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An Introduction to Jersey
Chief Adviser's
Office
PO Box
140
Cyril
Le Marquand House
The Parade
AN INTRODUCTION TO JERSEY
1 GEOGRAPHICAL
POSITION
Jersey
is situated off the north-west coast of France, the nearest points of the
French coast being in Normandy 14 miles
to the
east and Brittany 30 miles to the south. Jersey is approximately 45 square
miles in area, which makes it the largest
of the
Channel Islands. Port to port the islands of Guernsey and Alderney are
28 and 39 miles respectively and
Weymouth
on the English coast is 85 miles.
2 CLIMATE
The climate
is equable. The average daily temperature ranges from 6 degrees Celsius
in winter to 17 degrees in July and
August,
when maximum temperatures are 20 to 21 degrees. The average annual rainfall
is 860 millimetres. Jersey is the
sunniest
place in the British Isles averaging 1,915.0 hours each year for the period
1961 to 1990.
3 HISTORY
AND CONSTITUTION
Prior
to the Norman Conquest the Channel Islands were part of the territory of
the Duchy of Normandy, but when
continental
Normandy was freed from English rule in 1204 the islands retained their
allegiance to the King of England.
Thereafter
successive English monarchs have ruled the Islands through their claim
to the title of Duke of Normandy, and
they have
observed the established laws, customs and liberties. The latter have been
confirmed through Royal Charters
which
have secured the independence of the Island's judicial systems from the
English courts, and have granted important
privileges,
including the right to tariff free trade with England and freedom from
English taxes. At no time have the Islands
been involved
with, or subjected to, the administrative systems of the Government of
the United Kingdom. The basis of
the connection
with the United Kingdom is through the sovereign as the legitimate successor
of the Dukes of Normandy.
The Channel
Islands consist of two separate Bailiwicks, the Bailiwick of Jersey and
the Bailiwick of Guernsey. The latter
consists
of Guernsey, Herm, Jethou, Alderney and Sark. There are no formal links
between the two Bailiwicks.
Jersey
has its own legislative assembly, and comprehensive legal, fiscal and administrative
systems. The power to appoint
certain
officials in the local administration is vested with the Crown and, with
certain minor exceptions, legislative
measures
passed by the island's assembly depend for their validity on Orders made
by the Monarch in Council.
Subject
to these prerogative powers the Island has general responsibility for the
regulation of its affairs. Most of the
Laws by
which it is governed emanate from the States of Jersey (the representative
assembly), and most of the public
services
are administered by Committees of that assembly.
The Lieutenant-Governor
is the personal representative of the Crown and acts as the official communication
channel
between
the States assembly, the Government of the United Kingdom and the Crown.
The most important other offices
held under
Crown appointment are those of Bailiff and Deputy Bailiff who share the
duties of presiding over the States
and the
Royal Court, and the Attorney General and Solicitor General who act as
legal advisers on behalf of the Crown
and the
States.
The Island
is not directly represented in the United Kingdom Parliament. Acts of Parliament
extend to the Island only if it
is expressly
intended or implied that they should do so. In such cases it is normal
practice to include a section which
extends
the Act to the Island by a special Order in Council stating any exceptions,
modifications and adaptations which
are applicable.
By convention Parliament does not legislate for the Island without its
consent in matters of taxation or
issues
of local concern.
In matters
relating to international law the United Kingdom Government is responsible
for the Island's international
relations.
The practice is for the Island to be consulted before any international
agreement is reached which would apply
to the
Island.
4 RELATIONSHIP
WITH THE EUROPEAN COMMUNITIES
At the
time of the accession of the United Kingdom to the Treaty of Rome special
terms applying to the Islands were
defined
by Protocol 3 to the Treaty of Accession. Under these terms the Islands
are included within the European
Communities
for the purpose of free movement of manufactured and agricultural goods.
This requires the Islands to
apply
the common external tariff, the agricultural levies on imports from third
countries and certain provisions of the
Common
Agricultural Policy. Jersey is not a separate Member State. Neither is
it an Associate Member of the European
Communities.
For the
provisions of the EC Treaty relating to free trade in goods, the Island
and the United Kingdom are treated as one
Member
State. For the provisions that do not apply to the Island, for example
those relating to fiscal harmonisation and
financial
services, the Island is treated as a "third country". Other provisions
of the Treaty of Rome, including those
relating
to the free movement of Community citizens, capital movements, and the
harmonisation of taxation and social
policies,
are not applicable to the Islands. However, these exemptions from obligations
under the Treaty means that the
Islands
are not eligible for certain benefits that full membership would entail.
For example, the Islands do not have access
to financial
support under the Common Agricultural Policy, nor to funding from the Communities'
Social or Development
funds.
Furthermore, under existing EU regulations, people born in Jersey face
restrictions when taking up employment in
EU countries
other than the United Kingdom. They may, however, avoid any restrictions
if they have a parent or
grandparent
born in the United Kingdom or have themselves been resident there (including
any period of service with the
armed
forces) for at least five years.
Ratification
of the agreement at Maastricht in December 1991 on a Treaty on European
Union, and amendments to the
EC Treaty
to provide for Economic and Monetary Union, should this occur, will not
change the Island's formal
relationship
with the European Communities. Any change in the arrangements for the Island
would require an amendment
to the
Treaty of Accession of the United Kingdom, which would require the agreement
of all EU Member States
including
the United Kingdom. No such change is in prospect or envisaged.
