Reform Jersey’s framework, which it has dubbed the ‘New Deal’, says that Jersey made a mistake following the previous economic crisis of 2008 by basing the recovery on ‘austerity policies’, which saw spending cut on essential public services.
The New Deal says that the recovery must be built on the principles of ‘fairness and justice’, and implemented through a government programme based on a different set of ‘Three ‘R’s’ phases – Recovery, Relief and Reform.
Principles
Reform Jersey says that the principles of the recovery must include:
lThe government should be seen to be on the side of the people, not vested interests.
- The value given to work should be based on its social impact, not just its
financial worth.
- Healthcare must be free at the point of need.
- No vulnerable person shall be left
behind.
- Public services are best provided
directly by the public sector.
- Government intervention in the economy should be seen as ‘positive action’ to provide a stabilising effect and to achieve strategic objectives.
- Taxes should be progressive i.e. the burden falls more on higher earners.
- The environment must not be
sacrificed for short-term economic gain for investors.
Reform Jersey’s three phases
Relief
- The party would like to see continued financial support for Islanders who have lost their livelihoods and the avoidance of a cliff edge where relief is pulled suddenly. Other proposals include:
- Providing free access to primary health care by maintaining government employment of GPs.
- Extension of the emergency rent-freeze legislation until rent-stabilisation measures can be implemented.
- No immediate withdrawal of access to income support for Islanders with fewer than five years’ residency.
Recovery
- The New Deal sets out that government intervention in businesses should continue beyond the recent ‘bail-outs’ with a view to ‘transforming our economy’.
- It proposes targeting greater income equality and the government pumping stimulus money into the economy to create green and digital jobs.
Proposed policies include:
- Increasing the minimum wage up to a living wage.
- Abolishing zero-hours contracts.
- The government employing out-of-work Islanders on public projects, and providing training/re-skilling opportunities.
- Taking ownership of privatised utilities.
- Intervention in the rental market through rent stabilisation, as well as greater protections for tenants and restrictions on investors, such as buy-to-let.
Reform
Reform Jersey would like the final phase to focus on building ‘systematic resilience’ in the economy to protect against future crises.
Proposals include creating a ‘crisis response plan’, scrapping the zero rate of corporation tax and removing the cap on social security contributions, so that higher earners pay the same rate as lower earners. Another suggestion is reforming income tax to reduce income inequality.
