Trade, connectivity, tourism and finance are among the eight work plan priorities that Economic Development has set out for the rest of this political term.
It was the first States committee to publish its plan, which also focuses on digital/AI/innovation, regulation, economic infrastructure and economic strategy.
It said that there was a need to tackle stagnating economic growth.
‘There is an identified need to attract investment and build on our economic successes to diversify our economy,’ it said, adding that it wanted to optimise the island’s strengths, including connectivity, security and resilience in our physical and digital infrastructure, a skilled workforce, and a reputation as a trusted offshore jurisdiction
Its plan focuses on areas where public sector involvement could have the maximum impact and said that most of these were ‘industry agnostic’, focusing on the island’s overall competitiveness, ‘enhancing resilience and enabling economic growth’.
Looking back at last year it highlighted several areas in which it had been involved, such as financial services growth, improved sea and air connectivity and swift action to protect the island’s air routes after the collapse of Blue Islands.
The year saw a 69% increase in visitors from France over 2024, 55 relocations facilitated to the island, and about 70% of premises connected to fibre broadband.
The committee said that while it did not control many of the ‘levers’ that affect Guernsey’s economy, it was nonetheless ‘committed to championing the economic development agenda across the States, working closely with other stakeholders on cross-cutting issues and setting a joined-up long-term economic vision through the economic strategy’.
Determining Aurigny’s role among plans
New air routes and determining the role of Aurigny will be sought along with updates to air policy in a bid to return travel numbers to pre-Covid levels, said Economic Development.
It will be presenting its plans for changes to the air policy framework and the air transport licensing policy to the States this year and said that these will include improving resilience and getting better air fares.
‘Crystalising the role of Aurigny and the airport as strategic assets will ensure a joined-up approach is considered,’ it said.
On top of that it will be looking to develop the work done with Brittany Ferries last year, looking to optimise services, including freight scheduling and passenger operations, and improve inter-island links with Jersey.
But it wants to take a more integrated Bailiwick approach, too, with better links to Alderney, Herm and Sark.
The committee also talks about ‘exploring options and potential opportunities for future fleet renewal’, which it said it would do in order to complement existing services while enhancing them, ‘while also considering environmental and sustainability targets’.
Air services also fall under the economic infrastructure priority area, with objectives being set to expand the Guernsey Aircraft Registry and try to attract new corporate aviation clients and increasing the number of registrations.
‘A strengthened, more commercially proactive Aircraft Registry can position Guernsey as a premium jurisdiction for corporate aviation, enhancing both direct and indirect economic contributions,’ it said.
New policies aim to advance tech and finance sectors
Cutting bureaucracy and transaction costs will boost productivity of the island’s digital economy, Economic Development said of its plans for digital transformation, which also proposes support for new sectors IT, fintech and digital media.
It is already reviewing the role of the Digital Greenhouse in the round of looking at policies designed to stimulate innovation, support entrepreneurs and start-ups and considering public-private partnerships in emerging industries. ‘It is about creating a fertile “ecosystem” where new ideas can be developed and commercialised – spanning both high-tech startups and innovation in traditional sectors,’ said the committee in its work plan report.
It will be joining other committees in a digital steering group to review the island’s existing AI and digital framework to come up with a new plan for 2027-2029 to ‘capture government-wide activity’, while it works closely with the Innovate Guernsey Board to develop an innovation plan, which will incorporate the Digital Greenhouse review.
Several areas of focus are highlighted, including investigating a ‘jurisdictional digital ID for business’, the potential of data trusts to get economic benefit, and developing a policy position on the need for a Guernsey-based data centre infrastructure ‘to support data sovereignty and AI-enabled services’.
It also said a key focus will be to develop the economic value of fibre broadband being rolled out to all premises, and improving the island’s digital connectivity, plus introducing 5G mobile networks.
‘A key focus will be to maximise the economic value of this infrastructure capability to deliver economic stimulus and additional benefits to the economy.’
GCRA review is due
A review of the Competition and Regulatory Authority should be completed this year, Economic Development has said, and the States might be asked to make changes to the island’s competition and regulation laws.
This review of both the law and the GCRA started in 2024 and followed a need being identified over several years, it said.
‘The committee’s focus will be to ensure the overall regulatory and administrative environment is proportionate, modern and conducive to business and investment,’ it said.
There will also be a move towards regulation of the electricity market as part of an electricity strategy.
Economic Development said this would, among other things, allow renewable generation targets to be set, prevent potential market dominance, support fair pricing along with consumer protection, enable the integration of renewables into the existing market, and delivers the structural changes needed as the island aims for net-zero.
The GCRA will be directed with proposals that bring about the States-agreed direction of the electricity strategy, while the committee will develop and lead on market-related workstreams under this strategy, develop the future electricity market framework and oversee the pricing of renewables, connections policy and more.
‘Together, these objectives will ensure Guernsey’s electricity market evolves sustainably, competitively and in alignment with the island’s long‑term decarbonisation goals,’ it said.
Work on building trade links will be expanded
Work on building trade links with France and the Commonwealth, started last year, will be built upon over the next few years, said Economic Development.
This will include working with on-island businesses to identify and develop trade opportunities with France, including targeted commercial partnerships in areas such as building materials and food.
It also plans to look at the opportunities for partnership with the Commonwealth Enterprise and Investment Council with a view to developing trade links with the Commonwealth.
It will continue to work with other areas of the States on trade agreements relevant to the island.
‘To remain competitive and ensure our resilience, it is important for Guernsey to build strong trade links and seek extension of and implement international trade agreements,’ said the committee.
‘This provides Guernsey businesses with secure, rules-based access to new and existing markets.’
You need to be logged in to comment.