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FREE Please take a copy IN JUNE S EDITION Three tips for top wealth managers o Read online at Jersey s business magazine g 8 Legally Blind What s next for employers Mythbuster Who dug the deficit Fran collins Condor Captain charts a calmer course 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. EDITION38 GET IN TOUCH... Please email editor W e have a mantra here at Connect always watch what politicians do rather a smash-and-grab-raid on all possible sources of revenue to get to that point. As the bell rings and Actions Vs Words step out tentatively onto the canvas of public opinion we thought we should give you some context some detail and some mythbusting on what s been the major story of 2015 so far. So on page 20 you ll find our form guide to help you choose whether it is the rhetoric or the reality which really carries the knock-out punch. If we push that metaphor too far then one company which has been pinned to the ropes for much of the last few months is Condor Ferries. Once the final notes had died away of the fanfare announcing the entry into the auditorium of their new ferry (the Liberation) they were swiftly knocked to the canvas with a left right combination of weather delays and technical problems. In this issue of Connect Captain Fran Collins bounces back up bobs and weaves and lands a few counter-punches of her own. You can read how she gets on on page 60. But the truly soothing great boxing of contests are nothing without attention the trainer played out in this issue by Social Security Minister Deputy Susie Pinel. As business have gone twenty rounds with the recession over the last eight years it is part of her job to patch them up and get them back into the ring to help fight the island back to growth. On page 50 she writes her prescription for business in 2015. I hope you enjoy the contest. 01 than listening to what they say. Take the forecast deficit of 130m by 2019 for example. Weighing in in the words corner we have positioning such as ...there s nothing to worry about we have a plan we have years to deal with it we have exceptionally strong public finances (the envy of the world incidentally) and this was all foreseen. In the actions corner we have potential extra charges for waste disposal parking and health care the likelihood of higher social security Please recycle this magazine. contributions and a stateswide voluntary redundancy Like Bailiwick Express program and that s just for starters. Remember we also had a 2015 budget which connectjersey balanced by a single 1 and jsy CONNECT June 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... 60 REGULARS LOC AL NE WS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 E VENT Jersey Business Awards for Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 LEG AL MAT TERS Featuring Voisin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 TR ADING PL ACES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SELL ME A LIFE IN . . . ACCOUNTANC Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 PIC TURE THIS Durrell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 TECHNOLOGY Lisa McLauchlan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 MARKETING FORCES Christopher Journeaux . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 GL A SS HALF FULL Peter Langdon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 BUSINESS ADVISER John Shenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 UNPLUGGED Susie Pinel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 VIE WPOINT Enhance Group and Barclays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 WHO S THE FOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 NO ORDINARY DAY JOB Captain Fran Collins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 TR AVEL Amanda Eulenkamp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 HERE S THE THING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 DE ADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 02 June 2015 jsy CONNECT FEATURES BWCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 40 26 PENSIONS Rosscot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 42 C5 Alliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 38 DIGITAL TECHNOLOGY Special Report The biggest story of the year is one that has the potential to force reform and efficiencies through the public sector while guaranteeing vital investment to core services or it could swallow all of our savings derail the fragile economic recovery and scupper public services. The implications of the 130 million deficit on the Island and Islanders are still unclear but what s certain is that it s going to have a major impact on all of us. Ben Qu r e reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 20 You can read this magazine plus the latest local UK and business new online with UNPLUGGED 50 20 10 42 08 46 58 jsy CONNECT June 2015 03 NEWS Living wage in Jersey we aLready have one There is no need to introduce a living wage in Jersey because the Island s minimum wage combined with Income Support adds up to exactly the same a new report has concluded. The study published by the Chief Minister not only argues that Jersey s minimum wage currently 6.78 per hour - plus benefits satisfies the requirements of a living wage but also that introducing one would only benefit a tiny portion of the workforce. A living wage takes into account the basic living costs faced by an average low income worker and the benefits that they can claim. These factors are used to set a single hourly rate. In London some employers have signed up to a voluntary rate of 9.15 an hour. The Chief Minister s report concludes that with Jersey s lower taxes and Social Security contributions together with the cost of basics such as rent taxes childcare and food the Island s minimum wage Income Support meets the living wage criteria. Pulling everything together it finds that the actual average wage is over 9.80 per hour. It also points out that raising the minimum wage - which one in ten workers is on - does not always help families on Income Support as they may lose benefits. Chief Minister Ian Gorst said This report identifies 04 the low take-up of the living wage among UK employers and it is unlikely that a local campaign would result in higher wages in sectors like retail and tourism. The best way to reduce poverty is to help people into work to deliver earnings growth that is built on productivity increases and to constrain price rises so people have more money in their pockets. As a government these are the areas where we can make the most difference to hard-working local families. The report also raises the question of whether our benefits are in fact too generous and we will certainly study this carefully. Deputy Geoff Southern who has campaigned for the introduction of a living wage said the report was disappointing and politically driven. It ignores the fact that the whole point of the living wage is to reduce people s dependency on benefits and transfer responsibility from taxpayers to employers he said. It is recognised internationally that a minimum salary should be 60 per cent of the medium wage which in Jersey equates to 16 500 a year - and many Islanders earn below that. The report also fails to recognise the economic and business impact of a living wage - better staff retention greater loyalty and higher productivity. My campaign is not over. 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... UK General Election Result DaveCam s 5 more years of austerity & an unnaturally shiny forehead without All assortment of blue ties. cheer us up GE2015 Cleggy to Opposition ar life Ed Farage clinging on for de when s gone Cleggy gone. Now notice Cameron handing in his whatopposition Cabinet Reshuffle of Justice Who put Gove in charge ing Street s What about Larry Down ief Mouser to cat Promotion from Ch binet2015 Minister of Fisheries ca Got a suggestion for Tweet Me You know where we are... For all the latest business news follow connectjersey Follow us on Twitter June 2015 jsy CONNECT NEWS JT chooses Jersey based developer for new billing app A Jersey based software consultancy has been chosen from a shortlist of global developers to create an innovative billing app for JT. Hollis Consulting a software development company headquartered at the Digital Jersey Hub was chosen by JT to create a mobile App that provided a solution for customers based on feedback received about how they manage their account information. The functionality also means that customers in both Islands can set usage alerts to suit their budget at any time and select value added services such as roaming bolt-ons. Hollis Consulting s team created the App to meet these needs and worked with the JT team to refine the finished product. JT s Chief Relationship Officer Tim Ringsdore said It may surprise people to know that apps like this have been created from scratch right here in Jersey and that Digital Jersey s Hub in Grenville Street is home to worldclass developers. From the beginning the Hollis team understood exactly what we were looking for they took our brief and worked with us to get it right delivering on time and exceeding our expectations with the resulting app. Initial customer feedback has been very positive. Hollis Consulting founder John Hollis designed the Mobile Application Relay Service that connects both the iPhone and Android apps to the JT billing system. Mr Hollis said We developed MARS to solve the impedance mismatch between a complex enterprise billing system and thousands of mobile devices. Intelligent caching using MARS technology provides security and performance for JT s mobile users. Hollis Consulting s Tim Davidson worked on the appearance and functionality of the app. Tim is a 22 yearold Jersey resident who was educated at Grainville and Hautlieu and joined Hollis Consulting in 2012. He said working out of the Digital Jersey Hub offers huge advantages explaining The facilities are excellent and it s a professional environment but most of all it means that I get to work alongside others doing similar work to me and we are able to share tips and ideas which is really useful. I also have access to events hosted by Digital Jersey which is great for keeping up to date with developments in our industry. The main advantage working right next door to JT s offices was that while working on the app we have been able to have regular catch ups with JT s team and work really closely every step of the way. Any changes were made there and then and it meant we got feedback and were able to action changes in a face-toface environment. WIN WIN a Brain Box experience at Calling all creative brain boxes... Radisson Blu Waterfront Hotel is offering the opportunity for a local business to win a free Brain Box meeting for up to 10 guests. Held in Le Hocq Suite the Brain Box room elevates efficiency and stimulates creativity. Designed as a playground where you can embrace your creative side the Brain Box room can be tailored to your specific needs offering beanbags puzzles and pens to get creative on the panoramic windows. Le Hocq Suite provides the perfect naturally lit environment with inspirational views over St Aubin s Bay to help guests or colleagues to think outside the box. The offer also includes Brain Food fresh well-balanced and locally sourced food to help sustain concentration and stimulate energy levels. For the chance to win this exclusive offer please answer the following question In which Radisson Blu meeting room will be Brain Box session be held a) Rocco Tower b) Le Hocq Suite c) Archirondel Suite Please email your answer to lydia.matthaeus Terms and conditions The winner will be chosen at random from the correct entries. The offer is available for up to 10 people and will include meeting room hire unlimited tea coffee and still & sparkling water two healthy snack breaks a brain food lunch and all stationery supersize games and seven beanbags. The offer must be used before 31st December 2015 subject to availability. The closing date for entries is 30th June 2015. By entering this competition you agree to your details being added to Connect and Radisson Blu s databases and we will from time to time e-mail you with news and offers. You can unsubscribe from receiving marketing e-mails at any time. jsy CONNECT June 2015 05 NEWS Jersey s relationship with EU out of our hands Jersey will be forced to sit on the sidelines while the UK public determines the Island s relationship with Europe in 2017. Despite the Island engaging with Brussels directly as Chief Minister Ian Gorst did when he met EU Commissioners last week Islanders and their political leaders will have no say over whether it continues to be treated as an equal trade partner. Senator Gorst confirmed this at his quarterly meeting with the Corporate Services Scrutiny Panel. The UK are going to ask to renegotiate with the EU and hold a referendum in 2017 he said. We will continue to work with the UK and EU but if the UK public votes to leave the EU it would be difficult for us to renegotiate with 27 TAKE FIVE five things according to deadly diary you should knoW about the deficit 1 2 3 4 5 It s very big. Really big. Put in spending terms it s like the entire Education budget and the entire TTS budget added together. Put in tax terms it s like doubling GST property tax and fuel duty. That s a big old hole. If every single household in Jersey pitched in to solve it they d have to each throw in 3 125 every year from 2019 onwards forever. So far the Council of Ministers haven t actually proposed that because... There s a plan to solve it. Ministers have put their heads together had a good long think and come up with the following 60 million in savings from the States staff budget 35 million in cuts and benefit savings and 35 million from a new health tax. That s a reasonably finely-pitched proposal that says the States will come up with 75% of the money and the public have to come up with the other 25%. But it s not actually that simple because... The plan to solve the problem has some problems. First up the unions. They don t like it. They were on the verge of really kicking off anyway but the prospect of a combined 95 million cuts package makes a major strike pretty much a definite. Second up the civil service. They don t like it either they re already mightily hacked off that someone was brought in from outside to find ways to cut budgets and the size of the target is going to make them deeply unhappy particularly after the Chief Minister explicitly said that middle and senior-managers were in the firing line. Third up the States. They re a rabble. They re perfectly capable of messing this up delaying it or just dragging it out for interminable reviews and propositions about referenda. Fourth up the ministers. It wasn t even unanimous that they d back the pay freeze for 2015 and that s just the first 2 million. There s every chance they ll lose heart on their way to the combined 95 million cuts target. And that matters because... No-one knows how much the deficit is going to actually cost. The 130 million deficit is an annual figure not a one-off. And that s important because it means it s going to be a problem every year until it gets sorted out. We don t know how much is going to have to come out of reserves to fund the shortfalls leading up to 2019. We don t know how much is going to be needed to fund redundancy payouts for States employees. We don t know what their instant pension payouts are going to do to the already widening States workers pension deficit. We don t know what the actual cost of the new hospital (that s already going to come out of reserves) is going to be. We don t know what all of this means to existing capital plans about doing up Fort Regent (hint it s not going to happen). There s more about this that we don t know than we actually know. But that s not as bad as it sounds because... This is such a huge problem that there is no way that even Jersey s politicians can brush it under the carpet. Sounds weird but bear with us. It s a good thing. In the past it s been too easy for a Treasury Minister to just brush away any problems by loudly proclaiming in the total absence of any evidence that THE ECONOMY IS GOING TO BOOM ANY MINUTE NOW AND SOLVE ALL OUR PROBLEMS SO WE DON T HAVE TO DO ANYTHING AND AREN T I JUST FANTASTIC and waiting for everyone to get bored and go away. The new Treasury Minister is quite a bit brighter than that and a lot more serious about his job. Not even Jersey s politicians who ve hardly ever met a problem they couldn t ignore for 20 years or so (see the population policy the way that married women aren t allowed to fill in their own tax form or our bizarre 1950 s era education system) can duck this they actually have to knuckle down and get the job done. The old line about ...never letting a good crisis go to waste has never been more apt. There you go Jersey the only good news about this whole situation is that it s so very very bad. Want more read deadly diary on page 70 06 June 2015 jsy CONNECT NEWS Member States. One of the issues that the UK wants to tackle is policing its borders and addressing those border issues might in fact have a positive effect on the Island. We will stand up for what is in our best interests particularly when it comes to the EU s relationship with third countries. That said we are not seeking to change our relationship with the UK and Europe but change may come about regardless. Jersey is in the hands of the UK because the Island by convention relies on Whitehall for defence and foreign affairs despite now having an external relations minister. Jersey s own relationship with the EU is defined in Protocol 3 of the UK s 1972 Treaty of Accession. Under Protocol 3 the Islands are part of the Customs Union and are essentially within the Single Market for the purposes of trade in goods but are third countries - outside the EU - in all other respects. Most Islanders enjoy freedom of movement within the union although those classed as Channel Islanders who do not have a parent or grandparent who was born in the UK or have not lived in the UK for the past five years have a stamp in their passport preventing them working in EU countries without a permit. UK Prime Minister David Cameron has promised to hold a promised an in out referendum on British membership of the EU in two years time after a period of renegotiation with Brussels led by Foreign Secretary Philip Hammond. Banking online Our promise to you Our Secure Banking Promise gives complete security for our personal and business customers who bank online with us or through our mobile app. 