Annual Performance Report 2008.

Annual Performance Report 2008

Annual Performance Report 2008

CONTENTS

Foreword Page 2 Introduction Page 3 Summary Page 4 Commitment One: We will maintain and enhance a strong, successful and environmentally Page 9

sustainable economy

Commitment Two: We will create the environment in which everyone in Jersey has the Page 22

opportunity to enjoy a good quality of life

Commitment Three: We will promote a safe, just and equitable society Page 38 Commitment Four: We will maintain and enhance the natural and built environment Page 50 Commitment Five: We will create a strong recognised identity for Jersey and promote a real sense Page 62

of belonging

Commitment Six: We will ensure that States services are necessary, efficient and of good quality Page 66 Annex – Public Sector Performance

FOREWORD

I am pleased to present the 2nd Annual Performance Report covering States activity in 2008.

As an organisation, we must regularly take stock and review whether we are making progress towards delivering our strategic aims. Measuring performance helps inform Ministers and their advisers about key trends, indicating whether their policies are effective and resources properly allocated. Informed decisions can then be made about any necessary adjustments to keep the Island on course through the annual business planning process. This joined up approach contributes to the transparency and accountability of government.

The ability to track yearonyear the Island's strategic social, economic and environmental indicators, and to monitor the progress of States departments in delivering the objectives agreed by the States, is important. It shows that, as an organisation, we regularly take stock and review whether we are making progress towards delivering our strategic aims. Not only does the Annual Performance Report give an overview of such progress, it also provides a long term insight into the impact of policy decisions and the efficiency and effectiveness of the services implementing them.

The Annual Performance Report is intended to keep the States and the public of Jersey fully informed about year onyear progress towards delivering the commitments set out in the Strategic Plan and the objectives agreed by the States in the Annual Business Plan. It provides a summary of performance across government departments. We hope the report is useful to Scrutiny in holding the Executive to account, and to Islanders in assessing the value of public services.

Senator Terry Le Sueur

INTRODUCTION

In June 2006, the States approved the Strategic Plan 2006 to 2011 which set the framework for the development of public policy for Jersey for the following five years and beyond, including the indicators which the States believed would measure the success of the Plan. When presenting the Plan to the States, the Council of Ministers also undertook to report back each year with an Annual Performance Report. The 2008 Annual Performance Report is the second such report to be produced and reports performance against the indicators published in the Strategic Plan 2006 to 2011 and the 2008 Annual Business Plan.

Providing a concise yet balanced insight into performance across a broad range of economic, environmental and social objectives represents a significant challenge. The majority of indicators used are recognised as standard service indicators and have been drawn from a wide variety of sources – UK Audit Commission, National Audit Office, best practice service reports, previous benchmarking reports etc. – so that they can be benchmarked with other authorities if required. Others are Jersey specific' in that they have been designed to measure the performance of specific policies. Monitoring performance is a continuous process inbuilt into the day to day management of services.

The format of the 2007 Annual Performance Report has been retained for 2008. Earlier this year, the States approved the new Strategic Plan. This will require a review and refinement of the indicators for the 2009 report to ensure that they properly reflect the revised priorities and objectives.

HOW THIS REPORT IS STRUCTURED

The report closely follows the format of the last Strategic Plan. The main body of the document reports on performance against the indicators approved by the States for each of the Strategic Plan commitments. The Annex relates to strategic objective 6.2 "Public Services that are recognised as efficiently and effectively meeting people's needs" and provides an update on progress against each of the departmental key objectives agreed by the States in the 2008 Annual Business Plan. It also reports at departmental level on the detailed service efficiency and effectiveness indicators also set out in the 2008 Annual Business Plan. Progress reports against each of the individual initiatives/projects set out in the Strategic Plan have previously been published at six monthly intervals.

Performance in 2008 has, where possible, been set in the context of performance from previous years. In all cases the most recent data available at the time of production has been used. In some cases this will be data for 2007 (or earlier) where 2008 data is not yet available; and where we have relied on surveys, the data will reflect the most recent survey undertaken and will set the baseline. Coloured indicators show an assessment of the current position against each of the indicators as follows:

on track slightly off track cause for concern

Where possible we have relied on the independent Statistics Unit for data, and some of the graphs and figures used for the performance indicators will have been previously published by them as key statistical data. This report attempts to set them in the context of the Strategic Plan.

SUMMARY

What we measured:

Commitment One: We will maintain and enhance a strong, successful and

environmentally sustainable economy

1. Show the world that economic and environmental success can work together

1.1a  Energy consumption 1.1b  Water consumption 1.1c  CO2 emissions  

1.1d  GVA/Waste   1.1e  Waste produced including recycling rates

2. Economic growth is sustained through improved productivity

1.2a  Economic Growth (Gross Value Added) (2007 data) 1.2b  Labour productivity (GVA/FTE) (2007 data)

3. Low inflation is sustained

1.3a  Inflation (RPIX)

4. The potential of the Island's workforce is maximised

1.4a  Overall employment 1.4b  Change in employment 1.4c  Labour productivity (GVA/FTE)  1.2b

1.4d  Employment/economic activity by age group/gender  -

5. The economy is diversified and developed

1.5a  Distribution of the workforce by sector

1.5b  GVA by Sector (2007 data) 1.5c  Net change in business undertakings 1.5d  Change in employment  1.4b

6. Jersey is a world class business centre

1.6a  Cost of travel 1.6b  Total profits of Finance Industry  1.8a

1.6c  GVA by sector  1.5a

7. The economy is more competitive

1.7a  Inflation (RPIX)  1.3a 1.7b  Labour productivity (GVA/FTE)  1.2b 1.7c  Tax as a percentage of GNI compared to other jurisdictions (2007 data)

