10^th April, 2007

 

 

 

Deputy Minister, Education Wendy Morgan

H E Funding Consultation

Education Department

PO Box 32

Grange Road

St. Peter Port

Guernsey

GY1 3 AU

 

Dear Deputy Morgan:

 

The CGi’s view is that our Island requires two things in this area: firstly, as many qualified local individuals as possible and secondly, an employment market that boasts a diversity of skills. These two elements are vital to service Guernsey’s current and future economic requirements to build the Island’s 0-10 economic expansion needs.

 

Our concern with the proposed policy is that it could invite a cycle of serious local employment and housing issues. Firstly, Guernsey’s students could be discouraged from entering into higher education. In the event that changes in funding cause the Island to lose potential employees with diverse skills, this will have a significant impact on both the CGi member companies and the finance industry. The consequence of this loss of ‘local’ skills may mean more outsourcing to mainland companies and an increase in requests for housing licences to bring skills to Guernsey.   The pressure on population growth is well publicised and, surely, we should not be adding unnecessarily to this particular problem.

 

It is our view that the States should look at the broader picture and encourage the young people of Guernsey to develop a range of skills, including both trade-specific and university qualifications, enabling them to make a long-term productive contribution to the Island’s economy. If we can, as an Island community, nurture and fund these young people through their diverse educational interests, and encourage them to become productive members of our society, we will achieve many of our future economic goals.  These young people will provide Guernsey’s many industries with a proficient skill sets, they will pay taxes and, crucially, they will both reduce the need for more licence holders as well as the burden on social services.

 

Members of our business community believe that our government needs to consider more commercial ways to provide funding support for our students. Why not consider encouraging graduates to return to the Island by offering the opportunity to write off their loans after a set timescale (e.g. five years). It is our opinion that local companies would want to invest in their people and would be willing to provide bursaries as a partnership with Education, with Education providing the administration.

 

On a financial note, we need to remember that the Education Department has a substantial budget: in excess of £67 million and 22.3% of public sector expenditure. What opportunities are there in this significant budget for savings? Identifying cost savings would protect the Island from the certain danger of building a higher education policy which discourages necessary qualifications and has a medium to long term negative effect on the Island’s finances. 

 

Finally, the CGi urges the States of Guernsey Departments to adopt policies which are complimentary. In this instance, the potential change in Education policy contradicts the Commerce and Employment business plan which states that the Island needs to increase the opportunity for the working population to migrate to higher paid jobs. Consequently the tax collected from ETI from these higher earnings will support the Zero 10 strategy. 

 

Investing in our young people will clearly pay dividends in the future of our economy. Let’s have a policy which helps to drive our local employment market by encouraging our young people to gain expert qualifications that reflect a diverse range of skills.

 

Sincerely Yours,

 

 

 

 

 

Philip Duquemin

Chairman, CGi