Let's end zero-10

Just for the record, the Isle of Man got everybody into this mess by their introduction of zero-10. They were able to do this because they received £100m. per annum from the UK Government as VAT refund.

This forced Guernsey and Jersey into introducing zero-10 so as to remain competitive.

Unfortunately for the Isle of Man, Gordon Brown later stopped this £100m. being refunded. (VAT in the IoM is currently at 5% – levied and paid locally).

Now to be fair I have simplified the above for the sake of brevity and also we don't need to rake over old coals, so to speak. We need to move on.

T&R are moaning they don't have enough money for free pre-school education, for sea defences, etc. The governments of Jersey and Isle of Man also have financial problems. They of course may dispute this, but they have VAT/GST to help support their economies.

So now all of us are already paying extra taxes, and T&R are considering the introduction of GST in Guernsey. They say they don't want to, but frankly under the present system it is inevitable. Interestingly the Jersey GST is the same as the IoM VAT charge.

So what makes anybody think that Guernsey can survive without introducing GST at a similar rate?

I surely don't need to remind everybody that our so-called 'black hole' isn't getting any smaller. It is in fact growing bigger year by year. Not one year has passed where we have filled the 'black hole'.

However, my main question is why should the long-suffering public have to pay to keep the finance industry going?

Let's face it, they make millions and the only income our Treasury gets off them is from the income tax paid by their employees.

I believe it is now time for all three governments to get together and solve their mutual problem by revisiting zero-10 and coming to some arrangement where it is done away with and a realistic level of tax is charged.

By the way, I was shocked by a statement by Gavin St Pier recently when he said they were reluctant to revisit zero-10 as it caused so much trouble with the OECD last time.

I thought we elected politicians to deal with the difficult problems, not avoid them.

Being realistic, this shouldn't surprise me I suppose.

JOHN BUCHANAN, SNR,

Address withheld.