States To Blame For Loss Of Millions Over JT
THE States are to blame for the loss of millions of pounds over Jersey Telecom, not the Council of Ministers, says Chief Minister Frank Walker.
He says that the decision not to sell the company – made by Treasury Minister Terry Le Sueur this week in the face of opposition from States Members – will cost the Island dear in the long run.
But the Chief Minister has rejected Health Minister Ben Shenton’s assertion that the decision to allow competition in the phone industry before putting JT on the market cut away at its value. Yesterday Senator Shenton said that decision lowered the value of the company by £100 million.
‘I have no idea how Senator Shenton reached that figure,’ said Senator Walker. ‘The market has expanded and JT have done such a fantastic job holding on to their market share that I believe they have increased and improved their reputation.
‘The problem is not competition. The problem is that Senator Le Sueur had to acknowledge that States Members, who always struggle with any debate about States assets, simply would not have supported the sale proposition.’
On Tuesday Senator Le Sueur announced to the States that he was dropping the proposal to sell JT, which is thought to be worth in the region of £200m. He also told the States that over the last two years, about £500,000 had been spent on advice and reports about the proposed sale.
Senator Walker said that following the pulling of the proposal, the review of States holdings in the Jersey Electricity Company and Jersey Water would be put off.
‘The taxpayer has lost a considerable amount of money because the States have not supported privatisation,’ said Senator Walker.
‘Phone tariffs have come down and competition has been beneficial to Jersey businesses and subscribers, but there is no evidence I have seen to suggest that JT’s value has gone down by £100 million.
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