Long-service deputy foresees party splits
ONE of the island’s longest-serving deputies believes that next month’s tax debate will be a big test of the new political parties, and in particular for the Guernsey Party.
Deputy John Gollop said it was the ‘best and greatest chance for a generation’ to reform fiscal policy and society, and that States members needed to be realistic, and not play the populist card.
‘This challenging message and Billet risks fracturing the current political alliances and groupings in the current chamber and emerging with no coherent result,’ he said.
‘The mood of too many members is perhaps hostile, dark, melancholic, fatalistic and wishing to play blame games.
‘There is a risk we listen to the loudest voices and vested interests rather than society as a whole and repeat again the last dozen years, three wasted terms of ostrich politics and head in the sand.’
The Guernsey Party campaigned strongly against increasing taxation or introducing new taxes.
Many of the so-called independent deputies are particularly vociferous against the idea of raising revenues through an income-based ‘health tax’, or a GST.
Deputy David De Lisle said it was the wrong time.
‘I will not support any tax increases or the introduction of new taxes such as a goods and services tax or income-based health tax.
‘We must use reserves in place to assist with recovery and deficit financing.
‘Many businesses are on the edge and many families are finding difficulty paying mortgage and TRP payments and rising rents.
‘Better to boost growth and cut spending rather than raise taxes that could derail the recovery.’
The tax review was initiated in January last year by Policy & Resources under Gavin St Pier’s presidency.
Deputy St Pier said there was a need to diversify away from an over-reliance of taxing personal incomes, and he was keen to study the policy letter in depth when it is released.
‘My initial thoughts, based on the limited information currently available, are that there is no new information or revelation on the longer-term fiscal pressures that was not known in January 2020 or at the time of the general election.
‘The proposals to sort out the inconsistencies and inequity in the social security contributions system are to be welcomed, but raising income tax by 3% and calling it a ‘health tax’, when it is just part of general taxation and is not set aside for health, is disingenuous.
‘Raising income tax also just exacerbates our existing over-reliance on taxation of personal incomes as a source of public revenues.’
Deputy St Pier also questioned the assumption that corporate taxation reform could net the States another £10m. a year. He said it ‘seems unsupported’ and failed to recognise the substantial changes in the international corporate tax environment.
As leader of the Guernsey Partnership of Independents, Deputy St Pier clarified that his party had no position on the tax issue, or on any other policy issue.
