Chair's Statement (continued)

The Company has also made dividend payments during that period to wider infrastructure projects to benefit the island, of which in 2022, £1.2m was distributed, primarily to contribute to funding of the Midvale Road project (£730k), making a safer route for residents to walk to work, school and home, as well as £425k towards the Skate Park at Les Quennevais, which has delighted so many upon its recent opening to the public.

As a company wholly owned by the Government of Jersey, we work in concert with Government on their strategic priorities and take our strategic direction on development from the Regeneration Steering Group, now the Future Places Ministerial Group. This body sets the strategic development direction for Jersey, determining how the surplus Government owned property and land assets should be used.

In addition to strategic development, JDC actively considers how it can assist the Government and islanders more broadly and we are acutely conscious of housing pressures in the island. While Jersey’s social housing needs are the remit of Andium, there is much that JDC can offer in the open market to assist buyers on to the property ladder. We provide first time buyers the opportunity to pay their 10% deposit over time, through a deposit instalment scheme. We are now also providing shared equity programmes and a minimum of 15% of new residential units will be made available on this basis to eligible buyers.

There are challenges with this strategy but, if successful, it would facilitate movement in the family home sector by releasing larger units into the market.

As mentioned above, the Company is investing significant resources into our sustainability strategy, with ESG requirements being considered at all levels. We are making this commitment based on the environmental imperative and the global implications of climate change which pose an increasing threat to humanity. The implications for Jersey are equally grave and the island’s need to become net zero carbon is clear. It is impossible to conceive of Jersey succeeding in this unless the construction sector develops effective low and net zero carbon capabilities. The buildings that JDC are delivering today will have a lifespan of many decades and therefore, we are strongly motivated to develop lower carbon buildings now, knowing that these buildings will be more valuable and attractive as carbon taxes come into force and sustainable expectations intensify.

With this backdrop, JDC approved its first ESG strategy during the year, concentrating our attention over the three spheres of influence we have: the Company, the Supply Chain and the Community. Our increasing knowledge of carbon emissions in the construction industry and our commitment made in our strategy to meeting Net Zero targets will see us become a local industry leader in environmental construction, both in terms of design, specification and delivery. Our professional partners are sharing their national and international expertise with us to ensure that our developments can set and deliver against carbon targets, both in the initial construction and in ongoing operation. This is very much a work in progress but already our projects submitted for planning approval have developed a fabric first approach that will significantly reduce the carbon in use by minimising the energy and water usage of the occupied building once completed.

We continue to explore other options to alleviate the housing challenge, including possible incentives to ‘empty nesters’ to downsize to free up family housing stock. From the last reported Census (2021), 42% of owner-occupied homes were under-occupied by two or more bedrooms, reflecting significant under utilisation.

Given the critically important role that JDC plays for Jersey we are keenly focussed on how the Company is led and governed. We take a continuous improvement approach to our governance, updating our approach in accordance with international best practice. During the year Altair, a leading provider of independent governance review, undertook an external review of the Board’s effectiveness, including its corporate governance and have developed action points to continually enhance and improve our performance.

We are very mindful of the need to maintain continuity and succession planning has been a key focus of the Board during the year. We strengthened the Board, welcoming Belinda Crosby as a Non-Executive Director in September 2022. Belinda is a Chartered Accountant and Jersey resident who successfully managed a global brand and highly respected regulated Jersey fund services business for over 10 years. She brings extensive experience in the management, governance and compliance requirements of commercial real estate, which, together with her financial background will greatly benefit the Company.

However, given the strong economic headwinds the Company will be cautious in its approach to ensure the public’s finances are not put at risk while we continue to make critically important investments in housing, commercial and public realm.

On behalf of the Board, I would like to express my thanks to the Executive and to our dedicated team for their performance and commitment in what has been another challenging but ultimately successful year. I would also like to thank the Board for their hard work and commitment during the year and to our Shareholder for their continued support.

In line with best practice and the Principals of the UK Corporate Governance Code, I shall be retiring as Chair and non-Executive Director of JDC at the end of 2023 and as such this is my final report. The organisation has transformed over the past decade and has delivered a number of highly successful projects throughout that time. JDC has also matured and developed as an organisation and now has the capacity and the capability to make a profound contribution to the future of our island. It has been an honour and privilege to serve as Chair.

Looking to 2023 and beyond, JDC has an exciting portfolio of projects and key developments for Jersey. Our plans will make a significant contribution to much needed housing stock, while leading the critically important development for South West St Helier, focused on community and placemaking. Our strengthened organisation, together with our growing track record of successful developments, position Jersey Development Company to play a more ambitious role in the future of our Island.