Jersey In Figures 2008

States of Jersey Statistics Unit

Jersey in Figures, 2008

Table of Contents

Table of Contents. i

Foreword ii

An Introduction to Jersey.... iii

Key Indicators... v Chapter 1 States of Jersey Income and Expenditure... 1

2. Tax Receipts. 5
3. Impôts 8
4. Price s and Earnings.... 10
5. GVA and GNI.... 15
6. Financial Services.... 19
7. Tourism.. 23
8. Size and Land Cover in Jersey . 26
9. Agriculture and Fisheries.... 27
10. Population. 29
11. Households... 34
12. Housing.. 36
13. Education.. 40
14. Employment.. 42
15. Health. 50
16. Crime.. 56
17. Fire & Sea Rescue... 61
18. Social Security.. 64
19. Overseas Aid.... 66
20. Sea and Air Transport..... 67
21. Vehicle Transport. 70
22. Energy....... 74
23. Water. 78
24. WasteManagement.... 80
25. Climate.. 84 Key Contacts 85 Other Useful Websites 87 Reports Published by States of Jersey Statistics Unit... 88 Publication Dates for 2009 by Statistics Unit... 89

Foreword

Jersey in Figures, 2008' presents economic, social and environmental information on Jersey and aims to be a convenient reference book for government members, public and private institutions, the general public and visitors to the Island.

Jersey in Figures 2008' is published by the States of Jersey Statistics Unit. We are grateful  to  all  States  departments  and  private  organisations  for  the  information contained in this edition.

In aiming to keep Jersey in Figures as a pocket sized publication, we publish only a summary of the information that is produced about Jersey; further information can be obtained from the various references that are given throughout.  In addition, most referenced material published by the States of Jersey can be viewed or downloaded from the website www.gov.je whilst all information published by the Statistics Unit can be accessed at www.gov.je/statistics.

The next edition of Jersey in Figures will be published in the Spring of 2010.

I trust readers will continue to find Jersey in Figures a useful reference. Comments relating to the content are most welcome.

Duncan Gibaut

Head of Statistics

States of Jersey Statistics Unit Cyril Le Marquand House

The Parade

P O Box 140

St Helier

Jersey, JE4 8QT

Tel: +44(0) 1534 440403 Fax: +44(0) 1534 440291

Email: statistics@gov.je Website: www.gov.je/statistics

Front cover photos: Lawrence Davies

An Introduction to Jersey

Jersey is the largest of the Channel Islands with an area of 118.2 sq. km. and is situated 14 miles off the north-west coast of France and 85 miles from the English coast.

Jersey  is  a  Crown  Dependency  and  is  not  part  of  the  UK;  however, the  UK  is responsible  for  Jersey's  defence  and  international  relations.  The  Island is  not represented in the UK parliament, whose Acts only extend to Jersey if expressly agreed by the Island that they should do so.

The Island of Jersey is divided into 12 Parishes: Grouville , St. Brelade, St. Clement, St. Helier, St. John, St. Lawrence, St. Martin, St. Mary, St. Ouen, St. Peter, St. Saviour and Trinity , each of which is presided over by an elected Connétable , who deals with issues relating to civil matters,  and  by a  Rector  who oversees issues  relating to ecclesiastical affairs.

St John St

Mary

St Ouen

Trinity

St  St Lawrence Martin

St Peter

St

Helier St

Saviour

St Brelade Grouville

St Clement

The legislature of the Island is called 'The States of Jersey', members of which are elected by the population, male and female. The States comprises the Bailiff , who is President of the Assembly, the Lieutenant-Governor, 12 Senators, the Constables ( Connétable s) of the 12 Parishes, 29 Deputies, the Dean of Jersey, the Attorney- General and the Solicitor-General. They all have the right to speak in the Assembly but only the elected members (the Senators, Connétable s and Deputies) have the right to vote; the Bailiff , who is appointed by the Crown and acts as Speaker, has a casting vote.

