The vote has instructed Policy & Resources to bring in a child responsibility tax allowance for each dependent in a household for the purposes of income tax.
Deputy Munazza Malik, who laid the amendment, said it was designed to recognise the responsibility of raising children without creating another welfare payment.
‘It simply asks us to apply an existing principle more consistently as we redesign our tax system,’ she said.
Deputy Neil Inder said he liked the amendment but was concerned about the lack of means-testing involved in the proposed financial support.
‘I don’t believe in universal benefits and I never have done,’ he said. ‘Public money needed to be targeted at those who genuinely need it.’
His comment was echoed by Jayne Ozanne, who agreed that means-testing was needed while understanding the motivation behind a well-intentioned amendment. ‘Target the assistance where it will make the most difference,’ she said.
The island, like other countries, faced an existential crisis over its falling birth rate, said amendment seconder Paul Montague.
‘If we genuinely care about the future of this island then we have to do something radical,’ he said, quoting Deputy Aidan Matthews: ‘We have to make Guernsey the best place in the world to have a child and bring up a child.’
The island’s economic climate disincentivised people having children, said Haley Camp, but she commended the ‘spirit’ of the amendment and said it was worthy of consideration.
Gavin St Pier pointed out that the amendment was a directive to P&R to introduce a scheme, not report back following research, and if it happened the most likely outcome would be an increase in the revenues to pay for it, including an increase in GST.
But P&R vice-president Yvonne Burford said despite the wording of the amendment there was nothing to stop the committee bringing back its workings to the Assembly before implementing any changes. The committee was prepared to support the amendment.
But Employment & Social Security president Tina Bury said the untargeted nature of the amendment was a problem for the committee, as was the instruction to reduce the costs of family allowance.
The amendment was approved by 26 votes to five, with eight abstentions.
How they voted
... on the amendment to direct Policy & Resources to introduce a child responsibility tax allowance.
For (26): Deputies Burford, Cameron, Collins, Curgenven, de Sausmarez, Falla, Gabriel, Gollop, Goy, Hansmann Rouxel, Kazantseva-Miller, Laine, Le Brun, Leadbeater, Malik, Matthews, McKenna, Montague, Oswald, Parkinson, Strachan, Van Katwyk, Vermeulen, Williams. Alderney Representatives Hill, Snowdon.
Against (5): Deputies Dorrity, Helyar, Kay-Mouat, Ozanne, Rochester.
Abstained (8): Deputies Blin, Bury, Camp, Humphreys, Inder, Niles, Rylatt, St Pier.
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