouldn t you save money and get an extra few minutes of time back while someone else drives you to work Apparently it s because we are addicted to our cars. So we thought we would meet the man charged with breaking that addiction Kevin Hart General Manager of LibertyBus. They won the bus contract in 2013 and now run it as a social enterprise subsidised by the States by a little over 3m a year. b The way the social enterprise model works is we re a commercial business operating and making a profit to do things in the community within which we work. So our aim is to put back into the community some sort of community transport to help people who can t catch mainstream bus networks to help more people who are more vulnerable . So it s a commercial business helping the community as the ultimate aim rather than profit driven. JAMES FILLEUL ASKED MR HART TO EXPLAIN HOW THE MODEL WORKED KEVIN HART The way the social enterprise model works is we re a commercial business operating and making a profit to do things in the community within which we work. So our aim is to put back into the community some sort of community transport to help people who can t catch mainstream bus networks to help more people who are more vulnerable. So it s a commercial business helping the community as the ultimate aim rather than profit driven. There are no shareholders. So a big charity they invest in us they help us with our funding to help us with cash flow and they get a small return on their money for their social good. We re in a profit share with the States so once it reaches a level our profit is ours to jsy CONNECT MAY 2015 69 Got a story to tell Get in touch email us at editor invest. The States profit is theirs to invest and they can choose what they want to invest theirs in. We will reinvest into some sort of community transport scheme in Jersey. We just started what we call Parish link which is a service in three Parishes in the North driven by volunteer drivers. We ve got a small Mercedes a six seven seater wheelchair accessible running around parts that aren t served by the main bus network feeding into hubs like St John St Mary Greve de Lecq and First Tower so people can feed into the main bus network. But it s all from roads that currently do not have a bus service because they are too narrow to get busses down. JF Have you got anything in mind KH Yeah we re looking to see whether it s viable to set up a car club. Now that seems alien for a bus company. You put bus and car in the same sentence and its alien to each other but we re looking to see if there s a car club that we could set up but it s purely in the planning stage. It wouldn t just be a car club it would be electric car club to make it green so basically in St Helier you would pick your car up you d rent it by the hour and you d take it back. Bookable on-line. It s targeted for people who live in St Helier who either haven t got parking haven t got a car or businesses actually who only need occasional use of cars. We want to link it with our cards our Avanchi cards. 70 MAY 2015 jsy CONNECT JF Is the bus service still subsidized (approx. 3.5m) by the States KH Yes. We get a subsidy from the States based on level of service. Anything we do above that is at our own commercial risk. So we ve got to ensure that the routes are sustainable in themselves. It s fair to say that there are two really busy routes on the Island which are the 15 and the 1. It s the coast road to Gorey and it s the Airport so everybody knows they re the busy routes and in the two years we ve been operating we ve gone from a thirty minute service in the winter on the 15 and that s now a 15-minute frequency all year round and its growing. The 1 was a twenty-minute service in the summer with the previous operator and a 30-minute service in the winter. We ve turned that into a 20-minute winter 15-minute frequency in summer so we re upping the frequency all the time. JF How do you get more commuters to take the bus KH It s difficult. It s got to be very good value for money. It has to be regular enough for you to want to catch it and convenient enough so again upping the frequencies on some key routes on some very heavily populated routes has been a target of ours which we ve done. When we started in 2013 we had 28 vehicles running at peak times morning and afternoon. At UNPLUGGED b the moment we ve got 39 vehicles running at peak times. So we ve increased capacity we ve adjusted the running times to make them as realistic as possible because the one thing we noted from the previous operator was actually that running times were not realistic and we only realised that once we started doing the operation so we ve had a steep learning curve of how Jersey works. We ve changed routes subtly. We ve extended running times we ve put more vehicles into the network and we ve grown ridership. Our target was 3.2m passenger journeys in 2013 and we achieved 3.6m and then in 2014 we hit 4 005 000 passenger journeys. So the increase has been phenomenal over the last two years but it goes to show if you put the vehicles out there and you increase the frequency you will build your passenger numbers because you are making it accessible. JF Do you agree that people in Jersey are addicted to their cars KH Well they re not. I think as long as they ve got an alternative they re willing to try it. It s very price sensitive and what we ve done over the last two years is introduce a smart card scheme making it easier to pay. Yes we ve upped the cash fare but we re switching people to cards. We ve got a monthly unlimited ticket now of 45. So you could travel as many times as you like for 31 consecutive days for Yeah we re looking to see whether it s viable to set up a car club . Now that seems alien for a bus company . You put bus and car in the same sentence and its alien to each other but we re looking to see if there s a car club that we could set up but it s purely in the planning stage . 45. When we took over in 2013 there was a 30 day ticket which was 51 so its dropped 6 in two years so although the cash single fare has increased we are offering people good value for money tickets particularly for regular customers. JF If it s cheaper than parking and the busses are at convenient times what s stopping people KH It has to be convenient and we recognise it has to be convenient so if you live on a route say in Trinity that s got two buses in the peak in the morning and a two hourly service throughout the day we recognise that it s perhaps not so easy to catch the bus from Trinity. But also the population isn t in Trinity so we need to target the key areas. The key areas are Red Houses which is the 15 Gorey St Clements which is the 1 jsy CONNECT MAY 2015 71 UNPLUGGED We ve done that differently to the last operator. The last operator was very much sort of cost plus basis - we said okay we think we can do better than that we ll take a low subsidy and it s less than half the previous operator and we ll take the risk on the fares. If passenger numbers decline it s our loss. Now that s a big risk for a charity but we were confident that we could turn it around and start growing the passenger numbers. Obviously we d already started in Guernsey nine months prior to Jersey and we ve just won Guernsey for another five and a half years. So we re in the Channel Islands to stay and we want to be here for a long time because we just think the model works and with 20% growth in two years people are starting