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1240/5(2012)
QUESTIONS TO BE ASKED OF THE PRESIDENT OF THE FINANCE AND ECONOMICS COMMITTEE ON TUESDAY 2nd DECEMBER 2003, BY
DEPUTY G.P. SOUTHERN OF ST. HELIER
Question 1
The figures below show the cumulative rise in average earnings by sector over the years 1994 to 2002 –
Sector Percentage change
Agriculture 31 Manufacturing 34 Electricity, gas, water 52 Construction 47 Distribution 53 Hotels, restaurants, bars 49 Transport and communications 56 Financial Intermediation 68 Other business 61 Public administration 40 All sectors 53
Does the President accept that these figures demonstrate clearly that the gap between higher and lower incomes has increased markedly over this period of time?
Answer
No. The figures provide no information at all on incomes. All they show are the relative movements in average earnings in different sectors. The reasons for these movements are many and varied as employment patterns are constantly changing. For example, the finance industry has recently shed a number of lower paid back office jobs. This shift towards higher value jobs will have the effect of raising the average earnings figure for the sector as a whole.
The figures do, however, demonstrate that there are differences between sectors in the cumulative rise in average earnings between 1994–2002. This is also reflected in differences in changes in productivity and profitability per worker between sectors, particularly in the financial services sector which experienced an unprecedented boom during the 1990's. Output per worker, measured in terms of profit, is higher in financial services by a considerable margin than in any other private sector activity and this no doubt has some correlation with its rise in average earnings experienced over the period measured.
Question 2
Will the President inform members which measures proposed in the 2004 budget are designed to reduce the growing gap between rich and poor?
Answer
The 2004 Budget should be viewed as an overall package for tax and spending, and individual measures should not be viewed in isolation. The Committee firmly believes that the Budget represents a package of measures which is fair and equitable, with no one sector of society taking an unfair burden of any additional tax take.