Developing Supply Chain Strategy

2026.03.24

3.9   Connétable K. Shenton-Stone of St. Martin of the Chief Minister regarding the Island's key supply chains (OQ.50/2026):

Will the Chief Minister advise whether any consideration has been given to developing a strategy to identify flexibility within, and the ability to make rapid adjustments to, the Island's key supply chains in the event of future conflicts and developments, such as are currently occurring in the Strait of Hormuz?

Deputy L.J. Farnham of St. Mary , St. Ouen and St. Peter (The Chief Minister):

Yes, the Government continues to actively monitor the impact of the conflict in the Middle East, specifically on Jersey. While we are seeing inflationary pressures, we are fortunate to benefit from strong, resilient and established supply chains from the U.K. and from France. These are currently not anticipating any impact upon them. This is however a fast-moving situation. The Emergencies Council has a response plan and has established a lead on potential impacts, including on supply chains and cost-of-living matters. The Emergencies Council met again last Friday to monitor developments and will continue to consider what flexibility and adjustments may be required, and a further update to States Members is being planned.

The Connétable of St. Martin :

I look forward to the update to the States Members.

1. Deputy J. Renouf of St. Brelade :

My understanding is that the supply of gas - particularly gas but maybe also heavy oil - there is a delay between the supply of that material and the prices. In other words, there are tankers still on their way at the old price, but the new price that will be much higher will start affecting us in the next few weeks. Is the Minister therefore taking any steps or is he aware of any issues that might arise in relation to the supply, or cost price I should say, of gas or fuel oil?

Deputy L.J. Farnham :

As I said, the prices are being monitored closely. The Minister for Sustainable Economic Development and the Minister for the Environment, I understand, following Friday's Emergency Council meeting, are liaising with energy suppliers to ensure that the Emergencies Council is provided with up-to-date information on energy supply chains energy prices.

[10:30]

Of course, we will use all of the information to ensure we have a considered response or take any action that is necessary. The short answer is we are not aware of any, shall we say, I am not sure if the Deputy is referring to additional profit taking, but we are monitoring the situation closely.

2. Deputy J. Renouf :

I think my concern is the concern that the prices have not yet fed through, and we may therefore see a price shock coming down the line. I just would like to know whether the Minister has considered that, particularly in relation to gas, that there may be price shocks coming, and can he offer any reassurance, if he has looked at this, that he believes that we might be insulated from that for some reason?

Deputy L.J. Farnham :

Our supply chain is insulated insofar as we import the vast majority from the U.K. and their supply chains are largely unimpacted by the troubles in the Middle East, except for the price. I understand Jersey Gas are making an announcement today about an increase in the gas price, and we have seen small, but not insignificant, pump price increases for road fuel.

3. Connétable M.K. Jackson of St. Brelade :

Given that jurisdictions such as New Zealand, I heard over the weekend, have limited storage capacity of some 40 days, is the Chief Minister satisfied that we have sufficient storage capacity on the Island to cope with a disruption of the supply chain should they arise?

Deputy L.J. Farnham :

Yes, I am, and I have asked officials to investigate the need to hold greater stocks, if necessary, on- Island, as part of the risk assessment, which is a part of the response plan. So, that is something that is being considered but, of course, that does come with a price that we are actively considering that. It is currently not necessary.