to say I ll try the bus. JF So what would you say to people who might use the bus service once in a blue moon but are usually in the car KH Get out of the car and give it a try. Parking is not cheap. You re sitting in traffic. You re causing the traffic delays by sitting your car. Get on the bus and give it a try and when you look at it and weigh it up pound for pound you re getting far more value on the bus. In the car it s going to cost 7 to park all day in town it will cost you petrol. Nobody is saying give up your car although that would be nice all we re saying is just don t take it to work. Catch the bus there are plenty of vehicles travelling from 6am through till 7pm. If you don t look you won t find out how good it is and the 1a and we ve targeted those routes. We ve put more busses into them. We ve put the extra capacity into the routes that we needed to try and get people out of the car and when you go up 20% in passenger numbers in two years we don t think we re doing too badly. We re actually bringing another five double deckers on Island to increase routes and to increase capacity so you know we re bringing capacity over and our subsidy will not change from the States. It is set at that level and it will not change. JF What was the attraction in Jersey KH Well why not Can we bring the social enterprise model into an Island and see how it works in a community where there is no competition. If you look at London TFL (Transport for London) have no competition because TFL operate all of the busses and just get different operators to do it. Now all the operators get a set amount to do it there s no commercial risk for the operators. They ve got their overheads they ve got their costs they know what their cost base is and they make a profit. 72 MAY 2015 jsy CONNECT so just have a week where you give it a go or a month and see how much money you save. 7 or 8 a day compared to 45 a month or you can get an annual ticket for 495. You can t run a car for that and park it. School children have been other big thing for us. We ve had to grow the network. We haven t actually put any extra vehicles on. School kids can catch the main network so we know we ve got a lot of school kids catching the main network now along with the dedicated school routes and again passenger numbers on the school routes have grown over 20% alone. Every single child is using our smart card system 2800 to 2900 journeys made per day for the school kids and on the weekends actually they re using their cards all the time. It really has been really well received and the kids have just bought into it and they are the future bus users. END Unplugged VIEWPOINT E Viewpoint What are the three main developments that the accountancy industry will see in the next 12 months vieWpoint puts forWard a key Question facinG one of the island s main industry sectors and then a Group of leadinG practitioners 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 C Luke Smith founder purpose loud Connectivity and Consolidation are my three buzz words for the next 12 months. world has had your problem and has already fixed it. Accountants are implementing these applications for their clients to improve profits and performance and for owners whilst it can sound expensive a monthly subscription model usually makes it affordable. Consolidation The baby-boomer generation are increasingly retiring if they can and in accountancy it s no different. There are partners leaving and a lot of one or two partner firms who will not have anyone to follow them so will have to merge their firms with other practices. This will mean lots of local business owners forming new relationships and perhaps also shopping around. In short it s going to be a very exciting 12 months for those who are prepared to make a tremendous difference to their clients. Cloud The industry is going through massive change. All our clients who can have moved onto cloud accounting platforms and new clients continue to want the cost savings and up-to-date insight that it brings. It s probably a little boring now to those who embraced the cloud a couple of years ago but the majority still haven t and trends in the UK over the last nine months have shown uptake rocketing. Connectivity Those early adopters of cloud accounting are now connecting a huge amount of purpose-built applications to improve efficiency and often API technology to drive their business forward. There s an increasing awareness that someone else in the 74 MAY 2015 jsy CONNECT VIEWPOINT A ccountants are going to have to up their game As more and more accounting services have become automated businesses are looking to us to offer a more strategic service across the board and technology has enabled us to be of huge strategic value at a cost-effective price. This year will see a huge rise in the adoption of Cloud Accounting and the Virtual Finance Director. Additionally the United Kingdom Generally Accepted Accounting Practice ( UK GAAP ) has been modified to more closely replicate International Financial Reporting Standards for accounting periods beginning on or after 1 January 2015. Since Jersey entities generally follow UK GAAP being United Kingdom Accounting Standards and applicable law the financial reporting regime for local companies will change considerably. Finally people will be looking for adaptability over experience. Often people feel that experience is synonymous with good when it comes to accounting. However experience is not necessarily positive if it entails many years of applying the same tired principles with every client. What s valuable is an accountant who can adapt their approach to each client and the changing financial climate. The ability to innovate from convention is essential and technology will also play a great part in this as we see the accountancy landscape change throughout 2015. Sean O Flaherty director rosscot TAKE PART Would you like to be one of the industry experts contributing to Viewpoint If so please contact us via e-mail on editor It s all FREE There is no catch So sign up at today and turn your unwanted items into cash The Bailiwick Express Classifieds... jsy CONNECT MAY 2015 75 WHO S THE FOOL Who s The Fool How much morality can we afford o Illustration By Mark Jackson T he cost of living and how we settle the bill has been at the forefront of the Fool s mind this month. My monthly bank statement attests to the fact that there are certain things such as shelter food clothing and Sky Sports which I alone am expected to provide. Other stuff such as healthcare infrastructure personal safety education and how fast and over what surface I can drive through St Mary (granite After a millennium of highway engineering And imported into an Island which is made of granite ) are taken care of by my monthly deductions for tax and Social Security. Given that I am at liberty to choose between such things as eating in a posh restaurant or smashing limpets off a rock for dinner I can to a certain extent control my spending on the former. What the States decides to do with my money in the case of the latter means I essentially get what I am given. On the basis that this is a business rather than culinary magazine the likelihood is that readers are far more interested in how the States choose to spend our money rather than whether I choose a meal of understated sophistication (their words) or rugged simplicity (my words) with a side order of acute gastroenteritis so let s crunch some