Draft Agriculture and Fisheries (Loans) (Jersey) Law 202- (P.37/2026): comments

STATES OF JERSEY

DRAFT AGRICULTURE AND
FISHERIES (LOANS) (JERSEY) LAW 202- (P.37/2026): COMMENTS

Presented to the States on 20th March 2026

by the Economic and International Affairs Scrutiny Panel

STATES GREFFE

2026  P.37 Com.

COMMENTS

Background

The Draft Agriculture and Fisheries (Loans) Law 202- [P.37/2026] ( "the draft Law") was lodged au Greffe on 10th February 2026 and is scheduled for debate at the States' sitting commencing on 24th March 2026. The Economic and International Affairs Scrutiny Panel ("the Panel") has been kept informed of its development of the draft Law and  has  questioned  the  Minister  for  Sustainable  Economic  Development  ("the Minister") during Quarterly Hearings and in correspondence.

The Panel understands that the principal changes proposed by the draft Law include:

• The  extension  of  loan-provision  arrangements  to  encompass  both  the agricultural and fisheries sectors; and

• The reconstitution of the Board established under the 1974 Law, together with its proposed renaming as the Agriculture and Fisheries Loans Board.

Rationale and Consultation

The Panel sought to establish the rationale for replacing the legislation in its entirety rather than pursuing targeted amendments. In response, the Minister highlighted that the 1974 Law was deemed to be outdated and further explained that introducing a new Law, rather  than  applying  "a  patchwork  of amendments"1,  allows  for the  inclusion  of "modern  eligibility  criteria,  notification  and  enforcement  provisions,  and  moves operational mechanics into Regulations to future-proof the scheme"2.

The Panel is reassured that consultation has been undertaken with relevant stakeholders including consulting with the Jersey Fishermen's Association and the Rural Forum. Furthermore, the Panel notes that the Economic Framework for the Rural Environment 2022 and the Economic Framework for the Marine Environment 2022, set out clear policy interventions aimed at supporting the rural and marine sectors, which this draft Law will help to achieve. The Panel considers that this draft Law aligns with, and will help to advance, the objectives identified in these frameworks by facilitating meaningful and  sustained  investment  across  the  industries.  The  Assembly's  commitment  to enabling  such  investment  has  already  been  demonstrated  through  its  approval  of Increase in Revenue Expenditure for Agriculture and Fisheries (P.74/2023): Third Amendment [P.74/2023 Amd.(3)].

Inclusion of fishing industry

The Panel notes that, in its 2024 comments on the earlier proposals to reform the Agricultural  Loans  framework,  it  raised  concerns  that  the  prescriptive  and agriculturecentric nature of the Regulations risked precluding marinebased ventures from accessing equivalent financial support. The Panel therefore welcomes the explicit

inclusion of fisheries within the scope of the draft Law, ensuring that marine businesses are able to apply for loans on the same basis as agricultural businesses.

Subsequently, the Panel agrees that extending the loans scheme to encompass the fisheries sector is necessary as fishing, like farming, is a capital-intensive industry. The Minister emphasised to the Panel the importance of sustaining a viable fishing economy for the Island, noting that:

"I would like Jersey to maintain a fishing economy. Therefore, because of that capital cost of getting into fishing - the private sector will not fund that sort of lending - I think it is right that we wrap them into the agricultural loan scheme to enable them to get low-cost capital to enable them to start up or maintain their vessels."[3]

The Board

The Panel asked the Minister to provide further information on how the role and responsibilities of the Agriculture and Fisheries Loans Board (proposed new name under the draft Law) will operate under the new legislative framework, and to clarify what changes, if any, are anticipated compared with the previous Board.

The Minister explained that, under the draft Law, the Board would continue to operate as it does now - reviewing applications, assessing eligibility, undertaking risk and due-diligence  checks  and  providing  written  recommendations  for  the  Minister's decision. The Board's existing governance arrangements will remain in place. However, its remit will be expanded to include fisheries, and its membership will be updated accordingly to reflect this broader sectoral focus, an element the Panel supports.

Eligibility and criteria for granting loans

The Panel supports the inclusion of clear eligibility requirements and criteria for the granting of loans within the draft Law, noting that such provisions were not set out in the existing 1974 Law. The proposed draft Law sets out a structured framework defining how eligibility will operate and the basis on which decisions to grant loans are made.

The Panel welcomes the inclusion of the Schedule (Article 5), which clearly defines the activities for which loans may be granted in both the agricultural and fisheries sectors.

Loans

The draft Law specifies that borrowers must notify the Minister if they "cease to be engaged wholly or mainly in work relating to agriculture or fisheries"[4]. The Panel requested clarification around the use of the term mainly' and was informed that this term would be assessed considering the following:

Page - 3

"..the  proportion  of  turnover,  assets  employed,  time  spent,  and  business purpose attributable to agriculture or fisheries over a representative period, aligned to the business plans and financials submitted with the application."5

The Panel considers this to be a reasonable and proportionate method of assessment. It further believes that ongoing monitoring of how this provision is applied in practice - particularly the interpretation of the term mainly' - will be important in identifying any emerging  trends  or  shifts  within  both  the  agricultural  and  marine  sectors.  Such monitoring will help ensure that the loan framework continues to reflect the operational realities and evolving business models across these industries, and may also indicate when  alternative or supplementary forms  of financial support, such as the Better Business Support Package, could become more appropriate.

The Panel notes, however, that fishers who employ staff are currently able to apply for the Better Business Support Package. Therefore, the interplay between these schemes should also be kept under review to avoid duplication or unintended gaps in support.

Transitional arrangements

The Panel, through its questioning of the Minister, is satisfied that the transitional arrangements set out in the draft Law will support a smooth implementation process. It understands from the Minister's assurance that existing loans and any live applications will be treated as though they were made under the draft Law, thereby maintaining continuity and minimising the risk of disruption for borrowers. Furthermore, the role of Jersey Business in the delivery of the scheme under the draft Law is also maintained, a continuation the Minister emphasised as beneficial. The Minister explained that this arrangement provides:

"..capacity  and  expertise  without  expanding  government  headcount  and includes ringfenced funding for due diligence, with any unutilised amounts returned to Government. Since December 2024 there have been 11 loan offers totalling £5,815,960, demonstrating effective delivery and pipeline."6

Conclusion

The Panel supports the provisions set out in the draft Law and considers the expansion of the loan scheme to include fisheries, a necessary and positive development ensuring that  both  the  Island's  farming  and  fishing  communities  receive  equitable  and appropriate funding support when necessary.

[3] Transcript - Quarterly Public Hearing with the Minister for Sustainable Economic Development - 12 February 2026

[4] Draft Agriculture and Fisheries (Loans) (Jersey) Law 202- Page 3

P.37/2026 Com.