Declaration of interests is more important than ever

WHAT does it say about the declaration of interests that after the deadline had passed for members to fill in their forms, it took an enquiry from this desk for them to be released publicly?

A glitch in the system from the States end, but are the watching public, every pun intended, really interested?

If not, they should be, but so should all others States members in their role of holding other deputies to account – and just as importantly, making sure that every decision and debate is seen to be fair to those outside the political bubble.

This is especially important in a time when international scrutiny of decisions being made in the island is at its height.

More detail has been added to the States members' declaration of interests for this term – although it still stops short of being a bomb-proof guide or going as far as other jurisdictions.

It is only when a shareholding is more than 10% that you find out what the company the shareholding is in actually does, for example.

Why is that important? It's important because the States is investing millions in contracts from which deputies can potentially benefit.

Any whiff of suspicion should be eliminated before it can even begin.

Some of our political representatives are in more vulnerable positions when it comes to declarations than others.

A backbencher is unlikely to face the same level of attention as a minister – or have the same workload.

Treasury and Resources minister Gavin St Pier is one who will face a high level of scrutiny given the position he is in.

Some believe he has already tripped up by not declaring an interest when making a statement about Qrops at the recent States meeting.

According to the register, he returned his declaration of interests on Wednesday 27 June – the same day he read out a statement that a section of the Qrops scheme would be axed to keep the industry in Guernsey.

It was not published until recently so the public would have been unaware of his consultancy role for Business Consultancy Services, through which he draws an income that comes from Trust Corporation of the Channel Islands, which provides tax planning and other financial products.

Deputy St Pier did not believe he was in any way conflicted, therefore saw no need to declare his involvement to the Assembly.

He said his role did not involve any client management, so he had little knowledge of who the Trust Corporation's clients were.

'But I do not believe it has any clients with Qrops links,' he said.

'The statement I made was driven by the perception of what was in the best interest of the island rather than any particular business. So the interest of any individual company did not feature at all in regard to any decision-making.'

Now Deputy St Pier's speech was a statement, there was no vote, and even if there was a vote he could under the States rules of procedure still take part in it – some may argue there is no case to answer.

But so much is now about perception and being seen to do the right thing.

In fact, there seems a weakness in the rules of procedure that it asks for declarations when debating a proposition, but not when making statements or asking or answering questions during question time.

Deputy St Pier also has more than a 10% holding and is a director of Veyrier Trustees Ltd, a licensed fiduciary that he launched.

It acknowledges on its website that its services are tailored to its clients' requirements, which can include tax planning.

Whereas once tax planning was not a dirty word, and it still remains completely legitimate, in some quarters it is coming under

increased focus – just take a look at the coverage in the Times and Guardian.

There can be a vulnerability in remaining too closely associated with the sector of business that your political career touches on.

But then the experience someone with a background in these areas brings to the role is invaluable in understanding the threats and challenges the island faces.

Bringing in £60,000 plus a year, the role of chief minister is undoubtedly a full-time one – and one which brings with it responsibility for representing the island on the international stage.

The register of interests shows that as of 11 June, Deputy Peter Harwood held 16 directorships, reportedly a lot less than when he was at the Guernsey Financial Services Commission, and he is reducing those further by resigning from a further six.

The question: is there even enough time to be a director of 10 companies and chief minister – especially if a time of crisis arises in either the political or business life?

Captive insurance companies are the mainstay of the interests declared.

Again, rightly, the experience gained from these directorships is seen as invaluable for someone in the chief minister role, but it brings with it potential conflicts down the line.

Deputy Harwood also holds more than a 10% holding in Sommelier Wine – and no doubt alcohol duty will continue to feature heavily in the Budget headlines.

Again, this is not to say there is anything wrong – and as long as declarations are made at the time reports are discussed and decisions made it will remain that way.

Deputy Harwood said he had already stepped down from the majority of his directorships before the end of last year when he retired as a consultant with Mourant Ozannes.

He also confirmed that he has been stepping down from a number of additional directorships since being elected chief minister.

'This is so that I can focus on being a full-time chief minister – there are many challenges and competing priorities as chief minister and I want to do the job effectively,' he said.

'Those directorships I have retained at this stage are ones where I am sure that I can discharge the duties of directorship properly in my own time, without reducing my effectiveness as chief minister and without there being any conflict of interest.

'Since being elected to the States, and in accordance with the rules, I have declared all of my outside interests, business and charitable, including those I am in the process of stepping down from, in the Members' Register of Interests.'

Commerce and Employment faced a rough ride last term because of some of its members' close ties to the fulfilment sector, which it was overseeing.

Everything no doubt was above board, but those throwing mud love the chance to cast insinuations around when trying to score political points and that will remain the case.

In an era of openness the declaration has taken a step forward, although its reach is still not as far as it should be. But even in its current form, the register brings with it a healthy level of scrutiny and accountability for Guernsey's decision makers.