A week ago, the Alderney Journal invited us to share our thoughts and concerns about the introduction of GST and below are our comments which are published in today’s Journal.
Logical conclusion can only result from the knowledge of fact. We have never been advised of the extent of Guernsey’s financial black hole.How large and unmanageable is it? How can Guernsey’s deputies vote on a potential solution if they are unaware of the facts? Yet vote they have done with 20 voting for, 15 against and one abstention as to the introduction of a General Services Tax.
One abstention? Yes – Alderney States rep Alex Snowdon, while our other States rep Steve Roberts voted in favour of GST.
Had this subject not been debated within our States to allow our reps to vote as per our States wishes? Apparently not as they voted in differing ways.
When the subject of GST last reared its head, several Guernsey deputies visited Alderney for a drop-in session. Talk within Chamber considered that an increase in income tax could be preferable to GST.
Chamber was asked then by our Policy & Finance Committee to back them in their wish for GST. We would not. Chamber’s GST survey proved to be an outstanding no to its introduction.
Put quite basically, GST will affect everyone in the same manner whether young or old and within all salary/pension levels. Could Alderney possibly suffer a double GST with items being recalculated again on arrival into the island from Guernsey?
A further interesting comparison between GST and an Income Tax increase would be the setting up of these two components. GST would be far more expensive as it would mean the creation of an additional Civil Service department along with the computer technology to run the system.
A variation to the Income Tax percentage would be cheaper to administer as the software is already in place along with its Civil Service department.
A rise in Income Tax could be seen to be fairer as the lower paid would be penalised less than the higher paid – so the more one earns, the more one pays. In conjunction with this, there should be a rise in personal allowance for those within the lower salary band.
It was interesting to note that Deputy Parkinson simply did not vote last week predicting that the next States (elections in June) could well reverse a vote in favour of any package containing GST before it could be introduced. Deputy Falla was also concerned at the proximity of their next elections suggesting it was now too late in this political term to make such long term decisions.
In addition to the above, how much would the abolishment of Zero Ten bring in as companies only pay income tax on their distribution of funds and not what the company itself has earnt and kept within its accounts.
So, as is the usual course of events in Guernsey politics, there will be much blustering and many many words spoken in too many differing and conflicting directions. Will they this time come to a conclusion? We do not believe GST is the fair way forward.
