Breakdown of job opportunities and how many have been filled with supplementary questions

2.9   Deputy G.P. Southern of the Minister for Economic Development regarding the breakdown of new job opportunities in terms of high-value (professional and managerial) posts and those of lower value (clerical/manual):

It contains several strands, Sir. Will the Minister give a breakdown of the 1,011 job opportunities in P.55/2012 to show in each sector the number of high-value professional and managerial posts and those clerical and manual which are of a lower value and inform Members how many of the 1,011 jobs have been filled and would he further state how he proposes to ensure that future growth creates high-value employment and diversity?

Senator A.J.H. Maclean (The Minister for Economic Development): Three minutes did you say, Sir?

The Deputy Bailiff :

Well, you have got 1,011 questions there I think [Laughter].

Senator A.J.H. Maclean (The Minister for Economic Development):

We do not hold a breakdown of specific job types within each sector as manpower returns request information on total staffing numbers but not the type of roles. I should add that job titles alone are not necessarily an indicator of what can be deemed high-value as jobs with similar job titles in different sectors may get paid very different salaries and may require significantly different skill sets. With regard to the second part of the Deputy 's question relating to jobs filled versus opportunities created, I have already stated that these statistics will be published. However, it seems sensible to await the June manpower returns to ensure a fully up- to-date picture. To answer the final element of the question, future growth that creates high- value employment opportunities is a clear objective of the draft Economic Growth and Diversification Strategy that was lodged on 1st June. That is why we have already created Locate Jersey who are specifically tasked with targeting inward investment business. These are high-value, high productivity sectors including financial services, e-commerce, intellectual property, I.C.T. (Information, Communication and Technology), renewable energy and so on. Thank you, Sir.

1. Deputy G.P. Southern :

What powers does the Minister have which will ensure success in promoting high-value job creation, which has been the long-term aim of his department for the last decade? What is the difference?

Senator A.J.H. Maclean:

One of the biggest differences is the fact we are specifically and proactively targeting, outside of the Island, inward investment. We have created Locate Jersey, we are going out and successfully over the recent years - hence the statistics - bringing a wide variety of businesses, not just financial services business, but other sectors into the Island to set up and create employment here. The statistics, I have mentioned. We are continuing to analyse those statistics, as I have said, from June manpower returns and we are happy to publish even more.

2. Deputy G.P. Southern :

The Minister does not know what high-value jobs are and what is not because the labels are different in different firms but, nevertheless, he is going to make sure that he produces high- value jobs. Can the Minister refer to his document on page 26 and recognise that over 400 of the 1,000 jobs are in retail. Are these high-value jobs or are they shop assistants?

Senator A.J.H. Maclean:

In fact, part of what the Deputy is referring to is the inward investment activity which was part of an M. and A. (Merger and Acquisition) with Waitrose and, yes, 200 of those are in retail and are in relation to that particular organisation but having said that, that is 200 new jobs created within that particular sector. It is job creation. You cannot have jobs in just one particular sector or one particular area. We are interested in all jobs but the aim is clearly raising the productivity in existing sectors and introducing new inward investment businesses which are of a high-value nature.

Deputy G.P. Southern :

If I may, Sir, another supplementary please? The Deputy Bailiff :

All right.

3. Deputy G.P. Southern :

On the detail on page 26, how come he is aiming for diversity when the record says that 270 of those 1,000 jobs, a quarter of the jobs, are in finance, so it is more specialisation?

Senator A.J.H. Maclean:

I would simply say to the Deputy he would be better informed if he bothered to come to the Economic Growth and Diversification Strategy Briefing that was offered to States Members where there was an opportunity for him to ask questions. [Approbation] Indeed, I am always available if he or any other Member would like to come to Economic Development and discuss these matters in detail. I am very satisfied that inward investment is working. We have got a lot more work to do but we are bringing in high-value businesses, they are creating job opportunities for Islanders and we have got to do more of it and not less of it. I would simply add to that, the Deputy should perhaps not be looking so short-termist. Economic diversification is a long-term game and we are in that game.

4. Deputy M.R. Higgins:

The Minister has admitted that he does not know the breakdown of the jobs into the type of category they are. Is this not just another example of the failure to monitor what is going on? You state the policy that we are going to go for high-value, low footprint type industries but you do not have the facts to back it up. So is the Minister going to ensure that the statistics that will be gathered will enable us to be able to monitor this particular process?

Senator A.J.H. Maclean:

I think the Deputy and Deputy Southern are missing the point. When we seek to drive inward investment businesses, we talk to businesses and we seek their business plans and the value they are going to add to the economy. What I have been asked this morning is of more than 1,000 job opportunities, to give a breakdown of what those are. That is completely unreasonable. What we do do is that we look very closely on every application for an inward investment business wishing to set up in Jersey, we look at the business plan and the value that that business is bringing to the Island.

