Lack of cash sees Guernsey lose business to Jersey

LOCAL firms are missing out on business in financial services because Guernsey Finance cannot pursue every opportunity on its current modest budget.

In making a claim for £900,000 extra funding from the States Strategic Development Fund, the Commerce and Employment Department has warned that business is already passing the island by.

The Guernsey Finance board was asking its team to undertake a high level of work in three jurisdictions at a time as far back as 2008 – but 'resource constraints' mean this has not happened.

Guernsey Finance has concentrated most of its overseas effort in China, establishing a representative office in Shanghai, pictured, back in 2007, but has also made a significant trip to the USA this year and pursued Latin American opportunities in a modest way in recent times.

It also appears, alongside industry representatives, at international conferences worldwide during the year.

Its annual budget is in the region of £1.35m., including an £800,000 grant from the States and the remainder made up from an industry levy, voluntary contributions from the accountancy sector, and self-generated income from events.

'China aside, opportunities are being missed in all selected markets as Guernsey Finance is not sufficiently resourced to capitalise on all of them. Where a formal programme of visits, events and press activity may be appropriate, Guernsey Finance is unable to pay more than lip-service in some jurisdictions at the present time,' Commerce and Employment said in a report to the States, which will be debated next month.

'Competitors are already publicly making plans to undertake development work in the regions we have previously identified. Many international finance centres, including Jersey, have several permanent representatives on the ground in some of these markets and Guernsey cannot compete equally in terms of the way in which such activity raises profile in the market.'