The Guardian reports this morning that Sir Philip Bailhache, the foreign minister, former Bailiff and former senior judge of Jersey, thinks it's time for Jersey to declare independence form the UK. As they note:
A barrage of regulatory clampdowns and political attacks on the Channel Islands' controversial financial industry has prompted one of Jersey's most senior politicians to call for preparations to be made to break the "thrall of Whitehall" and declare independence from the UK.
Sir Philip Bailhache, the island's assistant chief minister, said: "I feel that we get a raw deal. I feel it's not fair … I think that the duty of Jersey politicians now is to try to explain what the island is doing and not to take things lying down.
"The island should be prepared to stand up for itself and should be ready to become independent if it were necessary in Jersey's interest to do so."
In a Guardian interview, he said strained relations with the UK over the past five years had made it "very plain" that Jersey's interests were not always aligned with those of Britain.
As long term readers of this blog will note, this is nothing new. Sir Philip, along with Colin Powell and others from the Jersey establishment, have been touting this idea for a number of years.
And let's be clear - these people do not have Jersey's interests at heart. They have the finance industry's interests at heart. They don't want to be covered by the European Union Savings Tax Directive or the EU Code of Conduct on Business Taxation, both of which have had serious impact upon them. They do want to be able to function as a secrecy jurisdiction untrammelled y intervention.
Remember what a secrecy jurisdiction is. Secrecy jurisdictions are places that intentionally create regulation for the primary benefit and use of those not resident in their geographical domain. That regulation is designed to undermine the legislation or regulation of another jurisdiction. To facilitate its use secrecy jurisdictions also create a deliberate, legally backed veil of secrecy that ensures that those from outside the jurisdiction making use of its regulation cannot be identified to be doing so.
Jersey is just that. Read the TJN report on its opacity, here. Jersey is seventh on TJN's financial secrecy index. It is a major player on the provision of financial services designed to undermine the rights of democratic states around the world and of course as a result it does not see its interests as being aligned with those of the UK: it is seeking to undermine the revenue of the UK government and that's little short of an act of economic warfare, despite which they demand UK sympathy. The comments on CiF show just how little public support they have.
The reasons for Jersey wanting to split are, therefore, very clear. They want to continue to abuse at will. The real question is could they split?
The UK long recognised that its territories could leave its control if they could secure a majority vote to do so. It's not clear that the Crown Dependencies are such territories: their status is very unclear in this respect. But I'm not convinced anyway that the Jersey hierarchy believe they could get that vote right now. The people of Jersey know where their lifeline is: it is the UK right now, and a vote to leave the net - of which they are a very definite member - would leave them at considerable risk and with nowhere to go- literally - if they declared independence.
And there is real risk. Jersey's finance industry appears to be weakening steadily - because of global downturn and because of attacks on tax abuse. That's why they're getting so stroppy.
And then there's the budget issue - where the zero-ten tax regime (much altered to ensure compliance with the EU's requirements after a campaign to ensure this happened in which I admit I played a big part) is leaving a massive hole in Jersey's budget. They assumed growth would fill this hole and it is not happening. Their reserves do not cover their pension liability; their ongoing budget situation is perilous. I've long said tere is a black hole looming.
But worst of all - leave the UK and the benefit of being part of the UK - with the back up of its courts system, regulation and oversight goes, and it's that which lets people put their money in Jersey with some confidence. Jersey is the massive net beneficiary of this arrangement and without the backing of the UK and its implicit guarantee Jersey is just some bandit island where no one can be sure what will happen. And the money will flow away as a result.
Bailhache can bark, but he has no bite. It's time to just call his bluff - and crack down harder on the abuse Jersey facilitates.
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I hope is not about anything you said Richard 🙂
I think they will have a mountain to climb to achieve this…
K2 comes to mind…
Such a raw deal that we even allow them to use our bank clearing system and then allow Philip B to keep his knighthood. Perhaps we could hand them back to Normandy – I’m sure Mr Hollande would know how to deal with them.
Plans for independence by Jersey are not new. They have been a hobby for a section of the island elite for some time. Generally Finance regards the plan somewhat skeptically; as the nuclear option of last resort and something not to be relied upon in serious diplomacy. Bailhache likes to pop up whenever he gets the chance to wave the flag.
