What’s the best way to raise the huge sums of money to finance our crucial projects?
IT IS perfectly obvious to everyone that there are very important tasks which must be completed or carried out as soon as possible. Perhaps the most important are the completion of the hospital, the further education project at Les Ozouets and, most urgently, Alderney runway
So how much money do we need for these three huge projects? Not less than £100m. I would guess.
An elementary question is how do we raise this large sum? It seems to me that there are only two sources with any chance of success, they are GST and income tax.
But now further questions arise and I am sure the answers must be known to the authorities. I would be very grateful if the relevant States department/s could supply them. Perhaps other people might be interested in the answers, too.
For example: How long would it take the government to set up a system to raise GST?
How much would it cost initially and ongoing to create a new department to handle this considerable task and how many extra staff would it need?
How much time and money would it cost businesses to adjust their systems to raise this new tax and then forward the proceeds to the new States department monthly?
Is this likely to win the approval of the population?
How much would it cost the Revenue Department to raise income tax by say 2% or 3%. I would think that could be done in a short time.
Would an increase of that amount be sufficient to raise the required £100m. and how long would it take?
How much would it cost to raise income tax on financial firms from zero to say 1% and how much would that produce?
Would that cause such massive resistance to the extent that there would there be a great exodus of these hugely important pillars of the island’s economy?
Could the tax office cope with these adjustments to tax in view of its current difficulties.
Would these income tax measures be accepted, albeit reluctantly, by the population?
All of these questions must have been examined by the relevant departments and therefore the answers should be readily available, but will they be forthcoming, I wonder?
To conclude, the matter is urgent and something must be done soon.
B MAUGER
St Peter Port