Deputy M.R. Higgins:

With respect, the Minister did not answer the question. The question was, going forward; will you gather that data so we can monitor what is going on?

Senator A.J.H. Maclean:

I have already stated that with regard to the gathering of data between job opportunities created and jobs filled, yes, we look at that through manpower returns, which happen twice a year. The June statistics are coming out shortly and are going to be analysed. These will help to inform the debate and we are happy to publish them.

5. Deputy R.G. Le Hérissier:

Apropos job creation and job removal, would the Minister comment on whether the anticipated decline in the fulfilment industry has indeed occurred or have the prophets of doom been stopped at the gates, so to speak?

Senator A.J.H. Maclean:

Surprisingly, it might be a little early to give a conclusive answer to that. Yes, there have been job losses, as one would anticipate, but businesses are continuing, as good businesses do, to apprise themselves of other opportunities. They have been slow in that respect to make as many people redundant as perhaps we would have expected at this stage. So there have been job losses, not to the levels yet that we had anticipated but it is still very early in the process.

6. Senator L.J. Farnham :

Two small parts to this question. The first one is, is the Minister extremely puzzled and confused at the type of questions being asked by Deputies who seem to be interrogating him for a policy that creates jobs? Secondly, could he just confirm please that jobs in retail and low- value parts of the economy as described, including tourism, are not only important but vital to the Island?

Senator A.J.H. Maclean:

I am often perplexed by some questions but that, as they say, goes with the territory. With regard to the last question, yes, we need a balance in our economy. Clearly there are different skill sets throughout our community. We have to ensure that we provide job opportunities for all. That goes without saying and that is why such an investment is being made, particularly at this time with regard to job creation. We will continue to do that through Skills Jersey and all the other educational establishments within the Island.

7. Senator S.C. Ferguson:

Is it not for the Government to provide the environment? Does the Minister really believe that Government can identify successful new business areas? Has the Minister got the information on which to make any decisions considering that we have no economic analysis of the fiscal stimulus?

Senator A.J.H. Maclean:

Economic analysis of the fiscal stimulus is not really particularly relevant to this but what I would say is that it is not - and I have often said this - for Government to start trying to pick winners. What we can do is we can work in partnership and we should work more and more in partnership with the private sector in order to set the foundations to ensure that business can succeed in the Island. That, I believe, is what we are successfully attempting to do with the creation of the bodies that we have put in place like Digital Jersey, Jersey Business, which is now privately operated to support smaller and medium-sized businesses in the Island and so on. We will continue to work in partnership with the private sector. That is where the ideas are and that is what we need to continue to do. What we also must not do is be frightened to take risks and I believe that as much by Government as it is by private sector. We see that particularly in my recent visit to Israel where there is no fear of taking risk. They realise there will be failures but they have to and continue to invest in growth opportunities.

8. Deputy G.P. Southern :

Will the Minister accept nonetheless, notwithstanding his answers, that 70 per cent of these new jobs are in retail and in finance? He has singularly missed his target so far and will continue to miss his target after promoting diversity. In terms of the question he was asked by Senator Farnham , the record shows - and these are his own figures - that one new firm has been set up in tourism creating one job.

Senator A.J.H. Maclean:

I really do not know the point that the Deputy is trying to make. It is not clear at all. He is thinking, in my view, short-termist, he is not thinking of the long term and he is not looking at the successes that have been achieved. There is a lot more work to be done. This is the beginning and not the end but what he should not be seeking to do is to take cheap pot shots at...

Deputy G.P. Southern : That is unfair, Sir. Senator A.J.H. Maclean:

... I may say companies and individuals that are prepared to have confidence to invest in Jersey, which is exactly what they are doing. We should reciprocate that confidence by giving them our support and that is exactly what we are seeking to do.

[10:45]

The businesses that we drive into this Island through inward investment, we want to be successful, we want them to continue to grow and we want them to continue to employ local people. That is what is beginning to happen but there is a lot more to do and I would hope the Deputy would get behind a positive initiative like that and make some constructive suggestions. Yes, come and engage with the department. We would like to hear about his ideas, if he has got good ideas. We are in this together. Let us work together [Laughter].

Deputy G.P. Southern :

Does the Minister accept that all I have done today is quote his own figures? The Deputy Bailiff :

Deputy Southern , you have had your final supplementary.

Deputy T.M. Pitman:

Sir, before we move on, is it possible to request that some of the Constables quickly return to the Chamber because I am one Member who does need a comfort break and we have been quorate for quite a while?

The Deputy Bailiff :

I am certainly not going to identify any particular section of the Assembly but it is true that we are on the minimum 26 and you are now free to go, Deputy , if you wish to. [Laughter]