This content has been automatically generated from the original PDF and some formatting may have been lost. Let us know if you find any major problems.
Text in this format is not official and should not be relied upon to extract citations or propose amendments. Please see the PDF for the official version of the document.
STATES OF JERSEY
r
ECONOMIC GROWTH PLAN (P.38/2005): COMMENTS
Presented to the States on 19th April 2005 by the Finance and Economics Committee
STATES GREFFE
COMMENTS
The Finance and Economic Committee fully supports the Economic Growth Plan', maintaining that economic growth is a key component to the success of the Fiscal Strategy, and one which is vital in order to mitigate the loss of taxation revenues as a result of the changes to the corporate taxation structure.
A real increase of 2% per annum in economic growth is estimated to yield £20 million additional tax revenue over the 5 year period 2005-2009. This will enable the size of the potential increase in tax burden for residents to be eased.
The Committee strongly supports the principle of the "Stabilisation Fund" and will bring forward in due course detailed proposals for the funding thereof, and criteria for its use to ensure adequate investment at times of economic downturns.
In order to attain the target level of economic growth, investment is clearly necessary. The Finance and Economics Committee considers that the proposals for that investment put forward in the Economic Growth Plan are reasonable and realistic.
The investment will ultimately result in income to the States, which will enable the level of services currently provided to the Public to be maintained. Funds for the on-going investment costs will have to be found from within existing resources, and the Finance and Economics Committee will ensure that these plans are built into future resource allocation processes. However, over the initial period the Committee will identify and make available adequate pump priming funding to enable preliminary investment to occur as a matter of priority.