Deputies deny bowing to pressure over open market expansion
Politicians behind a new policy to expand the open market have denied watering down their proposals following a critical reception from existing open market residents.
An advanced draft of the new policy, seen by the Guernsey Press, assumes that only three new properties will be inscribed on part A of the open market register each year, and proposes a maximum of 15 inscriptions in any five-year period.
At one point during the development of the policy, a presentation made to interested parties indicated that there could be between 10 and 15 new inscriptions annually, which led to concerns from open market residents about a potential effect on the value of their properties.
‘We were previously testing ideas. This is the first time we have drafted them into a policy.
‘The policy has been shaped by many discussions with stakeholders,’ said Environment & Infrastructure Committee president Lindsay de Sausmarez.
‘Consideration was given to 10 to 15 per year, but good arguments came back from some sectors saying that would be on the high side.
‘We recognise this is a significant new policy and the committee wanted to err on the side of caution. It is our job as politicians to reach a political judgement which provides an acceptable balance and that is what we think we have done.’
Despite settling on a slow expansion of the open market, Deputy de Sausmarez said she still believed the new inscriptions policy could raise up to £5m. a year on average in the long term.
However, she acknowledged that her committee’s latest plan – for a 50% levy on the uplift in value of a property added to the open market, targeted mainly as new builds – would make it more difficult to estimate income receipts in future years.
‘The £5m. a year assumption arose at a much earlier stage of this piece of work. It was true at the time, but a lot of consultation has been carried out since and the policy has evolved.
‘I think £5m. a year remains a not unreasonable expectation for future years.
‘But of course the levy on properties which are yet to be developed means there will be a lag in income, and that expectations should be lower for the first few years of the policy.’
E&I has been consulting with interested parties for the best part of a year.
Once the current, final phase of consultation has been completed at the end of February, Deputy de Sausmarez said she hoped publication of the final policy would be only ‘weeks away’.