numbers. Gross government spending in Jersey is rapidly approaching 1.2 billion per year. Given a realistic population of around 100 000 and ignoring a yawning deficit (don t fret I ll get to that) this means on average if we want to break even each of us should be contributing around 12 000 per year from our earnings to keep the ambulance turning up make sure there s a place in school for our kids keep States Members in free parking spaces and nudge St Mary into the 17th century. And although we are all entitled to consume the same level of government services some will pay more than 12 000 and some will pay less. As Abraham Lincoln never quite said democracy can be a bitch like that. This and the incessant barrage of election propaganda 76 MAY 2015 jsy CONNECT WHO S THE FOOL emanating from the UK has aroused the mathematician in your humble scribe. So let s think of things in terms of two simple equations X A B Where A Cost of stuff government provides Where B Population Therefore X Cost of stuff government provides per head of population And based upon this we can derive our own personal election equation to evaluate a politician or party If X Y then C D If X Y then C D Where X Cost of stuff government plans to provide per head of population Where Y Sum I will tolerate paying for stuff government provides Where C Your vote Where D The politician or party in question Like all good mathematicians I don t think that s anything like complicated enough so we can adjust for reality by bringing in a few other variables. If a government chooses to run a deficit (i.e. spend more than they take in tax making up the difference by raiding the deposit account) I might still choose to elect the liar because cost per head of population goes down (or the level of services go up) whilst my personal tolerance remains the same. Issuing debt has the same effect because the burden of payment doesn t fall on me but on future generations. And both of these variables are being actively used in both the UK and Jersey to deliver more government spending on stuff without anyone having to pay for it right now. So reality looks more like this If (X Z) Y then C D If (X Z) Y then C D Where Z Government deficit debt financed spending on stuff which I don t have to pay for yet. And this is where we are in both the UK and Jersey today. Eventually of course the deposit account runs dry and government spending on stuff we don t have to pay for today has to stop. Or we issue more debt. And that raises an interesting question. We recently with the assistance of our shiny AA credit rating borrowed 250 million on the promise of running a balanced budget and in case that didn t work using some of our substantial reserves (our deposit account) to fund the repayments. Since we managed to sell that debt to the market we have seen our balanced budget turn into a projected deficit of up to 130 million. We have committed to using 250 million from reserves to cover that deficit for the next few years as well using it to fund a new hospital and police station. Let s hope S&P can overlook our little fiscal difficulty when they next assess our credit rating or we are going to have some pretty unhappy creditors on our hands. But we are where we are. So what can we do about it If only there were a group of wealthy people living close by who were being hounded and vilified on the basis of the tax they legally don t pay rather than cosseted for the substantial sums they do pay who would fall over themselves to pay much more than their share in exchange for living in our Island If only... The question isn t whether we should be trying to offer non-doms a safe haven away from the baying herd of UK government ingrates. The question is why we haven t already placed full-page adverts in prominent UK newspapers with boat tickets and application forms attached. If Labour get their way the UK will shortly discover the problem with morality is that it costs. In the face of further attempts by the party to bully the island let s for once stand up for ourselves make them pay for their churlishness and help ourselves out of a hole into the bargain. 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 . jsy CONNECT MAY 2015 77 g No Ordinary Day Job The Sun King o Words By Julien Morel O o Pictures By Glen Perotte ld Victorian Mark Brandon has had a bright idea. As Jersey is always keen to stress it is the sunniest place in the British Isles. But we don t really harness the sun in a big way apart from topping up our tans. Now that solar panels have become more efficient and cheaper the 28-year-old is keen to make Jersey a sunpowered Island. Julien Morel went to meet him. Q So what is your day job A With help from my dad I have set up a business called Sun Works which is the only company in Jersey that has a singular focus on designing and installing solar photovoltaic systems. Solar PV as distinct from solar thermal which uses the sun to heat water can power anything that runs on electricity. Q But solar panels have been around for years. Has anything changed to make your exclusive focus on PV viable A In the last three to four years the price of panels has dropped 78 MAY 2015 jsy CONNECT NO ORDINARY DAY JOB BIO name mark brandon education victoria colleGe and hautlieu occupation manaGinG director of sun Works (ci) ltd Island. It offers diversity of our energy supply and it creates jobs on the Island both new trades and existing trades such as roofers scaffolders electricians architects and structural engineers as well as labourers. And it offers businesses and homeowners a fixed-rate of electricity. When you buy solar it is like buying 30 years of electricity in one go so you can fix that rate so you know what is going to be. If you divided the total production over 30 years by the cost of your installation you will get a pence-per-unit rate so if you re a business dealing in cash flow it is good to know that that cost is covered. That is self-sufficiency and you are protected from the rising cost of electricity. Q So should we all go out and buy solar panels basically Works When the sun shines. as much as 70 per cent. This is because the Chinese came into the market in about 2010 and starting selling products into Europe at below market price. Although it hasn t been brilliant for European businesses it has had a positive impact for global solar. Contrary to a popular view European-built products aren t necessarily the best and what is important when I m sourcing products is the bankability and sustainability of that manufacturer. Does the factory use sustainable methods Are they going to be around in ten or 20 years to serve their warranties or are they going to go under in a couple of years That is more important than where do the panels come from So your total installation cost is now much lower so the return on your investment is sooner. We are working on the cost of solar generation versus the grid. So when you generate a unit of electricity you are displacing one from the grid. And the price of electricity has gone up by an average of seven per cent a year over the last ten years. Q Does generating your own electricity using PV panels make economic sense It brings in a truly renewable source of electricity to the it is important to understand that solar only operates in the daytime. it does Work in cloud and partial liGht albeit not as much but it A It is important to understand that solar only operates in the daytime. It does work