The system of government comprises a Council of Ministers and several Scrutiny Panels. There are 53 States members; a maximum of 23 members are in ministerial positions either as Ministers (ten members) or Assistant Ministers (up to 13 members), and up to 20 other members sit on the Scrutiny Panels.

The economy of Jersey saw a great deal of change during the latter part of the 20th century, as markets became more international and global travel increased; traditional Jersey industries such as agriculture and tourism were superseded by financial services as the dominant industry in Jersey. The Financial services sector (banking, trust and company administration, fund management, accountancy and legal activities) has grown such that it now accounts for more than half of total economic activity in Jersey and employs about a quarter of the workforce.

Key Indicators

1. States of Jersey Income and Expenditure

In 2007, the States of Jersey recorded a surplus of £37 million. This surplus compares with a forecast deficit of £3 million estimated in the 2007 budget. The actual surplus arose from higher then estimated levels of income, particularly income tax, stamp duty and impôts (excise duties).

The total income for 2007 was £559 million, some £33 million more than in 2006. Total States net expenditure was £522 million, comprising net revenue expenditure of £480 million and capital expenditure of £42 million.

Table 1.1 States of Jersey Income and Expenditure, 2007

Source: Treasury & Resources States Accounts 2007

Figure 1.1 General Funds Income and Expenditure, 1994-2007

600

500

400 300 200 100 0

Table 1.2 Budget allocations, 2007 & 2008

2008 Expenditure  2007 Expenditure States Funded Bodies

Allocation, £'000 Allocation, £'000 Ministerial Departments

Non-Ministerial States Funded Bodies

Source: States of Jersey Budget Statement 2008, Treasury & Resources

Table 1.3 Jersey Currency in Circulation (£ million), 1996-2007

Year Notes Coins Total 1996 38.4 3.4 41.8 1997 40.5 4.1 44.6 1998 40.7 3.9 44.6 1999 56.4 4.2 60.6 2000 48.4 4.5 52.9 2001 55.8 4.9 60.7 2002 55.2 5.1 60.3 2003 61.0 5.4 66.5 2004 62.8 5.8 68.6 2005 64.5 6.2 70.7 2006 69.6 6.4 75.9 2007 75.6 6.7 82.3

Figures as at December of each year.

Further reading: States Financial Report and Accounts 2007.

Figure 1.2 Where each pound of States of Jersey money will come from in 2008

GST, 5p Income

Island  Tax, 75p

Rate, 2p

Stamp  Duty, 5p

Other  

Income,  

5p Impo^ ts, 8p

Source: States of Jersey Budget Statement 2008, Treasury & Resources

In terms of States expenditure, of every £1 the States will spend in 2008 about 25p will be on health, 16p on education and 25p on social security benefits.

Figure 1.3 Where each pound of States of Jersey money will be spent in 2008

Home Affairs,  Transport and  Non-Ministerial

7p Technical  States Funded Education,  Services, 4p Bodies, 3p

Sport and  

Culture, 16p

Economic Development,

3p

Chief Minister's, 3p

Social  Treasury and Resources,

Security, 25p

11p

Overseas Aid, Health and  AssSemtatbelsy, 1p Planning &  1p

Social  Environment,

Services, 25p 1p

Source: States of Jersey Budget Statement 2008, Treasury & Resources

2. Tax Receipts

Total income tax revenue in 2007 was £433 million, which was £35 million more than in 2006. Forecasts suggest there will be a further increase for the tax year 2008 before the introduction of a new corporate tax structure ("0/10") effective for tax year 2009, collected in 2010. The new structure is forecast to result in approximately a £110 million per annum reduction in Income Tax revenues by 2013.

Figure 2.1 Income Tax Receivable, Actual and Estimated, 2000-2012*

600

470 478 454

500 400 300 200 100 0

437

433

Actual Estimated

*The forecasts of Income Tax and other States revenues were prepared before the extent of the decline in the global economy was evident. Revised forecasts of all States revenues, which reflect the potential impact of the recession, will be available in the new States Strategic Plan.