1.7d  Average Earnings Index 1.7e  High wealth individuals newly resident in the Island

8. There is a flourishing finance industry with an international reputation for integrity

1.8a  Annual Profits and GVA in real terms of the Finance Sector (2007 data) 1.8b  Bank Deposits and value of funds administered

Commitment Two: We will create the environment in which everyone in Jersey has the

opportunity to enjoy a good quality of life

1. Jersey is well prepared to meet the challenges and opportunities presented by an ageing population

2.1a  Pension provisions: proportion of households with various types of pension  2.1b  Value of pensions: % uprate for contributory benefits and pensions 2.1c  Households receiving home care 2.1d  Economic activity of people above retirement age

2. Better health and well being for all the people of Jersey

2.2a  Public access to healthcare 2.2b  Life expectancy at birth 2.2c  Mortality rates from heart disease, stroke and cancer (people under 75) 2.2d  Mortality rates from suicide and undetermined injury 2.2e  Adult/child smoking rates 2.2f  Primary care costs (to individuals with chronic health conditions)

3. Health and Social Services are of a consistently high standard

2.3a  Elective waiting time: % of elective surgical patients waiting greater than 12 weeks after a

decision to admit

2.3b  Ambulance response times (% of responses to Category A calls within 8 minutes) 2.3c  Patient satisfaction with health care

4. Regulatory services are appropriate and are impartially and efficiently delivered

2.4a  Reduction in "red tape"

5. Full employment

2.5a  Overall employment  1.4a 2.5b  Registered unemployed for under-25s

2.5c  Employment/economic activity by age group  1.4c

6. A skilled, motivated and qualified local workforce able to meet the Island's economic and social objectives

2.6a  Employment/economic activity by age group  1.4c 2.6b  Graduate/ school leavers recruited into finance sector

2.6c  Employment of locally qualified people 2.6d  Comparison of skills gap/availability

7. Access to high quality learning opportunities

2.7a  Examination Results – GCSE/A-level 2.7b  Higher education/university participation rates and results 2.7c  3-5s with free nursery place

8. An active programme of cultural development

Indicators for the Cultural Strategy are to be developed  n/a 2.8a  People studying Jèrriais through l'Office du Jèrriais

9. Increased participation in sport

2.9a  Participation in Sport by the population over the age of 16

2.9b  ACTIVE members 2.9c  Visits to Sports Centres

10. Island-wide transport systems and policies which meet the needs of the community

2.10a  How people travel to work 2.10b  Bus usage 2.10c  Road Traffic Collisions 2.10d  Air Quality  4.4b

11. Inward migration matched to the Island's needs

2.11a  Changes in the overall population and inward migration

2.11b  Change in employment  1.4b 2.11c  Waiting list for social housing  3.8b

Commitment Three: We will promote a safe, just and equitable society

1. Basic rights and equal opportunities are established for all sectors of society

3.1a  % of enquiries received by JACS relating to discrimination and human/

individual rights

2. A safe community protected against crime and disorder  

3.2a  Levels of Recorded Crime 3.2b  Perceptions of public safety 3.2c  Views on policing

3. Ensure offenders are brought to justice fairly, promptly and cost effectively

3.3a  Crime Detection Rates 3.3b  Offenders on supervised probation 3.3c  Rate of re-offending behaviour  n/a

4. Strong protection against threats to the security, social and economic integrity and environment of the Island

3.4a  Illegal immigrants detected 3.4b  Drugs seizures - Kgs of Heroin Seized 3.4c  Smuggling attempts detected

5. Effective measures in place to deal with risks to life, property and the environment from

major incidents and emergencies

3.5a  The frequency and severity of search and rescue incidents in Jersey territorial waters 3.5b  %ca uosf eadc cbidy efinretal fires confined to room of origin and number of injuries

6. An integrated system of benefits which helps residents to achieve and maintain financial independence and which provides appropriate financial support for local households and individuals unable to support themselves

3.6a  Proportion of working age residents needing income support and overall

benefits paid in real terms

3.6b  Proportion of working age residents with long term health conditions in paid employment 3.6c  Rent subsidy - Number/cost of individuals receiving subsidy by scheme

7. Social care to protect and support vulnerable people

3.7a  Occupied bed days for adult mental health patients

3.7b  The proportion of children in care in family placements : % of children being looked after by family,

friends, foster carers or placed for adoption

3.7c  Households receiving home care  2.1c 3.7d  Value of Pensions  2.1b

8. Good standard of affordable accommodation for all

3.8a  Waiting list for social housing 3.8b  House Price Index/Earnings ratio 3.8c  Home ownership vs rental 3.8d  States rental homes meeting the UK Decent Homes Standard 3.8e  Provision of Homes for the elderly

Commitment Four: We will maintain and enhance the natural and built environment

1. A diverse working countryside

4.1a  GVA of the Rural Sector (2007 data) 4.1b  Land area supported by environmental initiatives 4.1c  Number of new rural economy initiatives supported

2. A vibrant town and waterfront for St Helier

4.2a  St Helier town centre – indices for retail 4.2b  Progress of St Helier Waterfront 4.2c  Investment in the public realm

3. An energy policy for Jersey

4.3a  Energy consumption  1.1a 4.3b  Energy use in government buildings

4.3c  Fuel poverty (2005 baseline data)

