Independent economic advisors urge States to stay on course

Saturday 14 October 2017

A panel of economic experts who review States policy say it’s important the Council of Ministers stay focused and stick with the plans they’ve outlined.

But, in her annual report Dame Kate Barker, chair of Jersey’s Fiscal Policy Panel, also says there could be problems ahead and makes a number of recommendations.

The panel say it’s important the proposed health and liquid waste charges – or something that will bring in a similar amount in tax – are introduced as soon as possible. They are also critical of the ad hoc tax measures that have been recently introduced to fill the gap cause by deferring the introduction of the charges.

Likewise the panel say it’s important to get on with the big capital projects that are planned such as the new general hospital, and that they need to be delivered on time and on budget. Further delays could increase costs, and with interest rates at record lows and the economy still to fully kick in, now is the time to invest.

Last year the Island did better financially than predicted but the panel say this was a one off and shouldn’t be used as an excuse to delay introducing policies outlined in the MTFP. The panel also says if the Island manages to get in the black profits should be re-invested in the ‘rainy day fund’.

Whilst the message is broadly upbeat the panel warn it’s a time of great economic uncertainty – especially with relation to Brexit – and that the Island needs to be constantly alert to changing circumstances