The European
Economic Area (EEA) agreement between the member states of the EU and three
of the member states
of EFTA,
extends to the EEA the arrangements for the Island set out in Protocol
3 to the extent that the relevant
provisions
of the EC Treaty apply to that Area.
The authorities
have retained the services of an expert in EU law to assist in evaluating
the overall impact of all
developments
in the EU.
5 THE LEGISLATURE
The States
of Jersey comprises the Bailiff (or Deputy Bailiff), the Lieutenant-Governor,
12 Senators, the Connetables of
the 12
parishes of the Island, 29 Deputies, the Dean of Jersey, the Attorney General
and the Solicitor General. All of the
above
have the right to speak in the Assembly, but only the 53 elected members
(ie the Senators, the Deputies and the
Connetables)
have the right to vote. As President of the Assembly, the Bailiff or Deputy
Bailiff has a casting vote.
Senators are elected by voters of the whole Island for a term of six years. Six senators retire every three years.
Deputies
are elected on a constituency basis for a term of three years. General
elections for Senators and Deputies are
held every
third year, the elections for Senators being held in October and the election
for Deputies taking place in
November.
Connetables
are members of the States by virtue of their office, to which they are
elected for a term of three years by the
electors
of the parish.
The States
of Jersey is not organised on the basis of a political party system and
therefore no distinction is made between
"Government"
and "Opposition" as is the case in the United Kingdom.
Elected
members of the States receive an annual allowance and, subject to certain
conditions, may be eligible for income
support.
The States
of Jersey operates on a Committee basis. The provision and administration
of specific functions, eg health,
education,
social services, is dealt with by Committees of States members in much
the same way that such services are
provided
by Committees of the local authorities in the United Kingdom.
6 THE JUDICIARY
Civil
and criminal justice are both administered by the Royal Court, which is
comprised of the Bailiff or Deputy-Bailiff
and 12
Jurats who have been elected by an electoral college consisting of States
members and representatives of the
legal
profession. The Bailiff is the sole judge of law and determines whether,
and in what amount, costs will be awarded.
Other
matters are determined by the Jurats.
At the
Criminal Assizes a jury of 12 may return a unanimous or majority verdict.
There is a Court of Appeal. Stipendiary
magistrates
deal with minor civil actions at the Petty Debts Court, and minor criminal
matters at the Police Court. These
magistrates
also act as Examining Magistrates in criminal matters.
7 THE PARISHES
Jersey
is divided into 12 parishes, all having access to the sea. Each parish
is governed by an Assembly of Principals
consisting
of rate payers with properties of over a certain rateable value, presided
over by the Connetable on issues
relating
to civil matters and by the Rector on issues relating to ecclesiastical
affairs.
Parish
revenues are largely derived from the rating of property. Unlike United
Kingdom local authorities, the parishes are
not responsible
for major areas of expenditure such as education, health, fire services
and public works.
One major
area of responsibility of the parish is in the provision of welfare benefits
and services. There is no Jersey
equivalent
to the unemployment pay payable from central funds in the United Kingdom.
The parishes
also organise a system of local honorary police, consisting of Connetables,
Centeniers, Vingteniers, and
Constable's
Officers. People holding these offices are elected for a three year term
of office. The Honorary Police are
unpaid,
non-uniformed and have the powers of arrest, search and investigation within
their parish. A uniformed police
force
was established in 1951 and is organised on English lines.
8 LANGUAGE
French
remains the official language of the Courts of the Island, but the use
of English is permissible. English is used
exclusively
in debates in the States chambers and legislation is drafted in English.
Out and about one occasionally hears
people
speaking the local patois - a Norman-French dialect - but this has become
increasingly rare.
9 THE POPULATION.
At the
time of the Census in March 1996 the resident population numbered 85,150,
of which males and females
accounted
for 49 per cent and 51 per cent respectively.
52 per
cent of the resident population was born on the island, 37 per cent was
born elsewhere in the British Isles, and
almost
all of the remainder were born elsewhere in Europe. 18 per cent of the
total population were below the working
age (16
years), 66 per cent came within the working age range, and 16 per cent
were over the age of retirement.
About one
third (32%) of the population live in the town and parish of St Helier,
and a further 24 per cent live in the
neighbouring
parishes of St Saviour and St Clement. The five northern parishes of St
Mary, Trinity, St John, St Martin
and St
Ouen share 16 per cent of the total population between them. Population
densities vary between approximately
3,200
people per square kilometre in St Helier and 215 per square kilometre in
Trinity. The overall density of population
is 733
per square kilometre.
Between
1991 and 1996 the population grew by 1,068. Emigration from the Island
exceeded immigration to the Island
over that
period, and the net growth arose from natural factors, ie the excess of
births over deaths.
At the time of the Census there were 33,702 separate households with an average of 2.4 persons per household.
Further
information about the 1996 Census results can be obtained from the Chief
Adviser's Office and is also available
on the
States of Jersey Internet homepage (www.jersey.gov.uk).
10 EMPLOYMENT
67 per
cent of the population over the age of 15 were economically active in March
1996, with the economic activity
rates
of males and females aged over 15 being 77 per cent and 58 per cent respectively.
The Island
has enjoyed virtual full employment for many years. The number of people
registering for work at the Job
Centre
during 1996 averaged less than one per cent of the working population.
Generally
speaking, local employers are encouraged to give preference to local labour.
Nevertheless, the demand for
labour
for temporary or seasonal occupations, particularly in the tourism and
agriculture industries, is such that employers
depend
to a large extent upon immigrant workers.
