States of Jersey Development Company

Background

In 2011, the States agreed for the role of the Waterfront Enterprise Board Limited (WEB) in relation to major property development to be reconstituted as the States of Jersey Development Company (SoJDC). SoJDC is a limited company that is wholly owned by that States with a shareholding of £20 million.

The proposition adopted by the States included a Memorandum of Understanding (MoU) between the States and SoJDC.

Scope

This review:

• evaluates the extent to which the arrangements put in place comply with the principles set out in the proposition establishing SoJDC; and
• identifies the scope for improvements in arrangements.

 My review does not question the underlying policy adopted by the States in respect of property and infrastructure regeneration.

Conclusions

• SoJDC has delivered a range of major projects for the Island with profits available for further developments, public realm projects or dividends for the Government. The Government has not however systematically assessed or reported the benefits to the taxpayer arising from its relationship with and investment in SoJDC. It should do so on an ongoing basis.
• The Government should also seek to finalise and implement a coherent estates management strategy as a matter of priority. In doing so, and as the Regeneration Steering Group starts to operate more effectively, the strategic review of SoJDC proposed by the Government at the outset should be undertaken. The review should seek to confirm whether SoJDC is meeting Government objectives and whether the current delivery model is the most appropriate.
• There should be greater clarity in remuneration policies, including bonus arrangements at SoJDC. There should also be greater transparency in reporting the results of SoJDC to reflect overall performance including the impact of land provided by Government at no cost.