Senator Sarah Ferguson had called upon the States-owned telecoms company to be restructured and split, arguing that having separate retail and wholesale businesses would be better for competition in the Island’s telecoms industry.
However, the debate on Tuesday descended into farce when the Chamber fell inquorate, forcing Deputy Bailiff Tim Le Cocq to adjourn for ten minutes. Once enough politicians had returned the debate resumed, but after just one person spoke, Members failed to indicate their wish to speak leading to an early end to the debate.
Senator Ferguson outlined her proposals, which came after Treasury Minister Alan Maclean, who acts as the organisation’s shareholder representative, revealed that he was considering selling off States assets, such as JT, to replenish the Island’s rainy-day fund. He estimated that selling JT to a private firm could raise between £300 million and £400 million. Senator Ferguson said that holding on to the wholesale part of the company while setting up a separate board for the retail sector would put all telecoms providers in the Island on an even footing. She added that a similar move with BT in the UK had worked successfully.
She said that JT had a monopoly, allowing them to charge other telecoms providers what they wanted for access to their services.
However, Assistant Treasury Minister John Refault argued that the Senator’s proposals ‘lacked the required details’ to make such a major change to the industry.
‘What we don’t have is a case for why such a radical change is needed,’ he said.
‘Where is the evidence that change is needed? Where is the cost-benefit analysis?’
He added that what was appropriate in the UK was not necessarily appropriate in smaller jurisdictions, such as Jersey, with smaller economies.
Before any other Member spoke, Mr Le Cocq ended the debate. When some Members indicated that they wished to speak, Mr Le Cocq said: ‘I called on any Member who wished to speak – no one did. The debate is now closed.’