People
in possession of, or eligible to hold, a passport issued in the Channel
Islands, any European Union Member
State,
or any country included in the European Economic Area, are not subject
to employment restrictions. Nationals of
all other
countries are required to have a work permit. Work permits are obtainable
from the Immigration and
Nationality
Department, The Weighbridge, St Helier, Jersey.
Accommodation
in lodgings is in short supply and consequently expensive and those seeking
employment on the Island
should
first consider their position under the Jersey housing laws - see section
11 below.
Some idea
of the employment opportunities can be obtained from a study of the situations
vacant advertisements in the
local
newspaper (the Jersey Evening Post) or by contacting one of the many employment
agencies. More general
information
about employment in Jersey can be obtained from the Job Centre, Employment
and Social Security
Department,
La Motte Street, St Helier.
11 TAKING
UP RESIDENCE IN JERSEY
There
are no restrictions on the holders of passports issued by the other Channel
Islands, or by any Member State of the
European
Economic Area, travelling to Jersey.
However,
in view of the serious shortage of dwelling space on the island it has
been found necessary to restrict the
acquisition
of dwelling accommodation whether by purchase or by lease. Under the provisions
of the Housing (Jersey)
Law, 1949,
as amended, the States of Jersey Housing Committee strictly controls all
sales and leases of private dwelling
accommodation.
In almost all circumstances newcomers to the island will not receive consent
to purchase or lease
dwelling
accommodation without having received prior approval from the Housing Committee
as an "essential
employee",
or having received approval on the grounds of being of significant economic
or social benefit to the Island
community.
With the
exception of certain restricted categories of employment, "essentially
employed" persons are required to occupy
accommodation
either owned or leased by their employer, and the Committee will restrict
the granting of such consent to
accommodation
which is not subject to a condition limiting occupancy to local people.
At the end of ten years residence
an "essential
employee" is permitted to acquire or lease accommodation in his or her
own right. However, "essential
employee"
status is usually granted for a limited period of either three or five
years.
For those
people seeking consent on the grounds of economic or social benefit, an
important factor taken into account is
the ability
to make a significant contribution to the Island's tax revenues through
the taxing of personal or corporate
income.
When considering these factors, the Housing Committee will also have regard
to the source of personal income,
the certainty
with which incomes can be expected to be received in future years, and
the personal and business
background
of the applicant. All applications will be considered in the light of the
degree of pressure from those wishing
to take
up residence on the Island. Those granted consent will be required to purchase
a property that is outside the
price
range of the generality of local purchasers.
The Housing
Committee will also consider granting consent on the grounds of economic
benefit for the occupation of
owner's
accommodation in connection with the purchase of a hotel or guest house.
A number of conditions apply to such
circumstance.
Firstly, the accommodation must be an integral part of the registered establishment.
Secondly, the
establishment
must be sold at a reasonable price and there must be evidence that no local
purchasers have been
forthcoming
at that price. Thirdly, the applicant should have had some previous experience
of hotel management or a
related
trade, and there must be reason to expect that the establishment will continue
to be managed as an hotel or guest
house.
Consent will not usually be given where the hotel or guest house is below
a certain size (currently 60 beds).
Applications
from non-residents are considered individually, and the requirements of
the Housing Committee are subject
to change
from time to time as necessary to avoid further aggravation of the housing
shortage and protect the interests of
Island
residents.
Applications
in respect of particular units of accommodation must be submitted on the
appropriate form, obtainable from
the Housing
Department or from the lawyer or estate agent acting on behalf of the owner
or lessor of the property. The
Committee
will also consider applications in principle prior to accommodation being
obtained.
The Housing
Committee's decision on each applicant is communicated in writing, and
it is an offence under the housing
law for
an applicant to occupy accommodation as a tenant prior to the issuance
of formal consent. Prospective
purchasers
are strongly advised not to enter into any binding agreements until they
have received a formal consent and
noted
any conditions attached to that consent.
Enquiries
concerning the current requirements of the Housing Committee, relating
to either the essentially employed or
those
seeking to obtain consent on the grounds of economic or social benefit,
should be directed to the Housing
Department,
Hilgrove Lane, St Helier, (tel 01 534 884 422).
Lodgings
The provisions
of the Housing (Jersey) Law do not apply to the occupancy of registered
lodging houses, or to lodgings in
a private
house (in which up to five lodgers can be accommodated). Would-be residents
are advised, however, that the
availability
of registered and private lodgings is limited, particularly during the
summer season. It should also be
appreciated
that since January 1980 residence in such accommodation (or in hotels and
guest houses, or as a guest of
friends
or relatives) will not currently establish any right of residence under
the Housing (Jersey) Law, irrespective of the
period
of time spent on the Island. Further information about the price and availability
of accommodation in lodgings can
be obtained
from the Housing Department.
General
Information
Advice
on housing costs and availability is obtainable from any of the estate
agents established on the Island. A list of
house
agents and lawyers, and general information relating to the taking up of
residence can be obtained from the Chief
Adviser's
Office.
House purchase loans are available from many of the financial institutions in Jersey.
Planning
permission is required for new building and for the conversion of existing
property. Information about this can
be obtained
from the Department of Planning and Building Services, South Hill, St Helier,
(tel 01 534 601 694).
12 SETTING
UP AN UNDERTAKING (SECTIONS 10, 14 & 15 ALSO APPLY)
Under
the Regulation of Undertakings and Development (Jersey) Law, 1973, as amended,
any person wishing to
commence
a new business undertaking (an undertaking is defined as any trade, business
or profession whether or not
carried
out for profit) must first seek the consent of the administering authority.