4. Clean air, clean water and uncontaminated land

4.4a  Drinking Water Quality 4.4b  Air Quality 4.4c  Bathing Water Quality

5. Jersey's natural and built heritage is sympathetically managed

4.5a  Land coverage/change in habitat/land use (2007 data) 4.5b  Number of areas designated as Sites of Special Interest and other conservation derogations 4.5c  Habitats achieving favourable conservation status 4.5d  Annual shell fish and wet fish catches 4.5e  Health of fish stocks – catches of lobsters

6. Waste systems meet international standards and the use of resources is improved

4.6a  Waste recycling rates  1.1d 4.6b  Cost per tonne of handling waste

4.6c  Energy usage  1.1a 4.6d  Emissions from the new energy from waste plant  n/a

7. A new Island Plan that meets the Island's social, economic and environmental aspirations

4.7a  Land coverage   4.5a 4.7b  Supply of homes 4.7c  Amount of new floorspace with planning permission for retail, office hotel/leisure uses

8. A physical infrastructure which supports the economic and social needs of the Island

4.8a  Plifeercceycnltea greeqoufi rheimghewnatsy maintenance undertaken annually measured against the recommended whole

9. Valued and well maintained public places 4.9a   Public feedback on the cleanliness of municipal areas  

Commitment Five: We will create a strong recognised identity for Jersey and promote a

real sense of belonging

1. A stronger sense of citizenship and community

5.1a  Public satisfaction with government (2006 baseline data)  n/a 5.1b  Green/white papers issued

5.1c  Electoral Turnout (in an election year)

2. Continued development of the Island's international constitutional position and international profile

5.2a  Overseas Aid as a proportion of GNI   5.2b  Constitutional position

Commitment Six: We will ensure that States services are necessary, efficient and of good

quality

1. States income and expenditure balanced over the economic cycle

6.1a  Percentage increase in tax revenue (including impôts)  6.1b  States Budget (deficit)/surplus for the year  

6.1c  Capital expenditure as % of total States expenditure  -

2. Public services that are recognised as efficiently and effectively meeting people's needs

6.2a  Real increase/decrease in the cost of the public sector  

(See also the Annex to this report which reports on the efficiency and effectiveness of individual  States Departments.)  

3. Maximise the potential of States' owned strategic resources

6.3a  Financial returns from States-owned utilities

4. Development of a long-term relationship between the States and the Parishes

6.4a  Relationship between the States and the Parishes

5. Recognise the strategic importance of harbours and airport

6.5a  Passenger movements through Harbour/ Airport overall  6.5b  Passenger movements through Harbour  

6.5c  Harbour Dues per vessel movement

6.5d  Passenger air transport movements  

6.5e  Airport Dues per passenger  

Commitment One: We will maintain and enhance a strong, successful and environmentally sustainable economy

SUMMARY

2008 saw a fundamental change in the world economic climate and, as a consequence, the development of Jersey's economy. After the return to real and significant growth in the period 2005 – 2007, the first three quarters of 2008 showed signs of continued growth, albeit at a lower level. Economic indicators for the last quarter of 2008 suggest that, as a result of the impact of the emergence of global recession, the growth in the economy failed to maintain this momentum in the latter part of the year. This, more negative, economic outlook was echoed by the Fiscal Policy Panel, comprising of three leading economists, which downgraded its forecasts of Jersey's economic performance in its interim report published in January 2009. This change in economic conditions will have a significant impact on our ability to manage Jersey's economy to deliver the full range of Strategic Plan objectives and balanced public finances.

The total annual profit of Jersey's financial services sector in 2008 at £1.52 million, was 4% higher than in 2007. After adjusting for inflation this represents a real term growth of 1%, significantly lower than 2006 and 2007. In 2008 bank profits fell slightly compared with 2007 (down by 3%); in contrast, trust and company administrators (including legal firms) and accountants saw profits rise, whilst fund managers recorded a large increase. The total number of full time equivalent (FTE) staff employed in the finance sector in 2008, at 13, 410 was 320 higher than in 2007. This increase was largely due to greater numbers of staff in the accountancy and trust and company administration subsectors. Profit per FTE employee in 2008 for the finance sector overall was £123,000, nominally 2% higher than in 2007, though down slightly in real terms.

The challenges in the early part of 2008 were more associated with managing a growing economy. In the final quarter of 2008 and into 2009 the impact of the global economic climate completely changed this emphasis to one of economic stimulus as the Jersey economy headed into a potential recession. Upon the advice of the Fiscal Policy Panel, plans were drafted to implement a programme of discretionary fiscal stimulus utilising fund from the Economic Stabilisation Fund, established by the States to counter the impact of negative economic conditions.

Jersey Enterprise, Economic Development's enterprise and business development, was fully functional throughout 2008 in a dedicated business contact centre at Jubilee Wharf. Jersey Enterprise encourages business and enterprise development by working with business through an account management structure. Areas of focus include, but are not limited to, indigenous small and medium business growth, increasing export trade, increasing inward investment, facilitating innovation, allowing competition and through its account management structure providing products and services to business to deliver genuine economic diversification.

Jersey's economic stability remains dependent upon keeping inflation in check. Jersey's economic performance in the late 1990s illustrated that when the economy grows for a sustained period inflation can quickly get out of hand. Inflation is the arch enemy of all businesses in Jersey it undermines efficiency and erodes the competitiveness of exporters in all sectors. The Fiscal Policy Panel (FPP) will provide independent advice on how inflation can be kept on target to allow a strong, successful economy to be maintained.