in cloud and partial light albeit not as much but it basically works when the sun shines. Storage doesn t really work efficiently so PV panels are best used by businesses that need energy during the day. We recently installed a system at the new Co-op in Grouville. The supermarket has a very high daytime power need running fridges air-conditioning units lights tills etc. So we can safely say that 100 per cent of the solar power generated will be used on site. On a long bright sunny day if you have moderate consumption you can produce too much and that over-capacity needs to go somewhere. So that will go out of your energy meter the other way and the JEC will currently pay you 6.24p per unit. They will install a buy-back meter for a business - free of charge and then sell that electricity on at the retail rate. We have also installed a system for Holmefield Growers on the St Clement Inner Road. On a sunny day it supplies about 80 per cent of their energy needs. And remember on a hot day their fridges and freezes are working even harder which is the opposite of a residential property. A typical home will use electricity in the mornings and evenings when the sun isn t shining and that is why we are targeting businesses rather than homeowners at the moment. This is the foundation of our business model. We are trying to displace grid electricity for our customers during the day. Our job is to design a system that matches electricity production with our customers daytime demand. Even if you have a massive roof-space we might not fill all of it jsy CONNECT APRIL 2015 79 WHAT YOU NEED TO KNOW... Photovoltaic solar energy Solar PV panels convert energy from the sun and transform it into DC electricity. The electricity generated by the panels is then converted to usable AC electricity through an inverter and fed into a building s fuse board for use on site. Solar PV is not to be confused with solar thermal technology which uses heat from sunlight to heat water during daylight hours. NO ORDINARY DAY JOB my opinion is that We don t need any direct subsidies or incentives from the states. 62 per cent of the jec is oWned by the states so politically offerinG more money to alloW people to sell electricity to the Grid Would be a Good thinG and Wouldn t cost the states anythinG. otherwise you would have too much electricity to export during the daytime. Q But what is wrong with exporting electricity back to the grid A That 6.24p per unit at the moment isn t enough to subsidise bills but if the buy-back tariff from the JEC was to rise then it would make better economic sense and the return on investment would be quicker. If that happens then a farm or business would effectively become an energy supplier generating a source of energy that the JEC could redistribute. The overhead costs for electricity generated on the Island and being resold locally is lower than energy being imported from France so perhaps the JEC should be paying more for electricity generated in Jersey. The JEC would recoup their costs for paying a better rate for solar by switching more people to electrical sources of heating getting them off oil. The JEC should want to increase the demand for electricity because it is the energy source of the future. For the average homeowner you would expect about 50 per cent of their generated electricity to go back into the grid. I hope I can work with the JEC because they have done a tremendous job in providing Jersey with a reliable and secure source of electricity. Q You often hear of people in the UK having solar panels fitted for free. Could the States do more to help A My opinion is that we don t need any direct subsidies or incentives from the States. 62 per cent of the JEC is owned by the States so politically offering more money to allow people to sell electricity to the grid would be a good thing and wouldn t cost the States anything. The usual reservation is that increasing the price of exports to pay for solar would in turn boost the price of the general tariff for the average paying customer and could lead to more energy poverty. But this isn t true because the uptake of solar even if it had a good response would just be a pinprick in the total usage. Solar adds diversity into the energy mix and it creates jobs but it wouldn t have a huge effect on the overall tariff. jsy CONNECT April 2015 81 NO ORDINARY DAY JOB WHAT YOU NEED TO KNOW... Net metering A service to an electric consumer under which electricity generated by that consumer from an eligible on-site generating facility and delivered to the local distribution network may be used to offset electricity provided by the utility company to the consumer during the billing period. i Went to jersey business With my idea. they Were up front from day one and Quite prepared to say this is GoinG to Work or this isn t GoinG to Work . so i presented my business case to them and they Got to knoW me and backed the idea. i have full praise for jersey business not just because they supported me but also their frankness. Also the States don t need to incentivise because we are already on target to meet our Kyoto obligations for carbon reduction. That said if I were a politician I would want to meet EU targets to be seen to be doing the right thing. The States follow EU best practice with the finance industry and they should be doing the same thing with energy. What I would like to see introduced in Jersey is a system called net metering. That means a full reimbursement at the retail rate of electricity for an exported unit. So if you take a unit in your account goes up by 1 and if you export a unit you get -1. But for that you would pay a higher service charge to fund the maintenance of the grid and its overheads. This has been introduced in 38 US States already - it offers a good return on investment and would really help the Island achieve a balanced energy mix. The JEC would also become a distributor of clean renewable electricity. Q It sounds a noble aim. Is it what prompted you to set up Sun Works A I believe that we should strive for self-sufficiency and people should be given a choice to achieve that. I also 82 MAY 2015 jsy CONNECT NO ORDINARY DAY JOB like the natural world and would like to see it preserved. When it comes to my background after school I worked for Delta Conference Systems for four years but left to work in Brighton with the intention of becoming a music producer which has always been a passion of mine. But I found the industry to be a closed market and virtually impossible to break into so I decided to retrain as an electrician. Returning to Jersey my dad offered me a small amount of start-up money from savings and I went for it ... and eight months later after a lot of research we set up Sun Works in August 2013. Q Did you find it a simple process A I went to Jersey Business with my idea. They were up front from day one and quite prepared to say this is going to work or this isn t going to work . So I presented my business case to them and they got to know me and backed the idea. I have full praise for Jersey Business not just because they supported me but also their frankness. They want to make sure you re not going into something blind so they make you produce cash flows and forecasts even though it is extremely difficult to do that when you don t know what the demand is going to be. I think overall I have a drive for business and I like my independence so establishing Sun Works came quite naturally to me. Q