What Jersey needs to do to become a technologically advanced economy

The Policy Centre held a discussion meeting on how Jersey can become a technologically advanced economy on 15 November 2024. 55 people participated - members of the Centre’s Advisory Council, representatives of business and government and people interested in the subject.

The meeting was opened by Alan Merry, Chair of the Centre, and the discussion was moderated by Kate Wright, Vice Chair of the Centre’s Advisory Council. Opening comments were made by Tony Moretta, Chief Executive Digital Jersey; Dave Wyatt, Founder Celero Ventures; Pete Wild, Founder Exilium Ventures, and Tom Hacquoil, CEO Pinpoint.

There was then an open discussion. Following is a note of the discussion.

Key points

• Technology is the only industry capable of matching finance in terms of economic value to the Island. But it is not prioritised.
• There is still an assumption that that talented people want to come to Jersey. They don’t. Other countries incentivise talented people to settle because of the contribution they can make in respect of employment and tax revenue. Jersey still operates barriers.
• Tech companies rely heavily on informal networking; a good network attracts more talent. Jersey does not have that network.
• Parts of what Jersey has to offer are very good – safe and attractive place in which to live, legal system, finance industry, some infrastructure and the Jersey Private Funds mechanism.
• However, the processes for forming a company and opening a bank account are unreasonably slow.
• Subjecting tech companies to money laundering provisions is unduly onerous and unnecessary and a barrier to business.
• The education system needs to prioritise digital skills; currently this is largely done outside the school system by Digital Jersey.

Prioritisation

The rapid and significant developments in technology have implications for all jurisdictions, including Jersey. There are huge advantages to the economy in Jersey becoming more digital more quickly The Island should concentrate on looking forward and seizing opportunities rather than trying to retain things from the past. A modernisation agenda is needed.

Technology is the only industry capable of providing similar financial benefits to the Island as financial services, yet it has a low priority in the political system, compared with, for example, agriculture and tourism. Politicians tend to concentrate on things that interest them and generally technology is not one of those things.

Jersey as a centre for tech businesses

Agriculture, tourism and finance have been huge industries in Jersey, all developed on the back of natural advantages - climate and location for agriculture and tourism, and Jersey's status which has enabled it to have its own financial services industry. Jersey has no such natural advantages in respect of technology.

Some features of Jersey are attractive to tech companies including the legal system, the financial system, much of the physical infrastructure for example broadband speed, the tax system, the Jersey Private Funds mechanism and, often underrated, the Island is a safe and attractive place in which to live.

However, there are also significant barriers to attracting and retaining tech companies. The key one is the attitude to immigration. Building a tech industry depends on having the right people. There is an impression that people are beating down doors to come to Jersey. They are not. Other locations are offering incentives to attract tech entrepreneurs recognising the huge value that they can bring to an economy. Jersey still has barriers.

Digital Jersey previously had delegated authority to issue licences for immigration but this has ended. Jersey is not even good at letting people in who want to come here.

There are three other specific problems –

• The company formation process is not efficient.
• Opening a bank account can take an inordinately long time.
• Jersey treats every company as if it is a regulated financial services company, which is a significant barrier. The answer is not to use technology to make compliance more efficient but rather to remove the need for compliance.

Informal networking is critically important for start-up businesses generally and tech businesses in particular. Silicon Valley was not created by government but rather successful entrepreneurs based there attracted other entrepreneurs and also the money they had made constituted an important pool of funds for new businesses.

Jersey does not currently have a good informal network for tech businesses, emphasising again the importance of attracting entrepreneurs and their staff to the Island rather than obstructing them.

Use of technology in government and business

If Jersey wishes to be a technologically advanced economy, the government needs to be an exemplar in the use of technology to provide public services. Currently it is not. It is analogue rather than digital.

Businesses vary considerably in the extent to which they are technologically advanced.

Artificial intelligence is capable of generating huge benefits for government and business but currently is not being fully exploited in Jersey.

Skills

There is a need to upskill the workforce - Jersey is currently near the bottom of league table.

Digital Jersey plays a significant role in increasing digital skills. Its F1 programme has been particularly successful. It also trains teachers, but digital skills are not being effectively taught in schools.

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