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 June 2015 07 NEWS empLoyers - knuckLe down and start training Businesses in Jersey will have to train local workers rather than assume they will get licences according to the politician in charge of population and work regulation. Senator Paul Routier said some employers appeared unwilling to invest in staff but it was essential if the Island was going to achieve the twin aims of economic growth and population control. I think any business would prefer to train locally but there seems to be a reluctance in some quarters he said. At the end of the day we have 1 390 people who have registered as unemployed and probably another 1 000 who haven t. There are already people in the Island with skills - yes they might need training but it preferable to bringing someone in. Remember the Annual Social Survey revealed that a high percentage of Islanders thought that controlling the population should be a key priority of the States. In the States recently Senator Routier revealed that the Population Office issued 440 new registered permissions (or job licences) to employers in 2014. It refused 316 applications and removed 813 licences from businesses not using them. Businesses need a licence to employ anyone with less than five years residency although it is the job rather than the individual which is licensed. The hospitality sector has the most licences with 1 700 while financial services firms have 1 100. Business can apply for licences and there is an appeals process if the application is rejected. EU Commissioner Jersey is an important partner against tax evasion and fraud The EU has formally welcomed Jersey s work to fight tax avoidance. Senator Gorst was delighted by Commissioner Moscovici s statement which he said showed that the Island was being recognised among the most senior figures in the EU as a leader in financial standards. The full statement from Commissioner Moscovici said I very much welcome the active engagement of the Channel Islands in the key initiatives involved in the fight against tax evasion fraud and abusive tax avoidance in which they are important partners of the EU. Responding to Commissioner Moscovici s statement Senator Gorst said I emphasised to Commissioner Moscovici the importance of using objective international standards when assessing good governance by third countries such as Jersey and Guernsey on tax matters. The Channel Islands continue to meet the highest international standards on tax transparency and it is positive that we are able to ensure that message is heard at the very senior levels of the European Commission. The European Commissioner for Economic and Financial Affairs - who once placed Jersey on a tax haven black list - has released a statement after meeting Senator Gorst and his opposite number from Guernsey. In the statement the Commissioner said the work that Jersey had done was very much welcome and backed their commitment to automatic exchange of information. The announcement by 08 June 2015 jsy CONNECT Pierre Moscovici a former French Minister of Finance in Francois Hollande s Socialist government is the most positive recognition yet by the EU of the steps that Jersey has taken to fight tax evasion and aggressive tax avoidance. While he was Finance Minister in France in 2013 the Commissioner placed Jersey on a black list labelling it an unco-operative tax haven but removed the Island from the list a year later. 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 JERSEY BUSINESS AWARDS h Event Winners Celebrated at the Jersey Business Awards for Enterprise 2015 Online retailer Mainmann Group has collected this year s top accolade at the Jersey Business Awards for Enterprise held at the Royal Jersey Agricultural & Horticultural Showground in Trinity . The company which sells Melissa and Mel shoes online and here in Jersey received the Jersey Business Award for Enterprise Excellence and was also named Investec Small and Medium Enterprise of the Year. Business broadcaster Steph McGovern started the evening by encouraging the audience to celebrate their own successes and the positive contribution that Jersey s economy makes to the UK before inviting Senator Lyndon Farnham Minister for Economic Development to begin the Award presentations. Les Amis won the Condor Ferries Not for Profit Organisation of the Year receiving a standing ovation from the audience as they were presented with their Award. Rupert Langly-Smith founder of Proviz the high visibility clothing brand collected the Indigo Lighthouse Entrepreneur of the Year Award the only category 10 June 2015 jsy CONNECT that is awarded to an individual as well as the Jersey Post Award for International Sales. The States of Jersey Economic Development Large Enterprise of the Year Award was presented to First Names Group and Healthhaus took the NatWest New Enterprise of the Year Award. The gala evening which marked the end of Enterprise Week was attended by a capacity audience of business leaders and featured state-of-the-art staging and technology giving guests a spectacular night of celebration. It was the culmination of a week of debate and discussion on the Future of Enterprise in Jersey. Over 1 000 people participated in nine events during the week focusing on the impact of global megatrends and the opportunities they present for Jersey. Graeme Smith Chief Executive of Jersey Business said The JERSEY BUSIENSS AWARDS gala evening has been a fantastic celebration of the high calibre of businesses that are operating in Jersey. The Awards continue to showcase the impressive and at times relatively unknown businesses that operate from our island proving that Jersey is a place where entrepreneurial talent good business acumen hard work and determination can create business success. The quality of the entries this year has been extremely high and the judges found it particularly difficult to select their winners so all of the finalists are to be commended. The Jersey Business Awards for Enterprise are the showcase for enterprise excellence in Jersey. This wonderful evening presents an opportunity for all businesses in Jersey to celebrate their success and we are looking forward to developing the event and Enterprise Week in years to come. jsy CONNECT June 2015 11 NEWS Huge productivity drop in finance sector The profits and earnings in Jersey s financial services sector dropped by a third between 2007 and 2013 according to fresh economic figures. WHAT HAVE YOU BEEN READING a Quick look at the big stories last month on bailiWick express Police name dead cyclist & confirm no suspicious circumstances Tributes have been paid to the 40-year-old man who collapsed and died while cycling on Wednesday evening after he was named as Assistant Director of Customs and Excise Neil Hussey. jsy news police-name-deadcyclist-confirm-no-suspiciouscircumstances Revealed cuts stealth-taxes 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. jsy news revealed-cuts-stealth-taxesand-redundancies-planned-statesface-135-million-deficit Traffic chaos over Liberation flags Traffic on the way into town from the west was brought to a standstill this morning... by loose flags. http www.bailiwickexpress. com jsy news traffic-chaos-overliberation-flags New stats show that the combined profits by finance companies and the amount they pay staff dropped by 33% from 2.3 billion in 2007 to 1.5 billion in 2013. And the figures also show a huge drop in productivity within the sector over the long-term. The combined profits and earnings per employee was 207 000 back in 2001 by 2013 that same figure had dropped by 37% to 130 000 in 2013. The statistics have been revealed for the first time in the Jersey in Figures booklet which compiles stats released throughout the course of a year and sets out numbers in more detail. It takes months to calculate the main figures used to measure Jersey s economy the Gross Value Added or GVA combines profits and earnings to give a picture of overall strength. The GVA figures for 2014 will not be released until the end of September. They re expected to show the first actual improvement in the Island s economy since 2007. Almost all non-finance sectors including things like construction retail hospitality and agriculture have been essentially flat from 2001 to 2013 but the big drop has been in finance led by the fall in the banking sector which dropped from 1.8 billion in 2000 to 800 million in 2013. 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 June 2015 jsy CONNECT Investment Outcome Making New Friends Bahamas N26 3 41 W77 20 59 Where will your investments take you Your world isn t confined to a single set of geographic coordinates. Neither should your investments be. We search the globe to find outstanding investment ideas wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 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 office 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. NEWS News RE view Coutts Trustees appoints Lord Waldegrave as Chairman Coutts & Co Trustees (Jersey) Ltd has appointed the former Conservative Minister Lord William Waldegrave as Chairman of the Board and Non Executive Director. Lord Waldgrave s career in politics included Cabinet posts between 1990 and 1997 as Secretary of State for Health Secretary of State for Agriculture Chancellor of the Duchy of Lancaster and Chief Secretary to the Treasury. He was educated at Corpus Christi College Oxford and went on to attend Harvard University on a Kennedy Scholarship. He has since served as Vice Chairman of UBS Investment Bank and as Chairman of the Global Financial Institutions Group at Dresdner Kleinwort Wasserstein. Most recently Lord Waldegrave served as a Non-Executive Director at Fleming Family & Partners. He is also the Chairman of Coutts & Co. Martin Hall Chief Executive of Coutts Trustees said We are delighted to welcome Lord Waldegrave to the Board. This appointment is testament to the strength of the Coutts Trustee business which continues to develop and grow. Over the last year we have refreshed our proposition invested in a new 14 technology platform and strengthened our senior team with a number of new hires. Feedback from clients and intermediaries has been notably positive and shows that we are already reaping the awards of the investment. service. We had a strong launch campaign and we pride ourselves on the great reputation and skills of our team. We are now focusing on building brand recognition across our industry and in all of our jurisdictions. See Marketing Forces on page 45 for more on the Elian rebrand. financial services industry in Guernsey won the award for best Design. White Collar Coding (WCC) is the brainchild of Richard Rolfe and Jordan Love of Codex DLD a tech business that helps adults to make the most of digital opportunities. Richard Rolfe a former award winning headteacher said they held the awards to help people recognise just how easy it is to gain digital skills and prove how much can be achieved. In today s digital world it s vital that business leaders make the effort to learn and often it s just an issue of confidence. Our awards showed just how easy it can be for people to develop those skills and produce something really worthwhile at the end. Elian wins WealthBriefing European 2015 award for best brand launch Elian has won a top industry award for its rebrand following the management buyout from Ogier. The administration company beat strong competition to win the WealthBriefing European 2015 award for a brand launch or re-launch. Judges said they were most impressed by the effective nature of Elian s re-launch its speed in creating brand impact in a short space of time and the level of employee engagement the name was chosen by a staff member. Elian s CEO Paul Willing said It is a great honour to be recognised in these prestigious awards our win is testament to the hard work that the team have put in over the last 12 months. The Elian brand has clear values which are underpinned by a commitment to provide the highest level of client KPMG Channel Islands wins award for Innovation Business Leaders in Jersey and Guernsey have been recognised in the first ever White Collar Coding Awards. Over 40 have attended the White Collar Coding Business Leaders Challenge course so far this year. The Challenge was launched to help bridge the skills gap in our islands and has been so successful there are now plans to expand the scheme. Participants learnt computer coding and were able to code an app which they uploaded for people to use. In recognition of their work the Award for Innovation was given to KPMG Channel Islands for their e-gaming app designed by Max Hamon in Guernsey. KPMG Jersey Managing Director Jason Laity collected the trophy. A team from the States of Jersey won the award for Teamwork and Elliot Walker who works in the Moore wins Best Private Equity Administrator of the Year Moore Management has been named Best Private Equity Administrator of the Year Channel Islands at the 2015 AI International Fund Awards. The 2015 AI International Fund Awards are designed to recognise and honour outstanding performance and continued excellence within the global finance industry highlighting not only fund performance June 2015 jsy CONNECT NEWS Email us on editor Got News but the firms departments and people working behind the scenes to successfully form manage and advise on all aspects of the current market. Moore Management is an established independent provider of administration and corporate governance services for institutional and corporate clients ranging from major investment banks to boutique alternative asset managers. Head of European Fund Services Jon Trigg said Being named Best Private Equity Focused Administrator of the Year is a fantastic accomplishment for everyone involved in the Moore business. It is a credit to the fantastic teams we have in each of our locations and a reflection of the hard work everyone has put in over the past 12 months. professionals Pascal Saint-Amans Director of the OECD Centre for Tax Policy and Administration highlighted the tremendous job Jersey has done contributing to the international tax agenda. Emphasising the complexities for jurisdictions and firms now there are multiple models in place for information exchange he added It is important to recognise the role of small jurisdictions in the work we are doing. We aim to deliver a level playing field for all jurisdictions and Jersey was one of the best and first in grabbing this opportunity to shape the agenda. Meanwhile during two panel sessions at the conference which is now one of the largest dedicated private client conferences in London panellists referred to the introduction of the OECD s Common Reporting Standard (CRS) which will come into play in the UK as from 1 January 2016 as a quantum leap for firms suggesting that there is real potential for greater market share for jurisdictions like Jersey that have already made the investment in meeting and exceeding global standards. In a warning to the wealth management sector panellists also suggested that although jurisdictions like Jersey had done all they could to provide a framework for effective information exchange it was now up to firms to make sure they had the ability expertise and technology to make sure this worked in practice and that information was accurate. In another keynote speech at the conference Philip Marcovici former CEO of LawInContext and former partner at Baker & McKenzie called for a greater level of proactivity from all jurisdictions if compliance was not to spiral out of control whilst he also questioned how the increasing flows of data could be guaranteed to be used securely and appropriately by governments particularly in emerging markets. The conference was moderated by Stephanie Flanders who also gave a talk in which she discussed the current state of the markets and the importance of productivity as the UK attempts to resolve its debt issues whilst the event concluded with the views of behavioural economist and award-winning FT columnist Tim Harford. Panellists at the event included Colin Powell CBE (CBE Government of Jersey) Richard Hay (Solicitor Stikeman Elliott) George Hodgson (Deputy Chief Executive STEP) Naomi Rive (Chief Trust Officer Coutts & Co Trustees (Jersey) Nick Jacob (Partner Wragge Lawrence Graham & Co) John Riches (Partner RMW Law) James Campbell (Partner Bedell Group) and Ian Crosby (Managing Director Stonehage Financial Service Holdings (Jersey). Geoff Cook CEO Jersey Finance who introduced the conference said What came across strongly at this event was just how well respected Jersey is not just in its ability to meet international standards of information exchange but also to exceed them and this was reflected quite powerfully in Pascal s very welcome comments. Jersey has invested a significant amount of time and energy into positioning itself right at the cutting edge of information exchange and for that reason the introduction of the CRS shouldn t be as big a challenge for Jersey firms as it might be for those in other jurisdictions. The certainty this can offer the private wealth community will be a real competitive advantage for Jersey as investors increasingly seek centres that can offer high standards and effective asset protection capabilities. Pascal Saint-Amans comments follow similar endorsements for Jersey from senior EU figures earlier this month. Pierre Moscovici European Commissioner for Economic and Financial Affairs praised the Channel Islands active engagement in combatting tax evasion fraud and abusive tax avoidance and referred to the Islands as important partners to the EU whilst Jonathan Hill EU Commissioner with responsibility for financial stability financial services and capital markets underlined the importance Jersey places on good regulatory co-operation. 15 Jersey one of the best and first in transparency Jersey s role in helping to drive forward and shape the international transparency landscape has been praised by a senior OECD tax expert at this year s Jersey Finance Annual London Private Client Conference. Addressing an audience of more than 400 senior private client tax trust and wealth management jsy CONNECT June 2015 LEGAL MATTERS Legal Matters Carey Olsen is top offshore law firm for FTSE 100 AIM clients Carey Olsen is the only offshore law firm to be ranked in the top 10 for FTSE 100 AIM clients according to the latest AIM Advisers Rankings Guide (published May 2015). The law firm is positioned in sixth place and retains second place in the table for the total number of AIM clients it advises cementing its longstanding position as the top ranking offshore legal adviser with 41 clients. The latest guide has Carey Olsen in second place in the industrials clients table in terms of market capitalisation and fourth for client numbers. Carey Olsen continues to rank second in the financials clients table as well as being placed sixth in consumer goods ninth in basic materials and 10th in consumer services. Carey Olsen senior partner Graham Hall said These results reaffirm our position as the offshore legal adviser of choice to London-listed clients and demonstrate the strength and breadth of our corporate offering. The AIM Advisers Rankings Guide published by Adviser Rankings Limited contains details of institutional advisers and their quoted AIM clients. The rankings are drawn from UK and Channel Island-domiciled companies and from the growing number of overseas companies joining AIM. The latest update follows the Q1 2015 main market rankings guide where Carey Olsen maintained its position as the leading offshore law firm advising LSE clients (Corporate Adviser Rankings Guide Q1 2015). ogier assists cathay life With acQuisition of Walbrook building Ogier has advised Taiwanbased insurer Cathay Life on the acquisition of The Walbrook Building in the City of London for a headline price of 575m. The law firm s Jersey team worked alongside Berwin Leighton Paisner in the UK to complete the deal which is the latest example of the growing presence of Taiwanese investors in UK real estate after regulators in the country relaxed rules on outbound investment. Ogier and Berwin Leighton Paisner previously assisted Cathay Life with its first acquisition last year buying the Woolgate Exchange in the City for 320m. Ogier partner Raulin Amy said We are delighted to be able to assist Cathay Life again with this flagship acquisition. The structure involved two Jersey property unit trusts and considerable time has been invested in helping Cathay Life and their regulator understand how unit trusts and Jersey Companies operate. We hope this will stand us to good stead for ensuring Jersey is the jurisdiction of choice for further transactions. Raulin was assisted by senior associate Alexander Curry and associate Rebekah Agyeman. Chambers Europe names Mourant Ozannes best Offshore Law Firm Leading offshore law firm Mourant Ozannes has been named Offshore Law Firm of the Year 2015 at the Chambers Europe Awards. The Chambers Europe Awards are among the most coveted in the legal industry because they are decided by researchers who work full time for the legal directory. The Chambers team of 150 full time researchers interview clients throughout the year to build a picture of which firms are the best in their sector. The Offshore category is one of the most hotly contested and it is the second year that Mourant Ozannes has collected the best in sector award. Partner Paul Martin who received the award on behalf of the firm said We 16 are delighted to have been presented this award by one of the industry s leading directories. It is strong recognition of our position at the forefront of the offshore legal market. The shortlist of candidates for the Chambers Europe Awards is drawn up by looking at a firm s progress and development throughout the whole research year. Researchers look at the work highlights provided by the practice area submissions