Chief Minister slams Paradise Papers media coverage

Wednesday 15 November 2017

Two of Jersey's senior politicians have hit out at the BBC Panorama documentary detailing Apple’s decision to use Jersey to base a key subsidiary.

Apple’s decision to claim residency in the island for part of its company structure was not illegal, but nonetheless saw the island thrust under a negative international media spotlight despite years of work to shake its ‘tax haven’ image.

Speaking in the first States Assembly meeting since the news emerged following reports by the International Consortium of Investigative Journalists (ICIJ), Chief Minister Senator Ian Gorst hit out at the coverage. 

Particular focus was placed on a two-part Panorama documentary by the BBC. In a question to the Chief Minister, Senator Philip Ozouf – himself a former Treasury Minister – described the documentary as “unbecoming of the BBC” and asked whether the Chief Minister would agree that, “…we frankly would have expected better?”

#ParadisePapers - 13.4 million documents, 94 media partners, more than 120 politicians and world leaders. https://t.co/lHHyt9eLTS pic.twitter.com/mecTosLSxD

— ICIJ (@ICIJorg) November 5, 2017

He responded: “I was surprised by the way that the media coverage unfolded, particularly in regard to the two programmes that the Senator referred to, particularly when they seemed to spend the majority of the programme telling their viewers that there was nothing illegal… What we see happening in the media is not always reflective of what is happening behind the scenes.”

During the Assembly, Senator Gorst reiterated his pledge to clamp down on any company trying to claim residency in Jersey without having real ‘substance’ here, and reaffirmed his plans to create a ‘test’. He stated, however, that it was too early to describe what exact form this would take.

In the wake of the Paradise Papers stories, some speculated that the coverage had been timed to coincide with a meeting of EU finance ministers, who are due to decide on an ‘EU blacklist’. Senator Gorst confirmed that Jersey was one of the 53 jurisdictions that had received a warning letter, but said that the island would work to better understand their concerns. 

Don't miss our latest investigation into the hidden offshore world of the rich & powerful - coming up at 6pm on @BBCOne. pic.twitter.com/WRncAVPiUZ

— Panorama  (@BBCPanorama) November 5, 2017

Video: The Chief Minister and former Treasury Minister Senator Philip Ozouf criticised the coverage of Apple's tax affairs on the two-part Paradise Papers documentary.

Once these have been fully understood, he said that he would bring forward a number of measures, such as a substance test, for consultation prior to the election next year. 

Despite announcing plans for change, Senator Gorst issued a robust defence of the island’s current situation. He said that Jersey currently meets all relevant international standards. 

Senator Ferguson challenged the Chief Minister over whether he was doing enough to ensure that the island’s finance industry wasn’t “unfairly pilloried”. “I do defend what happens here in Jersey. I am proud of the financial services industry that we have in Jersey,” he said. He later added: “[Senator Ozouf] and I have stood on the steps of Downing Street defending Jersey, what we do, our record to the worldwide community and he and I, Sir, even in our respective roles, will continue to do so.”