Funds 'over there' more than double

THE number of expert investment funds authorised in Jersey more than doubled last year, according to the 2005 Annual Report of the Jersey Financial Services Commission, which has just been published. Such funds approved rose from 41 to more than 100 while approval for private funds, mainly investing in property, also went up to over 400.

This helped to enhance Jersey's position as a centre of excellence for specialist fund operations, the JFSC said.

GUERNSEY is not the only island to experience rocketing energy costs - the Manx Electricity Authority is increasing its prices by 14.5%. The company was already struggling because of unauthorised debts of £300m., which the Isle of Man Government is paying off, but increasing fuel prices have meant larger-than-expected price rises.

A REPORT commissioned by Jersey's Economic Development Committee concludes that the benefits of a new freight-ferry link with Cherbourg will not be as great as many people think. Not all prices are lower in France and there might not be major savings on transport costs, the report by Oxera economic consultants says.

Indeed, it said that Jersey (and perhaps Guernsey, if it is included in the service) could be worse off if freight is diverted to Cherbourg and away from existing operators. This might increase the total cost of importing freight if more vessels have to be put on the new route and it could damage the existing operators, the report says.

ANOTHER report from Jersey's economic adviser, Dougie Peddle, warns that a proposed charge on employees would work against the island's aim to expand the economy. The Treasury Department has proposed a regulation of undertakings charge of about £500 for every member of staff employed by foreign-owned Jersey trading companies, which under the zero-10 proposals will not pay any tax. At least 152 companies, employing 11,000 people, could be affected by the RUDL charge, which would raise about £5-6m.

This is only about 1% of the total income of this sector so the impact will not be great, Mr Peedle said. It could, however, damage Jersey's attractiveness to investors.

It will be a charge on labour and therefore limit employment prospects, it could increase prices and it could make Jersey a less attractive place in which to invest, Mr Peedle said.

'To the extent that it may undermine economic growth prospects, it will work against the overall aims of the fiscal strategy of which it is a part,' he concluded.

ISLE OF MAN Government ministers have just returned from their second official visit to the United States in nine months. The delegation included Chief Minister Donald Gelling, who said it was important that they tried to correct misinformation about the island in important business areas such as the US.

JERSEY'S finance industry has a poor image among the island's youngsters, according to the education subcommittee of Jersey Finance Ltd.

The subcommittee said that stronger links have to be created between the industry, the Education Department and schools.

In order to develop a world-class workforce, the island needs 'confident, well-educated and articulate youngsters who are ambitious and well qualified', the subcommittee said.

ALDERNEY-BASED entrepreneur Noel Hayes, who sold his airline, Rockhopper, to the Healthspan Group, has launched a new one called manx2.com. It connects the Isle of Man to Belfast, Blackpool and Leeds-Bradford. The lowest single fare is £39 including taxes.

CABLE & WIRELESS is busy in other offshore centres in addition to Jersey and Guernsey. It has offered $205m. for KeyTech Ltd, parent company of the Bermuda Telephone Company. The plan, which is being resisted by KeyTech, would be to merge it with C&W in Bermuda.

The company has also been granted a licence to provide a mobile telephone service in the Isle of Man. Another has been given to Wire9 Telecom, which means that there are three mobile operators in the island including Manx Telecom.

The last has also recently signed a £30m. contract with Lucent Technologies to provide the island with a next-generation network.

THE international business sector is now the biggest employer in Bermuda, with 4,213 positions. Construction comes second with 3,494 jobs but the hotel industry has also increased its manpower, reaching 3,231 jobs.

THE Isle of Man used its national Tynwald Day, to launch a new national brand under the strapline, 'Freedom to Flourish'. The Government has already spent £500,000 on a report entitled 'Economic and social development through the enhancement of the national identity of the Isle of Man'.