Tax money should not be given away for free
I AM prompted to write this as I have just received a little brochure from the States regarding the personal tax, pensions and benefits review, which just reiterates the problems that are well known about the island's finances and smells very strongly like another process to soften us up to higher taxes in one way or another, although it does state some five laudable objectives, which I hope the administration believe in.
I have been a regular visitor and resident on Guernsey for over 25 years and don't recall the general population ever being so dissatisfied with the way the States has been run - a consequence, I think, of the change in the governmental system that even the politicians say does not work very well. So why not a return to unpaid deputies and without the ludicrous titles?
However, constantly threatening to tax people more one way or another is resented and in particular the proposed GST that most people believe will be a disaster to many Guernsey businesses, has not worked well in Jersey and would also be very cumbersome and costly to administer.
The proposed transport policy in truth is also just a way of raising revenue to pay for a bus system that is fundamentally flawed and makes no attempt to improve traffic flow, which is one of the biggest problems on the eastern side of the island and through St Peter Port and to St Sampson's.
We now also have Deputy Luxon, who likes to talk in £bns, telling us of the grand plans he has over the next 20 years to continue spending on capital projects – but at least admitting we have overspent on projects in the past (and how).
Sometimes it is hard to get people to admit what really needs to be done and make changes necessary to secure the future stability of the island's economy.
Many people believe the administration is not very careful with their money, having seen too many projects either run over budget or be gold plated.
For instance, I am reliably informed that to build a school in Guernsey costs more than twice what it would in the UK. How can that be? The States, which has made some efforts to economise, must push harder to cut its own costs. This means getting rid of complete departments if necessary, sorting out problems such as the public sector final salary pension issue that it has dodged for years. Also privatising the many commercial operations it now runs where it should be a facilitator not a provider of services and avoid being drawn into running operations like Aurigny, which looks like becoming a big hole in the ground that you throw money at. OK some of it is loan guarantees, but it is a liability that the administration should not be involved in as it has destroyed the market for other operators on the Gatwick route and, with the best will in the world, the monopoly position will be abused.
On an island where you pay for your doctor, dentist, A&E and ambulances, how come pre-school (play-school) is to be free, the buses are to be free, and we still throw away money on the ludicrously named International Aid Fund? It is not right to levy taxes to give the money away to others. We have that choice to make donations but not through the States, thank you. Several million for these operations alone to add back.
Sadly no politician appears able to stand up and say we are not going to give things away for free as it is usually their bribe to get elected in the first place.
What is also of greater worry is that the finance industry will slowly drift away because of the constant increase in regulation that will make people look east, away from EU and US influence and ridiculous compliance requirements. Interestingly, I have just had my first letter from a Guernsey bank looking for a copy of share certificates to identify the ownership of a little company I operate in Guernsey. So much for the island's stand on this matter.
Hopefully any proposals for changes to taxation will not take place before they can be put to the electorate.
G. M. OLDROYD,
Le Varclin
St Martin's.