The Law, introduced in January 1974, is
administered
on behalf of the Finance and Economics Committee by the Chief Adviser's
Office.
A licence
is also required to engage staff where those to be engaged are persons
who have not been resident in the
Island
for more than five years and do not have residential qualifications.
A licence
can be expected to be granted without difficulty where an application is
made by those with residential
qualifications
(i.e. those people who qualify under Regulations 1(1)(a)-(h) of the Housing
Law and have lived on the
Island
for 5 years or longer). Applications by persons with residential qualifications
include those where such persons
have a
controlling interest in an undertaking and the other principals are non-resident
and intend to remain so.
A consent
for establishing a new business will also be granted where the applicant
is a person without full residential
qualifications
in the Island, and where the economic and other advantages to be obtained
(e.g. the provision of
employment
opportunities and training provided for school leavers, or a high level
of profitability and tax yield in relation
to the
labour resources employed) are substantial, and the nature of the business
is compatible with States policies in
general.
The Finance
and Economics Committee's policy is to allow market forces to work as freely
as possible within the
framework
of the Law. In applying the Law the Committee also seeks to encourage the
continued development of the
Island's
role as an international finance centre, and generally to pursue a policy
of encouraging business growth in a
selective
and sympathetic way.
Where the
acquisition, as a going concern, of an existing and well established business
is involved, and such a business is,
and continues
to be, operated within the provisions of the Law, a new licence would not
normally be required. However,
such acquisition
does not in itself confer housing rights, even where the business owns
dwelling accommodation (see
Section
10 for special provisions concerning hotels and guest houses).
An undertaking
administered in the Island (either a Jersey incorporated company or one
incorporated elsewhere) whose
trading
activities are carried on wholly outside the Island, and which does not
occupy any floorspace or have any
employees
in Jersey, is exempt from the need to apply for a licence under the Law.
Special
provisions apply to short-term and occasional ventures. Advice about these,
and about the relevant Law in
general,
is obtainable from the Chief Adviser's Office. Licence applications should
be submitted on the appropriate form
to the
same office.
Company
Incorporation
Companies
incorporated in Jersey must have a registered office on the Island and
must maintain certain records such as
a register
of members and minute books of meetings. They are also required to maintain
sufficient accounting records to
record
the day to day business of the company and accounts must be presented to
the shareholders at an annual general
meeting.
It is not necessary for directors or shareholders to be resident on the
Island, but many overseas companies
appoint
local directors in order to facilitate the holding of statutory meetings
on the Island.
A new company
is required to file certain details concerning authorised share capital,
ownership and activities with the
Financial
Services Department of the States, and approval is needed for the company
name prior to incorporation.
Applications
relating to the incorporation of new companies must be submitted to the
Department either by a firm of
Jersey
lawyers or by a Jersey firm of chartered or certified accountants. Annual
returns are submitted to the Financial
Services
Department giving details of the authorised, issued, and paid up share
capital and these, together with copies of
any resolutions
filed, are available for public inspection at the Department.
For information about the tax position of Jersey registered and Jersey incorporated companies see section 19.
More information
about the requirements for incorporation of a Jersey company can be obtained
from the Financial
Services
Department, The Parade, St Helier (tel 01 534 603 000).
13 THE ECONOMY
National
Income
The Island's
gross national product (GNP) in 1995 is estimated at £ 1,690 million.
The gross domestic product (GDP) is
estimated
at £1,475 million.
The contributions
made by the different sectors of activity to the Island's GDP in 1995 are
estimated as follows -
Banks & Finance Business
55 %
Tourism
24%
Investment Income from Abroad
received by Residents
14%
Agriculture & Horticulture
5%
Light Industry
2%
100%
14 TOURISM
Total
passenger arrivals in Jersey in 1996 were slightly over 1.3 million. 51
per cent of these arrivals were leisure visitors
who stayed
for an average of 5.7 nights. The remainder were day trippers, business
travellers and returning residents.
64 per cent of all arrivals during 1996 came by air.
There were
670,090 staying leisure visitors in 1996 (ie staying for one night or more),
77 per cent of whom come from
the United
Kingdom. 39 per cent of the visitors from other European countries come
from France, but there is steady
growth
in the number of visitors coming from other markets, especially Holland,
Norway and Ireland. About 140,000
day visitors
came to the Island in 1996 almost all of whom arrived from French ports.
The visitor spend in 1996 is
estimated
at £275 million.
In January
1997 there were 19,465 registered beds on the Island, of which 15,565 were
in hotels, and the remainder in
guest
houses and two holiday villages. Self-catering accommodation accounts for
about 3 per cent of the total bedspaces
available.
There are
4 camp sites on the Island. None of these provide facilities for caravans,
which may only be imported with the
prior
permission of the Planning and Environment Committee. Permission to import
a caravan will normally only be
granted
when the intention is to use the caravan for holiday touring away from
Jersey. Caravans can not be used as
dwelling
accommodation on the Island.
Information
on holiday accommodation on the Island can be obtained from the Tourism
Information Bureau, Liberation
Square,
St Helier, (tel 01 534 500 800).
15 FINANCE
CENTRE ACTIVITIES
The finance
sector embraces not only banking but the whole range of activities involved
in servicing the financial
requirements
of resident and non-resident individuals and corporate bodies who are attracted
by the opportunities which
the Island
offers to undertake international trade and investment from a politically
and fiscally secure low tax area. The
benefits
to Jersey are considerable, but the foreign currency earnings derived from
this sector make a useful contribution
to the
United Kingdom balance of payments, and a large proportion of overseas
investors use Jersey as a base for
investing
in the United Kingdom.