And how do you see the business developing A At the moment we use local sub-contractors and a company called Solar Roofing Specialists in Southampton to manage each project. They will become a shareholder later this year because we want to bring their expertise into the business. Once that happens they will start to train people in the Island. Solar technology has actually plateaued over the last few years which means we can use high quality products but actually their cost has come down. I would like to see Sun Works create jobs and become the go-to company for all aspects of solar technology. We are exploring the idea of local renewable energy initiatives. If you wanted renewable energy but lived in a one-bedroom flat you could help pay for solar on say an agricultural barn with other homeowners. Solar is very much dependent on economies of scale the bigger the installation the lower the costs. I don t know whether that s a deal to be struck directly with the JEC or with a business that has appropriate space for panels - but at the moment nothing can really work because the export tariff is too low. Is the 6.24p per unit rate a fair one considering what we are trying to achieve in the Island Plan and in order to meet global environmental standards The States themselves could really benefit from self-consumption. Look at how many buildings a department like TTS owns There are so many opportunities for businesses and departments that operate in the daytime to have part of their electricity bill fixed. I am also looking at helping firms finance installations because there is so much pressure for a short-term return on capital investments. Jersey is a perfect place for solar so hopefully it can reach its potential. END jsy CONNECT APRIL 2015 83 Make light work from 2015... Sun Works (C.I.) Ltd is a Jersey based company providing a complete design and installation service for Solar Photovoltaic (PV) systems. Solar PV provides green electricity enabling your business to make substantial savings and become more self-sufficient. We offer the latest solar technology a professional friendly service and quick installation with no hassle. LIMITED OFFER Until 31st May 2015 Full design with a turn-key installation High quality components Example size 25kWp system (100 solar panels) 4000 p.a. in grid electricity savings Payback from 6 years FREE Web Portal View generation online Guaranteed production for 25 years Finance available if required t Sun Works a young bu With the assistance of ure-proofed y we have fut growing Jersey compan of this through the installation our energy costs ndly technology ntally frie efficient and environme Colin Macleod CEO Cha nnel Islands Co-Operati ve Society What we can do for you... Advise on suitable roofing Design your PV system Arrange planning permission and JEC notification Undertake installation Set-up and provide web monitoring Maintenance contracts Sun Works (C.I.) Limited Tel. 01534 498 822 Mob. 07797 913 314 Email. info Based on Building suitability (Roof type orientation pitch etc). Ability to consume 100% onsite generated electricity at the time of generation. JEC tariff of 14.5p per unit. Excludes scaffolding and structural survey. T he Island Games is coming apparently sponsored by Natwest and I think it is happening in June here in Jersey. That is about all I know and as a consequence my excitement level is pretty low. I was feebly introduced to the Games whilst sitting in traffic about to enter the tunnel. The car in front had a sticker in the rear window quite low-key and peeling a little. For a moment I thought I had discovered a secret something only a select few are privy to that is until my eyes hit the countdown clock on the side of Norman s building. Painfully conventional but marginally effective. On a day dominated by the inane and boring I thought it might be worth looking into the Island Games a little further. Now I know the event will not promise the betting options offered by the Olympics (guessing which national team will prove the most synthetically-fuelled and provide the most drug scandals) but I kind of like that. This sporting gathering might just actually be about sport endeavour and excellence. The Jersey team alone bristles with Commonwealth talent many of whom are one personal best away from inclusion in a British team and some who already are. No seconder-raters these but actually very impressive competitors and well-worth some Jersey pride. So this begs two questions how little do I know about sport in Jersey and more importantly why has no one thought to tell me Working in marketing it is the second question that intrigues me because event promotion is such a large part of successfully drawing visitors to a small Island like ours. There is a large assumption in the question of course and that is that no-one has thought about a marketing plan rather than the plan has yet to be fully deployed. Perhaps the organisers are in fact driven by a tight promotional budget with a late-stage surge of activity waiting to leap from the drawing board. The rather feeble stickers suggest limited planning but looking from the outside-in is always a problematic approach to a fair appraisal of success to date. A combination of ill-advised confidence and historic and historical failures in the realm of event marketing allows me to suggest one way to approach a valuable beast such as big event marketing. At least one element to it anyway. The key to success is three-fold in my view generating excitement conversion of the disinterested and leveraging the benefits of people already caught up in the preparation of any event. This is a longterm project which requires patience and the confidence to spend some budget early. The larger the event the longer that timeline. Y Marketing Forces o Columnist CHRISTOPHER JOURNEAUX To generate excitement the PR machine needs fuel. The stories must be ripped from the corners of the media and stamped firmly on front pages and high up running orders. This is a murky process where spin comes into its own from news that VIPs will be attending to stoking fears of Island-wide disruption. Who would have thought we could ever care again about Mr Battle but an expensive and well-deployed clich has helped breathe new life into an event that was rapidly for participants and their press-ganged families only. Even if my initiation into the cognoscenti is via irritation that my favourite road will be closed for half a day I am now aware. Combine this with the drip drip effect of well-crafted PR stories and maybe I start to see this event as worth the effort to explore. If not then a structured campaign should at the very least keep it tight up to my eyes with nowhere to hide and miss the growing expectation. This element of the campaign is the bit that develops that grows gradually. It may well be the part of the Island Games marketing planning that has yet to unfold. Time will tell that one. Now the social media presence accelerates. Digital web 2.0 3.0 and beyond is all about engagement sharing and going live so bring in the advocates the participants the friends the organisers and their families. Get them talking and expressing some of their excitement. Like a wellchoreographed swimming pool of synchronised swimmers those posters and emailers that started to appear online and off connect with the PR connect with social media and connect with the audience. Integration is achieved. Let s sum up the Big Event Marketing 