Liam McKenna claimed that voters had made it clear they opposed the GST-plus package developed by the previous States and expected the Assembly they elected eight months ago to take it off the table.
But his amendment won only five votes, including his own, and he was harshly criticised for laying it without proposing alternative options to deal with an annual ‘black hole’ in public finances which Policy & Resources expects to reach £100m. in a few years’ time.
Marc Leadbeater wondered whether Deputy McKenna and his seconder, Simon Vermeulen, were chasing popularity, and imagined them as show ponies, ‘prancing around with their plaited manes and braided forelocks, with anti-GST brushed into their hinds’.
Deputy McKenna hit back, saying that at least he wasn’t known as ‘Guernsey’s Pablo Escobar’, after Deputy Leadbeater recently submitted a requete which could pave the way for cannabis to be legalised locally.
‘This is far too important a subject to draw attention only to the silliness of this amendment,’ said Deputy Leadbeater. ‘There is the fiscal irresponsibility, the dangerous messaging and the lack of any substance as to what comes next if it’s successful.’
P&R is developing further details about GST-plus as well as studying alternative options, ahead of a flagship tax and spending debate in July, and deputies who claimed to hold varying views on a consumption tax lined up to urge patience and allow decisions to be made in the summer once all research had been completed.
Deputy David Dorrity, who has indicated support for GST-plus, said that a premature decision could ‘undermine fiscal credibility’ in Guernsey. Deputy Andy Cameron, who previously voted against GST-plus, said it would be ‘irresponsible’ to rule out GST-plus without an alternative.
Recalling that Deputy McKenna was well known in sporting circles, Deputy Steve Falla said it would be both ‘jumping the gun and an own goal’ to make a decision on GST-plus while he and his colleagues on P&R were in the middle of their tax review.
In addition to the proposer and seconder, only Deputies Rob Curgenven, Bruno Kay-Mouat and Lee Van Katwyk voted for the amendment to rule out GST-plus, and Jayne Ozanne abstained, while 31 members voted against.
‘It’s no exaggeration to say that anger among islanders is palpable about what they perceive as a betrayal of those they voted in on an anti-GST ticket,’ said Deputy Ozanne.
‘I suggest that people are not going to listen to us or our explanations until we have proved ourselves capable of listening to them, and starting to demonstrate with our actions that we understand their anger and are taking concrete steps in which they can have some faith.’
In the lead up to the debate, Deputy McKenna had asked members elected on an anti-GST ticket to stick to their manifesto pledges and vote for his amendment, but fewer than half did so.
‘We are keeping our word,’ he said. ‘Actually, you’re looking at 7,000 of our community who have said no to GST. You’re looking at 13,000-plus, between Deputy Vermeulen and I, who voted us in our manifestos because that is what we said.
Deputy Vermeulen feared that GST-plus would encourage ‘the evil of inflation’ and, as costs rose even higher, more couples would be put off having children.
But several speakers took the opposite view, claiming that the States needed more money to invest in the island and help drive economic growth, and in turn raise living standards among the population.
Although many of the highest-profile supporters of GST-plus lost their seats at last year’s general election, the sweeping margin of defeat of Deputy McKenna’s amendment made it clear that those trying to prevent its introduction as a new tax in 2028 have even more of an uphill task in this Assembly.
How they voted
...on Liam McKenna’s amendment to rule out GST-plus
For (5): Deputies Curgenven, Kay-Mouat, McKenna, Van Katwyk and Vermeulen.
Against (31): Deputies Blin, Burford, Bury, Cameron, Camp, Collins, de Sausmarez, Dorrity, Falla, Gabriel, Gollop, Hansmann Rouxel, Helyar, Inder, Kazantseva-Miller, Laine, Leadbeater, Malik, Matthews, Montague, Niles, Oswald, Parkinson, Rochester, Rylatt, Sloan, St Pier, Strachan and Williams, and Alderney Representatives Hill and Snowdon.
Abstained: Deputy Ozanne.
Absent: Deputies Goy and Humphreys.