A Sark Conseiller is urging everyone to probe deeper into plans for Guernsey to lend Sark £1.5million to buy the island’s sole electricity provider.
In his own words, Conseiller Chris Kennedy-Barnard has explained why he is concerned about the terms and purpose of the loan, which could be agreed by the States of Guernsey next week, before being ratified by Chief Pleas.
Chief Pleas wants to borrow £1.5m to buy Sark Electricity Limited, which is privately owned by Alan Witney-Price.
Mr Witney-Price has repeatedly stated that SEL is not up for sale, and he recently wrote to all Sark residents to urge them to rally against the proposed loan.
If the States of Guernsey agree to lend Sark the money next week it will have some conditions including a requirement that Chief Pleas reviews the island’s tax regime.
Duties made on the sale of tobacco, alcohol and fuel could also be withheld by Guernsey’s Treasury if Sark does not meet is repayments.
Conseiller Kennedy-Barnard has warned that even if the loan is agreed, it does not mean that the purchase of SEL will go through.
He suggests that Mr Witney-Price could stand his ground, leading to a legal battle over the future ownership of SEL.
“Disagreements have meant that the Sark treasury is spending in the region an extra £40K per year because of one of these unresolved issues in the north of the island. It’s been a real shame that we can’t get the head of Policy & Finance, Conseiller John Guille in the same room as the SEL director, Alan Whitney-Price. The feud is really costing the taxpayer. It’s a tragedy when personalities and a lack of negotiation skills get in the way of what is good for Sark.”
Conseiller Kennedy-Barnard thinks the feud could continue with the heavy financial burden borne by Sark residents.
“Expectations should be grounded in logical thinking,” he wrote. “I could envisage a lengthy legal battle between Sark’s government and SEL, with potentially only the lawyers being the victors. Sark can ill afford to be in protracted litigation with an uncertain conclusion. The whole situation presents a huge risk.”
Conseiller Kennedy-Barnard has explained how he has worked on Chief Pleas plans to find energy solutions and security for Sark’s short-, medium-, and long-term future.
With the loan agreement now due to be debated in just a few days, Conseiller Kennedy-Barnard wants people in both Sark and Guernsey to take a closer interest in what is being decided because of the impact it could have on both islands.
“The last I knew is that the conditions of this £1.5m loan were that Guernsey would secure it against impôt revenues, which was slightly more palatable. However, to our shock, the Guernsey government is suddenly requesting conditions such as a taxation review and a constitutional review. If the excise duties service the 5-6% loan offered as claimed, why would the States of Guernsey need further securities? Why would this loan agreement be contingent on constitutional or taxation reviews for Sark? Terms can often seem benign or confusing, but they always serve a distinct purpose. Why would Guernsey like to change Sark’s constitution or tax system?”
“In conclusion, the conditions attached to this loan are unacceptable to an informed, educated public,” he wrote.
“The loan does not solve Sark’s challenges or problems, it likely adds to them.
“Sark people love Guernsey, and Guernsey people love Sark. We must unite in questioning our political representatives and their decision making.