Guernsey Press

'Cautious' plan to close black hole

PLANS to finally wipe Guernsey's financial black hole and reach a surplus by 2017 are based on 'cautious' forecasting, Treasury minister Gavin St Pier has said.

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The minister, pictured, has offered assurances that the States has learnt from previous years, where projections had proved too optimistic, to ensure that Guernsey could eradicate its current deficit, (which according to latest figures had grown to £25m.) without further delay.

His pledge comes amid concern over the island's continued deficit, raised in an annual independent economic report, after Guernsey has failed to meet its agreed timeframe to clear the black hole.

'The reason we can present this forecast for the next three years with a degree of confidence is that the assumptions underpinning this forecast are very cautious,' said Deputy St Pier.

'In essence we are assuming no growth in earnings, in real terms, for the next three years. That, based on historic performance, is pretty cautious.

'If we can still achieve a surplus by 2017 using very cautious assumptions, hopefully any surprises will be on the upside, rather than on the downside.'

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