Deposits
held by banking offices in December 1996 totalled £89.6 billion,
which is inclusive of balances due to parent
companies
and related branches. 68 per cent of the value of these deposits was held
in the form of currencies other than
sterling.
Including
branch offices of the London and Scottish clearing banks and the Trustee
Savings Bank of the Channel Islands,
the Island
has 78 deposit taking branches or subsidiary companies registered under
the Depositors and Investors
(Prevention
of Fraud) (Jersey) Law, 1967. In a number of cases parent banks have more
than one registration, and
when this
is taken into account there are 49 separate parent institutions with a
wholly or majority owned presence on the
Island,
approximately 90 per cent of which institutions appear in the world's top
500 banks.
The value
of the funds regulated under the Collective Investment Funds (Jersey) Law
was £30.7 billion in December
1996.
A total of 346 funds were regulated under the Law at that time.
The States'
policy regarding banking and other finance sector activities is to provide
for continuing growth on a selective
basis.
This will be achieved both through the establishment of new enterprises
and through the expansion of existing
businesses,
but such growth will only be encouraged when the businesses concerned are
of international standing and
reputation,
and are involved in business which will further enhance the image of the
Island as a respectable international
finance
centre.
3,261 new
companies were incorporated in Jersey in 1996, of which 1,877 were private
investment or trading
companies
formed for people resident outside the British Isles.
The total number of companies registered at the year end was 31,129.
Jersey is not subject to exchange controls.
General
information relating to finance sector activities can be obtained from
the Financial Services Department.
16 LIGHT
INDUSTRY
The greater
part of the light manufacturing production in Jersey is engaged in serving
the needs of the resident population
in areas
such as gas, water & electricity supplies, bakeries, food wholesalers,
breweries, shops, motor repairs, a
newspaper
and television station, printers, etc. A small number of firms are engaged
in textiles production, engineering,
and other
activities serving predominantly export markets. These firms are relatively
small (ie less than 100 employees)
and for
the greater part produce goods of high value in relation to bulk.
Although
manufacturing industry is small in terms of its contribution to the gross
domestic product (approximately 2% in
1995)
and in terms of the employment which it generates, it nonetheless helps
to diversify the economy and provides
career
opportunities for those with craft and technical skills.
States
policy is to be selective about new industrial development, largely because
of the scarcity of suitable industrial
sites
and the shortage of specialist skills within the Island's labour force.
A clear opportunity is seen for the growth of the
Island's
information services sector, which is seen as complementing the needs of
the public sector and the financial
services
industry for high levels of computer literacy whilst also having the advantage
of the Island's sophisticated
telecommunications
infrastructure.
The price
of electricity is comparable to that in the United Kingdom, but gas is
more expensive in Jersey. Transport links
to the
United Kingdom and France are good with regular roll-on/roll-off truck
ferries and container services.
Jersey's
size makes it a practical location for small scale operations. There are
no special tax incentives for inward
investment
other than a maximum rate of tax on profits of 20%. Assistance and advice
on training is available from the
Training
and Employment Partnership, and funds are available to help meet the cost
of training. Financial assistance is
also provided
by the Trade and Industry Sub-Committee to help towards the cost of market
research and trade
promotion.
The degree
of encouragement given to firms wishing to locate on the Island depends
upon the benefits that will accrue to
the local
economy. Factors such as the creation of employment for local people; the
nature of training on offer; the likely
profit
level of the enterprise, and the track record of the business in other
locations; need to be considered alongside
issues
such as the demands likely to be placed on the industrial land available
and the number of skilled immigrant
personnel
required.
Further
general information relating to industrial development in Jersey can be
obtained from the Trade and Industry
Sub-Committee,
which can be contacted via the Chief Adviser's Office.
17 AGRICULTURE
In recent
years agriculture has depended for its prosperity largely on the export
of early potatoes to the United Kingdom,
though
broccoli (cauliflowers) and courgettes are important outdoor cash crops.
Tomatoes and flowers grown under
glass
are also important export crops.
14,938
acres, 53 per cent of the Island's total area, were in agricultural or
horticultural use in 1996. 433 farm holdings
were recorded
by the 1996 farm census, with an average size per holding of 34.5 acres.
The south facing slopes (cotils),
the fertile
soil, and an equable climate with relatively slight frosts and high rainfall,
combine to make the Island particularly
suited
to early crops.
The agricultural
sector accounts for 5 per cent of gross domestic product, and is important
as a means of maintaining the
environment
and rural amenities, which in turn is an important factor in encouraging
visitors to the Island and in enhancing
the way
of life for local residents. The States are committed to a policy of keeping
the current level of land area under
cultivation
and sustaining a viable industry. A variety of support mechanisms are available
to growers including the
advisory
services provided by the Agriculture and Fisheries Department.
The value of export sales in 1996 was £45.4 million, almost all of which came from sales to the United Kingdom -
Value of
Agricultural Exports - 1996 (£ million)
Potatoes
27.8
61.2%
Tomatoes
7.8
17.2%
Courgettes
2.9
6.4%
Cauliflower
0.9
2.0%
Sweet pepper
0.9
2.0%
Calabrese
0.4
0.9%
Carnation
1.4
3.1%
Narcissus
1.3
2.9%
Other
2.0
4.4%
Total
45.4
100.0%
Further
information on agriculture and horticulture can be obtained from the Agriculture
and Fisheries Department,
Howard
Davis Farm, Trinity (tel 01 534 866 200).
