Laurie Queripel raised a number of matters with Economic Development relating to the value of the promotional agency and the criteria for the assistance it provides.
‘Business relocation only forms part of the Locate Guernsey mandate,’ said Economic Development president Charles Parkinson.
‘The larger part of what Locate Guernsey does is promoting Guernsey as a destination for high-net worth individuals to relocate to and stimulate the open market.
‘The relocation of HNWIs generates ongoing benefit to the wider Guernsey economy in addition to property purchase and taxation. HNWIs have disposable income to spend in local shops and restaurants and will often commission local construction companies to work on their properties.’
‘The role of Locate Guernsey is to encourage the relocation of individuals to the island that are able to make a positive contribution to the economy and to demonstrate that Guernsey is open for business. In this respect, it is not the role of Locate Guernsey to assess the capacity within a particular market area.’
Deputy Queripel declared himself ‘quite stunned to see that it is not the role of Locate Guernsey’ to do so.
‘I well understand the role that Locate Guernsey can play in promoting our island and the benefits that might flow from that, and I also appreciate they do more than just field enquiries from businesses who might wish to relocate.
‘But the questions go beyond that, the central points and issues raised by them have been largely evaded,’ he said.
‘The main inference to be drawn from the answers is there is no criteria or any real method of measure in place to establish what the short, and especially medium- to long-term impacts, of off-island businesses potentially relocating to Guernsey might have on existing businesses, their viability, the value of existing jobs, the market, the economy, diversity, the housing market or the exchequer.’
‘Who, if anyone, carries out this necessary function?’
The responses from Economic Development supported his view that in some areas the agency ‘is working in a less than holistic fashion’.
However, Deputy Parkinson argued that the value of Locate Guernsey and the contribution to the island of HNWIs is backed up by statistics.
‘Since its commencement at the beginning of 2016 to the end of 2017, Locate Guernsey has assisted with 45 relocation enquiries bringing £1,692,000 back into government in document duty and income tax take.
‘This does not take into account the significant secondary benefits accrued as a result of wealthy individuals and businesses residing in Guernsey,’ he said.
‘With regard to diversification, businesses in more than a dozen different sectors have established in the island with some form of assistance from Locate Guernsey.’
However, Deputy Queripel felt there was insufficient evidence of diversification of services or the economy.
‘It might be that the only things that have been achieved is replication and the division of the market share into even smaller slices,’ he said.
‘I’m still not convinced that real and long term value is being added or that a positive contribution is being realised in every case,’ he added, as he vowed to continue pursuing the matter.
‘I do think further enquiry is required and motions and debate are a possibility.
‘It is an issue I will also raise with the Scrutiny Management Committee [of which he is a member].’
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