FEARS that the island’s finance industry is in decline are unfounded. The new chairman of the Guernsey International Business Association, Robin Fuller, is confident that it will continue to prosper. ‘We have a small, but specialised marketplace that we have to build on; just as the protected cell company legislation was innovative, we need other things like that,’ said Mr Fuller. He said that although some sectors of the industry were going through a savage recession, it was good that the island’s economy was not overheated. ‘If you look at recent statistics, there is strong growth in some areas such as funds and captive insurance so it is not all doom and gloom,’ he said. The industry was now waiting for ratification of the political agreement over the EU tax package that had already been agreed by ministers. Mr Fuller said that until that was announced, there was not much that banks and other companies could do in terms of making progress with systems and informing clients. ‘While we have made our position clear, there are still factors that the level playing field is dependent on that are yet to fall into place,’ he said. The retention tax option would give clients flexibility, as they could opt for voluntary exchange of information if they preferred. With the latest talks with the UK Government and the EU over tax harmonisation seemingly over, the industry could now focus on topics such as appointing an ombudsman and corporate governance issues. Part of Mr Fuller’s role will be to rebuild the working relationship established between his predecessor, Stephen Jones, the Financial Services Commission and the Advisory and Finance Committee. ‘There is obviously a lot being discussed at the moment and we want to see what the outcome of the International Monetary Fund visit is and what its repercussions are,’ he said. ‘Just as there has been a rolling programme of looking at the offshore finance industry, there will be other things,’ said Mr Fuller. He said that the UK and EU’s interest in Guernsey was the price of the island’s success. That interest would not be there otherwise. ‘As long as the industry here is successful, it will attract interest from elsewhere,’ he said. The industry had to be prepared to counter criticism, which was what the Guernsey Promotional Agency was formed for, he said. ‘One of our main advantages is our size, which means we can react to change quickly, and the relationship between industry, the FSC and A and F,’ said Mr Fuller. Giba’s main role was to act as facilitator and communicator between the industry and government, and Mr Fuller said that outgoing chairman, Stephen Jones, had left it in very good shape. Mr Jones was also confident about the future of the industry, but said that people had to accept that there were areas that had peaked. ‘Our group strength is our diversification and there is something positive in each of the four sectors,’ he said. He estimated that there were about 300 fewer people working in the industry now than a year ago. During his two years as chairman, Mr Jones was heavily involved in the post-Edwards Report debate, the International Monetary Fund visit and more recently discussions between industry and A and F over the EU tax package. Mr Jones preferred not to discuss what his future plans were, but said he was a great believer in not looking back. ‘Once you have done a job well, like this, then that’s it,’ he said.
Article posted on 16th April, 2003 - 12.00am
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