ranking changes new office openings firm growth and above all the client feedback. Unlike the rankings in the Chambers Europe Directory which focus on teams and individuals in certain practice areas the Awards highlight how well a firm is performing in a jurisdiction or region as a whole. June 2015 jsy CONNECT LEGAL MATTERS Legal Matters The importance of choosing a good (legal) venue By Advocate Mark Boothman Voisin The choice of venue in legal terms is just as important as when picking a restaurant for the other half s surprise birthday lunch. Get it wrong and a lawyer can be faced with a situation almost as bad as a partner who has been presented with a lukewarm microwaved lunch in a restaurant where even cockroaches dare to tread. Get it right on the other hand and it will be all smiles and jubilation. So how does one go about choosing the right venue Firstly it is not just open season where anyone who has been mown down at a zebra crossing can rush across the pond to receive their millions in the US courts. Much of the time there won t be a choice and the question of jurisdiction for would-be litigants will go no further than a short call with their lawyer of about 6 minutes or less. However where there is a choice it can be a lot more complicated. I attended a lecture earlier this month which dealt with this very problem. The theme was essentially where to litigate to give the best outcome for clients in the context of aviation disasters. Not the most encouraging subject-matter considering it was 2 flights away from where I live but as an example it did serve its purpose rather well. As the readers of this magazine may well be at a significant altitude as they peruse this article I will use shipping accidents as an alternative example. For anyone mid-way across the Channel or about to embark on a cruise I offer my humble apologies. Take a hypothetical example of a victim a tourist who survives a boat sinking. That person might be sailing from one country to another neither of which they are resident of or domiciled in. They might be sailing through the waters of a country which they have never actually set foot in or indeed they might be in international waters. The reason the ship sunk might be due to a technical fault with a widget that could have been manufactured in one of many countries across the globe. Equally that widget could have been incorrectly fitted by a company operating somewhere else. The shipping company will have its headquarters in a particular country but it may also have subsidiaries in other countries. Our unlucky traveller may have booked the holiday at his local travel agent on the high-street or online. The list goes on. The range of multiple jurisdictions where our victim could litigate may therefore be large and complex. It is therefore extremely important that (usually) before taking legal action and issuing proceedings in a particular jurisdiction consideration is given to which jurisdiction would give the victim the most favourable outcome. This could be as simple as considering where gives the best result financially. Equally it could also be to ensure that the party on the other side of the litigation cannot successfully argue that proceedings have been commenced in the wrong jurisdiction which could result in unfavourable wasted costs or worse. Jurisdiction is not just important in the context of accidentrelated claims. It is equally important in contract claims and should be considered before even entering into a contract. Often contracts will specify which country s courts will have jurisdiction to deal with claims arising from say a breach of contract. The contract may even specify what law the court will have to apply. For example a shipping contract may specify that disputes should be determined by the High Court in London but that the court should apply Marshall Islands law. Damages arising from contractual disputes can be markedly different from one country to the next. Take also trust disputes and private client litigation. By and large trust disputes have an international element to them. However in one country the courts may not even recognise the existence of a trust whilst in another a beneficiary might be entitled to significant damages. Again the choice of law should be considered long before the trust comes into existence. Whatever the case may be it is worth making sure that selecting the right jurisdiction from the start should be extremely high up the list of priorities. 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 June 2015 17 APPOINTMENTS Trading places Elian appoints new director in Caribbean Elian has appointed a director with over 12 years of trustee experience to its Cayman Islands office. David Lambotte will have responsibility for Elian Private Wealth s operations in the Caribbean. He will oversee business development relationship management and fiduciary services in the Cayman Islands and British Virgin Islands. Jersey-born Mr Lambotte who is chairman of the Institute of Chartered Secretaries and Administrators in the Cayman Islands has a wealth of experience gained in Jersey London and the Caribbean. He joins Elian from RBC Wealth Management where he was head of Caribbean trust business development. He previously held senior roles with Dominion Fiduciary Services Group in London and JTC Group in Jersey. Elian group director Philip Le Cornu said David s appointment brings strength and depth to Elian Private Wealth s Caribbean team he has a strong track record in the private client industry and an established reputation for his knowledge of wealth and estate planning. David shares the same values as Elian by putting client service at the heart of his work and striving to provide a first class service. As a global company we intend to grow our private client business and the Caribbean is a key part of those plans. New property appointment at Mourant Ozannes L aw firm Mourant Ozannes has further strengthened its property team with the appointment of Advocate Georgina Cook as Counsel. With nearly 15 years experience Advocate Cook is a specialist in Jersey property law including commercial and residential sales and acquisitions and commercial leasehold matters with particular expertise in structuring multiple unit commercial and or residential developments. Prior to joining Mourant Ozannes she was a partner at two other Jersey law firms between 2008 and 2015. Gavin Renault Head of Property Jersey at Mourant Ozannes said I m delighted that Georgina has joined the team. She is an excellent lawyer with a well-deserved reputation for going the extra mile for clients. The team has been involved in a number of major property transactions in Jersey this year and with Georgina s technical ability coupled with her energy and enthusiasm the team will be well-placed to continue to deliver the exceptional service that we aim to provide to all our clients. Commenting on her appointment Advocate Cook added Mourant Ozannes has an excellent reputation in the market and I m delighted to be joining such an experienced property team. I m keen to help build on this reputation and contribute to its growing success. Top trial lawyer joins Hatstone Advocate Mike Preston has joined Hatstone Lawyers as a Group Partner. Advocate Preston enhances the firm s existing litigation and dispute resolution team and brings the number of partners to six and the total number of qualified lawyers in the firm to 32. Advocate Preston is a highly experienced trial lawyer specialising in trust and commercial dispute resolution as well as having appeared in several of the major criminal trials of recent years. He qualified as an English Solicitor in 1991 before returning to Jersey in 1993. He was sworn in as an Advocate of the Royal Court in 1999 becoming a Partner in his previous Jersey practice a year later. Mike is a member of the Advocates and Solicitors Examination Board and also sits as a Deputy Chair of the Jersey Employment and Discrimination Tribunal. Group Partner Simon Vivian said We are absolutely delighted to welcome Mike on board as a Group Partner. He has built a reputation as one of Jersey s leading trial lawyers in trust disputes and high-profile criminal cases. This appointment marks the next step in our development. The Pensions specialists For more information contact Mike Freer e - mfreer t - 880112 A member of Abelica Global Connect Banner Ad.indd 1 18 June 2015 jsy CONNECT 05 05 2015 10 22 APPOINTMENTS Visit for all the latest business news or subscribe to get the latest news straight to your inbox Looking for more Business News New Chief Executive Officer at Standard Bank Jersey Will Thorp has been appointed as CEO at Standard Bank Jersey taking over from Mark Hucker. The change allows Mr Hucker to focus on his role as CEO of Standard Bank Offshore Group encompassing Jersey Isle of Man and Mauritius. Mr Thorp s appointment follows a 14 year career at Standard Bank. During the last decade he has held a number of roles including Finance Director of the Bank s Russian operation based in Moscow Global Finance Director Investment Banking based in both London and Johannesburg and most recently Chief Financial Officer for the Bank s Offshore Group based in Jersey. At just 38 he is the youngest person to take up the island head role. Mark Hucker is confident his successor will be a strong and forward looking leader for the Jersey bank Will s strong career track record speaks for itself. In his previous role he played a significant part in the development of the Offshore Group s strategy and our alignment with the rest of the Standard Bank Group. He also produced major improvements to our performance management framework and has an excellent understanding of the broader Group. At such an important time for our Jersey operation as we look to fully capitalise on our African heritage and expertise Will is well equipped to lead our team forward and manage the Bank s key relationships. Mr Thorp who came to Jersey in 2012 commented I am obviously looking forward to my new role and the enhanced responsibilities it entails. Standard Bank is an exciting global operation with its roots in the fastest growing and most dynamic continent in the world. With our highly experienced and motivated team in Jersey and the links to the Bank s employees on the ground in 20 countries throughout Africa we are ideally placed to be the Bank of choice for anyone wanting to do business on the continent. New manager at The Atlantic The Atlantic Hotel has announced the appointment of Scott Andrews as its new Hotel Manager. 38-year-old Mr Andrews moved to Jersey having been scouted to take up the position. He joins the team directly from his position as Acting General Manager at multiple award-winning Gidleigh Park in Devon. Gidleigh Park renowned for its outstanding food and setting has attained high levels of cuisine under the direction of Chef Michael Caines MBE and has received two Michelin stars five AA rosettes and five AA red stars. Before this Mr Andrews worked at the world famous Le Manoir aux Quat Saisons alongside celebrated chef Raymond Blanc OBE. Commenting on Mr Andrews appointment owner and Managing Director of The Atlantic Hotel Patrick Burke said Scott has a highly impressive background having worked in some of the most renowned hotels in the country. We welcome Scott to The Atlantic just as we celebrate our 45th anniversary as a family run hotel and we are confident that he will help us to maintain and to continue to build upon the levels of excellence for which the hotel has become known. Mr Andrews was born and bred in Devon and with a passion for fine food and wine he studied Food and Beverage Management at Exeter College where he later went back to lecture in the subject. He holds the accolade of being a St Julian s Scholar the scholarship programme of The Master Innholders thanks to which he benefitted from a unique management training programme at Lausanne in Switzerland. 19 New Chief Financial Officer for Jersey Water Natalie Passmore has recently been promoted to the role of Chief Financial Officer for Jersey Water. Natalie joined Jersey Water in January 2010 as Financial Controller and became Company Secretary in June 2014. She is a Chartered Accountant and since joining Jersey Water has also qualified as a Chartered Manager with the Chartered Management Institute and obtained the Certificate and Diploma in Company Direction with the Institute of Directors. Mrs Passmore said I am excited about the role. It is a busy and exciting time at Jersey Water. As a company we work hard to deliver good service to our customers and returns to our shareholders. It is great to be a key part of the team delivering that value and service. Helier Smith Chief Executive for Jersey Water said On behalf of the Jersey Water Board I would like to congratulate Natalie on her promotion. Her knowledge and experience will support the Company s high standards of corporate governance and financial control and help ensure Jersey Water s continued success. jsy CONNECT June 2015 FAULTY FORECASTS the biggest story of the year is one that has the potential to force reform and efficiencies through the public sector While guaranteeing vital investment to core services or it could sWalloW all of our savings derail the fragile economic recovery and scupper public services. the implications of the 130 million deficit on the island and islanders are still unclear but What s certain is that it s going to have a maJor impact on all of us. ben Qu r e reports. When you consider the debt nightmare in greece the fact that uk debt payments noW outWeigh defence spending in the national accounts and the 18 trillion and rising noW oWed by the us it could be hard to get excited about Jersey s deficit. after all What s 130 million betWeen friends The problem is that placed in its proper context that 130 million is a huge amount of money. Before the November elections ministers were refusing to acknowledge the idea of a structural deficit in public finances. Now they accept that a combination of a shortfall in tax receipts and a sudden resolve to address under-investment in Health and Education have led to the point where it s no longer a theoretical possibility and is in fact a very real very immediate and very tangible problem. Those are two separate things but together they ve become one problem a hole in States finances that s the same size as (depending on which angle you look at it from) the combined revenue from GST stamp duty and fuel tax or the combined budgets of the Education and Transport departments. There s one important caveat to all of this at the time the position was officially revealed Treasury Minister Alan Maclean said that it was likely to get worse due to lower-than-expected tax revenues. 2 words Ben Qu r e What is the deficit The black hole in public finances is caused by two things the fact that States income (the money that the government gets in through taxes and charges) has fallen way behind expenditure (what they spend on services and staff) and the new resolve to address under-funding in the key service areas of Health and Education. 20 June 2015 jsy CONNECT The deficit looks like this Extra spending on health 47 million Allocation for capital spending 35 million Funding strategic priorities 14 million Depreciation on capital assets 10 million Extra spending on other departments 10 million Extra spending on education 9 million Total 125 million SPECIAL REPORT here s hoW the story Was broken by bailiWick express July 18th 2014 Pre-election tax cut scrapped as income forecast plummets What is the solution The Council of Ministers has proposed a three-pronged attack on the deficit that splits the burden between cuts and efficiencies within the States and charges passed on to the taxpayer. Their proposals have yet to be fleshed out in any detail and they have yet to be approved by the States which will happen during the debate on the Medium Term Financial Plan which sets out spending plans for the next few years. That document will be out next month and will be debated in September. There have already been threats to fight the plans from some States Members led by the Reform Jersey contingent but Chief Minster Ian Gorst and his Council of Ministers have enough muscle within the States Chamber to make it overwhelmingly likely that they will win political approval. The key questions remain what level (and type) of redundancies will be needed whether the Health charge will be implemented at the point of delivery or (more likely) as another add-on to Social Security contributions and whether there will be new charges such as a sewage tax The solution looks like this Proposed staff savings 60 million Other savings user pays charges benefit cuts 35 million Proposed Health charge 35 million Total 130 million Plans for a pre-election tax cut have been shelved after a major hole emerged in tax forecasts for the next two years prompting a package of emergency measures to balance the books . The 2015 Budget is announced this morning and it shows the States income tax receipts are predicted to be far lower than was thought seven months ago . It also sets out what will happen if those forecasts come true with the Treasury needing to find 33m in 2014 and 39m in 2015 just to balance the books . The Budget lists the measures which would be taken to do that including finding at least 20m of new savings next year . Across 2013 2014 and 2015 they mean that the States now expect to get 95m less money than they were banking on in their main financial plan produced in 2012 which is the document on which they have based all of their recent spending decisions . jsy CONNECT June 2015 21 here s hoW the story Was broken by bailiWick express April 1st 2015 Tax hikes or major cuts on the way after deficit grows to around 130 million What are the potential pitfalls On balance the Council of Ministers is very likely to get a result and to get their proposed package of measures through the House. That s partly because they ve worked to strike a balance between cuts and charges to find a middle ground and it s partly because Chief Minister Ian Gorst is currently in a strong position with a lot of support within the States Chamber. But it s not a foregone conclusion that the package will sail through the Chamber and it s not a foregone conclusion that they won t have a fight on their hands. The first obstacle will be the public sector unions. Relations with the unions were at a low point before the announcement of plans to cut 65 million from the staff bill they will have been worsened still further by the clear statement of intent by ministers when they announced a oneyear pay freeze two days later and the hints by Senator Maclean that pay-rises over inflation are not going to happen in the short term. Strike action by public sector unions is almost certain to happen and that will test the resolve of the Council of Ministers and States Members more generally. The second obstacle will be the public. The period since 2008 has seen earnings rise more slowly than inflation in simple terms we re all worse off. That s not an ideal backdrop to proposing a 35 million health charge (hot on the heels of the new long-term care charge that has been added to Social Security within the last year and which is set to increase) or a set of stealth taxes likely to include a sewage charge. The public are being asked to bear some of the pain of the deficit and they re not likely to enjoy it. 22 June 2015 jsy CONNECT The third obstacle is the States. The Chief Minister has the muscle to get the package through but there will be repeated debates delay proposals and potentially rescindment motions to stop or disrupt the plans. Most of those proposals will come from the small left-wing contingent in the Chamber who are extremely unlikely to get a result in a vote. But as the next election draws closer the rest of the House is likely to get twitchy. It will be critical for the Council of Ministers to get the changes agreed and rolling in the next 18 months after that the maths start to change a little. The fourth obstacle is the ministers themselves. They re a united group they see things much the same way and while the last Council managed to persuade themselves to ignore the problems this one has at least