STSB unlikely to hit States target of returning £30m.
THE States’ Trading Supervisory Board ended 2018 with £20m. still to find to meet its States-set target return of £30m by the end of 2021, but it is hoping to reach at least two-thirds of that target.
In its first annual report, the STSB said it is anticipated that it will return about £19m. by the end of 2021, with £3.6m. anticipated in 2019 and £2m. to £2.5m. in each of 2020 and 2021.
Its two main plans are to impose a 20% business dividend on corporate entities as well as continuing to sell States-owned properties, with a budgeted capital income of £1m. next year from property sales:
‘However, it is possible that the rationalisation of the States’ property estate will result in additional receipts,’ said the report.
The report outlines the STSB’s various responsibilities and gives an overview of the trading bodies which it oversees, from incorporated companies like Guernsey Electricity, Guernsey Post and Aurigny, to unincorporated companies such as Guernsey Dairy, Guernsey Waste, Guernsey Water, States Works and the ports.
Soon after the STSB was formed in 2016, the States’ Medium Term Financial Plan was launched and as part of that the STSB was set a target return of £30m. between 2017 and 2021.
STSB president Peter Ferbrache said that the idea of the 20% dividend being paid had not met any opposition from the various bodies it would affect.
While Trading Assets managing director Simon Elliott said that the dividend would obviously not have to be paid if there was no profit made.
‘We discussed it with all the people who could be affected and I don’t think we’ve had anybody who’s come back and said they don’t agree,’ said Deputy Ferbrache.