That independence is being floated unashamedly as something in the best interest of the finance industry shows the extent to which the island has been captured economically and politically. The views and interests of islanders are a matter of irrelevance, as is 800 years of British history of which the island is a part.
There was considerable disappointment in Jersey government circles that the UK recently refused Jersey to continue printing its own variant British passport. Henceforth, there will be centralised production of British passports in the UK for Crown dependencies and other overseas territories. This may indicate there is less tolerance towards special privileges; however it is not clear that the British government is not encouraging the Crown dependencies to go it alone. Messages are mixed.
Britain is ultimately responsible for good governance in the Channel Islands and were they to become independent this scrutiny would disappear leaving the islanders at the tender mercy of their political elites, now totally beholden to the interests of finance capital. In a sense Britain protects the island population from its own government who cannot be trusted to represent any interest other than that of finance. The Bourgeois Mafia or pinstripe Pirates are truly running the islands.
There are those in the island that realise sections of government are wildly out of control but can do little to prevent disaster. The economic crisis will intensify elite folie.
What’s the main difference between Sir Philip and the inbred hillbillies in the film Deliverance?
There ain’t many hills in Jersey.
I`ve seen the film Deliverance,but never been to Jersey-however,I doubt that very many of the other “inbred” locals have much of the money or influence in the matter.Indeed I suspect that that power is often in the hands of wealthy incomers,plus a few local bourgeoisie? One benefit of those incomers- ca. 50% or so I`d guess,is to probably quite neatly dilute those inbred features you seem to believe exists.
You obviously haven’t visited…
But it may not be a coincidence that PB lives almost next to the former States Lunatic Asylum.
If they leave the UK & leave the £, I can’t imagine they’ll move to the € – that would require MORE regulation. Presumably they’ll go with a plastic Jersey £ that they’ll tie, like other secrecy jurisdictions, to the $ (or perhaps, moving with the times, the Remninbi).
That’ll truly **** the small number of Jersey residents that still do real things, like grow crops, fish or even offer hospitality to tourists.
Are these people all there ?
Spot on post as usual.
As well as an interest to defend finance (which is ironic given that independence would be far more likely to harm finance) the oligarchy in Jersey also have an interest to defend their hegemony which would be destroyed if the UK decided to take action in Jersey (as it did with the Turks and Caicos Islands). Jersey has real problems with separation of powers, the rule of law and unacceptable deficiencies in its electoral system that the island is incapable of clearing up because of the vested interests.
That extra motivation has to be taken into account too.
Perhaps they could then give Diamond and his ilk political asylum!
It’s unpleasantly interesting to see that so many people are using these news stories to attack Jersey as a whole, with mostly ignorant and terse remarks.
This would be “roger rabbit” right here, and many more commentators on other sites, such as the Guardian.
The population of Jersey is far from inbred, the opposite is true.
Jersey people are not tax exiles, the money in Jersey banks belongs to people in the UK, and elsewhere.
From my point of view, as a local Jersey person, I see that the island I was born on is mostly being abused by UK banks, and UK residents, with the assistance of a select few locals. In this case, Sir Philip Bailhache.
Just bear in mind, that this independence idea is his idea, and I did not vote for this man in the elections, and as far as I am concerned he does not represent me at all.
I’d be more than happy for RBS, HSBC, and the rest of them to go back to where they came from – the UK!
I am well aware that the characterisation of all Jersey people by some is wrong
There is a problem with finance and Jersey
And with Jersey politicians
But not with Jersey per se
Thank you Richard as a Jersey man from a local Jersey Family of many many years I am appalled and utterly disgusted by Mr Bailhace outburst for Independence he has NO MANDATE FROM THE POPULATION OF JERSEY FOR THIS STANCE in fact many would say that he is seeking to protect himself and his cronies from any outside pressures the man is a disgrace do some research on his legal Judgements on issues like Haute de Garene, abusers allowed to leave the Island at the last minute lenient sentences for pedophiles any outside scrutiny would not be welcome by him ! Also I am BRITISH and PROUD to be a small part of a GREAT NATION