In the letter, six organisations labelled the proposed Jersey Infrastructure Levy as ‘fundamentally flawed’ and criticised the government for ‘increasing the tax burden’ on businesses at a time when Brexit and the fall of the pound was already having an impact on the industry.
But Environment Minister Steve Luce, in response to the criticism, claims there is support for the charge and said that it will be beneficial to the community.
The Environment Department wants to charge private developers behind building schemes that have 75 square metres or more of floor space – roughly the size of a two-bedroom apartment – a levy of £85 per square metre.
The proposal is expected to raise between £1.5 million and £2.5 million a year and cash raised from the charge would be spent primarily on projects in St Helier such as children’s playgrounds, tree planting, cycle paths and community gardens.
However, the president of the Association of Jersey Architects claims the levy could add £13,000 to the cost of a family home.
In a joint letter, the Chamber of Commerce Building and Development Committee, the Jersey Construction Council, the Jersey Farmers’ Union, the Association of Jersey Architects, the Jersey Hospitality Association and Ports of Jersey called the levy a ‘new additional construction-specific tax’.
The organisations say:
- Their questions and concerns about the levy have not been addressed.
- A review of what impact the levy will have on the Island’s economy has not be carried out by the Environment, Housing and Infrastructure Scrutiny Panel.
- ‘In light of Brexit, the fall in the value of sterling… and a reduced migrant workforce’ the States should be looking at ways to boost the economy ‘not increase the tax burden and costs associated of doing business in the Island’.
The letter added that there was ‘considerable concern, confusion and frustration’ as to the potential implications for business in the Island.
Concerns were also raised that the organisations’ ‘critical comments of JIL’ had not been taken on board.
A three-month public consultation on the levy closed yesterday.
Deputy Luce said: ‘We’ve received a mix of views on the proposals, and all comments will be considered carefully before we put forward detailed proposals for debate. On balance though, I believe there’s support for the contribution the levy will directly make to improving essential community infrastructure in neighbourhoods throughout Jersey, but particularly in St Helier, where development pressure is most focused and where there is a need to improve the town.’
Christopher Scholefield, chairman of Save Jersey’s Heritage who earlier this year launched a campaign with the JEP to save the Island’s public realm, said the issue for him was not whether to introduce the levy, but how money raised would be spent.
‘We need to make sure it’s spent wisely on genuine environmental enhancements, not things the States should be doing in any event. No one could look at St Helier today and conclude there is no need or scope for such enhancements,’ he said.