101 well-planned marketing structure integrated communication and some whipped-up public excitement to infect those still in a state of selfenforced torpor. Failing that perhaps some bigger car stickers jsy CONNECT MAY 2015 85 LINKEDTO Home People Contacts Groups Jobs Inbox Companies More People Jenna McCabe Associate Director Quilter Cheviot Jersey rightly sees diversity as a strength and its main aim is always to simply foster talent there s actually as many woman as men in our team here. Since coming to Jersey I ve been really impressed with how many women are in senior positions on the Island it s a trend I d love to see replicated more widely in the industry. What will the recent Old Mutual takeover mean for Quilter Cheviot It s great for us and great for our clients too. It will enable us to continue to work with our existing clients while also promoting our discretionary investment management services globally through Old Mutual s extensive international network. For me personally it will help me gain exposure in a wide variety of markets. This year alone I ll be doing business in Latin America Europe and the Far East. What is you remit at Quilter Cheviot My job is essentially to work with Quilter Cheviot s High Net Worth clients and their intermediaries to help develop the bespoke investment solutions that will help them to reach their financial goals. A great deal of my time is spent really getting to grips with our clients requirements and then ensuring that they re matched up with the investment manager who meets their needs. Luckily due to the high levels of technical expertise we have on the team here this is never an issue the team is hugely dynamic they re achieving outcomes for our clients and the office has a fantastic reputation both nationally and internationally. When a job came up here I jumped at the chance How did you find the move from London to Jersey I actually grew up in Cornwall and while I knew I d have to do the London years to get myself established I never envisaged myself living there forever. Five years was more than enough The way I see it you can have the whole package here. You can live in a great environment have a great lifestyle while still working in a highly respected financial centre. What business motto do you live by Since doing this role my motto is put yourself in your client s shoes . The secret to great service is seeing things through your client s eyes and never accepting less for them than you would honestly be prepared to accept for yourself. What attracted you to this role Prior to joining the Jersey office I worked as Channel Marketing Manager for Quilter Cheviot. As part of the role I managed marketing across all of the Quilter Cheviot offices and Jersey always really stood out to me. Around 85% of its client base is discretionary and their average client ranges from 1 million to 100 million the work they do here is so varied. What s more 86 Investment Management is an area dominated by men. What has been your experience as a woman in this field One of the things which really attracted me to Quilter Cheviot is how supportive it is of its female employees. It quite If you weren t doing this what would be your dream job I ve always quite fancied being a professional athlete. Imagine not only being at the top of your game but being paid for it too Luckily I can live vicariously through the sports teams that we sponsor. MAY 2015 jsy CONNECT It s all online at Boosh Used to express awesomeness Here s Here s the Thing Politics isn t and mustn t be just about money. It s about change it s about leadership it s about creating an environment that allows people to lead happy and fulfilling lives. The role of the Council of Ministers isn t just the crude job of balancing the books it s about fixing the education system creating homes that people want to live in working out how to look after the old and vulnerable and sorting out an immigration system that works and makes sense. Here s the thing. For the next three years politics in Jersey isn t going to be about any of those things. It s just going to be about money. And that s the way it has to be. The prospect of a 130 million deficit in public finances which ministers have now conceded is happening is completely over-powering. It s an authentic crisis largely down to ineptitude and wishful thinking (but more on that in a bit) that demands immediate attention and some horrendously difficult decisions. The remedies proposed by the Council of Ministers include 60 million worth of staff savings including real-terms pay cuts and voluntary redundancies and possibly compulsory job cuts too a health charge of around 35 million either actually charged for services or more likely another addition to Social Security Contributions (the States new favourite Magical Money Tree) and 35 million worth of cuts to departments stealth taxes and benefits. And yet there s good news in this. It is firmly to the credit of the Council of Ministers that they re being honest and open about the mess we re in and the gravity of what they re going to have to do to dig us out of it. The even better news is that they re planning to do so without resorting to Ozoufian mumbo jumbo economics in which no difficult decisions need to be taken because all problems will be magically swept away by a sudden surge of economic growth any day now... The bad news is that while Chief Minister Ian Gorst has the muscle to get his plan through the States Chamber without too much trouble getting it past the unions will be another story. And getting a set of stealth taxes including a 35 million health charge past the public may not be straightforward either. His gamble is that from the point of view of the public there s enough sugar ( 60 million worth of pay job cuts and an extra 50 million for health) to convince them that the medicine ( 35 million worth of health charges) is worth taking. He s probably right about that and probably right too to try to move the debate on from what s clearly been a bit of a disastrous few years at the Treasury with a few high-profile departures failures in financial management that are only just coming to light now and a general refusal to face the facts. 88 MAY 2015 jsy CONNECT For all that Senator Gorst will want to move the debate on there are questions to be asked about all of this about who is responsible for the forecasting errors that let this deficit build to such a ludicrous level (answer in my view Philip Ozouf who spent the last six years as Treasury Minister) there are questions about why we re only finding out about it now (answer there was an election in October) there are questions about why States Members were prepared to just accept the blatant fantasy and wishful thinking that passed for economic forecasts (answer the majority probably didn t even bother reading them) there are questions about where this leaves the bond investors who lent us 250 million on the basis of our strong reserves and healthy finances (answer probably not happy with us) and there are questions about why for all their tough talk politicians continue time after time to avoid anything that looks like a tough decision (answer there s no electoral upside in telling the truth if everyone else is in a fantasy world). But those are questions about the past. One of the big questions for the future is where all this leaves our reserves which having lain untapped for several years are about to be plundered to meet deficits to pay for a hospital probably to fund pay-offs for staff leaving under redundancy agreements and presumably to fund the new States office building being talked up by Treasury Minister Alan Maclean and States Chief Executive John Richardson. Worryingly ministers don t yet know how much is about to come out of the Rainy Day Fund to pay for those things but they do seem to accept that the downpour merits getting out the brolly. The truth is in all of this that there is no magic bullet. There is no easy way out. We are living way way beyond our means and it s finally time to sort it out. Ministers have belatedly accepted this and begun grappling with the two fundamental questions are the things that we want important enough to pay for and if so how are we going to pay for them It may seem to run against the grain given news of compulsory redundancies stealth taxes health charges and benefit cuts but their acceptance of the problem is actually good news. 