Guernsey Press

If it isn't broke...

I'VE BEEN following very closely the various articles and correspondence in the Guernsey Press relating to the changes and proposals our politicians are putting forward concerning the constitution of the States of Deliberation and taxation.

Published

I also attended the recent Question Time and listen to the BBC 'phone-ins'.

For those who missed these, they missed the opportunity particularly to listen to two politicians on the top of their game. I refer to Richard Conder and Paul Luxon both giving articulate, well-reasoned opinions on subjects that they had either mastered or of which they were expert.

Richard Conder explained at depth the compelling reasons not to impose a General Sales Tax and, having been a former VAT administrator, there is no one better qualified to give an opinion. If this tax is imposed at say 5%, it would go a long way to fixing our financial problems, but as he pointed out, there has never been a jurisdiction where such a tax has been introduced that it has not gone on to increase the level of tax to meet growing expenditure.

The solution, among others put forward as an alternative, is a property tax, bringing our incredibly low 'rates' in line with most other communities and raising broadly the same as a consumption tax.

This avoids hitting the lower-income families who do not own their own property and spreads the load across those more able to bear the cost.

I listened to Mr St Pier saying that GST would be offset by raising income-tax thresholds, but he only needs to look at the UK, where the HM Treasury spends much time divining ways to claw back allowances from the less well off, to know for sure that this will happen here in exactly the same way.

The word 'expenditure' is always the precursor to the argument for the need to raise more and more monies to fill the gap between income and expenditure.

I may be wrong but I thought most deputies at the hustings were asking for a mandate on their promise to regain control of spending in order to bring our economy back into balance. I hear politicians saying that we are well down the road to achieving our reduction on spending targets, however, if something like a quarter of the savings have not been met, this can hardly be described as a success. What I do not hear from the Treasury or from other departments is the truth that if we cannot afford it, we cannot have it. The continual drum beat of yet more capital expenditure should be silent for a while. Let's consolidate and make do with what we have. A moratorium on all new capital projects would allow us time to catch our breath.

I hear the immediate cries of ridicule, but we are a Bailiwick of some 65,000 people – if things start getting tougher, we need to have means and the reserves to meet a changing and harsher economic climate. There's only us to support ourselves. We are not a constituency of the UK. There is no going to central government for hand-outs. So let's curb new project spending and concentrate on basic things that need doing, i.e. social housing schemes, sea defences and maintaining the island's day-to-day infrastructures.

As an example of 'cutting our cloth', I listened to Deputy Paul Luxon give measured and intelligent responses to Deputy De Lisle as to why we need to spend £18.6m. on the new outfall discharge pipe. I was dismayed to hear the recurring argument put forward by Deputy De Lisle for a full-blown treatment works at considerably more cost. Deputy Luxon valiantly tried to point out there was no need to spend vast extra sums. It illustrates the seeming prevailing attitude that we are a rich, finance-fuelled island that can afford all the bells and whistles. Truth is, we cannot.

The States will debate changes to our system of government. By common consensus, it's not perfect, but are there not more important matters to concern us than what is, for most, the States doing some very dangerous navel gazing?

Most deputies were elected on a ticket of change of attitude to more open and hard-working government, yet here we go again. Now it's 'let's play politics with the very nature of government'. After the numerous u-turns, not to say 'loop-the-loops', of many deputies over paid parking, how can we trust them to alter our government for the better?

They are quite capable of flip-flopping and voting in an executive style of leadership with potentially a system of patronage that could be disastrous for democracy in the island, After the paid parking spectacle, let's follow the tried and tested mantra of 'if it's not broke, don't fix it'. We will all be a lot safer.

MICHAEL HENDERSON,

Ma Carriere,

Le Bouet,

St Peter Port.

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