Jersey: Encyclopedia II - Jersey - Economy

Jersey - Economy

Main article: Economy of Jersey

Jersey's economy is based on financial services, tourism, internet trade and agriculture. Financial services contribute approximately half of the Island's economy.

Major agricultural products are potatoes and dairy produce. The source of milk is Jersey cattle, a small breed of cow that has also been acknowledged (though not widely so) for the quality of its meat. Small-scale organic beef production has been reintroduced in an effort to diversify the industry.

Farmers and growers often sell surplus food and flowers in boxes on the roadside, relying on the honesty of those who pass to drop the correct change into the money box and take what they want.

On February 18, 2005, Jersey was granted Fairtrade Island status.

The absence of VAT has led to the recent growth of the 'fulfilment' industry, whereby low-value luxury items, such as videos, lingerie and contact lenses are exported to the UK, avoiding VAT on arrival and thus undercutting UK prices on the same products. The States of Jersey announced in 2005 limits on licences granted to non-resident companies trading in this way.

Duty free goods are available for purchase on travel to and from the Island.

Aside from its banking and finance underpinnings Jersey also depends on tourism. Notable hotels include:

• the Pomme d’Or overlooking Liberation Square in St. Helier, from whose balcony the Liberation force raised the Union Flag on Liberation Day, 9 May 1945;
• the Hotel de France, formerly the Imperial and the Jesuit college, in St. Saviour overlooking the town of St. Helier;
• the Hotel L'Horizon in St. Brelade's Bay.

Jersey - Taxation

Until the 20th century, the States relied on indirect taxation to finance the administration of Jersey. The levying of impôts (duties) was in the hands of the Assembly of Governor, Bailiff and Jurats until 1921 when that body's tax raising powers were transferred to the Assembly of the States, leaving the Assembly of Governor, Bailiff and Jurats to serve simply as licensing bench for the sale of alcohol (this fiscal reform also stripped the Lieutenant-Governor of most of his effective remaining administrative functions). The Income Tax Law of 1928 introducing income tax was the first law drafted entirely in English. Income tax has been levied at a flat rate of 20% for decades.

As VAT has not been levied in the Island, luxury goods have often been cheaper than in the UK or in France providing an incentive for tourism from neighbouring countries.

On 13 May 2005 the States of Jersey approved the introduction of a goods and services tax, scheduled for 2008.

Jersey - Currency

Jersey issues its own Jersey banknotes and coins which circulate with UK coinage, Bank of England notes, Scottish notes and Guernsey currency within the Island.

Designs on the reverse of Jersey coins:

• 1p Le Hocq Tower (coastal defence)
• 2p L'Hermitage, site where Saint Helier lived
• 5p Seymour Tower (offshore defence)
• 10p La Pouquelaye de Faldouet (dolmen)
• 20p La Corbière lighthouse
• 50p Grosnez Castle (ruins)

Pound coins are issued, but are much less widely used than pound notes. Designs on the reverse of Jersey pound coins include series of crests of the 12 parishes, and historic Jersey-built ships. The motto round the milled edge of Jersey pound coins is: Insula Caesarea ("island of Jersey" in Latin). Two pound coins are issued also, but in very small quantities.

Adapted from the Wikipedia article "Economy", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki