Economy needs intelligent intervention from new States
BEING broadly conservative in my economic outlook, I am slightly surprised to find myself saying that my greatest wish from the new States is that it seeks to intervene robustly and intelligently in the Guernsey economy. It is clear from all the economic statistics, from earnings to employment, from inflation to GDP, that the local economy is lacklustre and subdued, and has now been so for some time.
The economy needs some stimulus and given we lack the monetary tools, it will have to take the shape of fiscal policy.
I recognise there remains a relatively weak fiscal position, but I urge the new States to spend more money and to some extent reduce taxation, with the focus falling on making it easier to start and run a business, employ staff, training, education, transport and infrastructure.
This must be done carefully and thoughtfully, and will require collaboration between the private and public sectors, but I firmly believe it is what the economy needs and will benefit us all in the long run.
Above all, we need leadership, close coordination between States departments, politicians, civil servants and the private sector, and effective communication."
RICHARD HEMANS.