18 FISHING
Fishing
is a long established industry on the Island. There are currently 65 full-time
fishing vessels working from Jersey
ports,
employing some 160 people. Further workers are employed at the 4 licensed
fish farms on the Island. In addition
there
are a considerable number of boats and people engaged in the industry on
an occasional or part-time basis.
The total
value of the catch in 1996 is estimated at over £6 million, which
includes landings from Jersey vessels into ports
in the
United Kingdom and France.
Local sales
account for about one quarter of the total catch of Jersey vessels. A large
proportion of the total catch of
Jersey
based off-shore trawlers is landed directly into French and English ports,
with only 13 per cent of the total catch
being
landed in Jersey and subsequently exported.
19 TAXATION
Income
Tax was introduced in 1928 and, except for a brief period in 1934/35, remained
at 2.5% until 1940, when it
was increased
to the present level of 20 per cent. The rate of tax and the general tax
provisions have remained unaltered
for over
50 years, and the Island's economic policies are directed at maintaining
this position.
Income
tax is payable by resident individuals and corporations on income arising
within the Island and income arising
elsewhere.
Except in the case of people not ordinarily resident in Jersey, the income
chargeable is income arising whether
remitted
to, or received in the Island. Income tax is also chargeable on the income
of non-residents which arises from
sources
within the Island, eg dividends from local companies, remuneration from
employment in the Island etc, with the
exception
that - by a concession similar to that operated by most countries - interest
on local bank deposits made by
non-residents
is not charged to tax.
Individuals
and corporations are liable to income tax charged at the standard rate
of 20%. This rate is charged upon
resident
companies on their agreed adjusted profits after the deduction of allowable
items. In the case of individuals, it is
charged
on their gross income less admissible charges against that income and certain
personal allowances and reliefs.
These
personal allowances and reliefs include either a single or a married person's
allowance, child and dependent
relative
reliefs, earned income relief, etc. The amount of the allowances is reviewed
annually.
For individuals
with comparatively small incomes a further system operates independently
of the normal deductions
whereby
they become entirely exempt from tax if their incomes are below prescribed
limits (the small income exemption
limits).
All companies
incorporated in the Island are deemed to be resident and therefore liable
to income tax. Exemption from
income
tax may be claimed on incorporation or at any time thereafter provided
that no Jersey resident has a beneficial
interest
in the Company and that its business or trading activities are not conducted
on the Island. If exemption is granted
such an
exempt company is liable to pay a fixed tax currently set at £500
per annum. Such an exempt company may be
managed
and controlled in the Island. Similarly a company not incorporated on the
island but managed and controlled on
the Island
may claim exemption from income tax on its profits but would be required
to pay the exempt company tax of
£500
per year. An exempt company will be liable to income tax on any income
that is derived from a source within the
Island,
with the exception of bank deposit interest.
Alternatively,
companies owned by non-residents can opt for the International Business
Company facility where, subject
to payment
of a minimum sum of £1,200, profits from the international activities
of a Jersey incorporated company, a
company
incorporated elsewhere than in Jersey or a branch of an overseas company
can be liable to tax at a lower rate
than 20
per cent, typically 2 per cent but with lower rates where profits exceed
£3 million.
Jersey
has double taxation agreements with the United Kingdom and Guernsey, and
a limited agreement with France
concerning
profits from the operating of ships and aircraft between the two territories.
There are
no higher rates of tax on income (or surtax), no capital gains taxes, no
estate or inheritance duties, and no
value
added tax (VAT). Indirect taxes are limited to relatively low excise (or
impôt) duties on petrol, alcohol, and
tobacco,
and a number of minor registration and licensing fees.
Parish
rates are levied upon owners and occupiers of property, but rates are low
by comparison with United Kingdom
rates
because major services (eg education, police, fire services, etc.) are
financed from central revenues.
Further
information concerning income tax (current allowances, etc.) can be obtained
from the Comptroller of Income
Tax, The
Parade, St Helier (tel 01 534 603 000).
Information
on excise duties can be obtained from the Impôt Department, 12 Caledonia
Place, St Helier (tel 01 534 873
561).
20 STATES
REVENUE AND EXPENDITURE
In 1996
States income was £427 million, of which £248 million was derived
from tax revenues and impôt duties. The
remainder
of this income came from States trading bodies (postal services, telecommunications,
harbours and airports
earned
£70.5 million between them), housing rents, bank interest on cash
balances, internal financial charges, and
miscellaneous
charges for public services.
The tax
and impôt income was made up as follows -
£ million
Income and Corporation Tax
225.3
Impôt on Spirits
3.9
Impôt on Wine
3.1
Impôt on Tobacco
8.8
Impôt on Beer
1.8
Impôt on Motor Fuel
5.2
Impôt on Imported Goods
0.3
States
Revenue Expenditure in 1996 totalled £396 million. Excluding the
cost of operating the States trading bodies
(£55.7
million), the main areas of expenditure were as follows -
£ million
Health & Social Services
81.4
Education
58.8
Public Services
44.5
Employment & Social Security
34.7
Housing
28.7
Defence (mainly police & fire services)
20.6
States capital expenditure in 1996 totalled £82.2 million.
At the end of 1996 the States had no public debt liability and held a strategic reserve of £249 million.
