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GST debate resumes today as first bids to derail it fail

The first attempts to derail Policy & Resources’ proposed tax reforms were defeated on day one of the States’ landmark debate on public finances.

Lindsay de Sausmarez runs the gauntlet of protestors in St James Street as she arrives for the start of the tax reform debate yesterday. She spoke at length to several protestors on her way into the Royal Court House.
Lindsay de Sausmarez runs the gauntlet of protestors in St James Street as she arrives for the start of the tax reform debate yesterday. She spoke at length to several protestors on her way into the Royal Court House. / Guernsey Press

Deputies rejected a sursis to delay the debate for up to two years and an amendment to hold a referendum on a goods and services tax, and they look set to defeat an amendment which would rule out GST when debate resumes today.

The proposer of all three motions, Deputy Liam McKenna, also withdrew a previous warning that he would lead a vote of no confidence in P&R if his sursis failed.

P&R ended the day hopeful that it was just about holding onto a majority in favour of its far-reaching reforms, having reportedly lost some support in the Assembly in recent days as a public campaign of opposition gathered momentum.

However, the relatively narrow defeat of the sursis – by 17 votes to 22 – indicated that the overall outcome remained too close to call, and P&R’s proposals still face a raft of other amendments before a final vote which is expected on Friday.

Liam McKenna’s bid to defer the debate for up to two years was defeated by 17 votes to 22.
Liam McKenna’s bid to defer the debate for up to two years was defeated by 17 votes to 22. / Guernsey Press

Debate in the Assembly was briefly drowned out by a handful of anti-GST demonstrators who had remained outside the Royal Court building following a larger protest which greeted deputies as they arrived.

Protest organisers Lars Janssen and Dominic Naermont, who were also behind a rally in Market Square last Sunday, were confident deputies had been left in no doubt about their message.

‘It’s very loud. You can hear it all the way down the road,’ said Mr Janssen.

‘We can’t complain about the turnout. People arrived early and have really showed up to join us.’

Many deputies, including several members of P&R, stopped to spend time with protesters.

Deputy de Sausmarez arrived early to speak to some of those protesting.
Deputy de Sausmarez arrived early to speak to some of those protesting. / Guernsey Press

P&R president Deputy Lindsay de Sausmarez arrived early to speak to them.

‘I think that’s brilliant. It’s really good that she is trying to engage with people,’ said Mr Naermont.

‘Whether or not that amounts to anything in the States chamber is another story.’

Short speeches were made to the crowd by several politicians opposed to P&R’s proposals.

Former deputy Carl Meerveld was cheered by the crowd when he turned up in a van stacked with placards for people to wield, and his well-known anti-GST flag.

P&R’s proposals include GST at 3%, new taxes on motoring and some companies, and reductions in income tax and social security contributions, which it has estimated would bring in about £40m. a year net.

Opening the States debate, Deputy de Sausmarez said that the advantages of her committee’s package included ‘reducing reliance on taxing work alone, enabling visitors to contribute more, strengthening the contribution from corporates and those with greater spending power, supporting economic growth and the needs and aspirations of the community, and providing meaningful tax reductions for the majority of households, especially those struggling with the cost-of-living’.

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