Guernsey Press

States fixated by GST

THE States of Guernsey and GST are like a dog with a bone. They refuse to let go of it. The SoG however, unlike a dog, won’t accept a bigger and better bone when offered in exchange. The SoG are fixated on the one thing at the expense of all others, which they simply brush aside with some lame excuse.

Published

l If we tax the rich based on their total income, they’ll leave.

l If we introduce ‘Corporation Tax,’ companies will leave.

l If we introduce GST, everything else becomes a no brainer.

The truth of the matter is, that the SoG do not have the stomach to do what they should do. That which is beneficial to the island as a whole, not just the super-rich. To such GST is just a drop in the ocean. To those on a low income it will be crippling. Families are struggling to survive today. How will they survive tomorrow when SoG introduce GST as they intend, on top of the burden of today?

I understand that in a meeting with SoG that the corporations offered to pay corporation tax. A percentage was proposed, which would have left no requirement for GST to be introduced. Obviously, nothing came of this meeting as we can see that SoG is still banging on the same old drum.

Even if the island had a windfall, the SoG would introduce GST. It’s an ongoing fixation, just as so many other things that they are still debating decades later.

The SoG cannot move forward, they are too busy looking back.

Consider the financial state of the island alone. The fact that the island is tens of millions in the ‘red,’ a sign that the States of Guernsey are managing the island's finances sensibly.

The island has been seriously over-budget for donkey’s years. And why? Because the SoG have no idea how to run the island, let alone manage its finances.

Are our States deputies qualified for the job? No. Do they know what they are doing? No.

Yet they are appointed heads of departments, over and above those who are qualified to do the job. How crazy is that?

Then they waste money on consultants from outside the island. Consultants who know nothing or very little of the island. Then they either don’t listen or the job is botched because they did.

Surely we have our own qualified consultants among the island's population who are in a better position to provide answers than those from outside the island. Especially when it comes to construction and working with materials, native to the island.

With each new government, matters have been getting worse, year in and year out. Just look at the worsening state of the island.

The degradation has yet to even be slowed. The States' constant over-spending has yet to be addressed. The SoG solution is to dig ever deeper into the already empty pockets of an ever-increasing number of the island’s population. The SoG only know one way to turn, and that’s to those who cannot afford it.

Look at the state that the island today and whose fault is it? Those who are meant to be running the islands affairs – the SoG. They have practically ruined this once lovely island. People used to come here in their droves. Now it’s quite the opposite.

How many decades has the island's education system been in an absolute mess and the States have still to put it right? As it now stands it’s in a bigger mess than ever. The level of education once available in the island has been severely downgraded.

The SoG are so full of indecision, lack of insight and the ability to look any further than the end of their noses. Let alone to the end of their four-year term and you can forget about beyond. How many times have decisions been held back until the next duly-elected SoG? What’s more, it then gets held over again, until the following SoG. Add to that the inability to budget, the continual unforeseen overspending on projects and more. It all adds up.

What are the three main areas that the States are still dithering over, decades beyond the original timeframe:

l The Airport Runway Extension. That is still being debated, how many years after the States had the perfect opportunity to have the job done. And at a fraction of the cost today?

I'm told an offer was made while the company was here working on the runway. The additional cost to the island to extend the runway would have been £3,000,000.

The SoG inability to see beyond the current horizon, just as today, meant that they said no. According to the SoG, the island would never require a longer runway. Then why are the States still debating it to this day on an annual basis?

l The Education System. How many island schoolchildren have now suffered at the hands of an indecisive SoG?

It all began decades ago over whether or not to rebuild La Mare De Carteret School, which of itself was another SoG blunder. How many years of debate on the rebuilding of the school alone? Then having finally agreed, the paymaster turned around and said no. Too expensive. The final result of this further delay meant whatever happens next would have cost the island tens of millions more than what the paymaster was looking to save. Typical States.

Years later, and after the fracas of the one school education system which required intervention by the local population to stop, the SoG have now successfully dumbed down the local education system. No level of higher education available through the now-defunct Grammar School, and the route to Elizabeth College cut off. Both removed by the States.

What both the Grammar School and Elizabeth College provided is not available elsewhere on the island.

l And we’re still on the GST debate. Round and round and when it will stop, nobody knows. However, for the States, it’s a matter of when, not if. Honestly, haven’t the SoG done more than enough damage to the island already?

Sadly not, the SoG are a law unto themselves.

The SoG are all sitting comfortably on their £40,000 per year plus an additional £5,000 for every committee that they sit on. So, for them, it’s a case of we’re all right.

Why must the island suffer while the SoG continue to treat the island's finances as if the island is little more than a trivial game of monopoly.

The States won’t increase taxation on the super-rich because they believe that they pay more than enough as their combined contribution amounts to a large proportion of the island’s income through taxation. That might be the case when looked at as a combined figure. However, when looked at as personal earned income, pound for pound, they actually pay far less income tax, based on earnings.

And with the help of accountants, which most of us cannot afford, they avoid paying still further tax.

Why don’t the SoG introduce further income tax bands which are determined by level of income? Keep the 20% band and add one below and another above. Low income, average income and high income.

I’m not suggesting that the island milks the rich, but a higher proportion against high levels of income should be considered. Rather than zero taxation after what in reality is an extremely low cap would be fairer.

Whatever level of income you are on, you’ve earned that money, just as much as the next person. Instead of squashing more and more of the island's low income families beneath the poverty line, help them. Bring in the low income tax level. You don’t need to have just three, maybe have five.

The States has asked for our suggestions, obviously it was nothing more than a PR stunt. The only prize that the States have their eyes on is introducing GST at whatever cost to the island's low-income population.

The island has just had another hike in the cost of electricity. Why? Because Guernsey Electricity has failed to budget for future growth, ongoing maintenance and infrastructure. This is on top of replacing the electricity cable link to France. Who foots the bill? The consumer. Where do the company's profits go, and why is a proportion not put aside to meet future needs?

The SoG cannot see beyond the letters GST and simply keep riding the same old wagon even after the wheels have come off.

Say no to GST and at the next election – think before you vote.

JOHN DE CARTERET

17 Delancey Court

Rue Des Monts

St Sampson’s