been admirably upfront in facing them head on. But that s not to say that they won t lose heart. There has already been a slight crack the proposal for a pay freeze for this year was not unanimously popular among ministers and did not meet with universal approval and that s just the first and tiniest step of what s to come. When things get worse with cuts strike action and disquiet about taxes and charges it s entirely possible that some of them will lose heart. So how did we get to this point Here are the theories This is all about Zero Ten In 2008 under pressure from the EU a new system for taxing companies was introduced by Jersey Guernsey and the Isle of Man. The three Crown Dependencies all largely dependent on their financial services industries all adopted slight variations on a theme SPECIAL REPORT Ministers seem to be holding back news that the deficit in States finances is worse than first thought meaning major tax rises or spending cuts could be on the way . During last week s debate on extra funding for the child abuse inquiry Transport Minister Eddie Noel let slip that the financial position was worse than anyone was admitting . One source who has seen the most recent data has told Bailiwick Express that a new potential deficit range of anything up to 130 million depending on States spending growth - has been forecast by around 2019. Dealing with a deficit of that size would mean major changes for the States to put it in perspective in terms of tax it would be the equivalent of raising GST to 10% and doubling the rates of stamp duty and fuel tax . In terms of spending it would be the equivalent of shutting down the Education and Transport departments entirely . In previous comments Treasury Minister Alan Maclean has promised that no tax increases will be considered until efficiencies restructuring and savings have been thoroughly pursued . The deficit in public finances has kept shooting up over the last three years back in 2012 ministers were confidently predicting a 25 million surplus in 2014 and 2015 but months before the last election it emerged that the most recent figure was a deficit of 67 million. Now it appears it is getting significantly worse. In a slip that appears to have been mostly missed in the States last week Deputy Noel said that the deficit was up to 100 million and hinted that the latest updates that have yet to be made public were even more serious . of Zero Ten a system through which finance companies paid corporate Income Tax at a rate of 10% while nonfinance firms paid none but their local shareholders paid tax on their share of company profits. To plug the gap in tax proceeds from company taxation ministers introduced GST (initially at 3% moving to 5%) and removed income tax allowances for middle-earners. At the same time the start of the global financial crisis had a massive impact on profits made and so the taxable pay packages by companies within the finance sector. What resulted from both of those factors was the halving of the amount of Income Tax paid by companies which fell from 116 million in 2008 down to 86.5 million in 2009. The Council of Ministers and their advisers say that the tax reduction was expected but that it was partly down to the impact of the global financial crisis. They point out that the move was necessary to preserve Jersey s financial services sector which contributes 40% of the Island s total economic value and which provides 12 500 jobs to people most of whom pay personal Income Tax. But there are critics who say that Zero Ten was effectively an unaffordable tax cut. In the States last month Deputy Mike Higgins claimed that had the Island not made the changes to tax rules the States would have another 63 million in tax income. This is all about States spending Between 2008 and 2013 the amount that States departments spent went up by 63.5 million while the amount that the States raised through tax dropped by 7.4 million. Those figures show how quickly a deficit can arise they mean that a shortfall of some 70 million emerged in the space of just five years. And critically a shortfall between tax and spending is not a one-off event it reoccurs every single year. Added to that are some major capital spending projects the hospital is likely to be the most expensive project ever undertaken by the States of Jersey while work on drainage upgrades a new school building for Les Quennevais and improvements to Fort Regent all have to be funded over the next few years. And the pressure to increase spending continues with the additional funding for jsy CONNECT June 2015 23 here s hoW the story Was broken by bailiWick express April 21st 2015 Revealed cuts stealth-taxes and redundancies as States face 135 million deficit SPECIAL REPORT both the Health department (currently going through almost 4 million per week) and the Education department exacerbating the deficit. The inexorable rise in public spending is down to three main factors the fact that States departments have never been motivated to make a really serious effort at restructuring to restrain spending the fact that political decisions have been made to spend more on some areas that are seen as having suffered from under-funding (Education being the prime example) and the fact that whatever politicians decide or want the cost of healthcare will inevitably rise due to the growth in the population and the cost of keeping an increasingly elderly population healthy. This is all about the forecasts If there was one document that shows you what went wrong it s the insanely optimistic forecasts that the States made in 2012 about economic growth. It s emerged now that there were reservations about them at the time within ministerial circles but those concerns and questions raised in the media were forcefully brushed aside by 24 June 2015 jsy CONNECT the Treasury team led by Senator Philip Ozouf. Those forecasts matter because they were used to predict how much revenue the States would receive from taxes and charges and the drastically over-optimistic predictions basically gave the green light to spending increases. In the event the spending increases happened but the increased tax revenues didn t. Economic growth of 4.6% was predicted during the period 2011 to 2013 the actual result was that the economy declined by 5%. That s a miscalculation of almost 10% of the size of Jersey s economy over just three years. In simple financial terms between the first forecasts in 2012 and the middle of last year economists had to write off something like 92 million in tax revenue that simply failed to materialise. The new Treasury Minister Alan Maclean has moved quickly to try to make sure that we don t make the same mistakes again by changing the way that the forecasting group works changing the make-up of that group and making sure that their discussions and forecasts and properly minuted and recorded. END SPECIAL REPORT 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. States Members and staff were briefed on the changes this morning ahead of a briefing to the media planned for later today . But a document seen by Bailiwick Express ahead of the media briefing sets out how ministers plan to tackle the deficit which appears to have grown significantly since the election last year . The report shows that last year s tax income was below forecast and that economists now think that finance sector profits public earnings and job creation will all now be lower than was being predicted last July . And it says that for the first time in years the government might start laying people off. A voluntary redundancy scheme is set to start to reduce the public sector pay bill currently running at 1 million per day and ministers say that it will be used to minimise the number of compulsory redundancies . jsy CONNECT June 2015 25 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 June offered up the lucrative industry of Accountancy to appease the Sell me a life in... gods. Can I be enticed into a life of swanky openplan offices revolving doors and um... being an accountant Now before you shield your faces at the thought of offshore finance just see what Louise Carrington and Edward Muhlemann from KPMG have to say about what it really means... 26 Louise Carrington HR ManageR at KPMg MM Given how massive the finance industry is in Jersey how can young people stand out from the crowd LC I think one of the key things for young people and students is building relationships with companies quite early on so work experience is really important. It helps you get the experience and work out whether the job is right for you or not. Also it s a foot in the door and often the majority of our recruits are from work experience. MM Could you talk to me a bit more about the trainee programme LC During the busy season the trainees will work in Audit and then they ll move into the Advisory section and work on projects with them. I think that s such a great opportunity because they re getting a full understanding of the whole business. After their induction they re straight out to training depending on which qualification that they ve chosen. Out of the Big 4 KPMG is the only one who offers all three professional qualifications ACCA ACA or ICAS. We don t put any pressure on the students in terms of which qualification they choose so it s down to personal choice what suits them and their study styles. MM On a more personal level what kind of people rise to the top in this industry LC Obviously you need to have the academics to be able to get through the qualifications. However it s not just that communication skills and building relationships are imperative. It s not only with your team members but also building those relationships with your clients as well. I think it s important to make an impact when you join as a trainee it s good to get involved with as many different areas as you can. MM And what kinds of opportunities are available after you qualify June 2015 jsy CONNECT CAREERS LC There are opportunities to go further afield and that is one of the selling points of working for a global firm. We ve had a lot of people go on two-year secondments to places like San Francisco New York Hong Kong New Zealand. Sometimes people have been offered a permanent job with KPMG out in New Zealand and decided to stay and then sometimes people come back and their position is always kept open for them here. MM From a social point of view what kind of lifestyle is there here at KPMG LC Every month there s something taking place whether it s through Sports and Social or the charity fund-raising events that we do. For example the HR team arrange an away day every year. For the last few years we ve taken everybody to Sark. We close the office during the week and you get to do an activity of your choice like kayaking clay pigeon shooting coasteering and then we hire out Stocks Hotel and have a big barbecue in the afternoon. We Accountancy have other things like the Summer Ball Christmas Ball pub quizzes Halloween Night and that s just a few. MM Sell it to me Louise LC I think for a young person leaving school or university if they decide that this is the career they want for them it s a fantastic opportunity. They get to work towards a qualification that s fully supported financially as well as the study leave. So by the time they re in their early 20 s they re a fully qualified accountant. They re working towards a professional qualification and there s a clear career path and route for them. We re global obviously so they ve got access to interesting clients but also in a fun supportive environment as well. Sell me a life in... Martha s verdict There will be plenty of my peers who will be fully-fledged accountants earning a decent salary all before the time I graduate uni. Now if that s not depressing I don t know what is. Accountancy gives you the opportunity to get the equivalent of a degree with zero debt and a guaranteed job all without having to traverse the nightmare of airport security. A pretty sweet deal if you ask me. It also sounds like there s a real community vibe at KPMG - I d better learn how to kayak... jsy CONNECT June 2015 27 CAREERS Edward Muhlemann Advisory Assistant Manager MM Could you outline the route you took to become a trainee here at KPMG EM I m from Jersey originally I grew up here and went to Vic College. I left when I was 18 and went off to the University of Durham where I studied Natural Sciences. I came out with a joint honours in Chemistry and Biology. During my summers I d been working at Jersey Finance so I gained a bit of finance industry knowledge. I came and did some work experience at KPMG in September of 2011. I did a couple of weeks in the Advisory Team and really enjoyed it so I applied pretty shortly after that and I joined in August 2012. MM Do you think that having a degree prepared you well for the training as opposed to coming straight from school EM I know they take a lot of school leavers on now and it s not just a Jersey thing across London they re taking on fast track students. I really enjoyed going off to university I got great experience from being there. It probably helped in terms of the actual exams just because they re slightly more intense 28 than your A-Levels. In terms of any difference between the two I know in my year s intake here there were four of us three of us came from university and one trainee came straight from school. The guy who came straight from school is doing remarkably well. He qualified by the age of 21 which obviously is much quicker than me but I wouldn t trade in the university three years for anything. MM What specific skills that you gained at university do you think helped you in the training EM I think one of the natural difficulties with the job is balancing your studies with the actual work. In terms of being able to manage that it obviously helps having been off at university where you re left more to your own devices than if you were leaving school. And obviously it helps somewhat when you re coming into a working environment with different people of different ages different backgrounds that sort of thing. MM And are there exams involved in the qualification process EM Yes there s basically three tiers of exams. First you sit your knowledgebased exams which are six computerbased multiple choice exams. For these you d typically just study each exam for a week and then have the exam maybe a week or so after. The next level is slightly more in-depth they re two and a half hour written exams. Then you ve got your three finals two of them build on everything you ve done beforehand and then there s the final one which is a case study. That s probably the one that is actually most closely related to what I do now day to day because it s meant to be like a real-life scenario rather than just testing your knowledge. MM Coming from Jersey I think there s a lot of pressure for young people to go off to university and then forge their career in the UK or elsewhere. What made you decide to come back EM So I felt exactly the same as you. I ended up coming back here because in truth it s probably a lot easier to break into the industry than it is in London. In London you ll have three hundred people applying for a job whereas over here it s less competitive. Also I June 2015 jsy CONNECT CAREERS think once you re actually in the door they support you a lot better than they do in the UK. Here they understand that you re here for the training and they ll try and help you through all those things if you fail an exam they re understanding and will work around it to see how best it suits you. MM What made you decide to specialise in Advisory as opposed to Audit or Tax EM During my training contract I was split between Audit and Advisory. I personally found Advisory stuff slightly more interesting. Audit gets a bit of a bad press because people think it is quite dull but in truth it gives you a really good background in how different companies work. I was lucky enough to do the split contract so I knew a lot about what the Advisory Team was doing. I think it s that variation of what happens and what different jobs you can be working on day-today which gives it that appeal. MM What advice would you give to other young people looking to go into this industry EM I wouldn t rush into your decision. I graduated in summer 2011 but didn t start at KPMG until 2012 so I had a year working here doing a bit of work in a few firms around the Island then went off travelling for a bit. I think also don t disregard working in finance. I think it has in the past had quite a bad reputation like the sort of the thing you saw in a 90 s sitcoms of sitting in a little cubicle but that s completely not the case Martha s Top tips Work experience - Wow I ve never used this one before. I seriously can t stress enough how important this is to an employer. Especially in a competitive industry like Accountancy being a familiar face is invaluable. Added bonus you ll know where the office toilets are... Get involved - Don t be afraid to put yourself out there Be dynamic and really make your first impression count for something. Volunteer for projects and let your voice be heard. This will only make you more memorable and employable. Slow and steady - Give yourself the time and space to choose a route that s right for you. Do your research get some work experience have an adventure. All of these things will make you a more interesting and happier old person. Martha s verdict Even though you re qualifying on-Island and everything is financially supported - Accountancy is no walk-in-the-park. You ve got to be organised enough to handle working in a high-powered environment at the same time as studying for some pretty intense exams. Having said that it s clear that the rewards are most certainly in place for those willing to study hard and make an impact. PICTURE THIS A pictures are pretty important to picture this 7000 teaching visits by local school children per year DURRELL in one sense they are the perfect Way of promoting the park Whether it is to come and learn about the animals enJoy a picnic or stay overnight in a yurt. but they also serve as a constant reminder that Without be the only Way We durrell a picture might Would ever see some of this month durrell is a very apt subJect for these animals again. so picture this - picture it...and then go and make sure that the animals on these pages can be the subJect of many more photos in the future. 30 June 2015 jsy CONNECT PICTURE THIS 180 000 people visit the Park annually Zoos should concentrate more on the preservation side of things. Gerald Durrell jsy CONNECT June 2015 31 PICTURE THIS There are 120 species of animal at Durrell Wildlife Park I do assure you that the world needs Durrell David Attenborough 104 employees work at the Park 32 June 2015 jsy CONNECT PICTURE THIS Over 13 000 animals have been born at Durrell since it opened Gorillas love marmite it contains vitamin B jsy CONNECT June 2015 33 PICTURE THIS 80% of the greens needed to feed our animals are grown on our organic farm 2000 glampers stay at Durrell each year 34 June 2015 jsy CONNECT PICTURE THIS Over 1 200 animals live here at Durrell Wildlife Park Orangutans share 97% of their DNA with humans jsy CONNECT June 2015 35 TECHNOLOGY How intelligent is the voice in your phone W hen was the last time that you had a chat with your phone Nowadays phones aren t just for talking on they are for taking to Thanks to the joys of virtual assistants such as Apple s Siri Google Now and Microsoft s Cortana we can now talk directly with the phones themselves and expect coherent responses in return. Whilst there is something quite amazing about being able to interact with our phones in this way you would be mistaken in thinking that there is some sort of intelligence behind these applications. The reality is that these virtual assistants are little more than glorified voice recognition services that when tied together with the data held and accessed by Google Apple Microsoft and so on as well as the data we provide them give the appearance of being able to think and deliver answers. There may be nothing truly intelligent about virtual assistants but they do use techniques that may one day help us develop Gadget g reat style great specs great phone Break free of the smartphone s style straitjacket by reaching for LG s fantastic new G4. Offered in a range of leather metallic or ceramic styles the G4 s looks immediately set it apart from the crowd. Importantly the G4 s beauty runs more than skin deep and offers a superb screen and camera combination that will inspire you to make the most of the handset s multimedia capabilities. By giving you Ultra HD video a 16 megapixel main camera and 8 MP front camera with incredible low light capabilities the G4 lets you capture the incredible movement and colours of your world which are then stunningly displayed on the 5.5 inch IPS Quantum Display. Of course you re not just looking for camera quality when choosing a phone and with the G4 you get much more than pretty pictures. By running the popular Android Lollipop operating system on a 1.8GHz 64-bit Hexa-Core processor LG have ensured that you have the power and capabilities to run both your professional and social lives from this fantastic phone. 