Source: Budget Statement 2009, Treasury and Resources

Figure 2.2 Sources of Income Tax Receipts, Actual 2003-2007

500

400 38 35 38 300 39 38

200 100

0 2003 2004 2005 2006 2007

• Self-employed and investment holders
  • Salary and wage earners
    • Companies

2. Tax Receipts

The Fiscal Strategy proposals have introduced new measures for personal income tax in  the  form  of  an  Income  Tax  Instalment  System  (ITIS),  the  apportionment  of allowances for new and ceasing residents[1] (as well as seasonal workers) and the gradual  withdrawal  of  certain tax  allowances  as  part  of  the  20% means  20%' measures. Together these measures have increased both the number of personal taxpayers and the level of personal tax paid by individuals. At the same time increases in the tax exemption thresholds were introduced, aimed at moderating the effect of these changes on low to middle income earners.

Table 2.1 Levels of Tax Exemption and Allowance, Year of Assessment 2008

* For people with single-handed responsibility for children Further reading: Income Tax Office Annual Reports

The Strategic Reserve

The Strategic Reserve is a capital safeguard against unforeseen events and economic downturn. Returns on investments are reinvested each year. During 2007, the growth from net realised income was £27 million and the unrealised loss on investment was £4 million. At December 2007 the market value of the fund's assets was £510 million. In 2007 £10 million was transferred into the Strategic Reserve from the Consolidated Fund.

Figure 2.3 Market Value of Strategic Reserve, 2000-2007

600

456 477 510 400 368 382 397 418

335 200

0

Figures are £ millions and stated at market value at 31 December each year.

The Stabilisation Fund

In December 2006 the States agreed to establish a Stabilisation Fund with the purpose of providing protection from the adverse impact of economic cycles. It is foreseen that money will be paid into the Fund when the economy is growing strongly and drawn out from the Fund to support the economy when it is performing weakly. The 2008 budget agreed to transfer £38 million into the Stabilisation Fund.

3. Impôts

3. Impôts

Impôt duty receipts in 2008 were £49.8 million, some £3.1 million less than in 2007. Since 1998 the money raised from impôt duties has increased by almost three quarters (74%).

Figure 3.1 Customs and Excise Duty Collected, 1998-2008

70.0

60.0

50.3 49.8 51.4 52.9 49.8

50.0 47.5

39.2

40.0 32.8 34.0 35.0

28.6

30.0

20.0

10.0

0.0

In 2008 impôt duties on road fuel generated the most revenue, £20.5 million (41% of the total); tobacco duty raised £12.7 million, 26% of total impôt receipts. Individual alcohol categories each contributed between 8% and 10% of total duty collected. The Vehicle Registration Duty (VRD) revenue contributed 1% of the total impôt receipts for 2008, a decrease from 9% in the previous year, largely as a result of the abolishment of VRD in May 2008.

Figure 3.2 Customs and Excise, Sources of Revenue, 2008 (Revenue in £ million)

Other, £0.2 Spirits,

VRD, £0.7 £4.0

Wine, £5.9 Fuel, £20.5 Cider, £0.7

Beer, £5.1

Tobacco, £12.7

3. Impôts

The revenue raised from motor fuel has increased over the past 10 years. Duty from motor fuels has more than doubled from £8.4 million in 1998 to £20.5 million in 2008. Revenue from  tobacco  duty  has  also  increased  from, £10  million  to  £13 million between 1998 and 2008, but has stabilised more recently. Duty raised from spirits has seen little change, whilst that raised from beer has more than doubled over the 10-year period.

Figure 3.3 Impôts Duty Receipts, 1998-2008

tobacco fuel spirits wine

beer other cider VRD

£25

£20

£15

£10

£5 £0

Note: VRD = Vehicle Registration Duty, introduced in 2003 and abolished in May 2008.

