I find this very disturbing. Certainly zero 10 is the most dramatic change that will happen in Guernsey certainly in my life time. It is a change that none of us relish or would wish for but one that is partly forced upon us by the EU, the British government and our competitors in the various financial centres.

 

Would not it have been wonderful to carry on as before and ignore these outside pressures? This was impossible so various Deputies supported by our very experienced Administrator of Income Tax, senior civil servants and in consultation with industry leaders and professional advisors from Guernsey and overseas, as well as the general public in Guernsey considered what needed to be done. 

 

The consultation in public meetings and presentations on the implications to all of us was unprecedented in Guernsey history. Making no change was not an option, making a less competitive change to our competitors was also not an attractive option as we need a certain level of economic growth to pay for our social infrastructure and an aging population.

 

The changes are going to cost everyone more but not making these changes would cost us even more in losing economic growth. The finance industry is not here because Guernsey is a nice place to live. In many cases location of business is made not by Guernsey based top management; it is made overseas by individuals who see the effects of globalisation and see where the best places tomorrow for their businesses are. Primarily their decisions are based on their view of overall profitability, where they can experience higher profitability and the effect if any of a change to their important customer base.   The fact that a major contributor to the island in tax whether by corporate tax, ETI or whatever has invested in staff and bricks and mortar means very little medium to long term. Businesses are far more transportable to other jurisdictions than ever before. Do not believe that what we enjoy now does not have to be earned and we have to adapt continually as an island to provide our customers with what they need in order to maintain business. What do we get back – well a finance industry who is by far the biggest contributor to our economy.

 

I represent the Confederation of Guernsey Industry (CGi) and our members who are mainly the non finance sector and represent what is loosely termed light industry are already finding that the costs of doing business in Guernsey are going up because of zero 10. However we supported this change as we realised that losing our premier industry – that of finance was unacceptable and would cost the island dearly. The infrastructure of education, health and social services and near zero unemployment cannot be sustained by the non finance sector alone. Yes there are downsides in the cost of property and cars on the road and other issues but it is a price for a standard of living which allows the local resident to have a high standard of employment and supports a social program which we could not otherwise afford. Consider our high standards of health care and education versus that of the UK.

 

After the consultation and public meetings our elected representatives made a democratic decision to implement zero 10 in 2008. Now we see a clamour from certain elected representatives to overturn this decision. I also see prospective States candidates also using the media to start their election campaign early. Throwing stones is certainly easier than building a wall but the result is far different. You see that these individuals are either not coming up with alternatives or their suggestions are quite ridiculous and have already been rejected during the consultation and democratic process.

 

Quite frankly to try to overturn the decision of zero 10 would be a calamity for this island. Do you really think Jersey and the Isle of Man would be so stupid? Are we really prepared to make ourselves less competitive?

 

It is so unfortunate that we have an election in April as I really believe that individuals are making statements that are purely electioneering. They are attacking in what I can only say is almost slanderous or libellous other Deputies who have had the foresight, professionalism and responsibility to make tough decisions on the islands behalf. 

 

I know from my business experience that it initially feels comfortable to take the easy path and avoid making tough decisions. This does not create success. We should be grateful that despite the many, and in some cases deserved, criticisms of the present administration we have had Deputies who have made those necessary tough decisions despite strong and undeserved criticism. Not because as some say it benefits them - it is because they saw this change as the way to guarantee the future prosperity of this Island. We are in danger of losing those dedicated and experienced people, replacing them with more of the incompetent, inexperienced grand standing individuals who view their position in a future States as the highlight of their otherwise undistinguished career. Saying what the public would like to hear and taking an easy path is one which is not in the long historic tradition of Guernsey. Our ancestors were always ready to analyse their present situation and look in to the future and adapt the Island’s strategies accordingly in order to ensure future success for our Island. Similarly we have Deputies attempting to future proof our islands prosperity with the implementation of zero 10. We have to move out of our comfort zones to do this. Why some Deputies want us to wait for the competition to do this with us is to misunderstand the competitive advantage of getting a strategy in place before the competition. Guernsey as a business centre, as in the past, should be pioneers not followers. To maintain our market position we cannot do anything else.

 

We want Deputies who are visionary and see the changes that are needed in the direction of this Island. We should therefore encourage those that seek, what is at times, is a very uncomfortable career path. I for one would not like to risk my Island’s future with those Deputies who have not the foresight or strength of character to make the tough decisions in order to safeguard the future of this our lovely Island. 

 

 

Philip Duquemin

Chairman