36 June 2015 jsy CONNECT TECHNOLOGY artificial intelligence. These apps are able to provide you with information that is relevant to you even when you have not asked for it because they have been created using machine learning. Opening Up TelecOms 2015 is proving to be an important year in the Channel Islands telecoms industry. Not only are islanders using 4G mobile broadband networks and experiencing for themselves the seachange in mobile broadband speeds that 4G delivers but from 1 June the landline market has been opened up to competition for the first time. Islanders have had to wait ten years since competition was introduced into the mobile market place for the same thing to happen with their landlines. Finally we can all choose the companies that we want to provide our telecoms services. For some of us that may mean a separate provider for each service however for many of us that will actually mean choosing to receive all of our services from a single provider. Competition should bring lower prices more interesting products and for those of us who want it a more streamlined service because we can enjoy receiving just one bill for mobile broadband and landlines. Competition may be late but at least it is here at last Intelligence through learning Machine learning is an important part of the current development of artificial intelligence which enables applications to analyse and learn from data sets and then extrapolate future behaviours from them. This is why Google Now sends you updates about your favourite subject even though you have never asked it to do so. By pulling the data from your Internet and app history it is able to determine patterns and forecast the type of information that you would like to see. Whilst these personal assistants are perhaps the most consumer-oriented applications of their type there are others which have gone further down the road towards artificial intelligence. Amelia is described by its makers IPSoft as a Virtual Service-Desk Agent that can be used by companies to do the work of a human assistant particularly in a helpdesk environment. Not only can Amelia learn all of a company s processes but it is able to interact with people even being able to understand elements such as emotions in order to fully understand the context of the request. Amelia uses algorithms to employ context logic and inference to determine meaning rather than just responding to key words and phrases. It also builds relationships between facts gathers information from manuals and other materials which enables it to produce its own process map so there is no need for specific programming. Amelia s creators believe that it has the potential to replace people working in helpdesk environments and whilst some may see this as a threat history shows us that when technology takes over tasks this just frees us up to take on the more interesting roles and hopefully will give us more time to spend with each other What Amelia does show is that artificial intelligence is no longer something hidden away inside the lab the first indications of it are here in our environment and we still have an enormous amount to learn about its capabilities. o Columnist LISA MCLAUCHLAN Head of Commercial Operations Sure Visit for all the latest technology news or subscribe to get the latest news straight to your inbox jsy CONNECT June 2015 37 Looking for more Technology News FEATURE by mark loane ceo c5 alliance We all hope for the best when we plan for the future but mature businesses also plan for the worst. Not having a good plan for when disaster strikes can really make or break an organisation especially if you work within a sector where technology and being online is crucial to almost every aspect of your work. All businesses know this and good businesses plan for this but only a few businesses ever have to actually experience how dramatic the impact of having a good bad or no plan can be. The motivation to have a plan is clear businesses simply need to consider the cost of being unable to work for 2 4 8 or even 24 hours. It is a little known but sobering fact that 70% of businesses without business continuity plans go into liquidation within two years of launching.1 While the era of cloud technology has provided many businesses with increased agility which should definitely be utilised for business continuity relying on the cloud alone during a crisis can be a serious mistake. Some businesses will try to run a home-working model for example expecting staff to connect remotely perhaps through iPads or email systems working from home but working separately during a crisis can have serious unseen implications. If you try separating your workforce for a period of time during normal working hours never mind during a crisis without the appropriate support and infrastructure the impact on productivity becomes quickly apparent. You need client meeting and breakout rooms to coordinate the services (this doesn t only relate to the IT systems) effectively managing people and clients in a business continuity situation is key to the business staying operational. Continuity in Theory Once it is accepted as necessary the theory of business continuity planning is generally well understood and follows a similar process for most companies 1. Risk Assessment what risks is your business most likely to face 1 38 June 2015 jsy CONNECT Dept Business Education & Skills UK FEATURE Business Continuity in Jersey From Theory to Reality While the era of cloud technology has provided many businesses With increased agility Which continuity relying on the cloud alone during a crisis can be a serious mistake. should definitely be utilised for business 2. Are you anywhere near the airport flight path or fuel depot In a small island emergencies at airports or fuel depots like the Gas Place incident in 2013 can seriously affect surrounding neighbourhoods and businesses. 3. Will you need parking for staff to convene if your business continuity relocation space is out of town How will your staff get there with limited public transport options 4. Given we re surrounded by water with regular risk of flooding during high tides is this something that would affect your ability to use your workspace What if the office is flooded ruining all your hardware What if there is a power outage which limits the use of your building While you may think it s unlikely to happen to you these incidents happen more often than you would expect and even being out of action for a few hours will directly affect your overall intake and the productivity of your employees. 2. Impact Analysis what would the effect be if the infrastructure of your business was compromised including the financial impact 3. Strategy & Planning what will you do if crisis hits and who will do it Pre-assigning responsibility is absolutely vital however you also need to plan for the eventually that some of your staff may themselves be unable to work during a serious crisis this is where outside support provides peace of mind. 4. Test Train & Maintain some businesses forget this step but ultimately a business continuity plan is only as robust as its last test and as a business changes and grows so must its business continuity plan. Have you actually tested your BC plans The plan is not finished until you have invoked or performed the test allowing you to really understand your requirements and pain points. 5. Execute hopefully execution of the plan will not be necessary but if it is it is very important to follow point 6... 6. Measure once you are through your crisis you need to figure out what worked and what didn t and then begin the process again. The goal once you have conducted your risk and impact assessments is to design a plan that allows for creativity during a crisis a documented plan is essential but when the heat is on people tend to rely on their other people. And this is why the right business continuity provider is so important. Crisis in Action Recently C5 supported a client through a situation where their office became compromised. We set up 2 suites at our Rue des Pres offices providing office space for 59 staff and a roll out of their systems As we have teams on site 24 7 365 days a year we were ready to go as soon as the client gave us the go ahead on the Sunday morning. In a short space of time we had provided an entire alternative office space and put in place all the systems the client needed to continue business as usual. We were able to replicate their office requirements through our existing Business Continuity suites which were ready and available at a moment s notice. We were also able to make changes to our telephone systems to fulfil the client s needs and provide a fully bespoke solution. Fortunately C5 are already accustomed to these types of technologies and they form part of our Managed Services offering. The message is clear formulate a plan check it works before crisis hits and when the worst happens make sure you have a trusted experienced pair of hands ready to spring into action. 39 Jersey Specific Considerations While Jersey is a comparatively low-risk environment in many ways with the limited availability of remaining business continuity seats across current providers in the island there are a few very real specific risks that need to be seriously considered 1. If there is an island wide power outage what will your business do Unless you have back up generators what are your options when the power goes down jsy CONNECT June 2015 FEATURE PENSIONS Control your own pension . . . by mike freer business development manager for bWci (Jersey) limited Have you noticed that everyone s talking about pensions Eyes no longer glaze over when the conversation turns to planning for retirement. Ever since George Osborne announced his plans for new pension s freedoms in the UK back in March 2014 the topic has featured prominently in the headlines in the UK tabloids. His message was simple As soon as you re 55 we trust you to treat your pension pot like a bank account - take out as much as you want whenever you want. The changes took everyone completely by surprise. The prospect of cashing in all of your pension pot certainly caused quite a stir as well as much ongoing debate as the wider implications of such a significant policy shift are considered. Is it a good thing or not Being able to get your hands on all that cash is certainly attractive (but perhaps less so after the realisation that the taxman would take his cut of up to 45%). What about if people squander it all or the pot just runs out if you live to a ripe old age Won t this policy ultimately increase the financial burden on the State 40 June 2015 jsy CONNECT The jury is still out on whether the significant change in the pension s landscape is a great incentive to encourage more people to save for retirement or a cunning plan to secure a greater share of the silver vote whilst boosting the short-term tax take. Perhaps not as radical or controversial as the UK but did you know that Jersey has also introduced its own pension changes this year giving us our greatest pension flexibility ever Flexibility to take up to 30% of your pension savings as a tax-free lump sum in an unlimited number of tranches removal of both the maximum benefit limits and restrictions on how much you can save for retirement flexibility to start drawing on your pension from age 50 whilst carrying on working flexibility to transfer pensions into or out of Jersey. It will be up to individual pension providers and employers to decide how much of this new flexibility they want to introduce into their own pension arrangements so make sure you read that next pensions communication carefully so you don t miss out on any new options available to you. Whatever your view the changes have certainly got everybody thinking about pensions and yes it s probably a good idea to put a bit more aside for retirement. The Office for National Statistics recently issued an average life expectancy calculator. Try it and see how long your pension pot needs to last http http howlong-will-my-pension-need-to-last WE RE YOUR PASSPORT TO TRAVEL All you need for a good holiday cash credit and cover WORLD TRAVEL CURRENCY CARD A safe easy and cost e ective way to spend abroad. Online in-store or via our ATM HOLIDAY CURRENCY TRAVEL INSURANCE Single trip policies from as little as 9.99 For more information on any of our travel services please contact us or call into Broad Street post o ice today t 616616 e customerservices passport Jersey Post Limited is regulated by the Jersey Financial Services Commission in the provision of Money Service Business. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated. The Card is issued by Wirecard Card Solutions Ltd ( WDCS ) pursuant to licence by MasterCard International Inc. WDCS is authorised by the Financial Conduct Authority to conduct electronic money service activities under the HYPERLINK http register 2EMD 2EMD_MasterRegister.html Electronic Money Regulations 2011 (Ref 900051) Insurance products are arranged and administered by Cherry Godfrey Insurance Services (Jersey) Limited which is regulated by the Jersey Financial Services Commission in the carrying on of general insurance business. Jersey Post Limited holds a Class R licence under the Financial Services (Jersey) Law 1988. Jersey Post sta are unable to o er any advice on insurance business. All advice is provided by Cherry Godfrey in accordance with their appropriate authorisations from the Jersey Financial Services Commission. FEATURE The Modernisation of Jersey Pension Tax Legislation rosscot director andy bougourd is a Qualified chartered certified accountant chartered tax adviser and in 2013 he Was called to the bar. here he discusses a the income tax (Jersey) recent amendment to In October 2013 a consultation document was issued by the States of Jersey tax policy unit in respect of pensions and pension schemes. The rationale for this was to modernise the Income Tax (Jersey) Law 1961 of pensions and pension schemes. The consultation culminated on 24 September 2014 with the adoption of Income Tax (Amendment No 44) (Jersey) Law that came into force from 1 January 2015. One significant change is the Pension Contribution Limit into an approved Jersey scheme. Until 1 January 2015 the annual maximum limit an individual was able to place into an approved Jersey pension scheme was 50 000. From 1 January 2015 there is no ceiling on the amount which can be added to an approved Jersey pension in any one year of assessment. However the contribution should not be confused with the tax relief that you can obtain on contributions being made into an approved Jersey pension scheme. The maximum relief available in any one year of assessment for contributions made to an approved Jersey pension scheme still remains 50 000 and for those individuals who earn over 150 000 their contribution relief is limited further or lost completely. An occupational pension is one where a trade or undertaking has Jersey employees and the scheme is approved by Jersey Income Tax. Ordinarily both the employer and the employee contribute to the scheme. The material changes as of 1 January 2015 are (a) the amount of pension income that can be paid to an individual moving 42 June 2015 jsy CONNECT laW and What it means for the flexibility of local pensions and pension schemes. FEATURE PENSIONS both occupational pension and approved private pension schemes are noW in alignment over the lump sum payment that can be taken occurred that we do not have space to discuss in depth in this article but they include (a) a retirement annuity trust is now defined as a Retirement Trust Scheme (b) individuals will have the ability to transfer their pension fund to an approved drawdown contract in certain circumstances this will provide the pension holder with the ability to draw funds as and when required even if a tax free lump sum has already been taken (c) the potential to partly transfer funds out of an approved Jersey pension scheme subject to a number of caveats (d) non Jersey resident individuals will be able to contribute into a Retirement Trust Scheme. In summary The States of Jersey acknowledged that the Jersey pension tax legislation required urgent modernisation partly to provide more flexibility for individuals but also recognising that compared to other jurisdictions Jersey was lagging. Trustees of an occupational pension scheme have now been provided with the opportunity to create more flexibility within scheme rules. Prior to trustees rushing in they will need to consider their current scheme rules what amendments are necessary (if any) and significantly what impact these proposed amendments will have on the transitional rules. This article is intended to give an overview of Amendment No 44 and the guidance notes issued by Jersey Income Tax. Please be advised that it is necessary to obtain professional advice before acting as everyone has a unique set of circumstances. 