Director of International Finance at the Chief Minister's department

[Limpet]

A quote in today's JEP was attributed to Martin de Forest Brown, director of International finance at the Chief Minister's department.

For the last 2 hours I've been trying to find one reason why the Chief Minister would require a director of International Finance, or indeed why would the States of Jersey.

Can anyone enlighten me? Or is this another ludicrous example of more (expensive) waste of taxpayers money?

[AHITS]

I'd think the simple answer is that it makes Frank Walker and his cronies feel that little bit more like international 'players'.

One huge problem we've seen appear with Ministerial government is a political mindset of Jersey being a country. Rather than concentrate on running this island at island level as if it is an island, Ministerial focus has been placed heavily on developing it as if it's a wealthy country-sized nation. Hence we've seen a lot of financially unsuitable and wasteful actions and decisions from Ministers, ranging from Frank Walker thinking he needs a "Communications Unit" costing almost £300,000 a year, to Freddie Cohen's multi-million pound obsession with turning the island into a facsimile of Manhattan. 

A Director of International Finance is just another symptom of this.

It's mismanagement on a grand scale, nothing less. If the Council of Ministers were to focus their gaze on running the island as an island, costs would be cut to such a huge extent that there would be enough spare change in the coffers to cover the needs of GST. But hey, why be such a spoilsport and think that way when our politicians now get to feel as if they have the chance to stand in the wings of the world stage, being seen as "world class"....

[Jersey Spud]

One huge problem we've seen appear with Ministerial government is a political mindset of Jersey being a country. Rather than concentrate on running this island at island level as if it is an island, Ministerial focus has been placed heavily on developing it as if it's a wealthy country-sized nation. Hence we've seen a lot of financially unsuitable and wasteful actions and decisions from Ministers, ranging from Frank Walker thinking he needs a "Communications Unit" costing almost £300,000 a year, to Freddie Cohen's multi-million pound obsession with turning the island into a facsimile of Manhattan. 

But everyone in Jersey now expects the standard of living we have as a given (although not the cost of that living!). The fact is that Jersey, for its size, has fantastic amenities and public services. Other islands of a similar size in the world are back-waters. We would struggle basic provisions like fresh water and electricity for everyone without the finance industry. Look at many of the scottish islands for instance. If the public is happy to do without all of our amenities that a "weathly country-sized nation" expects, then I'm sure we could save a lot of money.

And I imagine that "international finance" and its servicing brings in the majority of this islands tax take? Just a guess 

And comparing Jersey to Manhattan is a bit OTT, don't you think? For a start, Manhattan has many million people, is forward thinking and dynamic and, in fact, very beautiful, with structures 100s of floors tall. I can understand the sentiment that you're putting across, but i think that Swindon is a better comparison   

[Limpet]

And I imagine that "international finance" and its servicing brings in the majority of this islands tax take? Just a guess 

 

Jersey, as a state, has absolutely nothing to do with international finance, it doesn't have a tradeable currency or any significant investment in foreign currency - this is a post you might find in an international bank - which probably explains all.

[en830]

More waste of public funds what will happen when finance finally leaves Jersey will it sink without trace under a mountain of debt, empty building et al.
We must diversify now before it is to late.
Jersey is like a dinosaur at the moment it thinks it is invincible.
Unfortunately a meterite strick soon put paid to them.
Jersey must evolve or die.
I for one don't think dabbling in dubious financial practises is the way forward.
Large trading blocks like the EU and the US frown upon this sort of thing and will eventually put paid to this tax dodge by wealthy individuals/businesses.
Jersey offers nothing of substance it makes nothing and produces nothing.
It does however take a lot by way of sucking vital tax money from countries who can ill aford this type of thing.
This money is syphoned off into overseas accounts like Jersey and is never seen by the countries whose money it should have been.
People in these countries have to put up with less so we in Jersey can have a slightly better standard of living.
The reason why I say slightly is I believe quality of life has a value and it is definately being erroded in Jersey due to this rampent capitalism.
People are being driven harder and harder for less and less, it is not viable in the long term.
Money is God in Jersey nothing else counts.
This is very bad and you will see more crime, deaths, dispare etc as this capitalism puts more people to the wall mentally and physically.
Family life has been destroyed all for the sake of money.
We are slowly being turned into thoughtless automatons who do their leaders bidding without thinking of the consequences of these actions.
It is not viable the planet is sick of all this rubbish and will soon be forced to rectify man's stupidity.

I have a Red flag if you would like to borrow it.

Could you name these unfortunate counties that we are sucking the life's blood out of ? I bet not one of them appears on my portfolio or on any of my colleagues !!!

[Jason the Maverick]

I agree, all my clients come from already wealthy countries.  This has been a point which ATTAC keep on claiming but from a person that works on the shop floor, I dismiss this claim in its entirety.  We get no business from the USA at all, in fact there is no business there.  Nothing from Africa and certainly nothing from any other country that would be classed as poor or corrupt.

[Jason the Maverick]

I think you need to give me some examples!

I have no such clients on my books.

Do you work in the industry? 

[en830]

Strange how people seem to think it's so easy to put money into a Jersey bank account. It's taken me 6 months to set up a structure for a client due to all the KYC and due diligence that I had to obtain, and when I tried to open a bank account this week for this client, it was knocked back due to a link to a former eastern block country.

[Jason the Maverick]

It is true, some people do not understand how hard it is to use Jersey nowadays.  We are on alert all the time and the KYC is tight.

[en830]

Ah, but I have been told if a Mr Mugabe of 1 Acacia Ave, Harare, Zimbabwe should contact me in the next few months, I do not have to worry about KYC he is a trusted client !!!

[Malachi]

The depriving country X of tax revenue thing has more to do with companies using transfer pricing & offshore structures to minimise their tax exposure in country X than dictators trying to open bank accounts in Jersey.

[danrok]

I'm pretty sure the shady types don't open bank accounts in Jersey under the name "Mr Mugabe of Zimbabwe".

For one, their finances are going to be taken care of by an apparently respectable accountant with offices in a non-shady country.  They will have many bank accounts all over the world, so they aren't all that likely to transfer money from Uganda, or where ever, directly to Jersey.

They won't be waving a pink peacock feather in the faces of Jersey bankers, in other words. 

It can take the likes of the CIA or MI5 years to unravel money laundering transactions and bank accounts, it's not all that likely that Dave at HSBC Jersey is going to spot what they're up to whilst chatting to Sharon about the weekend's frivolities.

[en830]

I guess no one on this forum takes advantage of tax avoidance facilities then, we all pay the maximum 20% on our salaries ?

[Limpet]

There's a big difference between using mortgage relief etc to reduce your tax bill (I presume you mean that) and using the attractive tax regimes of offshore finance centres to avoid tax.

I agree, most business these days is much cleaner, but there's still alot of the dodgy old money sitting around in tax structures administered by most companies in the island.

As per geographic location, JTM, there are some local businesses that specialise in certain areas, others that will still take whatever business is thrown at them as long as the fees are large enough. Perhaps your company tends to take the lower risk approach.

[Jason the Maverick]

We have had these discussions before and it always seems to be the people that don't really understand what goes on within the Finance Industry that come out with these wild accusations.

When that argument fails they move onto ethics.  I don't care what ATTAC or the T J N thinks of offshore finance anymore, because they never listen to the people that work within it.  In fact I agree with the comment that they are enemies of Jersey.

But I will tell you now that if firms do take high risk dodgy business if the price is right, I recommend you report.  If you don't really know what is going on then I suggest you stop pointing the finger!