The States has earmarked only £150m. to fund key capital projects with an estimated price tag of more than £1bn., according to figures published last year by the previous Policy & Resources Committee.
Deputy David Goy said he was trying to persuade other States members to be more open-minded about encouraging and welcoming capital from the east, including from government-backed investment agencies.
But Policy & Resources president Lindsay de Sausmarez warned, ‘there is no such thing as a free lunch’ and urged caution about the potential risks of well-meaning but naive moves to secure more foreign investment.
Listen to the full interview with Deputy David Goy on the latest Guernsey Press Politics Podcast
‘Traditionally, we’ve cast our nets to the UK and European Union. I want us to cast our nets wider,’ said Deputy Goy.
‘We are leaving money on the table because the fastest-growing economies in the world are not in the west. They’re in China, Korea, Japan, Singapore, Thailand, Indonesia and Malaysia. We haven’t explored foreign direct investment from there.
‘We talk about our island running out of money.
‘Why don’t we go and see if we could have some joint partnerships in the east to come and build the infrastructure for us, as long as we have something that’s mutually agreeable and beneficial.’
He confirmed that he would be open to governments as well as companies from the east investing in major projects in Guernsey.
China has struck investment deals with small jurisdictions in other parts of the world, such as the Cook Islands in the Pacific, pouring millions of pounds into development projects but causing concerns about loss of control and harming relations with traditional allies.
Deputy Goy believed that any national security concerns could be overcome by allowing proposals for foreign state investment to be assessed by the UK as well as politicians and officials locally, but Deputy de Sausmarez was sceptical that would overcome the risks.
‘Tempting though the idea may be that generous benefactors, including foreign states, will want to invest megabucks in our infrastructure, there are always strings attached,’ said Deputy de Sausmarez.
‘This sort of investment is driven by strategic interests. Given increasing geo-political instability, there has been much more focus across the world on the details and implications of who funds critical national infrastructure, especially in small island jurisdictions. We cannot be naive as to the potential issues for us here in Guernsey either.’
Deputy Goy believed his idea was a realistic and pragmatic response to the challenge of Guernsey meeting the demands of major infrastructure development as a small and largely autonomous island with comparatively low taxes.
‘We are in financial difficulty and to me it doesn’t matter the colour of the hand that reaches out to help us,’ he said.
‘If the hand that reaches out to save me from drowning is a white hand, a black hand, a yellow hand or a brown hand, it doesn’t matter. It’s a pragmatic thing. I’m not ideological. I want what’s best for the island.’