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.
19-21 Broad Street | St Helier Jersey | JE2 4WE
By email
10th April 2024 Dear Chair,
Acceptance of Cash Payments
Thank you for your letter of 28th March providing notice of the Panel’s interest in the use of cash in Jersey. As I mentioned during my speech during P.10/2024, which reflected my personal views, cash plays an important role to protect privacy, allowing for transactions without involving a third party, and I think this is a subject which would benefit from further exploration.
The Department for Economy does not have a policy position in respect of cash payments and individual businesses are free to accept transactions in the manner that best suits them. Anecdotally we are aware of examples, particularly in hospitality, travel and retail, in Jersey where either cash or card payments are refused. The consumer ultimately wants choice and flexibility, especially during periods where budgeting is more challenging. There are currently no plans for legislation on the use of cash, however it should be noted that some restrictions (such as total limits) are in place via the Island’s anti-money laundering legislation.
We have seen a steady move away from the use of cash in recent years, as the Minister for Treasury and Resources explained during the debate on P.10/2024. In particular, the Minister noted that in 2014, 40 per cent of the Government’s income transactions were collected by non-digital channels such as cash and cheque but by 2023, only 9 per cent of income has come through non-digital channels. This notwithstanding, the Public Finances Manual does provide for the use of cash payments, albeit acknowledging that doing so carries associated costs and risks, and most public facing Government Departments continue to accept cash and cheques.
In relation to the Panel’s specific questions on the amount of cash issued and currently in circulation, please find below figures provided by the Department for Treasury and Exchequer.
• The amount of cash currently estimated to be in circulation in the Island?
This figure is not held as it would be a combination of both Jersey and Sterling notes in circulation. With regard to Jersey notes and coins, a liability is recognised by the States for the outstanding value of currency historically issued to local banks, which is included in the Annual Report and Accounts with the latest available audited value being £ 104,682,000.
• The amount of Jersey currency issued, broken down annually for the previous 10 years?
The below table reflects calls and repayments of Jersey Notes by local banks, which may then be held either within their local stocks or issued by them meet public demand. The large offsetting nature of the transactions often reflects banks replacing old notes, which are often subsequently destroyed, for new.
|
|
Bank orders |
Bank returns |
|
2014 |
£306,357,500 |
£301,527,619 |
|
2015 |
£302,219,500 |
£288,244,459 |
|
2016 |
£272,514,500 |
£268,217,448 |
|
2017 |
£240,406,500 |
£242,354,749 |
|
2018 |
£212,766,500 |
£215,892,408 |
|
2019 |
£179,045,912 |
£176,808,127 |
|
2020 |
£124,884,500 |
£122,529,775 |
|
2021 |
£115,174,800 |
£113,139,367 |
|
2022 |
£110,122,700 |
£105,072,624 |
|
2023 |
£102,234,000 |
£109,657,762 |
I hope the above information provides clarity to the areas you have raised and look forward to working with the Panel as it investigates this important area.
Yours sincerely,
Deputy Kirsten Morel
Minister for Sustainable Economic Development E k.morel2@gov.je
2