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The Info List - Economy Of Jersey


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The economy of Jersey
Jersey
is largely driven by international financial services and legal services, which accounted for 40.5% of total GVA in 2010. Other sectors include construction , retail , agriculture , tourism and telecommunications .

In 2008 Jersey’s gross national income per capita was among the highest in the world.

In 2011 the island's economy, as measured by GVA , declined by 1% to £3.6 billion.

CONTENTS

* 1 Financial & legal services * 2 Construction
Construction
* 3 Retail
Retail
& wholesale * 4 Agriculture
Agriculture

* 5 Tourism
Tourism

* 5.1 Hotels

* 6 Transport, storage & communication * 7 Stock exchange * 8 Seasonal workers

* 9 Traditional & historical economy

* 9.1 Agriculture
Agriculture
* 9.2 Textiles * 9.3 Ship building

* 10 Historical exchange rates * 11 Taxation * 12 External links * 13 See also * 14 References

FINANCIAL "> Royal Bank of Scotland building.

Jersey
Jersey
based financial organisations provide services to customers worldwide. In June 2008 it was reported that 12,070 people were employed full-time, within this sector. The Royal Bank of Canada (RBC) is a major employer with some 900 staff employed in Jersey, as of March 2009.

The finance sector profits rose to about £1.5 billion in 2007, representing a real-term increase of 12% on 2006. Logo of the financial regulator Jersey
Jersey
Financial Services Commission

Jersey
Jersey
is one of the top worldwide Offshore financial centers It is described by some as a tax haven . It attracts deposits from customers outside of the island, seeking the advantages such places offer, like reduced tax burdens. Its taxation laws have been widely criticised by various people and groups, however the former Chief Minister of Jersey
Jersey
, Terry Le Sueur , has countered these criticisms, saying that " Jersey
Jersey
among cooperative finance centres". And in September 2013 the UK Prime Minister, David Cameron, said it was not fair any longer to refer to any of the overseas territories or Crown dependencies as tax havens, as they have taken action to make sure that they have fair and open tax systems.House of Commons Hansard 9 Sept 2013 Its information privacy law also provides exemptions that other European countries do not, for example in the way Trusts
Trusts
do not have to disclose as much information to Benficiaries about use of their personal data as is normally required under such laws.

Jersey's finance industry featured in a BBC
BBC
Panorama documentary , titled "Tax me if you can", first broadcast on 2 February 2009.

On 4 February 2009 Jersey
Jersey
Finance officially announced its intention to open a new representative office in London.

At the end of 2008 deposits in Jersey
Jersey
banks totalled £206 billion, down £6.2 billion from £212.3 billion at the start of the year.

The first regulated Bitcoin
Bitcoin
fund was established in Jersey
Jersey
in July 2014, with the approval of the Jersey
Jersey
Financial Services Commission, after island leaders expressed a desire for Jersey
Jersey
to become a global center for digital currencies. At the time of the establishment of the fund by a Jersey-based hedge fund company, Bitcoin
Bitcoin
was already being accepted by some local businesses.

CONSTRUCTION

Construction
Construction
represented 5.2% of GVA during 2007. In June 2008 it was reported that 4,980 people were employed full-time in the construction and quarrying sector.

St. Helier
St. Helier
, and the Waterfront area in particular, has seen much redevelopment during the early 21st century, with several projects in planning or under-construction during 2009. Developments include a leisure complex, the Radisson hotel, and a new central bus station - Liberation Station. As of 2009 there are plans to sink the A1 road, to provide building sites above it for offices, possibly for financial companies.

Construction
Construction
grew by 8% over the period 2006 to 2007.

RETAIL & WHOLESALE

As of June 2008 there were 6,610 persons in full-time employment within Jersey's wholesale & retail trades.

Retail
Retail
and wholesale grew by around 5% during 2007.

Sandpiper C.I. Limited operate a chain of stores in Jersey, their franchises include well-known names, such as Marks "> Hotel de France
France

Jersey
Jersey
saw a boom in tourism during the post-World War II years. This boom has been winding down since the late-1980s. Many of the larger hotels, which were constructed during the boom, have now been demolished.

Visitors to the island arrive either by sea at Saint Helier
Saint Helier
, or by air at Jersey
Jersey
Airport . These routes are subsidised by the States of Jersey
Jersey
. Exact figures for subsidies are not in the public domain.

Visitor length of stays have reduced from an average of 5.7 nights, in 1997, to 4.3 nights, in 2010.

