SENIOR politicians in the Commerce and Employment Department are disappointed at the States’ decision to attempt to curtail population growth. Minister Stuart Falla and his deputy, Carla McNulty Bauer, agreed that the vote - to keep the population at broadly 60,000 - sent a poor message to business.
‘I’m disappointed that the House decided to support the Roffey amendment. They will possibly send a message to the business community that there is a door slightly closed,’ said Deputy Falla.
‘However, I think that Deputy Roffey made it clear that he accepts that the economy determines population. Therefore, as the economy is strong, there is no doubt that will mean some slight lift ‘in the population’ over the next two or three years.’
Deputy McNulty Bauer said that she was disappointed at what she saw as a lack of support for the island’s new fiscal and economic strategy from 2008.
‘The funding gap is to be funded by ETI ‘income tax’ and Social Security and in order to do that we need business being able to grow and be successful.
‘I think that this has sent out a message to business saying we need you to help drive the economy, generate more money and pay taxes, but we’re not going to help you do it and that’s a disappointing message.’
Deputy Falla personally favoured the Policy Council’s option of allowing net migration of 200 people a year for the first few years of the tax strategy, and then reconsidering. And he believed that the new policy now endorsed by the House was better than the previous vague notion that the population should be at as low a level as possible.
‘We think that business will still be able to prosper and offer real value for the economy.’
He felt that, generally, the housing licence system was fair for business and the economy had grown on the back of it.
‘I think that we have done pretty well. We shouldn’t lose sight of the fact that the balance we have with the population is pretty good and that the current system works pretty well. It’s not perfect but no system is ever perfect.’
He said that a bigger issue for the island would prove to be demographic change, as the retired population grew and was supported by fewer people of working age.
Article posted on 30th April, 2007 - 12.00am
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