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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 3rd JUNE 2008
Question
- " D oes the Minister have figures for 2006 and 2007 relating to the average annualbonus per FTE in the Finance Sector (given that in 2005, according to the Jersey EconomicDigest 2006, itwas£5,600, raising the averageweeklyearningsfigure from £710 to £820)?
- D o es the Minister accept that the rateofwage inflation is drivenby competition from the Finance sector and if so, whatproposals,if any, does he have to curb wage claims in the Private sector, and the Finance sector in particular, in ordertogive his anti-inflation strategy anypossibilityofsuccess?"
Answer
- T h e estimateoftheaveragebonus paid per FTE working inthe finance sector in Jersey for 2006was approximately £5,400 per annum. This figure is derived from data collected for the 2006 Survey of
Financial Institutions. The figure for 2007 will be available on 2nd July 2008, when the 2007 survey of Financial Institutions will be published.
- It is importanttomake a distinction between wage increases that reflect productivity improvements and those that do not. Wage increases basedon productivity improvements are animportantway in which Islanders can increase their standardof living and directly contribute to the Strategic Plan objectives of economic growth and good employment opportunities for all. Wage increases that do not reflect productivity improvements pose a realriskofaddingto inflationary pressurein the economy. Wage inflation in Jersey could result from of a whole host of factors that combine to influence both thesupply and demand for labour in the Island.
The Minister does not see it as government's role to curb wage claims in the private sector and rather that the government should focus on facilitating productivity improvements across the economy. This will allow employees to earn more through higher wages, generate economic growth and improve the standard of living for Islanders without increasing inflationary pressure.