Ozouf in India

[Jason the Maverick]

"Jersey companies say emerging markets are vital for the future prosperity of the Island.

A number of companies have forged strong links with suppliers in the Far East as cracks begin to appear in the economies of the west.

Local businesses say it's paying off to look further afield and to move away from traditional trading partners.

Last week Jersey's Economic Development Minister paid a visit to India himself to see if he can boost trade links further".

[AHITS]

Spin-spin-spin.

The main focus of the JEP's report of this visit is Ouzouf meeting head-honcho of the Indian Chamber of Commerce, Dilip Dandekar.

However, in that same report Dandekar is responsible for the single most revealing comment. "We are amazed at Jersey's entrepruenurial excellence, which has led to the island becoming strong in areas like financial services, tourism, electronic commerce and agriculture".

Now call me crazy if you want. But isn't it odd how the Indians are completely unaware that two of the industries who's "strength" leaves them feeling "amazed", are dying on their feet? Surely this would suggest that India's interest in the island is somewhat less focused than Ouzouf seems eager to believe?

Not one Indian company has publically expressed a specific interest in coming here, all those who have commented simply seem to be issuing rather generic phrases of what the island can offer if any Indian company decided to come here....which comes across more as them being polite to a visiting foreign politician, rather than being any promise of future business involvement. Ouzouf seems to be the only one preparing for an Indian invasion.

I'm getting the feeling of there being a high probability that ultimately all we'll really have seen with this jaunt is Ouzouf using taxpayer's money to pop out and get a very expensive curry.

[Limpet]

The only services that Jersey has to offer Indian businesses is share registration offering a backdoor way to flotation on the secondary markets in London, and therefore Europe. However the companies offering share registration in Jersey are all UK owned. and, anyway, the fees in Jersey are small. One or two legal firms will be the only ones to really benefit but overall there will be no benefit to the Jersey economy - a complete waste of taxpayers money. Not for the first time Mr Teflon - I mean Ozouf.

[danrok]

Hopefully, his next jolly will be to Mars. Should take some time.

[AHITS]

This report from last month almost skipped my attenion:

"Geoff Cook told JFL members in his inaugural speech at the annual lunch on Tuesday that he would be looking to increase business in China, India, other parts of Asia and Eastern Europe, as well as the more mature UK and European markets. Jersey Finance will this year receive a grant of £1 million from the States of Jersey to further its work of promoting the Island's finance industry."

Probably explains why Ouzouf is working so hard at making this look like a success. Seems it's not good enough that the public are being taxed with GST to support the Finance Industry, we have to give them a million quid to help them on their way too.

[Terminator 4]

This report from last month almost skipped my attenion:

Jersey Finance will this year receive a grant of £1 million from the States of Jersey to further its work of promoting the Island's finance industry."

Probably explains why Ouzouf is working so hard at making this look like a success.

Jersey Finance already receives millions.  Senator Ozouf likes spending our money and approving big payouts doesn't he?

[Chief Minister]

So, where is this new business then? I assume he went down there to gain a profit?

[Al]

http://www.timesonline.co.uk/tol/news/world/asia/article3559355.ece
http://www.jerseyfinance.je/content/2643/index.html

In the light of worldwide coverage (and condemnation) of events in Tibet, is it a good idea for Jersey Finance to be trying to increase business with China?

[danrok]

What I do not understand is why nobody explained the Indian tax laws to him before he went.

What are they?

[Jason the Maverick]

Basically offshore finance centres are pointless for them.

[Limpet]

Ive just posted this in another area, but it is as relevant here:


Just two questions that I would have liked Senator Ozouf to answer re the proposed monies to be paid to agents in China and India: -

what type of business this investment is expected to attract?

what is the expected monetary benefit to the island?

I'm sure that some sort of business plan/budget must have been written somewhere.

My thoughts - It's difficult to see exactly what types of business would come here - some share registration, some alternative fund business, some capital market business perhaps - I cannot see a huge influx, which takes us on to the second point: -

To get back anything on our GBP400,000 per annum investment, remembering that most financial businesses will be paying 10% income tax on profits in Jersey, this business would have to generate GBP4 million per year, however we must not forget that most firms would be working on about 30 - 35% profit margins, therefore the actual income required to generate sufficent tax receipts to cover taxpayers initial investment would be around GBP12 million per year.

That would seem an extremely optimistic forecast to me

[ole razzy]

He's back on the colonial trail. But what does he do in India when he's not 'on duty'?

[rico sorda]

what happens in india stays in india razzy 

[ole razzy]

Me hearin ya bruvva. Same as Guernsey 94 innit? 

[Dylan]

You sayin' he stands to attention when he's Not on dooty as well?