In meeting the challenges of a growing economy, the Migration Advisory Group (MAG) considers Housing and Regulation of Undertakings (RUD) issues. The MAG, comprised of Ministers from Chief Minister's, Economic Development and Housing Departments enables all relevant factors to be considered during the process of approving significant Regulation of Undertakings and Housing licences. In 2008, as economic conditions changed, the MAG has been able to have a positive impact on local employment by insuring that a higher proportion of jobs are available to locallyqualified staff. In addition the MAG has developed a new Migration Policy that, in time and subject to States approval, will integrate Housing and Regulation of Undertakings in a single, streamlined legislative framework that will greatly reduce "red tape" for Jersey businesses.

The Skills Executive was implemented in 2008 an example of real joinedup strategy policy and delivery in the area of skills development and training. Led by a private sector Board who advise the Ministers for Education, Economic Development and Social Security, amongst many achievements, the Skills Executive established a new integrated careers service, "Careers Jersey" located at La Motte Street.

During 2008, Economic Development had significant impact in the process of drafting the new Island Plan. This included emphasis on the development of the retail sector and light industrial premises in the Island, both vital components of continued economic prosperity and diversification. By working with Planning and Environment in the process of reviewing the Island Plan, barriers to realising value from the rural economy will also be removed.

2008 saw the continued development and reform of the dairy sector. Jersey Dairy, the Jersey Milk Marketing Board and its members have made significant productivity improvements, broadened their product range, opened new export markets and moved towards relocation to a new dairy at Howard Davis Farm in Trinity . The potato sector saw the emergence of a new entrant, Albert Bartlett and Co who, with Jersey Royal Limited, continue to develop the UK market for the Island's key export crop. 2008 also saw the reform of Genuine Jersey and the creation of the private sector led Jersey Product Promotion Limited. Jersey Product Promotion Limited's objective is to develop exemplar products that reflect all that is good about the Island for sale in both Jersey and international markets.

In 2008, working with the Jersey Hospitality Association, Economic Development developed a proposal to establish a private public partnership (PPP) to market and promote Jersey as a visitor destination in the UK and other European markets. Subject to review by Scrutiny, a Report and Proposition will be lodged for debate by the States in late 2009.

A new marketing programme, including significant TV advertising combined with increased emphasis on air and sea route development, produced a continued growth in overall visitor and staying leisure visitor numbers in the first nine months of 2008. This early success was not sustained in the fourth quarter as the impact of the global recession hit both leisure and business arrivals resulting in 2008 arrivals being 0.4% below 2007. This downward trend has continued in the first part of 2009.

In addition to the development of existing sectors, the key to economic diversification is the development of new sectors. To ensure success Jersey has to develop the necessary legislative framework to allow new sectors to flourish in the Island. During 2008, EDD continued development of intellectual property and gaming legislation to provide the foundation for development of new and potentially valuable sectors of the Jersey economy.

Through Jersey Enterprise, we continue to promote environmental awareness in business through initiatives including ECOActive Business. In addition, Jersey Enterprise intends to increase its work with Jerseybased companies in the domestic and commercial energy efficiency sector and encourage inward investment by companies in energy efficiency and renewable energy. This could result in economic benefits for Jersey and environmental benefits for Jersey and beyond.

1.1.  Show the world that economic and environmental success can work together

What we measured:

1.1a Energy consumption

Why it is important:  Performance:

Energy  use  has  environmental  consequences  in  250,000 Total final energy consumption

terms of the greenhouse gas emissions arising from

the  burning  of  fossil  fuels.  It  also  has  economic

consequences because the finite nature of fossil fuel  200,000

reserves and increasing global oil prices. There are

impacts on the Island's security of supply due to our  150,000

dependence on the imported energy stocks

100,000

What was achieved:

It was intended that an Energy Policy be bought to the  50,000

States for debate in 2008. However the Council of

Ministers  identified  a  need  for  further  economic  0

analysis of the draft White Paper so this was delayed.  1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Additional analysis will be undertaken over the course  Source: Energy Trends; States of Jersey Statistics Unit. of 2009. (See also 1.1c)

1.1b Water consumption

Why it is important:  Performance:

Jersey is dependent primarily on the amount of rainfall  Total water supply and water supply by head of population

received  for  its  water  supply. Around  90%  of  the  Total water supply

Island's population receive their water from the public  8,000 Water Supply per head 90 water  supply  which  is  predominantly  collected  from  7,000 80 streams. There is currently little information on the  70

quantities of surface or groundwater utilised, and there  6,000

are no restrictions on water abstraction.  5,000 60

50

4,000

What was achieved:  40

3,000

During  2008  the  preparatory  work  for  the  30

2,000

implementation of the Water Resources (Jersey) Law  20

2007 was undertaken which successfully enabled the  1,000 10

law to come into force on 1 January 2009. During the

0 0 course of the first three months of 2009, approximately  2001 2002 2003 2004 2005 2006 2007 2008

170  applications  for  water  resources  licences  have  Source: Jersey Water Annual Report; States of Jersey Statistics Unit. been received and over 2000 domestic registrations

for  abstractions  have  been  made.   The  information

supplied in the associated forms will ensure we are

better informed regarding the Island's water resources

and  will  enable  controls  on  abstraction  to  be

implemented where necessary.

1.1c  CO2 emissions

Why it is important:

There is increasing evidence that man-made emissions  Performance:

are accelerating global climate change. Locally, this will  Energy related carbon emissions

affect  sea  defences  and  water  resource  availability,  200,000

disrupt ecosystems and alter conditions for agriculture  180,000 Total road transport

and human health.  EHloeucstreichitoyldGaennderbautsioinness

160,000 Energy-from-w aste plant Jersey  performs  relatively  well  in  terms  of  carbon  All

emissions as a result of the switch from on-Island oil- 140,000 All less electricity generation fired  electricity  generation  to  importing  low  carbon  120,000

electricity  from  France. Nevertheless,  it  has  an

opportunity  to  enhance  its  international  reputation  by  100,000

seeking to act responsibly in its approach to climate  80,000

change.

