Deputy Liam McKenna’s sursis motive sought to bring a halt to debate on Policy & Resources’ proposals for introducing GST at 3% and reductions in income tax and social security, until July 2028 or a comprehensive report on public finances from a new chief financial officer, and then to direct P&R to return with a package without a GST.
The long-time vocal opponent of GST said he welcomed the ‘wonderful news’ from P&R’s treasury lead Deputy Charles Parkinson that changes to international tax-gathering laws – known as Pillar Two – were now predicted to bring in between £73m. and £93m. a year.
He claimed he had 9,000 signatories to a petition against GST behind him, and once again argued that problems at the Revenue Service gave another good reason to delay consideration of more taxes.
Seconder Deputy Simon Vermeulen said the States was ‘in danger of looking like it’s rushing things’ and suggested the sursis was effectively a lifeline to P&R.
‘It buys you a bit of time,’ he said.
A successful guillotine motion left Deputy Parkinson to reply on behalf of P&R prior to Deputy McKenna’s final response.
Deputy Parkinson warned the consequent delay could be anywhere between six months and two years – hence his ‘can-kicking’ comment – and questioned whether the island’s new chief financial officer would come to a conclusion any different to those repeatedly reached by the various committees and sub-committees that had already examined Guernsey’s tax base. He recalled one particular adviser’s comment that, regardless of any other considerations, Guernsey would need a consumption tax of some kind in the end.
He said that the Pillar Two receipts would ‘give us a bit of breathing room’, but were ‘not a panacea’.
‘We are okay for a bit longer,’ he said.
Deputy McKenna said ‘it blows my mind’ that Deputy Parkinson was still saying Guernsey needed a GST, when the island was up to £93m. better off than when his one-time colleague on the anti-GST campaign trail had previously argued and voted against it.
But members voted 16-24 to reject Deputy McKenna’s delaying motion.
How they voted
For (16): Deputies Blin, Camp, Collins, Curgenven, Gabriel, Gollop, Goy, Kay-Mouat, Matthews, McKenna, Ozanne, Sloan, Van Katwyk, Vermeulen, Alderney representatives Hill and Snowdon.
Against (24): Burford, Bury, Cameron, de Sausmarez, Dorrity, Falla, Hansmann Rouxel, Helyar, Humphreys, Inder, Kazantseva-Miller, Laine, Le Brun, Leadbeater, Malik, Montague, Niles, Oswald, Parkinson, Rochester, Rylatt, St Pier, Strachan, Williams.
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