Whilst the overall revenue has been increasing in most years, the amount of dutiable products imported has generally fallen. In 2008 beer imports were down by 28% on 1998 levels, road fuel down 4%, spirits down 39% and tobacco by more than half. In contrast, wine imports have stayed essentially stable over the 10-year period, whilst cider imports have increased by around a quarter.

Table 3.1 Annual Quantity of Dutiable Goods, 1998-2008

Further reading: Customs and Excise Department, Annual Reports.

4. Price s and Earnings

Jersey (All-Items) Retail Price s Index, RPI

The RPI measures changes in the cost of a representative selection of goods and services bought by Jersey households. Over 500 items are included in the Index. The RPI is an index number based on a point in time (currently June 2000 being set equal to 100). The rate of change of the RPI, quoted as a percentage, normally compares the current index to the same quarter a year previously, hence measuring the rate at which prices are changing overall, giving an annual rate of inflation'.

During the twelve months to December 2008, the All-Items Retail Price s Index for Jersey increased by 3.3% to stand at 137.7 (June 2000 = 100). This was a lower annual rate of inflation as seen in September 2008 (6.4%). Key contributors to this decrease were lower house purchase costs, as a result of lower mortgage interest payments following a series of reductions in the Bank of England base rate, and falls in heating oil and petrol prices in the Fuel & light and Motoring groups, respectively.

The introduction of a Goods and Services Tax (GST) in Jersey in May 2008 accounted for about 1.9 percentage points of the overall annual change in the Jersey December RPI, spread across the groups. In addition to the introduction of GST, a key contributor to the annual increase was higher Food costs (up by 14% on an annual basis).

Table 4.1 Jersey All-Items Retail Price s Index (RPI) in Jersey, the UK and Guernsey and the RPI (X) for Jersey, 2002-2008

The annual change in RPI(X), the RPI excluding mortgage interest payments is the measure used by the States of Jersey for its target inflation level. However, in times of the introduction of a consumer tax (GST, May 2008) RPI(Y) provides a more appropriate measure of underlying inflation. In December 2008, the annual rate of change RPI(Y) was 3.2%.

The change in RPI(Y) also provides a meaningful comparison of underlying inflation in both Jersey and the UK by removing the effects of mortgage interest payments and the relevant indirect taxes. From this perspective, underlying inflation in Jersey in December 2008 was 0.8 percentage points lower than in the UK (3.2% in Jersey compared with 4.0% in the UK).

Comparison of Consumer Price s in Jersey and the UK – June 2008

The annual changes in the RPIs in Jersey, Guernsey and the UK were higher in June 2008 than in June 2007, with global increases in commodity and oil prices being key drivers to the rates of increase seen in all jurisdictions.

Over the 12 months to June 2008, the Food group of the RPI increased by 13% in Jersey, 10% in the UK and 7% in Guernsey. Removing the effect of, Food prices in Jersey increased at a similar rate as in the UK (10%) from June 2007 to June 2008. Direct food comparisons show that average meat prices were about 13% higher in Jersey than in the UK in June 2008 and the cost of fresh fruit and vegetables in Jersey were more than a quarter higher, 27% and 29% respectively.

Over the last eight years Motoring costs, overall, have increased significantly more in Jersey and Guernsey than in the UK.

Further reading: Comparison of Consumer Price s in Jersey and the UK – June 2008: States of Jersey Statistics Unit, September 2008.

Earnings

The Index of Average Earnings measures changes in gross wages and salaries paid to employees. It includes overtime payments, but excludes bonuses, employers' insurance contributions, holiday pay and benefits in kind.

Figure 4.1 Annual Change (%) in Average Earnings, 1991-2008

10

9 8.6

8.1

8

7

6

5

4

3

2

1

0

Average earnings in Jersey rose by 4.3% in the year to June 2008 compared with 4.7% for the previous twelve-month period.