60,000

What was achieved:

40,000

Continued  work  has  been  underway  to  develop  an  20,000

energy policy with a goal of ensuring secure, affordable

and sustainable energy for Jersey (see 1.1a). This is  0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 likely to propose targets of 80% reduction on carbon  Source: Energy Trends; States of Jersey Statistics Unit. dioxide emissions on 1990 levels by 2050. The Minister

for Planning and Environment Work appointed a tidal

power  steering  group  who  have  been  making

recommendations on how the Island could decarbonise

its  economy  in  the  long  term  by  exploiting  offshore

renewable tidal resources.

1.1d GVA/Waste

Why it is important:  Performance:

Economic  efficiency  requires  a  sound  approach  to  Total waste produced and GVA in constant (2003) Price s resource use. Excessive waste represents inefficiencies  120000 4000 and  there  are  costs  to  the  reuse  and  recycling  of  Total waste

materials  as  well  as  environmental  consequences  in  100000 GVA  3500 ensuring the appropriate final disposal of waste that is  3000

produced.  80000 2500 It should be noted that there are several influences on

the  generation  of  waste,  in  particular  the  trends  in  60000 2000 packaging and the increase/decrease in the number of  1500

households  40000

1000 20000

What was achieved:  500 Waste and real GVA increased in 2007. Waste grew by  0 0

4.5% and the value of economic activity grew by 7.3%  2003 2004 2005 2006 2007 2008 during 2007. Although economic growth is not the only

influence on waste generation it is encouraging to see  Source: Transport and Technical services

that the growth in waste was not as great as GVA.

Data  for  GVA  in  2008  will  not  be  available  until September 2009.

1.1e Waste produced including recycling rates

Why it is important:  Performance:

Waste is a misuse of resources. We must not only reduce

the amount we produce, but we must also make the most  Total non-inert waste received at Bellozanne out  of  that  which  is  generated. This  can  be  achieved  120000

through recycling and composting and energy recovery.  100000

What was achieved:  80000

The amount of waste requiring disposal in 2008 decreased  60000

by just over 3% (3,356 tonnes) to 103,231 tonnes. This is

principally due to the significant decrease in the amount of  40000

green waste received in 2008.  20000

The recycling and composting rate also decreased slightly

to 29.8% in 2008, a 0.6 percentage point drop. Again this  0

2003 2004 2005 2006 2007 2008

was due to the drop in the amount green waste received in

2008 and this brought down the recycling rate, despite an

increase in all other categories of recycling.

Recycling Rate

The  national  household  recycling  rate  for  2007/8  was  40% 34.5% (DEFRA)*, compared to the rate for Jersey 29.8%  35% for 2008. England also monitors its Energy Recovery and  30% Refuse  Derived  Fuel  manufacture. Jersey  not  only  far

surpasses the average rate for England but also the most  25% successful region, the West Midlands.  20% 15%

* As waste is not collected in the same way in England and  10% Jersey, it is not possible to compare exactly like for like,

therefore these figures should be seen as indications only.  5% 0%

2003 2004 2005 2006 2007 2008

Jersey and regional household recycling and municipal recycling rates 2007/2008

100

90

80 Municipal recovery rate(%)

70

Household recycling /composting rate(%) 60

50

40

30

20

10

0

rsey land st est ber nds ds nds ndon est Je um dla lan dla Lo h East

Eng id t

North Ea North W t Mi t M Sou outh W

ast Mi S

Eas Wes E

re and the H

orkshi

Y

Source: Transport and Technical services and DEFRA for English government office regions*.

2. Economic growth is sustained through improved productivity

What we measured:

1.2a Economic Growth (Gross Value Added)

Why it is important:  Performance:

Economic growth is a sign of a strengthening economy  % change in real GVA

and  generally  represents  an  increase  in  living  8%

standards. Real GVA, which strips out the effects of

inflation, is the best measure of economic activity that  6%

has taken place in Jersey over a year. An increase in

real GVA over time represents real economic growth.  4%

What was achieved:  2%

In 2007 Jersey's GVA increased by 7.3% in real terms  0%

to  just  under  £3,670  million  –  its  third  year  of  1999 2000 2001 2002 2003 2004 2005 2006 2007 consecutive  growth. Overall  growth  was  mostly  a  -2%

result of the finance sector performing strongly. Many

of the non-finance sectors also performed well – in  -4%

particular the construction and other business activities

sectors. Data  for  2008  will  not  be  available  until  -6%

October 2009.  Source: Jersey Gross Value Added (GVA); States of Jersey

Statistics Unit.

1.2b Labour productivity (GVA/FTE)

Why it is important:  Performance:

Labour  productivity  is  one  of  the  most  important

determinants of Jersey's economic performance. A  £75,000

more productive workforce helps generate economic  £70,000

growth which can mean that people are paid more and  £65,000 Jersey that businesses can export more and generate higher

profits.  A  relatively  productive  workforce  in  £60,000

international  terms  helps  our  export  businesses  to  £55,000

compete  effectively  with  the  rest  of  the  world.  £50,000

GVA/FTE (full time equivalent) is an indicator of labour  £45,000 UK productivity.  £40,000

£35,000

What was achieved:  £30,000

1999 2000 2001 2002 2003 2004 2005 2006 2007

In  2007,  labour  productivity  as  measured  by  real

GVA/FTE in Jersey increased for the fourth year in a

row reaching a level similar to that seen in 2000. The  Source: Economic Adviser's Division, Chief Minister's Department. UK has seen improvements in real GVA/FTE for each

year in the period shown. Data for 2008 will not be

available until October 2009.

