Ministerial Response to Chamber Open Letter

Wednesday 21 December 15:26

Environment Minister's response to the Jersey Chamber of Commerce open letter, concerning the possible introduction of a Community Infrastructure Levy (CIL) on land development.

21 December 2016

Dear Cathy

Jersey Infrastructure Levy (JIL)

Thank you for your letter dated 20 Dec 2016, concerning the possible introduction of a levy on land development. I announced my intention to explore a levy earlier this year, to specifically help fund improvements in public infrastructure and to support the regeneration of St Helier.

I welcome the views of the Jersey Chamber of Commerce and value the opportunity to meet with you and your members to discuss this proposal, and other environmental and government matters. I will continue to listen to the views of Chamber and your members and will carefully consider these before progressing with any changes.

I must again stress that no decision has been made to introduce a levy in Jersey. I will only pursue this if a levy is viable. There is no benefit to the public, government or the industry in introducing a scheme that isn’t viable. You will be aware that at this stage we are consulting with the construction industry on whether such a levy on land development could work in Jersey. We are progressing a developer viability report and we will consult further with stakeholders once the report is published in the first quarter of 2017. I would ask that Chamber and your members continue to engage with us, contribute to this viability work and provide evidence based information to support your views. It is vital that we understand the impact a levy might have on the industry and the points you raise in your letter will be considered as part of this viability work.

Should I decide to progress with a levy following the viability assessment I will want to consult further on the possible level of a levy and the operation of a levy scheme. We will only consider this depending on the outcome of the current viability stage. We would also need to consult with Scrutiny and present this to the States Assembly.

In summary, no decision to introduce a levy has been made. I welcome the views of Chamber and ask that you and your members continue to engage with us. Your views will be carefully considered and a JIL will only be introduced if this is viable and will require States approval.

Yours sincerely
Deputy S Luce
Minister for the Environment

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