Minister: cutting migration "would not be good for local jobs or consumer prices"

Friday 24 June 2016

It's been a week when immigration has topped the news agenda in both Jersey and the UK. The battle for the EU referendum in the UK has been between the 'leave' campaign focussing on immigration, and the 'remain' lobby championing the economy.

That same debate was sparked in Jersey with the news that our population has swelled to 102,700, with the number of people arriving in the Island (minus those leaving) smashing to bits the States Interim Population Policy - that policy targeting an annual total of 325 people; the actual number was 1,500, almost five times as many, and the highest figure this millennium.

So, on that basis it would seem that the needs of the economy are winning the argument. Express asked the politician responsible for Financial Services, the digital sector, competition and innovation - Senator Philip Ozouf - why Ministers believed that was the right policy:

What should give Islanders the most encouragement based on the statistics released today?

"Islanders should be encouraged that, having been through the global economic crisis, and with large changes taking place across the global financial services sector, Jersey is prospering. We are seeing record employment across almost all sectors, resulting in higher tax receipts that expected last year.

This will help pay for services as our society ages over the coming years, and delivers a wide range of job opportunities for Islanders. Indeed, local employment is at a record high. To achieve this, we have supported businesses where they have clearly demonstrated a need for skilled staff that they cannot find locally."

What particular policy challenges are expected given Jersey's growth at this time?

"We have to focus on ensuring that Jersey remains the special Island it is. We know that people highly value our beautiful environment, our safety and security, and the high-quality public services we offer. At the same time, they are concerned about the costs of living in Jersey, about their housing, and issues such as traffic. These are our policy challenges – and we are very much focused on them, which is why we are investing in housing, health, education, and infrastructure, and improving St Helier while protecting our green spaces."

Were you surprised by the strong growth in employment in any sectors?

"All indicators and our forecasts point to the economy having continued to grow in 2015. This strong economic performance has meant that we have reached a population of 102,700 a few years sooner than we otherwise would have. However, if we had taken the decision to cut migration even more at this time we would have risked damaging our the economy, undermining key strategies for sectors such as hospitality and financial services, making it harder for businesses to recruit the people they need. This would not be good for local jobs or for consumer prices."

What will this growth mean for the greater Island economy?

"We are seeing employment growth across a broad range of sectors, and earnings are rising. This is good, as it helps business to provide a range of job opportunities and services to Islanders, and helps improve our standards of living. We do need a vibrant, innovative economy, helping us pay for our essential services as our society ages – it is estimated that 28,000 people will be aged over 65 by 2035, compared to 14,000 in 2010, and this means that health costs will rise. At the same time, we are investing in our services so that we can maintain our high quality of life, which is among the best in the OECD across a whole range of factors."

How important is this kind of statistical information in planning and tweaking policy for Jersey?

"It is tremendously important to have good-quality information. We have to make decisions based on facts and evidence. As decision-makers, we need to study the facts and evidence, improving where we need to."