Author Topic: Future generations to pay off millions in borrowing, thanks Phillip.  (Read 2434 times)

Offline boatyboy

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Did you hear about the family that spent and borrowed and spent and ……… crashed.

Did you hear about the Treasury Minister of a wealthy island who spent and borrowed and  …. you get the idea !

Worse he could or would not be prudent with the economy ( even with all the consultants employed to advise ) and refused to reduce Government spending in response to a reducing island tax, slowly shrinking economy and worsening employment situation the worse in decades in fact he increased spending.

Roy Travert has written an easy to read letter which is recycled here, and cannot be " lost " closer to the elections, you are welcome to disagree on this open forum.


This financial decision is a misguided folly, minister

Thursday 2nd January 2014, 5:08PM GMT.


From Roy Travert.

WITHOUT a shadow of doubt, Treasury Minister Philip Ozouf has just made the most dangerous financial decision in living memory. His misguided folly to borrow £500 million to build social housing in Jersey is a financial disaster in the making.
The States of Jersey have endorsed this ill-fated policy and voted it through, government thus creating a debt burden for generations to come.

Throughout his campaign to burden the public purse and the taxpayers of Jersey with this unnecessary and dangerous debt he has preached how good it will be for Jersey. His misguided and ill thought-out logic for this is that it is a ‘serviceable debt’ and will be paid for from the income from the proposed social housing projects.

What he has not told the public is that it is not £250 million he plans to borrow it is in excess of £500 million. What he has also omitted to tell the public of Jersey is what the interest payments will be and how long it will take to pay this money back to its lenders.

Interest payments of 4% are being thrown around at the moment but it could be much higher than this. This would equate to £40,000 for every million borrowed.
This would mean on his £250 million borrowing we are going to pay a minimum of £10 million per annum. Who is set to profit from this financial windfall?

This policy is ridiculous when you consider he reneged on his promise not to increase GST, and then did so by 2% to extract an extra few million from consumers’ pockets.

It is horrifying to think that the taxpayer of Jersey will be forced to pay interest to an unknown body when we could have borrowed the money from ourselves. The rainy day fund could have provided the funding and then replenished from a low rate of interest charged on the funds being borrowed.

Unfortunately our capital reserves are about to be plundered to pay for the hospital which should have been budgeted for over the past 20 years. Another fiasco in the making.

Spain, Portugal, Greece, France, America, the UK all thought the same thing when borrowing millions to pay for projects they could not afford. All of these countries have faced severe financial problems with many on the verge of bankruptcy. All have followed the same flawed financial policies that Senator Ozouf is now pursuing.

At the core of this problem is his inability to control public expenditure, coupled with the creation of public-private partnerships whose non- executive directors earn in excess of £250,000 per annum. These bodies are rarely if ever scrutinised for efficiency and value for money for the taxpayer.

How can Senator Ozouf be in charge of our assets and finances when he cannot control public expenditure and balance our books between income and expenditure? We have a decreasing tax take, a shrinking economy, rising unemployment set against an economic backdrop of stealth taxes and increased social handouts fuelled by low paid immigration. His tax and spend policies have dragged Jersey back to the dark ages as far as our finances are concerned.

Small businesses employ a substantial amount of workers in Jersey yet they are being systematically bankrupted due to the high social security payments they are expected to make along with high rents and stealth taxes. Middle income families have been hit the hardest by Senator Ozouf’s tax-all policies. If something is not done soon Jersey will find itself in the same position as the rest of the world. Economies that are run on debt payments create bubbles of economic activity which simply do not last.

What will Senator Ozouf do then? Borrow more money?
« Last Edit: January 03, 2014, 07:11:38 AM by boatyboy »

Offline Chevalier Blanc

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Re: Future generations to pay off millions in borrowing, thanks Phillip.
« Reply #1 on: January 04, 2014, 10:38:42 PM »
This is where the is all wrong. One minister signing off a debt of £500,000,000 for this island to have generations in the future paying it off.
This should never be allowed!!!!!!!!!!!     one person.
Bring back the old committee system with a little bit of tweeting. This minister government is bringing Jersey down on it's knees.
Roll on October and hope more people come out and vote because the establishment will win with a small turn out.
« Last Edit: January 04, 2014, 10:41:04 PM by Chevalier Blanc »

Offline man in the street

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Re: Future generations to pay off millions in borrowing, thanks Phillip.
« Reply #2 on: January 05, 2014, 05:52:48 AM »
social housing  will be required,  as our  young  folk   and the  folk who have   arrived  here  and done  the 5 years( 2 kids ).
 will  be  applying(  for  social housig)  as  the income  will not  service a mortgage  and put  food on  the table .
 as social housing rents are moving upwards .
 the private sector  will not be far behind  another  quantum leap.
 the futrure generation ,  do not have a lot of  well paid work  prospects  imho.
  we   have  loads out of  work and  no  sign of  anyone  beating  a path  to  door  to open  a  large  business

Offline boatyboy

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Re: Future generations to pay off millions in borrowing, thanks Phillip.
« Reply #3 on: January 30, 2014, 07:03:28 AM »
I notice Roy Travert has just joined PJ no doubt in order to reach a wider voting public. Why not ? both Sam Mezec has his own blog ( also a PJ member ) and Nick Le Cornu has his own, as have several States members. As newspapers have found out to there cost, " hello JEP ", people get their information from many different reliable internet sources.

