The Jersey Chamber of Commerce says it does not believe that the minister or his team have ‘allowed adequate time’ to fully review, reflect or discuss the responses to the consultation.
It also warns that the introduction of a new Jersey Infrastructure Levy, which the States are due to debate in principle in December, will stop much needed housing developments from being built, push up house prices and leave the Island with a two-tier land value structure with land valued before and after the levy is applied.
In a strongly-worded statement the Chamber says it is deeply concerned that Deputy Luce has lodged the proposition to establish the levy, albeit without the finer details, despite widespread industry concern.
And it accuses the minister of showing contempt for the ‘structure of government in Jersey’ as a result.
‘For the last 12 months, our Building and Development Committee has met with, written to and lobbied the minister against the introduction of JIL,’ the statement says.
‘On each occasion, Chamber has outlined its members’ very grave concerns regarding the negative impact this levy will have on the construction industry in Jersey.
‘Most recently Chamber responded to the JIL consultation, submitting a joint industry letter that outlined our concerns regarding the introduction of JIL, which is yet another business tax on the construction industry. A new tax that unquestionably overlaps with pre-existing Planning Obligation Agreements that already provide funds to offset the impact of a development.
‘It must be pointed out that with the consultation only having closed on the 11 September, Chamber does not believe the minister or his team have allowed adequate time to fully review, reflect or discuss the consultation responses.’
It adds: ‘The very fact that the minister has chosen to push ahead with lodging his proposition, before allowing Scrutiny to carry out and submit their own report, shows contempt for the structure of government in Jersey.
‘Moreover, it exudes a lack of respect for the Jersey Chamber of Commerce, its members and those business leaders willing to give up their time to provide evidence and feedback regarding a government proposal. A proposal, which will have a negative impact on construction, jobs and the wider Jersey economy.’
Previously Deputy Luce had proposed a levy of £85 per square metre, which architects claimed would increase the cost of building an average family house by £13,600. However, no figures have been included in the proposition.
Earlier this month, Deputy Steve Luce said that, if approved, the new charge would not be introduced until after April 2019 at the earliest.
Under the proposals a set percentage of the levy would be given to the parish in which a development was built, to fund parish improvements.
Representatives from the Chamber of Commerce are due to give evidence at a Scrutiny hearing on the JIL proposals on 6 November.
Article originally appeared on Jersey Evening Post
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