IoM, Bermuda doing well

TWO leading offshore finance centres which compete against Guernsey have just produced their budget. In the Isle of Man, Treasury minister Allan Bell has announced the island's 22nd year of unbroken economic growth, which has averaged 6% annually in real terms over the past five years.

Government revenues have also gone up by £100m. over that period.

In a clear reference to the Channel Islands, Mr Bell said: 'When I look at the current problems in other jurisdictions in implementing what has become known as zero-10, it gives me great satisfaction to reflect on what we have achieved here.

'By ensuring strong growth and by maintaining business confidence over the last five years, we were able to complete the taxation strategy in line with our international commitments and without requiring a large reduction in spending or higher personal taxes.'

He also announced changes to the Common Purse agreement with the UK, which some experts in the Channel Islands believes enables the Isle of Man to compete unfairly with them.

This agreement, which shares out the receipts from VAT payable in the Isle of Man, will be amended so that there will be no windfalls in the future but a less volatile and more predictable revenue stream for the Manx Treasury.

Bermuda's minister of finance Paula Cox has also delivered her budget, which concentrates on economic growth.

Bermuda, which is smaller than Guernsey, achieved a record $850m. balance of payments surplus last year.

Much of this came from the financial services industry, although in her budget, the minister has concentrated on helping new businesses in other sectors of the economy.

RECENT figures from Jersey also show healthy economic growth.

Chief Minister Frank Walker said that States income last year was up a huge £50m. and further growth is expected this year.

Jersey can now balance its budget to beyond 2012, by which time it will know the full impact of zero-10 and can plan accordingly, he said.

'Given the unprecedented changes we have had to make to our tax structures and the hole created by zero-10, that is a fantastic achievement and one I am immensely proud of,' said Senator Walker.

'It means the fears expressed by some that we will need to shortly increase the rate of GST or income tax and/or introduce a raft of new taxes are unfounded.'

IN THE Manx Budget, Treasury minister Allan Bell expressed confidence that the e-gaming industry would continue to grow regardless of the attitude of the US authorities.

Mr Bell said that the industry in the Isle of Man provided 230 jobs, several million pounds in tax revenue and spending of £60m.

He announced that £6m. would become available for investment in tourism next year and the island now had four of the world's top-10 satellite operators incorporated there.

On capital spending, Mr Bell said that would amount to just under £100m. this year, reducing to a more sustainable £70m.

'To those who say that government does not support the construction industry, I would point out that the proposed capital programme in Jersey for 2007 is £42m., less than half the size of ours,' said Mr Bell.

Guernsey's capital spending this year will be about £70m.