Small businesses will become unpaid tax collectors for GST
HAVING run a VAT-registered business in the UK no mention has been made here of the onerous task of small businesses becoming unpaid tax collectors. Small businesses, such as there are many in Guernsey, might not have the manpower, capability or willingness to deal with GST and might just give up. The large UK companies that operate here have systems and the manpower and the wealth to cope with this and local larger companies will probably manage but could well need additional staff – yet another expense. It will be yet another nail in the coffin for the small independent business and drive even more people to purchase online.
The States will have to create a completely new department, employing many staff to deal with the collection of this tax and no doubt need external brought-in expertise in setting up the necessary systems. All of which will necessitate huge costs and no doubt many teething troubles, all of which will have to come out of the income raised by this tax. I seem to remember Jersey saying that of its 5% GST, 2% went on administration.
In the UK, there are swingeing fines for making any errors on VAT returns and no doubt the same would be introduced here. It stands to reason that many small, one-man band companies will just give up.
How can it be fair that financially bailing out Guernsey falls to the general public, instead of looking to the large overseas corporations, who have no allegiance to Guernsey, to pay their fair share. And then with some companies, when it suits them, they just up and off.
The construction and building industries on this island are at breaking point. The Channel Islands are probably the most expensive places in the whole of the British Isles for building works.
How will the addition of GST on building materials and on labour costs, coupled with the shortage of workers, assist in helping the economy in any way? Many projects for the future will surely just stall.
In order to raise immediate funds we could understand the 2p in the pound rate in income tax for two years, with the introduction of some form of corporation tax to be introduced at the end of that two-year period. I don’t believe this option has been mooted at all.
Our economy is suffering from an ageing population. This was exacerbated some years ago when the rules were changed for licence holders being allowed to stay here permanently after a much shorter period of time, enabling many to work here for just a few years before retiring, with more licences being granted for their replacements.
There are many properties on the island that have fallen into dereliction for many years. Surely one way of raising money would be the introduction of a punitive tax on such property owners if a property has been left for a period in excess of say five or 10 years. Many are in a very dangerous state and complete eyesores. This is not a good look for tourism either.
Some such properties would be ideal for compulsory purchase to be redeveloped into housing. For example, St Martin’s Country Hotel is within easy distance of the hospital and the MSG and would make an ideal location for key worker units. The location also benefits from not being visible from the road, so a new housing development there would not have any negative visual impact.
It is continually discussed that Guernsey is desperately in need of key worker accommodation and various schemes have been put forward mostly involving building on greenfield sites including next to the hospital.
However no mention has been made of the numerous buildings to the rear of the hospital which are nearly all single storey. I am sure these buildings are currently in use, but surely it would be much more practical and economical for these buildings to gradually be redeveloped into two or three floors with accommodation. Again there would be no negative visual impact from any public roads or the main hospital buildings, and much better use of the land.
We need to keep our green spaces. Over-development is destroying the very things that people love about Guernsey.
I may be incorrect on the fine details but from what we know personally, essential medical staff licence holders coming to the island receive very favourable location packages with rents help for years, however no such incentive or assistance at all is given to locally-qualified staff.
It is no wonder that our young people leave the island for higher salaries and cheaper living costs, meaning even more agency and staff recruited from off-island need to be employed at huge cost.
JEAN BISHOP