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 What is Electronic Document Management and why should you use it An electronic document management system is a secure centralised and audited storage of all your documents providing you the tools to file share and retrieve information in a cost effective and efficient manner. Many businesses rely on manual processes for the filing of documents which is generally a time consuming task. With the added challenge of increased email correspondence the requirement for collaboration a heightened awareness for security and the need to retrieve data quickly this has become a significant burden and cost on businesses. Using an electronic document management solution addresses these issues and allows individuals to quickly and intuitively file share and retrieve information. The result of this is an increase in productivity and provides the foundation for you to service your clients more efficiently and cost effectively. Our Business Solutions team are focused on providing the skills expertise and knowledge needed for understanding your business requirements. Their aim is to deliver tailored and scalable solutions to address your electronic document management needs. The business benefits Reduce overheads for the filing of documents and emails Improve business process and reduction in processing costs An increase in productivity A centralised information store for all documents Readily facilitate subject data requests Extensive security capabilities Document level Auditing The ability to retrieve documents and information quickly Provides Version control Ability to share information across your business Improve Regulatory compliance For more information on how Logicalis can work with you to provide the best solution for your business please call our experts in Jersey on 288088 or Guernsey on 737000 for a free no obligation and confidential discussion. Guernsey 44 (0) 1481 737 000 Email solutions Jersey 44 (0) 1534 288 088 Email solutions 7 May UK election God is it finally over For the Is it over Can DD come out of hiding For the love of warning about not attempting last three months all news should have had a health been that boring. Like any of us to operate heavy machinery after reading it it has lead a minority government. actually care about which chinless dweeb is going to a thought for the hero of UK DD s view this probably doesn t really matter. But spare very very very unlikely to have a politics over the last five years Nick Clegg who is ced personal popularity (including good night. He s the only politician to have sacrifi elements in his party and has probably his entire career) confronted the reactionary reality. His reward is that he s sacrificed personal ideology on the altar of economic basically going to get impaled. That s politics folks. 9 May Liberation Day 70th Anniversary the awful truth is that just over Easy to be glib about a lot of things about Jersey but group of people who murdered 70 years ago the island was occupied and run by a plunged Europe into a nightmarish war millions because of their race or beliefs and and mentally. That s how bad that left further millions dead or shattered physically on... things can get. No punchline here folks let s just move 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 90 MAY 2015 jsy CONNECT 12 May States . Why not How about a free Oh whatever. Sure let s have a review of bus prices whatever that even means. And puppy for kids. And old people. And Middle Jersey reckoning the price of the bus nurses. But not bankers. I mean whatever. By DD s l and parking it s definitely isn t that bad and relative to the cost of driving petro low. But that s what the States is for right 14 May Chamber of Commerce lunch guest speaker economist from RBS ct. A bank whose Oh great let s hear from an economist from RBS. Perfe that it needed help from understanding of economics once appeared so shaky gag goes that if you want 50 Gordon Brown. Yes that Gordon Brown. But the old same question. So maybe this different opinions ask 50 different economists the why they handed out 1 guy has a fresh exciting take. It ll be interesting to hear just had to be rescued by the billion in bonuses in 2010 for a start considering they d state and had lost oh dear me 1.1billion that year. 21 May House Price Index Q1 2015 five years with a 3% increase Last year saw the first increase in house prices for covered almos t all property recorded by the States Statis tics Unit. That increase oom house up during the course of prices with the typical price of a three-bedr one-bedroom flat up 1 000 to the year from 484 000 to 502 000 the price of a ing 19 000 to 341 000. The 211 000 and the price of a two-bedroom flat climb n above the UK average but well last figures also showed that property prices remai iencing a property boom in below typical figures for London which has been exper the last few years. Want more read take five on paGe 08 jsy CONNECT MAY 2015 91 You be the Jury C riminal trials in the Island are tried in one of three ways before a magistrate alone before a judge and Jurats or before a jury. What are the pros and cons of each Which is to be preferred Is there a case to rid ourselves of one or more of the methods Should we abandon them all and simply draw straws flip a coin or better still revert to the dunking chair (I ve always preferred a type of wheel of fortune that one spins and where it stops decides both verdict and sentence). There are arguments aplenty in regard to each method but jury trials are most often the target for reform. It s probably fair to say a general view is that an accused has much better chances of acquittal tried before a jury than by another method. It seems Groucho Marx thought so when he said I was married by a Judge. I should have asked for a jury. But is that right Is it right that as an accused acquittal is a real prospect with a jury but a dim unlikely prospect before a judge or magistrate My experience says yes I would advise my clients to opt for the jury system. But having said that I have appeared for clients both before magistrates and before Jurats and obtained acquittals. So one can t say that any method other than a jury is bound to result in conviction because that is simply not the case. But on balance I think one can say the prospects of acquittal are better before a jury. But why Is it that juries are more prone to get the right result or do they more often reach the wrong one Over the years I