43 having reached the age of 50 an individual can draW up to 30% out of their pension scheme free of taxation. from a pension. forward will be determined by either the rules of the scheme or the size of the fund if a defined contribution scheme (b) restrictions on the amounts dependents can receive are lifted (c) a pension holder will not need to have retired to be able to draw their pension. A number of caveats apply to the major changes highlighted. For those schemes already in existence at 31 December 2014 the pension trustees will still need to comply with the 31 December 2014 scheme rules otherwise they will be in breach. There are however transitional provisions which allow the trustees of the scheme either to amend the rules to meet the new criteria or if the trustees choose not to the new rules will apply from 1 January 2018. Both occupational pension and approved private pension schemes are now in alignment over the lump sum payment that can be taken from a pension. Having reached the age of 50 an individual can draw up to 30% out of their pension scheme free of taxation. Previously this 30% was subject to only being up to three withdrawals going forward it will be possible to take it in any number of tranches allowing for pension holders to draw down as and when money may be required. For those individuals who sadly find themselves seriously ill (not expected to live for more than 12 months and have evidence to support this from a medical practitioner) they will be able to commute their pension immediately. With a high number of Jersey businesses working crossjurisdictionally International Pension Plans have become an increasing focus and changes have also been made. Subject to a number of caveats it may be possible for transfers to be made out of an approved Jersey pension scheme to a non Jersey pension scheme and vice versa. Where an occupational pension scheme has both Jersey and non Jersey members it is now possible to obtain split approval. This means that approval can be sought for approved pension status for those Jersey members. A number of other changes have jsy CONNECT June 2015 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 45 000 1 000 mailed direct to business leaders Online at www.bailiwickexpress.c om x 6 000 social media audience (2 000 business tweets) 2014 10 000 e-publisher edition readers 1 200 Guernsey business email subscribers 16 000 readers 7 500 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 5 0309 or email markferns 34 51030 4 510309 0309 30 309 09 H ow annoying is the Elian brand All those yellow taxis magazine front pages news item after news item. My eyes burn with their incessant statement of launch. I get it. They have arrived they are here they are fresh and young and if I ever need my wealth managed I promise to use them. Just leave me be. I should probably at this point declare a vested interest and unpick some of my annoyance. In Jersey we have some very sophisticated marketing and design agencies. We are not a hick collection of semi-professionals reading Marketing Week and dreaming of being as accomplished as our London cousins. We are no stranger to big brands global brands even so the launch of a new finance brand would be well within our ken. Rumour has it Elian went to a UK agency to undertake all the clever stuff in researching designing and delivering the new look. Not that we have a given right to all Jersey accounts but rather that we can do this. We have the talent. However what really rankles is that they all did an excellent job. Marketing offers limited pleasures but one that stands out is the chance to dissect a branding car crash. To laugh in a knowing way that it failed horribly. Just writing that sends a wave of self-congratulation through my body. This is simply not such an opportunity. They did good. So why is it so good To start consider the origins. Spun off a large and conservative brand like Ogier the task is not insubstantial. Add the fact that it was launched into a packed market and that task looks gargantuan with the objective simply to sharpen those elbows and make your own room. It is the holy grail of marketing to get noticed and claim the pre-eminent position in a room full of brands all jostling for space. The basics of this project are well basic. Develop or identify a unique selling point and then communicate it to your target market. Pause for a minute though and consider those unique oft regurgitated selling points. All those brands that beg our attention as we walk bleary eyed down Finance and Legal row at Jersey Arrivals. What we learn is they are all very good at what they do although no one apparently wants to say why. No differentiation there then. It suggests that grabbing the prime spot for your brand in a crowded market is no easy challenge. Despite that the Elian brand stands out. Considering the specifics then the name and brand palette seem like a good place to start. What does Elian mean I don t care. I suspect that many big-brained marketing bods sat around a table scrutinising flipcharts and endless focus group analyses carving out the name that would change the world. Fundamentally though the name just works. It meets the simplest of needs. Easy to pronounce and sufficiently eyecatching to secure a second look. I would argue that it doesn t matter how they got there - they got there. Then the colour that can only be viewed when projected onto white card and must never be seen with the naked eye. Think about the sector for a minute some strong brands but with looks all drawn largely from the same colour palette safe conservative and clearly indicating what they do. Many of those brand managers will tell you that they have been moving their palettes in a new direction for years and perhaps they have. In their world. But the same people will also likely begrudgingly admit that Elian has nailed the shift into a new and crisp look. They have done what many wish their CEO s would let them do. Now gird your marketing loins for the love-in the real hero of this branding tale for me is the brief and the person who wrote it. No woolly mission statement-like wish list of the ethereal this but rather a well-researched well-considered document that covers segmentation targeting and positioning with a subtle skill that should sweep all before it. I am surmising of course but I am a believer a believer that good branding and successful positioning comes from a wellstructured briefing document. So I will allow myself to love them because someone knows how to write the founding stone of all great marketing the brief. jsy CONNECT June 2015 45 Y Marketing Forces o Columnist CHRISTOPHER JOURNEAUX GLASS HALF FULL Two years later Mobster Mayhem has sprung to life. To say we are excited would be an understatement. Mobster Mayhem is most definitely not your average mobster-themed game and it most certainly doesn t take itself too seriously. No blood n guts here thank you very much. It is bright and entertaining and free to download from the App Store. There is the option for in-app purchases for players who want to advance their town s development with the aim of obtaining the prestigious Top Boss status in the world or in their country of residence. The game starts with a brief tutorial to show a player how to develop their scrap of desert sandwiched between a mountain range and the coast. Players defend their town by placing & upgrading defences and improve it by generating resources using tenants & factories. The mayhem starts when mobsters are let loose to go on the rampage grabbing extra loot from other players towns. There s still plenty to do to make the game a success but I am thrilled to be involved with such an amazing project. We hope to bring it to Android users in the near future and a Spanish version is on the horizon. Other languages Creating Mayhem GLASS HALF FULL WITH Peter Langdon (Pictured on the right) I Life opens up opportunities to you and you either take them or you stay afraid of taking them. - Jim Carrey. He s no philosopher but he does make me laugh and he makes a good point. have worked in the design and advertising industry as a graphic designer for 28 years and have seen many changes during this time. The creative industry is extremely diverse and to be successful a designer needs to adapt with the ever-changing and demanding society in which we live. In 1997 I started Adapt Design and Advertising. Back then web sites had just started to show their faces in Jersey. Now if I had decided to dedicate my career to designing adverts for press and publications which by the way was going great guns back then I m fairly sure I d be finding things a bit tough right now. However back then I wasn t aware how influential the World Wide Web was to become I simply knew I had to get involved with what was deemed back then as tomorrow s technology. It was a steep learning curve but it put Adapt Design 46 in a good position to offer a broader service to its clients. I also believe that if I hadn t taken this new path I might never have met Allan Pister of Mugla Kitty Productions. Jumping forward to April 2013 Allan was in search of a local design agency to help him realise his dream of launching a game Mobster Mayhem on the App Store. He asked if I was interested and although I hadn t worked on an app before I jumped at the chance to once again broaden my horizons. We got to work on character illustrations and menu designs and I m pleased to say they hit the mark. will follow with Japanese being the ultimate goal. Diversification has brought me to this point in my life where I am excited about Mobster Mayhem s potential and the opportunities the app world could bring. The next time an opportunity comes knocking on your door don t say go away open it and ask for details. June 2015 jsy CONNECT Do you want a more comfortable retirement If you are over 65 and you would like to raise a tax free cash sum to see you through your retirement you could sell your home through Lifetime Enjoyment and continue to enjoy living in your home until you pass away or until you need to move permanently into a care home. For more information about our service or if you have any questions please call us on 01534 888818 or email info A LOCAL FIRM PROVIDING A SERVICE FOR LOCAL PEOPLE 01534 888818 info DISCLAIMER does not provide any legal or financial advice and we strongly recommend that you take professional advice before proceeding with any transaction. BUSINESS ADVISER Business Adviser GET IN TOUCH... If you ve got a business question you would like to put to John please email editor W Cash is King Managing cash flow Profit is the difference between the total amount your business earns and all of its costs usually assessed over a year or a specified trading period. You may forecast a good profit for the year yet still face times when you are strapped for cash. However having a lot of cash in your bank account may not always be the best thing for your business. If you have a lot of spare cash available it can sometimes be a good idea to move it to another account with a higher interest rate use it as capital for short-term investments or if managed correctly reduce long term debt. payment processes keeping up-to-date accounting records to help warn you of any impending cash flow crises or prevent you from taking orders you cannot handle whether to offer discounts for early payment or penalties for late payment how you work with your suppliers do they offer discounts for early payment You need to make sure they are not overcharging or taking too long to deliver and controlling your overheads through outsourcing non-core activities such as payroll services and review your utilities contracts to see whether it would be cheaper to switch tariff or supplier. Sometimes after doing all you can your cash flow forecast may still suggest potential problems. The knee jerk reaction may be to consider using temporary finance facilities such as an overdraft or a credit card to see you through. However think carefully as maybe the problem is greater than mere cash flow and the business is actually failing. Ensure that you have a detailed cash flow forecast to demonstrate the shortfall is temporary. There is no point in throwing good money after bad. Space here does not allow for a full briefing on cash flow management but having your cash flow high up your agenda will enable you to see when problems are likely to occur and sort them out in advance identify any potential cash shortfalls and take appropriate action and ensure you have sufficient cash flow before you take on any major financial commitment. In reality your business cash is actually not only king but also queen prince and princess. hen you ask someone about starting or running a business they tend to concentrate on the product the team the location the price and the paper profit. All are good answers but if you fail to manage your cash flow then it does not manner how stunning the business concept with no cash your business will not last long. I have seen too many businesses fail because they have not dealt with the basics of running a business. You may have a great idea a brilliant product and fantastic staff but if you have no cash to pay them then in reality you have nothing. In many situations with personal guarantees you end up with less than nothing. Managing your cash flow is vital for the survival and growth of your business. To run your business effectively you need to balance the timing and amount of your costs with those of your income. It is pointless to have lots of accrued income if you cannot pay your suppliers. Cash is the amount of money available to your business - including any unused overdraft facility foreign currency and deposits that can be quickly converted into funding. Cash does not include any money or value owned by the business that cannot be accessed quickly e.g. long-term deposits money owed to your business by customers stock or assets. In order to make a profit most businesses have to produce and deliver goods or services to their customers before being paid. So it is essential to control your cash flow so that you always have enough cash available to pay your staff and suppliers before receiving payment from your customers. If not you will be unable to meet your customers requirements or receive any profit. It is important not to confuse your cash balances with profit. 48 7 o Columnist JOHN SHENTON Grant Thornton Business So how can you avoid problems with your cash flow Think about running credit checks on your customers to ensure they can pay you and pay you on time whether you can fulfil your order - if you don t deliver on time or to specification you might not get paid measuring your production efficiency and the quantity and quality of the stock you hold and produce to ensure you can meet all your orders how easy it is for your customers to do business with you. For example if you could accept orders over the telephone email or internet customers may be able to pay quicker. You should also ensure catalogues and order forms are clear and easy to use to improve the sales and June 2015 jsy CONNECT It s all online at Boosh Used to express awesomeness SusiePinel o Photography By Robbie Dark Desperately Seeking Susie 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. I t s an odd phrase Social Security. Where does the focus lie on protecting the rights of the employee and supporting families in need or in boosting the economy by getting more people back into work cutting the benefits bill to reduce the deficit and giving employers more flexibility to take risks The lady who has to balance that disparate portfolio is St Clement Deputy Susie Pinel. Hers is a key role in the Gorst administration as if islanders are going to be asked to pay more to ameliorate the deficit then higher Social Security contributions could well be the cashpoint-of-choice. This year sees a lot of new laws which employers need to fit into their policies - Ben Qu r e asked her for a status report DEPUTY SUSIE PINEL The regulations for sex discrimination which is the second characteristic will be debated on June the 2nd. We brought in race discrimination last year. Then there will be age discrimination hopefully in 2016 followed by disability discrimination as the fourth characteristic in 2017 18. That s a much more difficult one to do and the reason they are in that order is because race discrimination is quite easy because there isn t any such race discrimination problem in Jersey. In the whole year we ve had eight cases and two were withdrawn. One was sorted b that fund is largely to deal With primary care so doctors dentists optometrists pharmacists. for example from that fund is paid the 20.28 per doctor s visit subsidy. out by JACS. One is on-going and another was dismissed I think so very little and we re really expecting the same sort of thing with the sex discrimination regulations because if an employer is a reasonable balanced and sensible employer who looks after their staff then these regulations won t really affect them. BEN QU R E But there s been a lot of concern from businesses have you listened to that Got a story to tell Get in touch email us at editor SP It s a lot of legislation but it is very light touch in comparison with the UK and I m not aware of anything that has received more consultation than the sex jsy CONNECT June 2015 51 discrimination regulations. JACS have been giving training for the whole of last year and we have set up an outreach service with them so they go into smaller businesses bigger firms obviously have HR Departments so are better able to cope with any instigation of regulations. But for small companies JACS have trained 1 246 delegates in 2014 so there s been no shortage of getting the message out there. This is what we need we are forty years behind the UK with this so it s time we did it. BQ What s the position on maternity leave SP The Family Friendly Law was passed by the States in July last year to come into effect in conjunction with sex discrimination on 1st September. There will be eight weeks of maternity leave it is compulsory to take two weeks off after the baby is born and then another six weeks of unpaid leave. If you have worked with a company for fifteen months before the birth of the child then you get another ten weeks (unpaid) if you wish to but it allows you the flexibility to return to the job that you left. It s not as generous as the UK but it is a big step in the right direction and we wanted it to come in at the same time as the sex discrimination regulations so that an employer could no longer say they couldn t employ you because you were pregnant so that s why the two are tied together. 52 June 2015 jsy CONNECT BQ What state is the Health Insurance Fund (HIF) in at the moment SP That fund is largely to deal with primary care so doctors dentists optometrists pharmacists. For example from that fund is paid the 20.28 per doctor s visit subsidy. Now that broke even this year in as much as obviously a lot more has been going out than has been coming in in contributions so nothing has been decided about it because there is a primary care review under way at the moment which we re doing with the Health Department and the pharmacists. It should have been completed in 2014 and has been held up for various reasons not to mention an election in the middle. So that is going to then determine where we go with the HIF and what we do with primary care. There is a move to reintroducing prescription charges but again that is something that is quite administratively difficult to do although we used to have them. I strongly believe that if you have something for nothing it doesn t have a value so perhaps there should be a small charge and also the knockon effect of that is that if you re having to pay for something you may not automatically order more drugs than you need. I mean a good example is asthma for instance where you have tablets but also inhalers and UNPLUGGED b you may not use the inhaler but because it s part of the prescription you just automatically take another one. So we re just trying to make people aware that it costs 18m a year to supply all these medicines from the prescribed list and try to cut it down. BQ The Ministers plan for the deficit involves cuts how will that affect Social Security SP As I mentioned earlier the Health Insurance Fund is just at break-even point and of course the more you take out of it the less comes in in revenue and interest. The Social Security or Pension Fund is in quite a healthy state thanks to the forward thinking of previous Treasury Ministers. So we have to be very very careful with that because obviously the pension fund is only as healthy as the number of people paying into it. I think a lot of people are slightly misguided in as much as they think that what they put into the pension fund is named Mr and Mrs Smith and when they get to 65 then that s what they take out and that s obviously not the case at all. It s all the people paying in now who are paying for Mr and Mrs Smith which brings us into the whole migration scenario in as much as you ve got to have the workers paying in otherwise with the demographic situation that we re going to face with the number of people over 65 doubling it s a lot of legislation but it is very light touch in comparison With the uk and i m not aWare of anything that has received more consultation than the sex discrimination regulations. Jacs have been giving training for the Whole of last year and We have set up an outreach service With them so they go into smaller businesses bigger firms obviously have hr departments so are better able to cope With any instigation of regulations. in 20 years by 2035 and the number of people over 85 trebling. So we re going to have people (a) who are living longer and (b) obviously then claiming their pensions for a much longer period so that s something we re going to look at too and I think it s inevitable not in this Medium Term Financial Plan but in the next few years that we will have to look at increasing the contributions for the Pension Fund to cope with these aging demographics. jsy CONNECT June 2015 53 UNPLUGGED before. I think the maximum unemployment in Jersey had only ever been about 300 and in March 2013 it was 2 500. BQ So has the Back to Work program been successful SP It certainly has. I mean it started off as just one Back to Work and it s now got Work Zone Job Zone Jobs Fest Foundations Advance to Work. Huge spreading out of the tentacles of the main objective of getting people back into work and we re now putting a lot of attention on people who have been out of work for a long time so 12 months or more and older people who funnily are designated as over 50 which makes me feel a bit nervous. The March unemployment figures are down to a four-year low and the number of teenagers is only about 180 now registered as actively seeking work. So no it s working extremely well. As you ll be aware we have just increased the percentage for long term incapacity allowance from 30% to 35% so just to explain that briefly it s all done on a 5% to a 100% assessment done by medical assessors not by Social Security the Social Security Advisors are just trained to read the medical assessments as to what percentage level your loss of faculty is. You could have lost for instance the tip of your little finger well that doesn t stop you doing an awful lot of jobs. Anyway we ve just increased that percentage now to 35% so those on 35% and below will be asked to actively seek work. BQ What s your view of the deficit issue SP It s a big challenge. It s a hell of a big challenge. This is something that will be sorted out over four years. It s not something you can wave a wand at. There are so many options open to us which we ve got to check. There s talk about the strategic reserve and I would be very wary of using that. Other people have said not me you could always borrow. I mean we have in a certain way with Andium Homes but we equally know that there s the repayment from rentals to come back with that. We do have to look at every avenue no stone unturned so every Department is having to come up with their own ideas and now that the Strategic Plan is out of the way that is exactly what we will be doing here at Social Security and looking at every way that we can do it to provide some savings without obviously being detrimental to vulnerable people in society. END With regards the benefits and other contributions we re looking at it in the round. So every single one is going to be looked at. They were all introduced in 2006 7 for income support coming into effect in 2008 when we had apparently money coming out of our ears so everything was approached in a very generous fashion and there is no reason why it shouldn t have been. But now there s a lot more demand on these various benefits and of course an unemployment situation that we ve never seen 54 June 2015 jsy CONNECT Unplugged VIEWPOINT E Viewpoint The most successful wealth managers in 2015 will have realised three main points... 