3. Low inflation is sustained

What we measured:

1.3a Inflation (RPIX)

Why it is important:  Performance:

Low inflation, consistently around targeted levels provides a business  environment  that  enables  greater  economic efficiency  and  international  competitiveness,  and  as  a consequence,  economic  growth  too. It  also  reduces  the inequitable  consequences  for  those  who  have  saved  – maybe for retirement – compared to those who spend. It is vital that inflation is kept under control in any economy and especially in Jersey where over half of the businesses export goods and services. RPI(X) is an indicator for inflation that excludes the cost of house purchases.

Inflation (RPIX)

8 7 6 5 4 3 2 1 0

Low  inflation  compared  to  other  economies  helps  to

improve  the  international  competitiveness  of  our

businesses, especially where it filters through into lower

cost increases over time.  r-02 -02p-02c-02r-03 -03p-03c-03r-04 -04p-04c-04r-05 -05p-05c-05r-06 -06p-06c-06r-07 -07p-07c-07r-08 -08p-08c-08r-09 -09

Ma JunSe De Ma JunSe De Ma JunSe De Ma JunSe De Ma JunSe De Ma JunSe De Ma JunSe De Ma Jun

What was achieved:

Before 2005, inflation in Jersey was above that of the UK  RPI (X) Jersey, Guernsey and UK and  Guernsey,  undermining  the  competitiveness  of  our

Island businesses.  8

7

Between 2005 and 2007 inflation fell in line with the UK (and close to the States target level of 2.5% over the medium term) and remained below that in the UK for some time too.

6

5

4

However, toward the end of 2007 and into 2008 inflation in all three jurisdictions picked up reflecting higher food and oil prices.

3

2

The expectation is that inflationary pressure will fall during

1

2009 – global food and fuel prices are lower and the effect of

0

GST on Jersey's measures like RPI(X) will drop out also. -02 -02 -03 03 -03 r-04 -04 r-05 05 -05 -05 -06 -06 -07 07 -07 08 -08 c-08 -09un-09

Sep Dec Mar Jun-Sep-0D3ec Ma Jun-S0e4p-0D4ec Ma Jun-Sep Dec Mar-0J6un Sep Dec-0M6ar Jun-Sep Dec-0M7ar-0J8un-Sep De Mar J

Source: Jersey Retail Price Index; States of Jersey Statistics Unit

4. The potential of the Island's workforce is maximised

What we measured:

1.4a Overall employment

Why it is important:  Performance:

Employed  people  contribute  to  the  economy  and  60000 Total employment in Jersey

generate  economic  growth  through  the  work  they  do.  PPruivbalicteSSeecctotorr Unemployed people are part of the workforce too but not  50000 Total

only do they not contribute as much to economic growth

while they are out of work, they may also need to rely on  40000

public benefits such as income support.  30000

What was achieved:  20000

Private  sector  employment  grew  by  530  in  2008,  in

particular in finance - where the workforce grew by 300 -  10000

as well as construction, and private sector health and  0

education.  However,  2008  did  see  a  levelling  off  of

employment  growth  compared  to  2007,  when  the  1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

workforce grew by 1,360.  Source: Labour Market Report; States of Jersey Statistics Unit.

1.4b Change in employment

Why it is important:  Performance:

Increases in employment, particularly if due to increases in  local  employment,  are  positive  for  the  overall economic and social fabric of the Island. Net growth in employment of 1% is targeted in the Strategic Plan.

Percentage change in annual employment

3000 2500 2000 1500 1000 500 0 -500 -1000 -1500

7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3%

What was achieved:

Net growth in employment over the previous 5 years has averaged  1.3%  per  annum,  but  the  focus  into  2009 remains very much on managing the consequences of economic downturn.  

Source: Labour Market Report; States of Jersey Statistics Unit.

1.4c Labour productivity (GVA/FTE) - see 1.2b

1.4d Employment/economic activity by age group/gender -

Why it is important:

Understanding what proportion of males and females of

different ages are in employment in Jersey is important  Performance:

as it highlights possible areas where there may be scope

for improvements in economic activity rates – increasing  Percentage of age group in employment the  size  of  the  workforce  without  increasing  the

population.  100%

90%

Whether there is scope for improvement depends on why

80%

employment rates are not as high as they could be. If

70%

there are barriers to work, there might be a strong case  60%

for government to develop policy to try to remove the  50%

barriers. Not all lower employment levels are for negative  40%

reasons though, for example, many younger people are

30% 20% 10% 0%

in  further  education  and  not  in  work,  which  can  be

beneficial to Jersey's economy in the long run.

What was achieved:  16-24 25-34 35-44 45-54 55-64 65-74 75+

The  overall  employment  figures  for  2008  show  that

almost 9 out of 10 (88%) of 25 to 54 year olds and two  Economic Activity thirds (66%) of 55 to 64 year olds were in employment.

In terms of the proportion of women and men who are of working age (between 16 and 64 for men and 16 and 59 for women inclusive) who are either in employment or actively seeking employment – the economic activity rate

- this has continued to be slightly greater than that found in the 2001 Census through each JASS survey over the last 4 years. The increase has been mainly in the female activity rate, from 76% in 2001 to 81% in 2008.

Sources: States of Jersey Statistics Unit.