Figure 4.2 Annual Percentage Change in Average Earnings by Sector, 2007-2008

Agriculture 6.5

Hotels, restaurants and bars 5.1

Electricity, gas and water 5.0

PPuubblliicc sseeccttoorr 4.9

Financial services 4.6

Wholesale and retail   4.2

AAllll PPrriivvaattee sseeccttoorrss 4.2

Manufacturing 3.8

Construction and quarrying 3.5

Other business activities 3.5

Transport, storage and communication 3.1

ALL SECTORS 4.3

0 1 2 3 4 5 6 7 8

Annual Change (%)

Other  business  activities'  sector  includes  Miscellaneous  business  activities'  and  private  sector Education, health and other services'.

Transport, storage and communication' includes the States Trading Committees (Jersey Airport, the Harbour Office, Jersey Post and Jersey Telecom).

Average earnings in the private sector increased by 4.2% over the year to June 2008; the public sector saw average earnings increase by 4.9% over the same period.

The survey from which earnings data in Jersey is strictly compiled is designed to measure changes in earnings rather than the actual level. The earning level shown in Figure 4.3 should therefore be considered as reasonable approximations. Furthermore it should be noted that average weekly earnings figures refer to full-time equivalent (FTE) employees; part-time workers would earn proportionately less corresponding to numbers of hours worked. The average weekly earnings of (FTE) employees in Jersey in June 2008 were £600. The Financial services' sector (£820 per FTE per week) had the highest average weekly earnings, whilst Hotels, restaurants and bars' had the lowest (£340 per FTE per week).

In examining the changes in the RPI and in average earnings, it is clear that often in the past, most likely because of economic growth, earnings in Jersey have on average increased at a faster rate than prices (Figure 4.4). In 13 of the past 18 years, since 1990, average earnings in Jersey increased faster than retail prices.

Figure 4.3 Average Weekly Earnings, per FTE, by Sector, 2008, (£ per week)

Financial services*

Public sector

Transport etc**

Elec, gas & water

Manufacturing

Construction

Other bus. act.***

Wholesale & retail

Agriculture

Hotels, rest, bars

All Sectors 600

0 100 200 300 400 500 600 700 800 900 1000 Average weekly earnings (£s)

* Finance sector: excludes bonuses; the Survey of Financial Institutions estimated the average weekly bonus per FTE was £110 in 2007.

** Transport etc = "Transport, storage and communication" and includes the former and current States Trading Committees (Jersey Airport, Harbours, Postal Administration and Jersey Telecom)

*** The "Other business activities" sector includes "Miscellaneous business activities" and private sector "Education, health and other services"

Figure 4.4 Jersey's Average Earnings Index and Retail Price s Index (June 1990=100)

300

250

200

150

100 Average Earnings

Index

50 Retail Price s Index

0

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Further reading: Annual Average Earnings Survey and Jersey Economic Digest, Statistics Unit.

5. GVA and GNI

The  concept  of  Gross  Value  Added  (GVA)  provides  an  appropriate  measure  of economic activity in Jersey. In essence, GVA is the sum of profits of businesses and earnings of employees. In 2007 total GVA for Jersey was £4.1 billion.

Economic activity can also be considered in terms of the total income of resident businesses  and individuals. This aggregate measure is known as Gross  National Income (GNI) and is derived from total GVA by subtracting income earned in Jersey by non-Jersey  owned  businesses  and  adding  income  earned  overseas  by  Jersey businesses and resident individuals. In 2007 Jersey's GNI was £3.7 billion.

In recent years Jersey's GNI per capita has been amongst the highest in the world[1], and is shown for 2007 in Figure 5.1 in terms of $US for comparative purposes.

Figure 5.1: GNI per capita, 2007 (PPP $US)[2]

70,000 60,000 50,000 40,000 30,000

20,000 10,000

-

The GVA by sector is shown in Figure 5.2. Financial services accounted for more than half of total GVA in 2007.