21 Communications
Air
From May
to October there are direct flights from Jersey Airport to almost 30 destinations
in the United Kingdom,
France,
Holland, Germany, Ireland and the other Channel Islands. The scheduled
services are reduced in the winter
months,
but nonetheless continue to include several flights daily to Heathrow and
Gatwick, a daily service to Paris and
Zurich,
and regular flights to other United Kingdom and French airports. Freight
is carried on most passenger flights, as
well as
on regular cargo services and on charter flights.
Sea
Regular
year round roll-on roll-off passenger/car ferries operate from Jersey to
Poole and St Malo. Other passenger
services
operate between the Island and neighbouring French ports sailing from St
Helier and Gorey.
There are
regular container services to Portsmouth, including roll-on roll-off truck
ferries, and other freight services
operate
to continental Europe.
Postal
Services
Postal
services on the Island, between the islands, to the United Kingdom and
to all other destinations are maintained by
the States
of Jersey Postal Administration, Rue de Pres Trading Estate, St Saviour.
The Postal
Administration provides a service for philatelists, full details of which
can be obtained from the Philatelic
Bureau,
Broad Street, St Helier (tel 01 534 616 616).
Telephones
The internal
telephone service in Jersey is operated by the States of Jersey Telecommunications
Department, Minden
Place,
St Helier (tel 01 534 882 882) from where details and tariffs can be obtained.
Public
Transport
The Jersey
Motor Transport Co Ltd operates an Island wide bus service from a central
bus station at the Weighbridge,
St Helier.
Timetables can be obtained from the company (tel 01 534 21201). The Island
is well provided with coach,
hire car
and taxi facilities.
Motoring
The Jersey
Rule of the Road is similar to that of the United Kingdom with a few minor
local exceptions. Traffic keeps to
the left
and there is an all Island maximum speed limit of 40 miles per hour, with
lower speed limits enforced in traffic
calmed
areas. Details of the requirements for importing a car and obtaining licences
may be obtained from the Driver and
Vehicle
Standards Department, La Collette, St Helier (tel 01 534 608 855), or from
any motoring organisation.
The motoring
organisations represented on the Island are:
R.A.C. Breakdown Service
The Automobile Association
13 - 15 Stopford Road
11, The Esplanade
St Helier
St Helier
tel 0860 740 756
tel 0800 887 766
22 Social Services
Health
The Island
hospital and health services are controlled by the Public Health Committee
of the States of Jersey. An
explanatory
booklet is available from the offices of the Community Health Services,
Le Bas Centre, St Saviour's Road,
(tel 01
534 623 701).
Hospital
treatment is free (except in the private wing of the General Hospital),
as are the majority of the many clinics for
out-patients.
A contributory
Health Insurance Scheme is administered by the Social Security Committee.
Under the scheme a doctor
is entitled
to charge the insured person (and that person's family) whatever fee is
considered commensurate with the
professional
services provided. The insured person can then recover through the Health
Insurance Scheme a fixed sum in
respect
of each such consultation. The scheme is designed so that the doctor-patient
relationship remains undisturbed.
There
is no requirement to register with a particular doctor, and doctors are
not under contract with the States to
provide
a service to a particular person.
People
who qualify for assistance under the Health Scheme receive part reimbursement
of the cost of general medical
practitioner's
services, and of listed drugs and medicines supplied by approved chemists
on payment of a small
prescription
charge (currently £1.65) per item. These benefits apply to insured
people and their dependents.
The rate
of contributions for the Health Scheme is 2.0% (1.2% for employers and
0.8% for employees) up to an
earnings
ceiling. A non-employed person aged between 18 and 60 is required to pay
both employer and employee
contribution
at the earnings ceiling rate.
Details
of the Health Scheme and of the qualifying conditions for both employed
and non-employed people can be
obtained
from the Employment and Social Security Department, La Motte Street, St
Helier (tel 01 534 280 000).
Education
and Training
Attendance
at school is obligatory between the ages of 5 and 16 years. There are 24
primary State schools for children
up to
11 years, and 7 secondary State schools, two of which (Victoria College
and Jersey College for Girls) are fee
paying
except in the sixth form.
Private
schools - most of which are grant aided and maintain standards acceptable
to the Education Committee - are
available
to children at primary and secondary levels.
There is
a local school for mentally handicapped children, and facilities for those
with hearing and visual impairments.
There
is also a special tuition unit for academic under-achievers, and a senior
training centre under the control of the
Health
Committee.
Further
education courses, both full-time and day-release are available at Highlands
College of Further Education -
which
includes an agricultural and horticultural training centre at Howard Davis
Farm - and evening classes in recreational
and vocational
studies are provided at Highlands and Les Quennevais School and Community
Centre.
Further
information on educational matters can be obtained from the Director of
Education, PO Box 142, St Saviour (tel
01 534
509 500).
Social
Security
The main
provisions of the Island's Social Security system are -
(a) The
Contributory Social Security Scheme
This scheme
is compulsory for everyone between school leaving age and pension age -
subject to special provisions for
certain
classes of people. Everyone over the age of 15 who takes up residence on
Jersey is required to register at the
Employment
and Social Security Department as soon as possible after arrival to comply
with the provisions of the Social
Security
(Jersey) Law, 1974.
The Social
Security Scheme provides, in return for regular earnings related contributions,
cash benefits during periods of
incapacity
for work arising from accident or sickness, on widowhood or at pension
age. There are also grants for
maternity
and on death. Contributions from a married man provide certain benefits
for his wife.
Total contributions
(including those for the Health Insurance Scheme) work out at 4.3 per cent
of earnings payable by
employees
and 5.7 per cent payable by employers. This is applicable up to an earnings
ceiling of £21,324 per year
(1997).