5. The economy is diversified and developed

What we measured:

1.5a Distribution of the workforce by sector

Why it is important:

Diversity  in  the  economy  and  labour  market  is  Performance:

important for economic and social stability, as well as

for  the  environment  (agriculture)  and  transport  links  DJeecrs2e0y0e8mhpelaodycmoeunntt (tourism). Large proportions of the workforce in high

value  added  industries,  such  as  finance,  are  Education, health  States non-Trading particularly important for economic and fiscal stability.  an(pdr oivtahteer sseecrvtoicr)e,s  Departments, 12%Agriculture and

10% fishing, 3%

What was achieved:  Miscellaneous  Manufacturing, 3%

business activities,

The finance sector continues to grow as a proportion  6% Electricity, gas and the economy, while also continuing to diversify, and  w ater, 1% now  comprises  25%  of  private  sector  employment.  Construction and

Construction also continues to grow, as does private  Financial and legal  quarrying, 10%

sector education and health services, and fulfilment.  activities, 25% Transport, storage

and communication,

5%

Computer & related

activities, 1% Wholesale and retail

Hotels, restaurants  trades, 16%

and bars, 9%

Source: Labour Market Report; States of Jersey Statistics Unit.

1.5b GVA by Sector

Performance:

Why it is important:

In order to develop and support economic strategy it is  GVA by sector, 2000

important to understand the make up of the Jersey  2%

economy and what proportion of total economic activity  2% 1%

comes from each sector. Trends over time can also  10% 5% Agriculture

show whether the economy is diversifying or becoming  6% 6% Manufacturing

more dependent on certain activities.  4% Electricity, gas, water

6% Construction

4%

Wholesale and retail What was achieved:  Hotels, restaurants, bars

Over  the  seven  year  period  to  the  end  of  2007,  Transport and communication economic  activity  in  Jersey  became  slightly  less  Financial intermediation

Other business activities focused  on  financial  services,  manufacturing  and  Public administration

hotels, restaurants and bars (down by 1%) and more  Rental

focused  on  other  business  activities  (up  2%)  and  54%

public administration (up 1%). 2008 data will not be

available until October 2009.

GVA by sector, 2007

1%

1%

1%

11% 5%

Agriculture

6%

7% Manufacturing

3% Electricity, gas, water

7% 4% Construction

Wholesale and retail

Hotels, restaurants, bars Transport and communication Financial intermediation Other business activities Public administration

Rental

54%

Source: Jersey Economic Digest; States of Jersey Statistics Unit.

1.5c Net change in business undertakings

Why it is important:

Change in the number of undertakings in the Island is a  Performance:

sign of both market vitality, and diversity or concentration  Numbers of businesses in Jersey in  the  economy.  While  it  is  difficult  to  draw  a  single  7000

conclusion  from  movements,  a  healthy  growth  in  6000 BOunsei-npeesrssoens  bwuhsicinhetswsoe sor more people are engaged undertakings is an indication of economic growth and  All businesses

diversity.  5000

What was achieved:  4000

The number of undertakings in Jersey remained healthy  3000

in  2008  with  continuing  growth,  indicating  broad

economic success. At the same time, again, caution is  2000

due for 2009, albeit entrepreneurs continue to establish

new  ventures  and  dedicated  support  through  Jersey  1000

Enterprise is available to assist in this.  0

Dec 01 Dec 02 Dec03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08

Data source: Labour Market Report; States of Jersey Statistics Unit.

1.5d Change in employment – see 1.4b

6. Jersey is a world class business centre

What we measured:

1.6a Cost of travel

Performance:

Why it is important:

RPI of Fares and Travel group

Travel is quite often an additional cost of doing business  200

for  Jersey  businesses  and  those  doing  business  with  180

160

Jersey and it is therefore important that we keep that  140

cost as low as possible.  120

100

Fares and travel group What was achieved:  80

All items index Economic  Development  has  continued  to  work  with  60

Jersey Harbours and Jersey Airport to help establish new  40

20

routes and maintain existing routes. Paris and Belfast  0

has been added to the network but other routes such as

Luton and Heathrow have unfortunately been lost.  2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Jersey Retail Price Index; States of Jersey Statistics Unit.

1.6b Total profits of Finance Industry – see 1.8a 1.6c GVA by sector – see 1.5a

7. The economy is more competitive

What we measured:

1.7a Inflation (RPIX) - see 1.3a

1.7b Labour productivity (GVA/FTE) - see 1.2b

1.7c Tax as a percentage of GNI compared to other jurisdictions /GNI per capita

Why it is important:

Low taxation improves the Island's competitiveness, encourages businesses to locate here and assists in promoting economic growth and prosperity. It also means that individuals have more disposable income.

What was achieved:

The most recent information available shows that taxation in Jersey as a percentage of GNI between 2005 and 2007 decreased marginally each year from 19.0% to 18.5%. The latest comparable OECD nation data is provisional at the moment, but shows in 2007 that Jersey has one of the lowest rates of taxation as a percentage of GNI compared to other jurisdictions in the EU and OECD.

The second chart shows that GNI per capita in Jersey in 2007 is slightly lower than that of Luxembourg but higher than that of Guernsey and significantly higher than that of the UK as a whole and the Isle of Man.