Figure 5.2: Gross Value Added by sector[3], 2007

Public  Other

administration,  business  Agriculture,

7% activities,  1%

18% Manufacturing,

1%

Electricity,

gas and

water, 1% Construction,

Wholesale  5%

and retail, 6%

Hotels, Finance, 53% Transport,  restaurants

storage and  and bars, 3% communication,

4%

Table 5.1: GVA (basic) by sector at current year values: £ million

Further reading: Jersey Gross Value Added (GVA) and Gross National Income (GNI) 2007: Statistics Unit, September 2008. Jersey Economic Digest 2008.

Between 1998 and 2000 the GVA of the Finance industry in Jersey grew by 17% in real terms and this was reflected in the overall GVA, which increased by 9% over the same period (Figure 5.3). When the GVA in the Finance sector fell by 17% between 2000 and 2004, total GVA correspondingly fell by 10%.

Figure 5.3: Gross Value Added in real terms, 2003 prices

4,000 3,500 3,000 2,500 2,000 1,500

1,000 500 0

The increase in overall GVA seen over 2007 (up 7%) was driven by growth in the Finance sector (up 9%).

In addition to Finance, several other sectors also saw real term increases in GVA in 2007 (Table 5.2), notably Construction which has now seen three consecutive years of strong  growth  at  an  average  rate  of  about  7%  per  annum.  The  Agriculture  and Wholesale & retail sectors have also seen three consecutive years of real term growth, at  a  slightly  lower  rate  of  about  4%  per  annum.  In  contrast,  Manufacturing  has continued its long-term decline.

Table 5.2: GVA by sector, constant (2003) values, £ million

6. Financial Services

Bank deposits and fund administration in Jersey

Over the past nine years, total bank deposits held in Jersey have increased by over £79 billion whilst the number of bank licences has reduced by 26, mainly due to mergers.

Table 6.1 Bank Deposits in Jersey, 2000-2008

Figures as at 30 September each year. Source: www.jerseyfsc.org

The total value of collective funds administered from Jersey has grown by more than £149 billion over the nine years to 2008.

Table 6.2 Total Value and Number of Funds Administered from Jersey, 2000-2008

Figures as at 30 September each year. Source: www.jerseyfsc.org

The Net Asset Value (NAV') of funds in Jersey had risen by 9% in the preceding 12 months to almost £240 billion and the total number of funds had risen by 16% to 1,452, comprising 3,080 separate investment pools.

Investment Business

The number of clients decreased by almost 1,900 from September 2007 to September 2008 and the total funds under management decreased by over £1 billion to £17.6 billion; the average asset value per client increased by almost 5% to £1.1 million.

Table 6.3 Value of funds managed and number of clients, Sept 2007-2008

(r) revised by Jersey Financial Services Commission see www.jerseyfsc.org

Survey of Financial Institutions

The States of Jersey Statistics Unit runs an annual survey of financial institutions. The survey  covers banks,  trust  and  company  administrators,  fund  mangers  and accountants and legal professionals.

The total net profit of Jersey's financial services sector in 2007 was estimated at £1,460 million, representing a nominal increase of 12% on 2006. This latest increase constituted the third consecutive annual rise in total profit; 2005 had seen the first rise for five years.

Figure 6.1 Estimated Total Profit for Jersey's Financial Services Sector, 2000- 2007

1,600 1,400 1,200 1,000 800 600 400 200 0

2000 2001 2002 2003 2004 2005 2006 2007

In 2007, the annual profit of the banking sub-sector was £1,200 million, a nominal increase of 13% on the previous year. Before the increases seen in 2005 and 2006, profits had declined in each year from 2001 to 2004.

In 2007, the profits for the other sub-sectors were: fund management £98 million; trust and  company  administration  (including  legal)  £142  million; and accountancy £21 million.