JERSEY CHANNEL ISLANDS

 

 
 
 
 
                      
St Aubins Harbour                          Corbiere Lighthouse
 
              
                           St Catherines                                 Beauport Bay
 
 
       
                   West Coast                       Portlet Bay

 
 
 
      The following does not belong to me it is from the official Jersey page (IF I AM BEAKING ANY COPYRIGHT I APPOLGISE AND WILL REMOVE IT)
 

            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