Another defeat will put GST on the shelf, says P&R president

P&R has twice failed to get a majority for GST, in 2021 and earlier this year, and its president, Peter Ferbrache, said yesterday that its third attempt should be its last.

‘I don’t think there would be time to come back. We’ve only got 20 months of this States left. I don’t think we could,’ he said.

‘I think if this is defeated in October or November, whenever it is decided, speaking here personally, I can’t see that we could bring back GST again this term.’

Speaking on the Guernsey Press politics podcast, Deputy Ferbrache refused to be drawn on his future as P&R president if his committee’s far-reaching tax and spending plan is rejected.

• Listen to the full interview with Deputy Peter Ferbrache

‘I’m not going to say to you today that if it doesn’t happen I’m going to resign,’ he said.

‘I think that’s immature and unacceptable and it looks as though I’m saying to States members and the public at large that if you don’t play my game I’m going to throw my toys out the pram.’

But asked if he would have a decision to make about his future if the States backs the self-styled ‘fairer alternative’ tax and spending plan led by his former vice-president, Heidi Soulsby, Deputy Ferbrache said: ‘I fully accept that – I do.’

Deputy Ferbrache believes that introducing GST would put Guernsey in a stronger negotiating position with Jersey and the Isle of Man over company tax reform.

‘That’s my feeling. I think we would be,’ he said.

P&R is proposing 5% GST to help plug a hole in States finances projected to grow to £100m. a year by 2040.

Its plan also includes income tax and social security reductions targeted at the least affluent half of islanders and borrowing another £350m. to fund a lengthy list of capital projects with a total cost of more than £550m.

Deputy Soulsby’s alternative plan excludes GST and the income tax and social security changes. It proposes smaller tax rises, lower spending commitments, less borrowing and making more use of States reserves.

• Listen to the full interview with Deputy Heidi Soulsby

Also speaking on the Guernsey Press Politics Podcast, she said her proposals were more pragmatic and achievable, and she criticised P&R’s leadership on tax reform.

‘They convincingly lost the debate in February. I was really hoping that we could come up with a consensus approach here,’ said Deputy Soulsby.

‘P&R, as the lead committee, should have come out and said “for the interests of this island we’ve got to come up with something we know we can get the States behind” and they haven’t done that. In fact, it’s the opposite. That’s what disappoints me. That is not what we want or expect in our system of government.’

Deputy Ferbrache said he found such criticism ‘a bit rich’.

‘I’ve always had an open door policy,’ he said.

‘If they want to come and discuss something with me, I will. My style in life is to be open and frank and direct. I don’t know any other way of doing it.

‘It’s them that have been difficult. I don’t like saying that. This is too important to score political points.’