There's a fascinating advert out that's been drawn to my attention, issued by the Jersey government. It says:
The States of Jersey, Treasury & Resources department is seeking to tender for a financial adviser for a debt capital markets financing solution.The purpose of this tender is to appoint a recognised professional and reputable organisation for two pieces of advice:-
Firstly, for the provision of specialist capital market debt advisory services to the Treasurer of the States in relation to a possible bond issuance program.
Secondly, once Treasury & Resources have decided on the optimum funding solution and the borrowing has been approved by the States of Jersey, it is also the intention that the appointed adviser will provide advice throughout the implementation and execution stages of the bond issuance program which will include the selection and appointment of providers, arrangers and underwriters as required. This may involve a program of bond issuances over a period of time (yet to be determined).
A much tougher line should be taken on closing down UK tax havens.
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Now this is interesting… given the Walker/Le Sueur/Ozouf clique’s everlasting reminders that “we have no debt”.
Mind you, it could be as innocent as the fact they want to spend £300million on a new General Hospital*, and even they know that the rate of GST required to raise that from the taxpayers would cause riots in the Royal Square.
* the existing Hospital building was built in 1960 and has been significantly neglected down the years – the money that should have been spent maintaining standards was diverted to vanity projects.
If you really think so Richard.
But it just seems strange how you spend so much of your own personal time making up conspiracy theories out of the limpest of details like a standard employment advert from an Island that has no debt.
Certainly baffles me.
You know what? I’ve never known someone issue debt who didn’t need to. Or pay someone to say how to issue debt without needing to.
Odd, but I think all the cards are stacked on my side here
So is the UK with its mountains of debt going bust as well?
Funny because another headline today says that tax receipts are up in Jersey. Yes, all the makings of a looming debt crisis obviously……
Ah, we can print money
You can’t….
Oh dear.
Well you say you predicted Jersey going bust in 2005 and we are now in 2012 and it hasn’t happened yet, so do you have any specific dates in mind as to when it will happen just so that I can seek an offshore job in another offshore finance centre in readiness?
I think 2015 was the forecast – remember zero / ten had to start first
Some of us can think long term
I suspect it may be a year or two out now, but still on track
Dear JPG
Your attitude is typical of those involved in tax-dodging-havens.
You say that there is nothing wrong with the miserable, grubby little island that gives you a good living out of screwing tax revenue from the world’s poor countries — and even if there is you can always move on (with your equally avaricious chums) to another even more secretive but no less miserable and grubby “offshore finance centre” and continue the gutless and loathsome process there. Simple.
Meanwhile 1 billion people are slowly/quickly dying of starvation …
Jersey’s Treasury Minister has refuted that the island is going bankrupt as suggested by this blog. He made the comments, without naming the blog, at a government Scrutiny meeting this morning. The advert for corporate finance advice, which appears on the States of Jersey tenders website, was he said to take advantage of the exceptionally low current interest rates and the fact that Jersey had such an exceptionally strong economic reputation. Bond issuance was being considered from a position of strength and it was this that permitted borrowing, not financial necessity. It made sense he said to bring forward long term projects and take advantage of historically low rates.
The Treasury Minister, Senator Philip Ozouf, also announced that the forthcoming Budget in October would see the replacement of measures to deal with tax avoidance following the loss of the deemed distribution provisions in the Zero-Ten policy. Without giving details, he was able to reveal that measures would realise £7.6 million and confirmed that the proposals were Code Group compliant.
Commentary: Historically the government of Jersey has sought to avoid public debt, even during Les Trente Glorieuses of ever rising economic development and prosperity of the tax haven. The island has currently unprecedented high levels of unemployment. Fiscal Stimulus measures have been required to prevent the island’s construction industry “falling off a cliff” and maintain employment in that sector.
Oh pull the other one
The reserve fund was for this purpose
This is a crisis measure, for sure