have heard many people say the same thing juries don t really understand the facts or issues and tend to acquit because of that. The philospher Herbert Spencer wrote A jury is composed of twelve men of average ignorance and so it s pretty clear what he thought. Mark Twain thought they were the most ingenious and infallible agency for defeating justice that human wisdom could have devised . I disagree (subject to what I say in a moment). I have appeared in front of juries and watched them carefully. In respect of the facts I am convinced the majority do understand. I have watched them making notes during the trial and seen how they pick up their pens and pencils for salient points while not making notes of erroneous facts. That is a good guide to ascertaining they can tell the difference between relevant and irrelevant material. I have also been privy to cases where they have asked questions of the judge and all those questions have been reasonable and on point. The problem arises in cases which span a very long time and contain lots of specialist facts and information. The prime example would be a long running fraud trial involving massive amounts of financial information. However my view is that it is up to the prosecution and the defence advocates to ensure the jury does understand. And that obligation extends to making the matter interesting so juries are not bored to death day after day week after week listening to turgid evidence. As you can imagine in the US many studies have been carried out in relation to juries. One fact that sparked my attention was that many of those studies showed juries tended to side depending on their view of each of the opposing lawyers favouring the side represented by the lawyer they liked most. A lawyer who appeared to be in command of the facts and who was organised was preferred over one who wasn t. Why Because the jury trusted him. S He had authority and won the jury s respect and therefore they were more likely to believe his or her presentation of the case than the other. Isn t that back to flipping a coin Surely the law of probability will dictate that the chances of a jury preferring one lawyer over another applies equally between defence and prosecution advocates Perhaps the reason for more acquittals from juries (if that is the case) is because of the odds. The law requires at first instance a unanimous verdict from 12 people. That is a big ask in all but the clearest of cases. If a unanimous verdict can t be obtained the court will accept a majority verdict of no less than 10 to convict. Thus for a defence advocate provided three members of the jury return verdicts of not guilty then the accused will be acquitted. Those odds must have a bearing. Is there a case for changing that aspect but keeping the system A 7 to 5 majority It is often said that an accused has the right to be tried by his peers. I can see the force of that statement. But what if those peers are biased toward you or against you In 1989 comedian and singer Ken Dodd was accused of cheating the Inland Revenue a case which lasted 23 days and concerned amongst other things bank accounts in Jersey in which the celebrity would deposit large sums of cash on a reasonably regular basis. He was acquitted. But his acquittal was met with cheers and flowing champagne from a massive gathering of the public outside the court room in his home town of Liverpool. Did they all know the facts and therefore were cheering because they were relieved the jury reached the right verdict Or was it because they were happy that their Knotty Ash hero had won over the taxman Was a jury in Liverpool ever going to find the man who brought laughter waving feather dusters around while singing Happiness guilty of tax evasion Was is at case of a jury of Diddymen You be the jury. 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 92 MAY 2015 jsy CONNECT ESSENTIALS GIFT GUIDE Connect s luxury ESSENTIALS B E AMAZE D B Y AUR UM Aurum of Jersey is truly a family run business that has been creating and selling exquisite hand made jewellery for over 40 years. They believe that in a world of mass production the opportunity to provide and for their customers to enjoy something that has been handmade and designed by craftsmen of this ancient trade should not be underestimated. They are dedicated to providing quality products delivered to the highest standard to ensure that their customers are always delighted with their purchase. Striking pendant and earrings both featuring different coloured diamonds set in 18ct white gold designed and handmade in Aurum s workshop. 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Peruse The Story of racing legend Nigel Mansell admire the polished showroom of hand-picked motors and maybe make a pit-stop at the recently refurbished fuel station and service-centre. TH E FUEL A taste of Formula 1 in First Tower. This state-of-the-art fuel and service station was recently reopened after extensive renovations earlier this year. Joining forces with RUBiS The Mansell Collection pairs quality product with sterling service. Step inside for a brand-new and fullyfunctioning service centre suitable for all types of motors. Courtesy cars are available for every service customer. 96 MAY 2015 jsy CONNECT ESSENTIALS TH E CARS Share the Mansell passion. The Mansell Collection prides itself on the finest selection of new and pre-owned cars presented in a showroom like no other. With motors selected by experts ranging from 6 995 upwards to premium marques including Ferrari Porsche and BMW everyone can enjoy the Mansell experience. 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From cocktail evenings to birthday parties host your event against the backdrop of genuine F1 cars Nigel drove throughout his career on the track. ESSENTIALS S UM M E R S TY L E AT HE TTIC H When it comes to defining the jewellery style for summer 2015 it s all about attention to detail say Hettich Jewellers in Jersey. From stunning gems that are just made for sun-kissed skin elegant bracelets that slip on effortlessly and jewels that are the colour of the sea choose your perfect finishing touches. With everything from dynamic brights to beautiful gold jewellery which of Hettich s new arrivals will you fall for this summer P I N K S A P P H I R E R I NG Some pieces are made to be treasured forever like this breathtaking pink sapphire and diamond ring. With its elegant style and design this is truly a ring to cherish. 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Aquamarine (15.87ct) ring in 18ct white gold 7 850 Hettich Jewellers 1 King Street St Helier Jersey JE2 4WF Tel 44 (0)1534 734491 Facebook HettichJewellers Question What s the best business to business platform in Jersey (show working out) Answer High footfall areas x 6 000 print Delivered to 7oo key locations (inc. airports hotels etc) 10 magazine stands x 155 000 1 000 mailed direct to business leaders Online at www.bailiwickexpress.c om x 6 000 social media audience (2 000 business tweets) 2014 8 000 e-publisher edition readers 1 000 Guernsey business email subscribers 14 000 readers 7 000 Jersey daily news email subscribers (read online worldwide) CONNECT How business should be done If you d like to advertise in CONNECT magazine please contact Mark Ferns on 01534 510309 or email markferns 34 510309 4 510309 030 0309 30 309 ELEPHANT IN TIME TO SWITCH TO ELECTRIC HEATING Clear investment. Pure energy. THE GARDEN For a free quotation call 505460.