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 1 James Painter ceo the enhance group Mediation is better than disintermediation. With the growing adoption and development of FinTech investment managers may be tempted to look to bypass financial advisory firms and offer their services through online platforms. Whilst this enables a more direct approach and cuts out fees to third parties when an investor s portfolio is in trouble and they have no human contact to turn to for advice they are more likely to make poor decisions. Therefore successful wealth managers will need to understand the value provided by intermediaries as the investor s true trusted adviser whilst still providing the security and expertise the client needs. FinTech is essential not optional. Investors don t just want to know the value of their assets and liabilities they want a nuanced image of what is happening with their money. Is their wealth growing If so how why and where What projections can be gleaned from this FinTech enables wealth managers to not only answer these questions but also to present the information in a way that is meaningful to the client ensuring a better end user experience and useful analysis to inform future direction of the portfolio. 3 The only certainty is uncertainty. The world is increasingly uncertain from political instability in Europe and North Africa to global debt exceeding 50 trillion dollars wealth managers need to recognise the implications of the global climate for tail risk and the concomitant potential for substantial losses. Risk needs to be harnessed by being prepared to change asset allocations in a timely manner or having effective hedging positions as part of their portfolio structure. 2 56 June 2015 jsy CONNECT VIEWPOINT 1 The consensus is always worth challenging. As we moved into 2015 the consensus from market strategists was for the US equity market to set another year of outperforming the rest of the world in particular Europe which was still viewed as a basket case by many. So far the opposite has proved true with US equities bringing up the rear in total return with their European peers a good length in front. The end is nigh Deflation and other fears. Those that suspected the 2014 dramatic fall in oil prices provided yet more evidence that there was something wrong with the world may have looked prescient as another tough winter chilled US economic activity in the first two months of the year. However incoming economic data suggests that a re-acceleration of economic activity is underway with US employment recovery at its heart. Both inflation data and expectations look to have bottomed in both Europe and the US and bond markets are starting to unwind heavily overbought positions. 2 3 To have some skin in the game in emerging markets. Always a difficult asset class to call tactically however those managers with a strong strategic weighting to EM equities have done well this year to date. This is partly down to a bounce in commodity prices assisting markets such as Russia to recoup some poise but the broader trend appears towards higher equity ownership in places such as China suggesting more structural and enduring factors are coming into play. Christopher Golding portfolio manager at barclays in Jersey 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 June 2015 57 WHO S THE FOOL Who s The Fool Goodbye Red Ed o Illustration By Mark Jackson 58 June 2015 jsy CONNECT WHO S THE FOOL S o the election is over the socialist hordes have been vanquished and the evil capitalists get five more year s leniency to oppress the poor young old left liberal etc... As I write this a mere four days after the polls closed amongst much hand wringing and gnashing of cliches the myriad reasons for Labour s loss are becoming apparent (begging the usual question of where all these the experts were when they were needed ) Whether it was a Celtic uprising a lurch too far to the left a weak and uncharismatic leader or the declining power of the unions the post mortems and soul searching will no doubt play out in the pages of the Guardian for months to come. But (and a certain local party for whom a doubles tennis match would be a challenge might want to take note here) there were other things the public appear to have noticed that the party faithful seemed not to grasp. 1) If you alienate the people who pay the most tax and force them to consider leaving your country everyone who stays behind has to pay more. Ed s promise to end the non-dom regime might have made chimed with the them vs us political rhetoric but eventually people seemed to work out that punishing the corporate sector and the wealthiest in society by upping their already substantial tax bills might actually encourage them to find a more accommodating home for the considerable contributions they do make. 2) Bad attitude. Attack-dog politics turns people off. During the run up to the election the Left s supporters were the most aggressive most insulting and most strident in telling others who they shouldn t vote for. A brief look at the comments on most newspaper s websites would make any normal person realise that anti-social and socialist are often largely inter-changeable. 3) The Media (Social and otherwise). If you re not good at it don t do it. Better to say nothing and let people think you re an idiot than say something and confirm it. Regressive policies that target the most productive in society were disavowed about the time stone monoliths went out of fashion. 4) Everyone wants better schools n hospitals. The left appear to believe that it is only they who want the best for society. Government s everywhere might have more than their fair share of sociopaths but some parties realise that economic growth is the best way to achieve and pay for all the good stuff rather than stifling growth by removing more productive capital from the private sector. 5) People don t want more government. Ever have that feeling that the cold hand of government is interfering more and more with one s life Perhaps unsurprisingly the answer to this in most people s eyes is unlikely to be ...more government please. If the cost of running the public sector is rising and our income is stagnant we have a spending not a taxing problem and of the two solutions one is easier and more immediate than the other. And when the vast majority of people feel government is already too big and too intrusive.... well two birds one stone. What this result means for our island (other than the implications for our own little socialist workers party) is probably a little too early to discern at this stage. The finance industry has undoubtedly breathed a sigh of relief that Red Ed has been cast aside and with an absolute Tory majority (a much reduced labour minority and no coalition little brother to appease) hopefully the politics of business rather than the business of politics will receive a much higher focus as the British economy gets back onto its feet. So we might not get our influx of non-doms fleeing the grabbing hands of a left wing government and undoubtedly the UK s and by implication our own position within the EU will become the subject of growing conjecture in forthcoming years. But net net a top result all around. Buy 50 000 BP sell my grandmother. Cheers. 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 June 2015 59 o Words By Julien Morel C o Pictures By Gary Grimshaw aptain Collins is likeable straight-talking and willing to concede that the Condor Liberation s introduction has been disappointing. But equally she is a passionate advocate of its capabilities a belief that you know isn t management spin once she begins to she chart her career path from 16-year-old officer cadet to Master of Condor s fast ferries. As with every voyage there is a beginning. Born in Winchester Capt Collins was always mechanically minded so left school at 16 after successfully applying to Shell Tanker s cadet programme. There was an advert in the back of the paper which said See the world and get paid well for doing it she said. So I wrote off to get the information and was sent a glossy brochure with pictures of the Sydney Opera House and icebergs. The irony is I m still yet to see either. But see the world she did. After a four-year course she qualified as a junior deck officer and engineer. After college my first trip was on a 300m-long supertanker taking her 60 June 2015 jsy CONNECT g No Ordinary Day Job Sailing through a storm it can t have been an easy Job being at the head of operations at condor over the last feW Weeks. With the neW 50m flagship introduced With much fanfare hitting the harbour Wall in guernsey on its maiden voyage and subseQuent snags causing further delays and cancellations (not all of them Weather-related) it certainly hasn t been a smooth introduction to the firm s long-term life-line ferry service. as ever those troubles bred further rumours mostly on social media about the neW flagship s suitability for the channel Were condor sold a pup by a shipyard desperate to offload an unsellable vessel Why has the ship got an open boW that lets spray into the car deck Why did both the express and vitesse have to go the lady Who been charged With steering a course though those choppy Waters is captain fran collins the 38-year-old executive director operations. she told Julien morel that she Was confident the ferry is the right one for the channel islands. capt collins Joined condor in 2002 initially on a six-Week contract to fill in as a chief officer. but she liked the firm and they liked her so it soon became a permanent arrangement. straight to scrap in Bangladesh. We got there and spent a month waiting for the highest tide. We then did an emergency full-ahead and ran straight up the beach. It was quite eventful and I still have the builder s plate from that ship. But wasn t it very much a male-dominated world on board When I started my course there were 40 guys and three girls and when we qualified there were ten guys and three girls. There isn t a gender bias at all but to be successful at sea you need an inner resourcefulness and also to be self-sufficient. If you re not independent it probably isn t the career for you. But equally you have to be able to get on with people and work with them even if you might not like them. After serving on many ships of Shell s fleet and enjoying some memorable shore-leave particularly in Hong Kong Singapore Malaysia and Vietnam Capt Collins worked for other firms including Chevron and Cable & Wireless sailing the seven seas from Havana to Hanoi Canada to Cuba. Her last job before joining Condor was with BP Coastal sailing 30-year-old ships around Scotland. That was hard but a great learning experience because I worked with captains who were really keen to let me have a go at driving their ship. They had a single screw single rudder and no bow thrusters and you had to be able to berth your ship in small ports in high winds. It was a great background to working in the Channel Islands. Capt Collins joined Condor in 2002 initially on a six-week contract to fill in as a Chief Officer. But she liked the firm and they liked her so it soon became a permanent arrangement. She spent the next four years as a Chief Officer sailing on all of Condor s fleet including the conventional ferries and passed her Master s exams in 2006. You are assessed against all the day-to-day stuff as well as the emergency procedures and you also have to go jsy CONNECT June 2015 61 NO ORDINARY DAY JOB as a master you have to be credible as Well as good at your Job honest and trustWorthy and that is the same in a management role. you have to be consistent in your expectations Whether you re at sea or not. through your pilotage exemptions with formal exams at the end of that. But nothing ever prepares you for the first day when you take the ship on your own. I had been working for Condor for four years and knew those ships inside out but it s completely different taking them out as captain. These days with her management role Capt Collins rarely commands a ship (although she is still qualified to do so) but her sea experience is a huge advantage at the helm of operations. As a Master you have to be credible as well as good at your job honest and trustworthy and that is the same in a management role. You have to be consistent in your expectations whether you re at sea or not. The crews and I still have that sailing relationship which means I can understand what they re going through. I see both sides of the story which means I can often work out the best route through. I have seen in the past where communication between a ship and a port has gone adrift and it can just be down to the cultural differences. Now Capt Collins has to communicate Condor s message publically as well as to her 300 staff. She has been openly apologetic particularly to passengers who have been disrupted by Condor Liberation s troubles but also steadfast when addressing those who doubt the suitability of the 102m fast-ferry. Choosing what is now Condor Liberation was an easy decision. She is a superb ship with cutting edge technology and excellent handling. We commissioned quite a lot of external analysis to make sure she was as good as we thought and that was all very well supported. The first weekend was an enormous disappointment for everybody not least our passengers. That aside the problems we have seen since then have been niggles... minor irritants. Of course it doesn t help our passengers but the problems have required small-scale resolutions. But what of the more specific criticisms such as the ship s wave-height limit jsy CONNECT June 2015 63 NO ORDINARY DAY JOB NO ORDINARY DAY JOB The ship is built to the high-speed craft code which is an international standard. That means it can operate anywhere in the world. That code brings the ship in with a wave-height limit which is a standard 3.5m for all ships. The UK Maritime and Coastguard Agency s approach is to let the ship operate through the summer at the 3.5m limit and they will assess against that and then it comes in with an amended height. The MCA have to see it in operation first. The normal process is that you have a period of bedding down and they will come out and have a look likely to be in September. And then there s tide height as well as wave height. I have seen some criticism recently from people who said we didn t know what the tide was going to be. Recently Liberation came down and the tide had cut against the prediction. We never schedule to come in on a falling tide but if there s not enough water when we get here there s nothing we can do. Remember the tidal predictions are not always right - if there s a high pressure you will find the tide will be cut. You might see the tide at 4m but if there s high pressure it might only be 3.5m. When that happens we just have to wait until it comes up to 4m when Harbour Control will tell us to come in. It is not an exact science which can make providing a lifeline service a challenge. That lifeline service also requires Condor to have contingency plans when sailings are delayed or cancelled. So was it wise to sell two ships and replace them with one A lot of decisions when choosing Liberation were based fact of life that this doesn t get as much publicity as the negative feedback. It gives us the confidence that we have the right ship. I am 100 per cent certain of that and having been involved in the project since the word go I believe we are coming through our teething troubles and will see the normal standard of service that passengers deserve. Condor too has come a long way and we are now very much about being open and upfront and interacting with our customers. We appreciate their feedback because we want to understand what is important to passengers. We are never going to be able to please all of the people all of the time but we want to be able to offer the service that customers expect. And that is where our core values come in of honesty integrity and consistency of service. Our culture is also to tell the truth and tell it early. If there is a delay we won t just give a bland excuse such as operational reasons. We will be specific and even if passengers don t understand the details at least they know we know what s wrong. One of the recent problems we had was with the fuel rail solenoid so we decided to change all of the solenoids across the three engines to prevent that issue recurring. In my experience ships certainly have their share of snags and I have been on quite a few new-builds in my career. We have guarantees and contracts with various component manufacturers and they are working closely with us. The commitment from the builder and suppliers is strong we all want to see this work and it will. our culture is also to tell the truth and tell it early. if there is a delay We Won t Just give a bland excuse such as operational reasons. We Will be specific and even if passengers don t understand the details at least they knoW We knoW What s Wrong. on the fact that Express and Vitesse were unreliable and weren t offering a brilliant service. They were around 18 years old and we knew we were getting a lot of criticism around that. We did a lot of work on what it would take to keep them running at a level we want - it was enormous sums of money and you still couldn t guarantee the reliability. You cannot dictate a contingency plan for every situation but we have plenty of fleet flexibility. Even with the Liberation most of our cancellations are due to the weather and that hasn t really changed from when we had Express and Vitesse. The Commodore Clipper has always been the all-weather backup and she continues to prove invaluable. Capt Collins dismisses rumours that the Austal 102 that became Condor Liberation was not designed for local waters. Yes building her was halted during the recession but Capt Collins and colleagues had a close look at the ship s slightly larger