I also think it is good to spread articles, those that push your buttons anyway.

I recycled one of Mr Travert's letters which I thought was on the ball, it is above at the top of this thread.

At the moment with the exception of a few good members, Jerseys' Government is like a pond which is silted up, septic and smelly, desperately in need of new water flowing in to get rid of all of the above.

Desperately in need of new, interested and fresh individuals, not tainted by the old boys self interest big ego club. I wish Mr Travert good luck in the elections, he has stood before, but Churchill stood four times before being elected apparently.

BB
« Last Edit: January 30, 2014, 07:04:59 AM by boatyboy »

Offline Chevalier Blanc

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Re: Future generations to pay off millions in borrowing, thanks Phillip.
« Reply #4 on: January 30, 2014, 04:12:27 PM »
Where ever he is going to borrow the money from bet your bottom dollar he will be making money out of it to give himself more wealth.
It is disgusting that this island should be borrowing money. All the old states members who made Jersey will be turning in their grave to see this.
This island will finish up with just the very rich and the poor doing all their work for them, it will be a place where the rich come to live out their lives.

Offline boatyboy

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If you have not read it, this thread features an excellent letter from Mr Roy Travert at the start, please scroll up.

Before anyone points to the obvious that all countries in the EU, and the USA are bankrupt and Jersey has ridden out the recession quite well considering - it has not - because Jerseys wealth comes from the shrew old politicians who in the early 50's set up a business structure  for the island that enabled it to become wealthy. Of course the world changes, but in recent years, politicians who vow to be prudent with the taxes we pay, have continued to grossly over spend and now we have a treasury minister who thinks its cool to borrow millions rather than make serious cutbacks in spending.

Treasury minister Phillip Ozouf announces that Jersey forecasts were wrong,

Quotes: which are selective, please read full article.

Jersey's accounts for 2013 show a small surplus of £500,000 in its day-to-day finances. Income was £9.3m lower than forecast for 2013, mainly due to weaker returns from Stamp Duty.


He then goes on to say:

I am particularly pleased with the performance of our Common Investment Fund. This means that our funding strategy for the new hospital is working. Our planning assumption was for a 5% return (£33 million), and we have achieved £92 million in 2013.

This bares some scrutiny or maybe some nuggets of honesty, something like,

Much of the money we would have received by businesses working in the island has evaporated due to the States not charging those businesse's tax.

Had our reasonable expectations of 5% return from the Common Investment Fund been accurate, and returned £33 million Jersey would have  been in the red to the tune of  £59 million. So this time luckily, investments gave a strong showing. We are incapable as Government of bringing in any meaningful cost cutting measures to our administration ( we actually plan to spend a whole shed load of money, police station, hospital, maybe even court cases ) and therefore we will either borrow, increase taxes or pray that the fund achieves an increase next year.

http://www.bailiwickexpress.com/jsy/news/jersey-black-just/?t=i#.U3ZA68a9vwIhttp://www.bailiwickexpress.com/jsy/news/jersey-black-just/?t=i#.U3ZA68a9vwI

bb
 
« Last Edit: May 17, 2014, 03:16:14 AM by boatyboy »

Offline shortport

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I believe his statement is nonsense.He may be saying that the common investment fund rose in value by around 15% last year instead of the predicted 5%,but until you actually pull that money out of the stock market and bank it its meaningless.Stockmarkets had a very good year last year but have more recently dropped back.So what is the value of the common investment fund today? I bet its not still up £92 million.
On another note I remember some time back Ozouf predicting our economy to grow by 5 or 7 % last year.Can't remember what it was or why he was being so optimistic,i think it had something to do with the finance quarter and Chinese banks.Can anyone remember.

Offline man in the street

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 i  notice   that  the pages of  the jep  and a  spread about  jersey  finances  being   good ,  do not  allow   comment . and a  smiling  phillip o .
 my  comment  would  be .
  why  do  we  still have gst on food  and  why have  you allowed  utility  companies   to  hike  the  charges  so much .
  it  all  rosey in  the  garden ,  depending  who,s  window  you  look out of .

Offline shortport

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That's right no comments allowed about Jersey finances and no comments allowed about £4 million of taxpayers money being wasted on the finance quarter to date.The JEP is getting worse and worse with its attempts to manipulate public opinion.If only we had a rival newspaper to hold the government to account.