AN ATTEMPT was made to dispel the myths surrounding zero-10 yesterday evening. Treasury minister Lyndon Trott led a presentation to an audience of about 60 people at Hautes Capelles School.
The latest developments in the new economic strategy go before the States this month.
‘I want to communicate the message to as large a number of people as possible and want to continue to repeat the message so people understand the recommendations made were of fundamental importance and the right decisions for Guernsey overall,’ he said after the meeting.
He again repeated his stance that a goods and services tax was likely to be unnecessary.
But if it was needed, the cost of implementing it would be high.
Jersey has estimated it will cost £1m. a year to administer its GST, which should rake in £45m
There was a claim by one member of the audience that 95% of the population did not support the zero-10 strategy and it would hit the lowest paid.
This was strongly refuted by Deputy Trott.
‘I think the time to test the view of the Guernsey people is when they are in possession of as many of the facts as we can give them,’ said Deputy Trott.
‘It’s important any poll is carried out from an informed basis.’
Regrettably there has been ‘urban myths’ circulating in the last few months of what the tax strategy was, said Deputy Trott.
‘Things like growth where people feared stratospheric levels where the policy is simply to maintain existing levels and also around issues to do with using the contingency reserve not being economically sensible when in fact the measured use of limited reserves in order to smooth the impact on the economy during the transitional phase is desirable economic policy.’
The strategy also calls for restraint in public sector expenditure.
During the meeting, Deputy Trott said claims about the impact on the lower paid had been proven to be unfounded.
‘If the economy suffers, the economy recedes, the impact will be felt longest and hardest on those on lower and fixed incomes. The very best way of protecting people in that category is by maintaining the strength of this economy, that was approved by the States,’ he said.
The panel making the presentation included Deputy Chief Minister Stuart Falla and key civil servants.
They fielded a range of questions on aspects such as mortgage relief, moving people into higher income jobs, housing licences and the effect of the recent States decision to maintain population at current levels.
There will be more public presentations as further elements of the strategy are released in July and September.
‘It’s important for us to continue to educate and inform as wider selection of the community as possible,’ said Deputy Trott.
Article posted on 16th May, 2007 - 12.00am
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