Most tourist attractions are operated by private companies, including companies owned, or funded by the States of Jersey. Elizabeth Castle
Elizabeth Castle
, for example, is controlled by Jersey
Jersey
Heritage . Some other attractions are owned by the National Trust for Jersey
Jersey
.

In 2011 visitor numbers rose by 0.6%, with a notable increase in visitors from Germany, and France. It was reported that tourist and business visitors spent a total of £242m while on the island.

HOTELS

Notable hotels include:

* the Pomme d'Or overlooking Liberation Square in St. Helier, which during the occupation served as the German Navy Headquarters and from whose balcony the Liberation force raised the Union Flag on Liberation Day, 9 May 1945; * the Hotel de France, formerly the Imperial and the Jesuit college, in St. Saviour overlooking the town of St. Helier;

* Atlantic Hotel , St. Brelade * Château La Chaire , Rozel Bay * Longueville Manor , St. Saviour * Ommaroo Hotel , Saint Helier
Saint Helier
* Royal Yacht Hotel , Saint Helier
Saint Helier
* St. Brelade\'s Bay Hotel , St. Brelade

*

Atlantic Hotel (Jersey) *

Atlantic Hotel pool *

Ommaroo Hotel *

Royal Yacht Hotel

TRANSPORT, STORAGE & COMMUNICATION

See also: Transport in Jersey
Jersey

This sector accounted for 4% of GVA during 2007.

Most of the telecoms infrastructure is owned by Jersey
Jersey
Telecom .

In 2008, most goods imported and exported were transported by Huelin-Renouf, Condor Logistics, and other smaller operators, via either Saint Helier
Saint Helier
harbour, or Jersey
Jersey
Airport .

During the period 1984 to 1994, British Channel Island Ferries were responsible for much shipping to and from the United Kingdom
United Kingdom
.

STOCK EXCHANGE

Jersey
Jersey
shares The International Stock Exchange (TISE) with Guernsey
Guernsey
, where it is based.

SEASONAL WORKERS

The workforce in Jersey
Jersey
tends to increase during the summer months, with around 3,500 more people employed in the summer of 2008 than in the winter of 2007. These seasonal workers are mostly employed in agriculture, hotels, restaurants and bars.

TRADITIONAL the Jersey
Jersey
pound is at par with the British pound.

TAXATION

Until the twentieth century, the States relied on indirect taxation to finance the administration of Jersey. The levying of impôts (duties) was in the hands of the Assembly of Governor, Bailiff and Jurats until 1921 when that body's tax raising powers were transferred to the Assembly of the States, leaving the Assembly of Governor, Bailiff and Jurats to serve simply as licensing bench for the sale of alcohol. The Income Tax Law of 1928 introducing income tax was the first law drafted entirely in English. Income tax
Income tax
has been levied at a flat rate of 20% for decades.

Historically, no VAT
VAT
was levied in Jersey, with the result that luxury goods have often been cheaper than in the UK or in France. This provided an incentive for tourism from neighbouring countries. The absence of VAT
VAT
also led to the growth of a fulfilment industry, whereby low-value luxury items, such as videos, lingerie and contact lenses are exported in a manner avoiding VAT
VAT
on arrival , thus undercutting local prices on the same products. In 2005 the States of Jersey
Jersey
announced limits on licences granted to non-resident companies trading in this way. The States of Jersey
Jersey
introduced a goods and services tax (GST) in 2008. Although this is a form of VAT, it has been charged at a much lower rate than UK or French VAT, and as such Jersey's fulfilment industry continues.

The strategy for introducing the new GST tax was to fill a 'black hole' in the budget that was created by the introduction of a new 0/10 tax that replaced the old tax system that previously exempted foreign investors from corporation tax and levied a 20% rate on Jersey residents. The new 0/10 tax exempts all businesses except those in financial services from having to pay any corporation tax (0%), while leaving the financial services to pay a low tax rate (10%). The income generated from the new 0/10 tax proposal will not be equal to the revenue of the original tax system and this leaves Jersey
Jersey
with a deficit in their budget of several million pounds.

To fill the deficit created by the changes made to Jersey's tax structure, the States of Jersey
Jersey
introduced GST. GST is added to most goods and services, which has raised the cost of living. The people hit the hardest by the new GST will be the people on the lowest incomes, however, to try to prevent islanders living below the poverty line, the States of Jersey
Jersey
introduced an Income Support service in January 2008.

It is arguable that the people who benefit from Jersey's new tax structure are the owners of the large businesses that are separate or support the financial service based businesses. This is because they do not have to pay any corporation tax but will still benefit from the island's business.

EXTERNAL

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