GUERNSEY’S services industry is set to struggle under plans to cap the island’s population around its present level. Guernsey Motor Trades Association chairman Dave Beausire said he had spoken to a lot of people in the island’s retail and manufacturing sectors who agreed that no increase in population was going to have a major negative impact.
He said they were upset to see Deputy Peter Roffey’s amendment to reject proposals to increase population by a net migration of 200 people a year gather support in the States.
‘We are all finding it harder to recruit staff over the last couple of years and this decision will make it even harder,’ said Mr Beausire.
‘We feel the States needs to reconsider this decision quickly and not just look at a limited number of high earning professionals as, for any community to grow, the service industries need to be strong to support it.
‘Treasury and Resources minister Lyndon Trott’s comments that we all need to run leaner and improve growth prove how out of touch he is with the business community.’
Mr Beausire said that, in most cases, businesses had gone through these processes four or five years ago and there was little room left for further manoeuvre.
‘Some companies might start looking elsewhere to locate their businesses as we saw with Seaward Marine a few years ago.
‘Others will remove the loss-leading parts of their business, giving less choice to consumers.’
Mr Beausire said the
service industry felt that
the States had long forgotten it.
‘The States focus is continually on the finance sector.
‘The time has come for local businesses in this sector to make their voices heard and for some States members to become more aware of what is happening in the business community. It’s good to talk and it’s time some did.
‘Financial growth without increased labour is not a recipe for success.’
He praised Sam Maindonald for voicing her concerns that the States vote to keep the population at its current level conflicted with the fiscal and economic strategy. ‘By holding the population down, you are going to increase RPI and wages will start spiralling again.
‘Deputy Maindonald was spot on. She has come out and said what was wrong and hopefully someone like her will say we have to go and ask all parts of the business community what they need.’
Article posted on 7th May, 2007 - 12.00am
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