Performance:

60

2005

50 2006

2007 (provisonal) 40

30

20

10

0

OECD Nations and Jersey

GNI per capita 2007

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

Lux. Jersey Gsy. Singp. USA Switz. Ireland IOM UK France EMU World

Source: Statistics Unit

1.7d Average Earnings Index

Why it is important:  Performance:

Large increases in average earnings (relative to our  Annual Percentage Change In Average Earnings, 1997-2008 competitors  and  inflation)  over  time  can  harm  the  9

international competitiveness of our businesses if not  8

matched by improvements in productivity. This is  7

because it can mean that unit labour costs rise at a  JUeKrsey

faster rate than in competitor jurisdictions.  6

5

What was achieved:

4

In June 2008 average earnings in Jersey were 4.3%

higher  than  in  June  2007. The  annual  rate  of  3

increases was 0.4% lower than that reported for the  2

previous twelve month period. Average earnings in

the private sector increased by 4.2% over the year to  1

June 2008 whilst those in the public sector increased  0

by 4.9% largely because pay awards (scheduled and  1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 retrospective) were implemented for the majority of

public sector employees. Source: Average Earnings Index; States of Jersey Statistics Unit.

1.7e High wealth individuals newly resident in the Island

Why it is important:

High wealth individuals invest in our economy, bring  Performance:

greater  spending  and  facilitate  improved  public  Number of consents issued to approved (high wealth individuals) services through the taxes they pay. Such individuals  1(1)K

can  also  bring  new  skills,  business  expertise  and  14

innovation  and  therefore  help  facilitate  economic  12

growth.

10

What was achieved:  8

In 2008, 12 1(1)k applications were approved with the  6

successful applicants taking up residence in Jersey.

As  with  previous  years  there  are  a  number  of  4

applications being examined as we enter 2009.  2

0

2001 2002 2003 2004 2005 2006 2007 2008

Source: Population Office

8. There is a flourishing finance industry with an international reputation for integrity

What we measured:

1.8a Annual Profits and GVA in real terms of the Finance Sector

Why it is important:  Performance:

As the Finance Sector accounts for a very significant

share  of  tax  revenues  from  companies  its  annual  Annual profits of financial institutions in real term profit (2003) profits are a key driver of government tax revenues.  1400

GVA  represents  corporate  profits  plus  wages  and  1200

salaries per employee and hence is a key driver of  1000

government  tax  revenues  from  companies  and  800

individuals  as  well  as  a  measure  of  buying  power

being created in the economy.  600

400

What was achieved:  200

Total annual profit for the financial services sector in  0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2008 has been estimated as £1,520million, 4% higher  Source: Survey of Financial Institutions; Statistics Unit.

than 2007 in nominal terms and 1% real growth. Banks

accounted for more than three quarters of this total,

but fell slightly (3%) compared with 2007. Trust and  GVA real terms of Finance Sector

company  administrators  (including  legal  firms)  and  2500

accountants  saw  profits  rise  slightly  and  fund  2000

managers recorded a large increase. The total number

of  full  time  equivalent  employees  employed  in  the  1500

sector  was  up  320  at  12,800,  total  expenditure  on  1000

employment was up £50m or 7.7% and average profit

per  employee  was  up  almost  2%  on  2007.  Total  500

expenditure on goods and services in Jersey in 2008  0

was about £350m.  1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Jersey Gross Value Added (GVA) and Gross National Income (GNI); States of Jersey Statistics Unit.

1.8b Bank Deposits and value of funds administered

Why it is important:

Bank deposits are a good proxy for the health of the  These results compare very favourably with other traditional source of finance profits. It can be volatile  jurisdictions that have suffered much greater downturns in but overall direction is a good indicator.  their financial services

Funds under administration represent a more recent

revenue stream for the finance sector and therefore  Performance:

are  a  good  measure  of  diversification  as  well  as  Bank deposits and funds administrated in Jersey 2000-2008 overall health of the finance sector.

300 What was achieved:

250 After a robust performance to the end of Q3 the impact of

the economic crisis was felt in Q4:  200

Total bank banking deposits decreased by £6.2bn during the year  deposits

2008 from £212.3bn to £206bn.  150

Total value of

• The Net Asset Value (NAV) of funds under  100 Funds Administrated

administration decreased by £5bn during the last twelve

months from £246.2bn to £241.2bn. The total number of  50

Funds increased by 161 from 1,311 to 1,472.  0

• The value of funds under investment management  2000 2001 2002 2003 2004 2005 2006 2007 2008

decreased by £0.5bn from £19.3bn to £18.8bn during  Source: Jersey Financial Services Commission; Jersey in Figures; 2008  States of Jersey Statistics Unit.

Commitment Two: We will create the environment in which everyone in Jersey has the opportunity to enjoy a good quality of life

SUMMARY

The indicators contained within Commitment Two demonstrate that significant progress continues to be made in improving the quality of life in Jersey, despite the challenges which the changing age structure within our population are presenting us with.

It is self evident that a fundamental – albeit indirect – measure of health in a particular jurisdiction is; life expectancy. In Jersey, life expectancy at birth for both males and females exceeds that in England and this is rightly a cause of some satisfaction. However, longer life by itself is insufficiently robust as a measure because life expectancy is of little value if that longer life is bedevilled by illhealth and poverty. It is pleasing therefore to observe that the citizen's access to general practice remains satisfactory and on track.

Also, noteworthy progress has been made in reducing the incidence of the three big killer diseases namely heart disease, stroke, and cancer. Further, the patient's experience of acute care at the general hospital continues to score highly with performance much higher than in comparable institutions on the mainland.

What remains a concern though is the increase in emergency admissions to the hospital which has placed pressure on its general bed complement. This means that there is the danger that the increasing number of emergency patients will incur into elective surgical beds. This trend already threatens the comparatively low waiting lists which Jersey has enjoyed for almost five years now. To fundamentally resolve this problem more emergency beds are to open in the general hospital and there is to be further significant investment in general emergency services.