GMTA against GST

As a body representing some 80 company/trading members, from the largest company employing approximately 80 staff to a one-man sole trader, we cross over many of the represented employment sectors on island from service and tourism to light industry. GST can only be the most regressive taxation, not only to retail but the sectors and industries that look after the island's commercial and leisure marine markets.

Like all other island businesses, we have weathered the dulled business period of the global recession and are only just starting to see the tentative growth and confidence of our markets, albeit now greatly redefined by the economic uncertainty.

To bolster the facts that have been clearly made this last week by no less than the Confederation of Guernsey Industry, Chamber of Commerce, Guernsey International Business Association and not forgetting a well a-respected member of our business community, Peter Creasey... Guernsey cannot afford to have a further tax brought on to it by a burdensome and unwieldy government.

A reminder. Our island's professional bodies are telling you that GST in Guernsey will:

• Hit the lowest paid and pensioners the hardest;

• Weaken further Guernsey’s international advantage to do competitive global trade;

• Just look carefully at the damage it has done to Jersey economy – still in deficit;

• Make our retail and service sectors un-realistically expensive to all;

• Further push revenue offshore with online purchases;

• It will be an administrative nightmare for all business small and large to administer;

• In no way entice Guernsey States departments to act efficiently or in a commercially manner;

• Require an increase in government spending to collect and administer the taxation programme;

• Likely heighten social and unemployment burden on the state as small-sector businesses decide to cease trading due to uncompetitive nature and GST administration cost;

An 8.5% rate of GST would be only the starting point and it would soon become 10, 15 or even 20%, from a government already shy on trust for managing public revenue and expenditure.

What the island's businesses do need from its government are as follows:

1. Support for all business sectors to have land space to develop and grow;

2. Financial incentives to employ and build the diverse sectors;

3. Real savings in expenditure by a reduction in manpower and greater efficiencies all around to be accomplished while giving a good level of service;

4. Open access to the management sectors of government to form good working and collaborative relationships that drive investment and revenue;

5. World-class training and education environments to assist our diverse sectors;

6. Belief that the government service structures from top to bottom are capable of endorsing and encouraging business, (through its economic development plan) not stifling it with bureaucratic regime.

Elected deputies of the States of Guernsey, the GMTA ask you to please look clearly at the facts presented by business and industry professionals and in particular the Prof. Dominic Swords' report on the impact GST introduction would have to our island economy.

MATTHEW S. LE PAGE,

Vice President, GMTA,

gmat@cwgsy.net.