Impact of the Interim Population Policy of finance sector projections over the next 5 years including supplementary questions

3.18   Deputy G.P. Southern of the Chief Minister regarding the impact of the Interim Population Policy of finance sector projections over the next 5 years:

Will the Chief Minister state how the proposed interim population policy will operate alongside the projections of the Chief Executive of Jersey Finance for at least 900 new posts in the finance sector over the next 5 years?

Senator I.J. Gorst (The Chief Minister):

Could I ask Senator Routier to answer this?

Senator P.F. Routier (Assistant Chief Minister - rapporteur):

The interim population policy has a clear focus on high social and economic value activities and supports the employment of established Islanders. The policy assumes net migration of plus 325 people per year. This accommodates the projected 900 new posts in the finance sector over the 5 years as 80 per cent of which are expected to be filled by existing residents. This is consistent with our migration, employment and economic strategies. We should welcome an expansion of employment in financial services.

1. Deputy G.P. Southern :

Has the Minister got any idea how 80 per cent of these jobs, these high skilled, highly technical jobs are going to be filled from those who are already qualified and not those imported into the Island?

Senator P.F. Routier:

The financial services industry have made it very clear to us in their announcement about the new jobs which are going to be created that the new posts have been identified as mostly finance administrator level, so it is quite possible for the skills to be available within the Island. In particular, we must recognise that we have a number of students coming through our education system who will be looking for jobs in the future and we should welcome that the opportunities will be made available to them.

2. Senator S.C. Ferguson:

I am confused by the arithmetic; 900 new jobs represents 180 heads of household, but in actual fact we are meant to be working on 325 net immigration which is 150 heads of household. So how are we going to square the circle?

Senator P.F. Routier:

The calculation that we have made is that out of the 900 jobs that are going to be made available in the finance industry, 750 of them will be available to existing Jersey residents and the remainder, probably about 180 over 5 years, making an average of about 36 new people coming to the Island. That is the calculation that we have made.

3. Senator S.C. Ferguson:

Supplementary. But if 750 of them are going to be made ... filled by existing residents in the Island, what happens to the businesses that those people are moving out of?

Senator P.F. Routier:

I think the Senator is forgetting the number of people who are coming out of our education system who will be looking for jobs in this sort of industry. The interim population policy does identify that we are ensuring that any new jobs that are being made available in our economy are within the higher value sector so the licences that will be approved will be to encourage that.

4. Senator S.C. Ferguson:

The people that are coming out of our education sector, we are being told have not got the right skills and need to be up-skilled, so how are they going to replace these 750 highly skilled people who are going into these new jobs?

Senator P.F. Routier:

I believe I mentioned earlier that the finance industry themselves have identified that it is at administrator level which they feel it is quite possible for the skills to be trained. What I think a lot of people are sort of not taking cognisance of is the ability of people to be trained and their skills to be improved. The Back to Work schemes which are currently having great success are increasing people's skills, the Skills Executive are putting in programmes which are uplifting people's abilities and we must not sort of consign people to not being able to be trained, we must encourage them to be taking up these jobs.

5. Deputy R.J. Rondel:

Would the Minister advise the Assembly how many school children will be leaving per annum and is he using those calculations to go into the finance industry?

Senator P.F. Routier:

My understanding is that about 1,000 children leave education every year, some obviously go off to university but obviously some do return as graduates. So there is a flow of people coming through the education system on a regular basis.

6. Deputy R.J. Rondel:

I just wanted to be clear what figure he is working on on that flow. Senator P.F. Routier:

Sorry, I do not follow that question.

Deputy R.J. Rondel:

What figure is he counting on that children will be going straight into education from next year? From local education, rather than going off to university for 3, 4, 5 years and then coming back.

Senator P.F. Routier:

I have not, sorry, that detail to answer that question today.

7. Deputy G.P. Southern :

This is the man in charge of population and he has not that detail of how many people are going to be going into work from school in the next few years. Nonetheless, I note he uses 2 words there. One, to ensure an outcome that it fits to his model and the other to encourage. It seems to me that what he is proposing is a 10 year-old policy that we will ensure that these positions become trainee positions and that they are recruited from school leavers, whereas he has not got the power to do that surely, even under the new Control of Work law. How does he propose to ensure that these jobs are 5-year trainee and trainee positions recruited from school and not imports into the Island?

Senator P.F. Routier:

It is very possible under the new Control of Housing and Work (Jersey) Law 2012 to ensure that the licences which are given to businesses are only ... have the ability of employing people who have been in the Island for 5 years; that is what we do on a regular basis. I gave the example of the students leaving the education system as another opportunity for the businesses to find the required staff. It will obviously be from students and a lot will obviously be from existing residents who are already in the Island at whatever age.

[11:30]

8. Deputy G.P. Southern :

So the 750 he mentioned over the next 5 years for finance sector jobs are going to be only school leaver trainee positions; is that the case that he is making?

Senator P.F. Routier:

That is not what I said, no. It is for the possibility for people coming through the education system and for anybody of any age, which I have just said just now, who has been in the Island for 5 years.