We need more detail on States finances before taxes go up
WHEN you need to raise money to keep the island afloat then it is a simple matter to raise taxes. Unfortunately all the easy ones were used up by the last States. For example, the personal allowance was held down and the age-related allowance was abolished. These were not noticed by the majority of islanders and I would call them the stealth taxes. The more noticeable ones were the large increase on petrol and the increase on property tax. Even these did not incur too much annoyance.
Well now Deputy Helyar, you have a problem because in general people do understand about GST and they do not like it. What can you do? There is an old codgers’ committee which some time ago suggested in the Press that it would be helpful to us if you gave more financial information to islanders. The situation is worse than you expected but you do not indicate where the problem is. I invested in a Billet for last December and was disappointed to see how the reserves were presented – in block diagram form but not showing too clearly the total amount available by way of usable reserves. In addition it would have been useful to have seen a full account of how the island reserves are invested and what return they give – around 3%? Is this not an area which could show a better return?
The effect of raising any taxes at this time is, of course, to take money out of the spending islanders’ purses. Is this the right approach after having an enforced period of stagnation for 18 months?
How to get the economy moving again as quickly as possible? Put money into the economy either by States spending or lowering taxes to let people spend more.
How to fund this? By using the reserves.
The core reserves are there for a rainy day – when the island has suffered a structural change etc.
I was a boy during the Second World War and for the whole of my lifetime I have never known any lockdown and its disastrous effect until now. People have been left depressed with the virus – not a good time to raise taxes.
I was never a Thatcher fan, but I cannot help wondering about her solution to our problem – perhaps a spot of privatisation? Our transport system, for example?
Hopefully looking forward to the publication of the island’s balance sheet with a little more information than we have at present.
DON SUMMERS