The CGI (Confederation of Guernsey Industry) Committee has responded to the current Long Port development debate by encouraging the States and the general public not to dismiss private/public partnerships which might contribute to reducing Guernsey’s future liabilities.

 

Speaking on behalf of the Committee, Peter Budwin explains the CGI’s response,

 

“So far, public interest in the east coast regeneration has rightly focused on environmental and social aspects, however we feel that it should now take a more balanced view, in the light of the future loss of substantial taxation revenue, causing what we now term, ‘The Black Hole’.

 

“The CGI Committee has found that Treasury and Resources’ view is  optimistic; taxation changes and anticipated growth from existing business generating increases from the new social insurance and ETI contributions, together with the new direct tax charge on distributed income, is unlikely to fund the ‘Black Hole’ indefinitely. When compared against the Population and Migration Committee’s findings of limited population growth and their dramatic forecast of a diminishing working population, the Treasury and Resources view is questionable.

 

“Indeed it could put the Island in the position of having to eventually adopt a goods and services sales tax proposal which we believe would have a negative impact on the lower-paid segment of Guernsey’s population.

 

“What is encouraging about the development plans is that they would help generate local expenditure and employment and make a contribution to necessary crucial projects such as waste to energy and sewage. Also, additional homes will help to alleviate the overpriced housing market and indirectly help our descendants.

 

“Guernsey Limited has to pay its way and therefore requires us to balance our finances in what is a constantly changing environment.  We are enjoying the present changing opportunities at a cost. The CGI believes that the needs of the community have to be supported by a realistic approach to good housekeeping opportunities and that the States and the local population must carefully consider the options and opportunities in a balanced and pragmatic way”.

 

“If, as has been suggested in the plans, land reclamation is going to be considered at the Longue Hogue area then this would represent a really positive option for our members”

 

Furthermore, Mr Budwin shares the CGI Committee’s concern that as an island we must accept that change is necessary to ensure a positive future,

 

“We must consider how we effectively deal with the consequences of what has become a local tendency of throwing each new idea out with a nostalgic air. The consequences for generations could be hugely expensive.”

 

The CGI is a local industry body which represents the light industry sector and the Committee of representatives come from such companies as NRG International Ltd, The Guernsey Training Agency, Specsavers, Point Of Sale, The Guernsey Press and Star, The Guernsey Growers’ Association, Zeus Consulting, Channel Express (CI) and KPMG.