Pensions
are currently higher than those in the United Kingdom. There are reciprocal
social security agreements between
Jersey
and the United Kingdom and a number of other countries which enable people
insured through the Jersey scheme
to obtain
certain benefits whilst in the other countries and vice versa.
(b) The Health Insurance Scheme - see section on Health Services.
(c) The
Family Allowance Scheme
Family
allowance is a tax free cash payment for the benefit of the family as a
whole. It is paid to families who have at
least
one child under the age of 16 and where family income is below specified
limits. The allowance varies according to
family
income as assessed for income tax purposes.
Further
details on all matters relating to Social Security can be obtained from
the Employment and Social Security
Department,
La Motte Street, St Helier (tel 01 534 280 000).
23 Miscellaneous
Cost of
living
Between
March 1996 and March 1997 the increase in the Jersey retail prices index
gave a rate of inflation of 3.7 per
cent.
Prices
are broadly similar to those in the United Kingdom with certain items more
highly priced (reflecting the cost of
transport
to Jersey) and other items being cheaper because of the absence of VAT
and the low level of excise duties
which
prevail on the Island. Housing and foodstuffs are two areas where costs
can be expected to be higher than in most
parts
of the United Kingdom.
Public Utility Services
Water
The local
water undertaking is the Jersey New Waterworks Co Ltd, Westmount Road,
St Helier (tel 01 534 509 999)
Electricity
Electricity
is supplied by the Jersey Electricity Co Ltd, Queens Road, St Helier (tel
01 534 505 000).
Gas
Mains
gas is provided over a large part of the island by the Jersey Gas Co Ltd,
97 Bath Street, St Helier (tel 01 534
58000).
Bottled gas is available from a number of suppliers.
Details of the current tariffs for water, electricity and gas can be obtained from the companies above.
General
Services
The Island
residents enjoy a wide range of general services - shops, restaurants,
property repairs and maintenance -
many of
which have developed to cater for the demands of the tourism industry and
the financial community, and which
for this
reason are of a range and standard beyond what one might normally expect
to find in a community of over
85,000
people.
Many shops close at mid-day on Thursday, and for the greater part shops are closed on Sundays.
Information
relating to retail and other trading activities established on the island
can be obtained from the Chamber of
Commerce,
Royal Square, St Helier (tel 01 534 24536).
Pets
There
is no restriction on bringing pets from within the British Isles. Details
of the quarantine restrictions and
arrangements
for pets from all other places can be obtained from the Chief Executive
Officer, Agriculture and Fisheries
Department,
Howard Davis Farm, Trinity (tel 01 534 865 074).
Newspapers
The local
daily newspaper is the Jersey Evening Post, which publishes daily and weekly
editions from its offices at Five
Oaks,
St Saviour (tel 01 534 611 611). A number of periodicals are also published
on the Island. The United Kingdom
national
newspapers are available on the day of issue.
Sports
and Social Clubs
The Island
is well provided with sports and social clubs and full details of these
will be found in the annual almanac
published
by the Jersey Evening Post.
Radio and
Television
The BBC
maintains a transmitter on the island which provides coverage throughout
the Channel Islands of BBC
television
and Radio 2,3 and 4 VHF. Other British and continental radio stations are
readily obtainable direct.
Local radio
is provided by BBC Radio Jersey, New Broadcasting House, St Helier (tel
01 534 870 000) which
broadcasts
on 292 metres medium wave and 88.8 FM, and by a commercial station - Channel
103.
There is
also an ITC television station which broadcasts local programmes from Channel
Television, Television Centre,
St Helier
(tel 01 534 816 816).
Currency
The Island
is in monetary union with the United Kingdom but issues its own currency
which consists of notes and coins
of various
denominations. English and Scottish currency is also in circulation, as
is currency from Guernsey.
24 Further
Information
States
publications are available from the States Greffe, Royal Square, St Helier
(tel 01 534 502 037).
A full
range of statistics relating to the Island's economic and social life is
published annually in the Statistical Review.
More detailed
commentary on the Island's economic situation is published in the Annual
Report of the Chief Adviser,
which
is available from the Chief Adviser's Office, Cyril le Marquand House,
The Parade, St Helier.
Related
Reading
The following
short list of books on Jersey contains some which are out of print but
these may be available in public
libraries.
A comprehensive collection of books on the Channel Islands is available
for study in the Jersey Public Library,
Halkett
Place, St Helier (tel 01 534 59991).
Balleine, GR The Bailiwick of Jersey Hodder & Stoughton.
Bois, F de la Constitutional History of Jersey States Greffe
Coysh V (ed) The Channel Islands - a New Survey David & Charles
Cruickshank, CG German Occupation of the Channel Islands Oxford University Press, London
Dalido, P Jersey Ile Agricole Anglo-Normande (in French) Vannes
Dobson, R Birds of the Channel Islands Staples Press
Lempriere, R Portrait of the Channel Islands Hale
Le Herrissier, RG Development of the Government of Jersey States Greffe
Le Sueur, F A Natural History of Jersey Phillimore
Lester-Garland A Flora of Jersey London
Kendrick, TD & Hawkes, J The Archaeology of the Channel Islands (2 volumes) Societe Jersiase
Mollet, RA Chronology of Jersey Societe Jersiase
Powell, GC Economic Survey of Jersey 1971
Syvret,
M & Stevens, J Balleine's History of Jersey Phillimore
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Last Updated 17/03/97