Guernsey Press

We cannot continue down this ruinous path of failing to control States expenditure

THE budget put forward by P&R is truly astounding. Every single committee produced a demand for inflation-busting increases, almost all of which cannot be justified on the basis of an ageing population. This compares to a proposal from P&R for expenditure requests to be less than inflation. Not lower funding, just less than inflation. No-one listened and so the merry-go-round of ever-increasing States expenditure continues even though the overall island economy has barely grown in the last 10 or more years.

Published

Where does it stop? Where is restraint and responsibility?

To pay for all this, tax goes up with some adjustments to ensure there is a redistribution of wealth (where was that in any election manifesto?). Some TRP is to rise by an incredible 44%, a tax which can only be described as a wealth tax in a jurisdiction which goes to lengths to say it has no capital taxes.

Deputies Trott and Gollop have proposed that income tax should rise in stages from 20% to 22% to 23%. A simple and transparent way of raising tax, but the electorate is told this would make the island uncompetitive. So introducing a hugely regressive tax like GST and other significant tax rises with resultant increases in the cost of living makes us more competitive?

It is no wonder the electorate is opposed to the introduction of a new, costly to collect, tax which can be too easily be increased so the States is not required to save money.

Harvey Marshall’s excellent letter recently (10 October 2023) made the case that the island’s political system is no longer fit for purpose and failing the electorate badly. Change is needed urgently as we cannot continue down this ruinous path of failing to control States expenditure while not growing the economy. A debate needs to be had about the changes required. Clearly experience is an inadequate qualification to be a deputy; the financial mess now so evident has been building for some years with many current deputies present throughout the period, so perhaps a place to start would be to introduce rules that no-one can serve more than three terms as a deputy and that no-one should be eligible to stand if their average earnings in the three years prior to standing for election have not been 25% more than a deputy’s total remuneration.

RICHARD BATTERSBY

GY1 1SP