The man responsible for championing Guernsey’s finance industry in the States has challenged Deputies opposed to the latest tax reform proposals to explain how they would replace the revenue it is designed to raise.
Responding to a cautious endorsement from three local business groups, Deputy Andrew Niles said deputies could no longer reject tax reforms without offering a credible alternative.
Deputy Niles, Finance Sector Lead for Policy and Resources (P&R), said: “Any Deputy minded to vote against or delay this package must answer the simple question the joint statement poses – how would the same revenue otherwise be found?”
“That answer cannot be silence or deferment.”
Growing objections
His comments come days before deputies are due to decide whether to approve the States’ proposed tax reform package, including the introduction of a 3% GST.
Several deputies have questioned and criticised the proposals in private – and in public – with Deputy Rob Curgenven calling on P&R to show its “workings” so politicians and the public understand the numbers behind the tax proposals.
Deputy Niles said the message from the three business groups added further weight to calls for action.
The three organisations told deputies this week it was “time for the States to act”, warning against further delays to decisions intended to address Guernsey’s long-term funding gap.
Deputy Niles said the groups collectively represented more than 600 resident companies, 700 directors and almost 17,000 employees.
“When organisations of that collective weight speak with one voice, it matters,” he said.
‘Time to act’
He argued that rejecting the package without identifying replacement revenues would simply prolong uncertainty while adding to the island’s financial challenges.
“Rejection without a credible alternative is not caution. It is drift – and drift has a cost.”
Deputy Niles said Guernsey had already spent years deferring difficult decisions, while reserves continued to be drawn down and future funding pressures mounted.
Describing the upcoming debate as a choice about future generations, he said previous generations had invested in schools, harbours, roads and public services before seeing the benefits themselves.
“We have the same responsibility. The time to act is now.”
