'Island needs open market'

OPEN market residents have hit out at what they see as an attack on the sector. The area is being looked at as the States tries to maximize returns to help fill the impending black hole.

Debate is raging online on the editors' blog at www.thisisguernsey.com/blog

'I am surprised at a time when the island is moving to a zero-10 policy, which requires additional high net worth individuals to contribute to the gap left by the removal of corporate taxes, that in the Press we see talk of openly attacking this section of the community,' wrote Alasdair Milroy, a senior manager in the fiduciary sector.

'There is a misconception in this blog that open market residents simply consume resource and flit from one home to the next in various exotic locations.'

He said that the reality was that over the past decade the gap between the local and open market house prices had narrowed, as had open market and south-east England ones.

'This has resulted in many people who originally came on licences to transfer to the open market rather than face moving families on an essential licence coming to an end.

'Alternatively, they are young families like mine who have consciously chosen to move to the island for the quality of life it offers their families, at a price which is comparable to many parts of the south-east of England. The majority of these are not ?tax dodging? ultra-wealthy individuals, but young professionals with families who bring with them skills and experience that the island's industry is so short of.'

He said that they wanted to be here and contribute to the community they have joined.

'I just do not see vast numbers of open market residents paying no tax and flitting about the globe.'

Housing minister Dave Jones said there was not an attack on the rentier sector: 'We are looking at all sections of the economy to find the balance we need to make the tax system fair and equitable to all.'

The open market was established in 1957 when dwellings over a certain rateable value were exempted from control. This was designed to encourage wealthy entrepreneurs to Guernsey to create jobs and contribute to the economy.

'As the price of many open market properties has moved closer to those of local market properties, certainly at the top end of the market, then it is clear it no longer serves its original purpose and it is right that we review this housing sector as a whole.'

He added that many of the ultra-rich chose to live in Guernsey rather than London or New York because of its quality of life.

'As ministers we do have time and a duty on behalf of the taxpayer to examine all sections of the economy - it is part of the ongoing process as it properly should be.'