Meerveld rallying the troops to fight latest GST proposal

Carl Meerveld played a key role in the ‘red ribbon campaign’ which twice in 2023 helped persuade the States to reject a 5% goods and services tax, which it was hoped would raise additional income of about £50m. a year, as part of wider tax reforms.

He said yesterday that adopting the same approach again could be counter-productive ahead of a debate on Deputy Peter Roffey’s ‘GST-plus’ plan, which will go to the States next month as an alternative to Policy & Resources’ proposal to increase income tax to 22p in the pound.

‘I believe the public’s views are well-known after thousands marched in protest against the introduction of GST last year, and most deputies listened,’ said Deputy Meerveld.

‘I will be rallying the deputies who voted against GST before to stand in solidarity against GST again rather than organising another large-scale public protest, which would be challenging in the short time before the debate and would test the patience of the thousands of people who have already made their views against GST very clear.’

Deputy Meerveld said he remained ‘steadfastly opposed’ to the introduction of GST in 2027 because it would increase Guernsey’s cost of living and inevitably lead to a higher rate than 5% in the future.

Another deputy who helped lead the ‘red ribbon campaign’, Christopher Le Tissier, estimated that there was a 50/50 chance of GST being approved by the States next month.

He acknowledged that more members of the public were indicating support for GST but insisted that ‘the silent majority’ of the island remained opposed.

‘I think there is a groundswell of opinion that something needs to be done, but not GST, which can be regressive,’ said Deputy Le Tissier.

‘I will be trying to galvanise public opposition to GST. If meetings can be arranged, great, and if my services are needed to organise anything I will of course do so.’

Deputy Le Tissier claimed that GST would damage the retail sector locally, hit old age pensioners on fixed incomes, and require more civil servants to set up and run the scheme.

He doubted that GST would actually be introduced, even if the States voted for it in November’s Budget debate, as it would become an election issue, and he said he would ‘encourage all anti-GST activists to consider standing’ when the island goes to the polls next June.

Deputy Le Tissier was more sympathetic to P&R’s proposal to put 2p on income tax as a temporary measure for 2025 and 2026.

‘The people I have spoken to, both rich and poor, are in favour of an increase in income tax and still vehemently oppose GST,’ he said.

‘I think I will be voting for the 2p increase as that is what the public want, but I also consider it to be the best option.

‘We can then discuss tax reform to see what we should do after that two-year period.’

Deputy Meerveld said he would vote against increasing income tax as well as introducing GST.

Treasury forecasts indicate that the States will soon face a deficit of tens of millions of pounds a year.

Successive Assemblies have failed to adopt a fiscal plan to deal with the problem.

Both deputies urged P&R to do more to reduce States expenditure.

‘To paraphrase Churchill, we cannot tax our way to prosperity. I want a smaller government that lives within its means,’ said Deputy Meerveld.

‘This means that deputies would support initiatives that increase costs only if they are essential and make hard decisions on potentially reducing some of the things the States currently provides.’

Deputy Le Tissier said that in any large organisation there was usually an opportunity to make savings.

‘Why aren’t we following Jersey and cancelling the huge list of open positions?’ he asked.

‘If they have been outstanding for more than three months, we obviously don’t need them. I’m not just talking about the civil service, but all States roles.’

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