sister in the Canaries which operates in similar conditions to the Channel. We have had a lot of positive feedback although it s a Being a mariner as well as a manager Capt Collins is capable explaining the science of scheduling (the very early morning UK departures are to allow lunchtime turnarounds as well as inter-island daytrips) as she is the reasons why Condor Liberation has an open bow (to improve air-flow through the ship to make it lighter and to make the car deck brighter and better ventilated). Perhaps surprisingly given the recent political and public criticism of Condor Capt Collins who loves showjumping in her spare time and is also into cars (she drives a Nissan 370z) loves her job. I wouldn t change this job for anything else because you do feel as though you make a difference. As a captain your motto is expect the worst hope for the best and prepare for everything in the middle . That s as true for me now as it was when I was on the bridge. Yes it s been a challenging few weeks but we re coming out the other side and I think trust in Condor which many people have already will spread. END jsy CONNECT June 2015 65 Would you work with this business TWITTER FACEBOOK LINKEDIN Put a face to your business. We all know the importance of creating a good first impression. At Photoreportage we bring fresh photography to the world of advertising and PR. Working with many of the Channel Islands top corporate companies to produce high quality images that not only support their communication and creative teams but enhance the perception of their business. If you re looking to raise your profile... Contact Gary Grimshaw on info or call 01534 858 571 CORPORATE COMMERCIAL WEDDING JOURNALISTIC TRAVEL Q & A Sports Travel GET IN TOUCH... If you ve got a travel question you would like to ask Amanda please e-mail amanda.e S ports Travel (especially inter-island) is a hot topic for teams and individuals who are often juniors and so whose parents are paying for their travel. I ve been involved in sports travel as a travel agent and as a parent so I know at first-hand how costs can escalate the further your child progresses TravelSolutions deals with many Channel Island sports teams including Guernsey Football Club Guernsey Rugby Academy Guernsey Hockey and Jersey & Guernsey Squash. We also hold the contracts to make the travel arrangements for the States of Guernsey. For this column we have looked at how travel is viewed by both an agent and a team with Hugh Raymond Chairman of the Jersey Sports Council posing some relevant questions HR The question ...should we use a travel agent to book flights and ferry crossings or do it ourselves is raised at just about every committee meeting attended by those with responsibility for travel arrangements. AE Using an agent gives a huge time saving for a volunteer who is often doing the job in the evening or at weekends when group departments are traditionally shut however I often answer emails and calls outside of normal office hours A travel agent s relationship with an airline or other travel provider usually results in better fares better deadlines for giving in names and better payment options or changes in procedure by the carriers. The agent also offers a one stop shop for the sports team person often issuing just one invoice covering flights transfers hotel meaning easier and therefore quicker reconciliation for the Treasurer. A small fee (currently 5 per person) is attached to booking through us but we believe it represents good value for money bearing in mind we take the worry out of the process. In the case of inter-island travel particularly an agent is able to deal with both Aurigny and Blue Islands sourcing the best fares numbers w Travel o Columnist AMANDA EULENKAMP TravelSolutions (remembering that any group over 21 23 in number has to deal with both airlines) and often juggling seats to give the client the best service. HR Can a travel agent block book giving numbers rather than names AE This depends on the terms and conditions of the carrier but generally names can be given in slightly later than would be normal. Often too an agent can hold seats a member of the public may not be able to. HR If the event is cancelled through no fault of the sporting group what can the travel agent do to get reimbursement AE Nearly all travel arrangements now are non-refundable particularly group bookings therefore we strongly recommend insurance to cover these occurrences. However it is possible to negotiate contracts with air hotel and coach suppliers that do give free cancellations up to for example 1 pm the day before arrival. HR What if flights and ferries are cancelled due to weather or technical problems and the new arrangements don t fit in with the event being travelled to AE It is the carrier s responsibility to get you to the point of arrival in a timely manner but in these circumstances they should refund the monies. Obviously this doesn t help onward arrangements and again travel insurance is strongly advised. HR Are there other benefits to using a travel agent AE We are able to co-ordinate between various sports teams and create savings for example sharing a charter between two teams in order to utilise the often empty return sectors of aircraft repositioning. I hope this shows how using a travel agent with experience in group and sports travel can be a positive move for local groups and can ease the administrative burden on their Treasurer or Secretary. jsy CONNECT June 2015 67 Here s Here s the Thing The embarrassment. The shame of it. It s enough to make you cringe weep or just give up entirely. We ve just seen an election with a higher turnout a party system that links the people voted in with their policies over the next five years a campaign that ruthlessly showed up the flaws and problems among the prospective candidates and perhaps most importantly a connection between the votes cast by the public and the people chosen for the top political jobs. Why is the UK s political system for all its drawbacks and issues so much better than ours Here s the thing. It might not be. Jersey s political system is far from perfect there are questions over (for example) the inequality over the allocation of seats over the way that the public don t decide who gets to be a minister and the way that the lack of a party system is effectively a block to scrutiny accountability and consistency on policy. Those are all serious problems but in many ways things are actually better here. The first is accessibility. There s no Westminster bubble here with the problems in the regions being basically ignored apart from for six months in every five-year election cycle. The rise of a London-based professional political class makes that even worse. Here the phone numbers of the politicians are in the phone book and if you really want to talk to them you re likely to bump into them in the shops. Failing that you at least know they re going to be in the Royal Square every second Tuesday. That s more important than it sounds politicians here know that they have to defend their decisions in the fresh food aisle at Waitrose the pub and on the bus not just the States Chamber. The second is geographical. The House of Commons has to balance the needs of Central London Scotland the north of England and Northern Ireland. Some times those needs conflict and sometimes they clash head on. That s not the same here. Planning issues are local of course but by and large the needs of people in St Mary are the same as the needs of people in Grouville or St Helier. The regionalism in the UK has fuelled the growth of the Scottish National Party a group of politicians who actively advocate for one group of citizens to the expense of everyone else. And that s not all the difference between the constituencies population levels in the UK is wider than it is in Jersey. Here constituencies can have up to three times the population of another and still have the same number of votes in the UK it varies by a factor of five. The third is backbencher propositions. Yes they pretty much always fail. But it s a check on the power of the Council of Ministers that any one of 49 politicians can table a proposition to the Island s parliament at any time and be guaranteed a hearing and a vote. That doesn t happen in the 68 June 2015 jsy CONNECT UK and it doesn t happen in most places. The fact that its startlingly unproductive doesn t mean it s a complete waste of time. Backbenchers use it to keep an issue on the agenda when ministers would rather it wasn t. You can argue (and I would) that that s a weak and cynical approach that undersells their constituents but it does mean that the government doesn t have complete control of the political agenda and that s good. The fourth is strong government. Look at the UK. Just look at it. Up until 7 May minority governments and coalitions appear to be the New Normal - and in fact they still are when you think about the broad churches of opinions represented in the Conservative and Labour parties. Here that doesn t happen. The Council of Ministers tends to command a majority in the case of the current one that majority is stronger than it s ever been the Chief Minister topped the poll in the Senatorial election secured all of the ministers that he wanted and didn t lose a single amendment in the key Strategic Plan debate. You can agree or disagree with what he plans to do with that power but it s better to have a strong government than a weak one. The fifth one is perhaps the most important the influence of money. Yes money s important and yes the economy is the main priority of politicians here and in the UK. But at a personal level for politicians it doesn t factor here. Lobbying expenses abuse cash for questions - we don t have any of that here and we re better off for that and in fact we don t even have different levels of pay inside the States Chamber. The only outside funding is the backing of the unions to the Reform Jersey party all of which has been transparently and publicly recorded. Sixth there is less power exercised by the unelected. In the UK the House of Lords has at times done an important job but it can t be right that it s done that important job on the basis of no public mandate whatsoever. There s too much of this here (it s an utter nonsense for example that the Jurats run licensing and that the Bailiff has taken upon himself mysterious powers about what goes on in the Royal Square) but it s nowhere near as big an issue as it is in the UK where the Lords have a sweeping remit to do pretty much whatever they want. Yes Jersey s political system is mental. Yes there are bits of it that make little or no sense. But it could be worse. It could be the UK. 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 Why not treat yourself (or somebody else) to a bite of something delicious. Only the crunchiest biscuits tastiest cakes most luxurious desserts and gooiest dipping sauces make it into our Seriously range. 10 June Retail Sales Index has had a rough few years. The And it s a cheer y ho ho ho from Planet Retail which they ve lost a load of jobs. sector is worth 10% less than it was back in 2001 and value (3%) but the volume (2%) However the last set of stats showed that not just the almos t like improvement from of sales had grown in the last 12 months. That looks the gloomiest bit of the economy. 11 June Chamber of Commerce Lunch Economic Development Minister Lyndon Farnham space to record once again that Would it be wrong Dear Reader to use this precious Whatever what s done is done. Lyndon Farnham is an anagram of Nylon Farmhand is more on the retailer touristy vibe The boy Farnham or Farmhand if you prefer manner of festivals and event s. than his predecessors and he s got big plans for all ber of Commerce at the This lunch sees him try to pitch those plans to the Cham e of scene for Lyndon or Radisson Blu which presumably will be a bit of a chang Yacht cos umm he owns it. Nylon if you prefer who tends to prefer the Royal 16 June The States with your perfect family while Picture the scene strolling down sunlit boulevards anently perfect offices conscientious finance workers beaver away in the perm to pay tax to support to either side of you making millions of pounds on which they re efficient) public services. compassionate (but efficient oh dear me yes ect s drawing ever showing new Congratulations you ve just walked into every archit and into the States Chamber buildings on the water front. Step back from the page in the bitter recriminations on the 16 June and you ll hear the latest sorry twist Quarter. DD would rather be in characterizing yet another debate on the Esplanade KFC. 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 70 June 2015 jsy CONNECT 23 June The States nder-the-waves tone to this DD finds a gloriously band-playing-as-the-Titanic-slips-u t Deficit shmeficit Dammit States chat-fest. What do you mean 130 million defici ber and that s clearly more we ve got to buy some new clocks for the States Cham to see how long they ve been impor tant. For a mere 1 800 politicians will be able of going to the bother of making a talking by looking at a digital display instead now and b) the time when hideously complicated calculation involving a) the time e else approaching the they started speaking. DD is not making this up. Is anyon thing very seriously conclusion that these guys aren t taking this whole 24 June Jersey s Resident Population 2014 le scribe but DD must confess a Strategic Plan debates bring little joy to your humb was insisting that the fact that little smatter of laughter when some minis terial type qualified immigrant was ...clear non-finance businesses weren t allowed licenses for a comment that DD thinks is evidence that our Population Policy is working. That s magic mushrooms during States clear evidence that someone s been sampling the hing nightmare for the Council sittings. Anyway. This whole subject is a living breat confirm that the population has of Minis ters particularly as this repor t is going to to see if the Gorstmeister tipped the 100 000 mark for the first time. Interesting in which he said that he wanted it remembers a little pre-election survey back in 2011 capped at 100 000... Want more read take five on page 06 jsy CONNECT June 2015 71 Keep it in the family A s regular readers will be aware Connect Magazine welcomes legal questions expire. If you inherit property (and therefore can occupy it) you can t swap it for something else. Your right to live in that property inherited. You do not become entitled or licensed to buy occupy property in the Island as a result of an inheritance you become authorised to occupy the property left to you. from readers and I do my best to respond to those questions in my monthly column from time to time. By far the most common questions are those concerning neighbour disputes and those concerning inheritance. This month I am responding to questions received from a reader which relate to both land and to inheritance. arises because that property was someone who is not so entitled etc. live in the property with you. BUT as I have said above if you inherit property you do not magically become entitled or licensed you only have a right to occupy that property. That means that you CANNOT have someone who is not entitled live there with you because you are not entitled . Well you can imagine the situation can t you You are not entitled but you are left property and therefore can live there. Your wife or partner is also not entitled she can t live there nor can your 24 yearold triplets who have finished university and fancy a couple of years-out surfing Jersey s beaches and eating you out of house and home (it s great excuse for you if you want peace and quiet and solitude Sorry my darlings the law doesn t allow it ). Special consent I m sure would be given by the Minister in such a situation. I mention all this because I found it interesting. I return to the final question.... Q If we left our freehold property to our only son (not residentially Q Q Does the above also apply to flying freehold property Yes. Flying freehold is freehold. An apple and a pear are both fruits they are just different types. Flying freehold is a different type of freehold but freehold nonetheless. Accordingly what I have stated above applies to flying freehold properties also. Does all the above also apply to our only daughter entitled) is he allowed to reside in the property The answer is yes let me tell you why In 2012 a new piece of legislation was introduced the Control of Housing and Work (Jersey) Law 2012. This radically changed the way in which property in Jersey was categorized and contains many transitional provisions. Under Article 17 no person is allowed to occupy any dwelling as their ordinary residence unless they fall into one of the categories set out in that Article. Sub paragraph 17(1)(d) refers to those obtaining the dwelling by inheritance which means that if you obtain a dwelling through inheritance you may occupy it. Yes. (I can t recall a time during my career when I have answered yes to so many questions). The authorisation to occupy property left by inheritance applies to anyone male female or other. Furthermore the beneficiary does not need to be a relative. So if you leave your property to a friend the same applies. However the right to occupy a property because of inheritance only applies to a person . Person has different meanings under the law depending on what part of the law is being considered. In the section we are discussing person means an adult and therefore does not apply to a child or a company. I m going to digress because there is an interesting point which is not actually asked by the questions received but may be illuminating. If you are entitled or licensed under the law (in old-fashionedspeak have housing quallies ) then you are allowed to have Q If a number of freehold residential properties are left by inheritance can a choice be made Again I m loving answering yes yes. All have been inherited and all can be occupied. If you leave seven a different residence can be occupied for each day of the week. If 365 are left you can have a different residence for every day of the year what you do with a leap year may be challenging. But in short a beneficiary can choose to live in all of them or some or can sell some and keep others. Whether or not a person who occupies seven different properties can describe them as their ordinary residence is a debate I would like to have one day before a judge but I shall leave that over for another day. But in short in such a situation a beneficiary is not only free to choose the property but is also very lucky. Q 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 Is there a restriction on our only son then selling or exchanging the property Your son would be free to sell it at any time there are no restrictions. However as a matter of inheritance law a beneficiary s entitlement can be challenged (on numerous grounds) by competing claims but the right to challenge is only available for a year and a day following. So to be sure no competing claim rears its head before you start on the extension and the new kitchen it is best to wait for this period to 72 June 2015 jsy CONNECT Community Matters Every month we give our time and money to local communities. We donate 1000 to be shared by three good causes that you choose. Waitrose Supporting the community Be part of the winning team With all the great training development opportunities and real world work experience our trainees get it doesn t come as any surprise that our MyCareer training programmes are filling faster than ever before. In Jersey we have 2 trainee opportunities remaining in Audit and 1 in Tax. With the competition to grab the most desirable trainee roles heating up along with the weather over the summer months start thinking about your application sooner rather than later. If you are interested in finding out more information on our training programme and what KPMG in the Channel Islands has to offer please contact Amelia Hilton. Email ameliahilton Tel 44 (0) 1534 888891 channelislands 2015 KPMG LLP a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ) a Swiss entity. All rights reserved. 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