LOCAL business has given the States its clearest warning yet of uncertainty over zero-10. More than 100 companies responded to the annual Chamber of Commerce business trends survey.
Nearly 50% of respondents said that they did not expect zero-10 to have a positive effect on business. Only 22% thought it would.
And despite feedback of good results for the businesses involved, some 45% said that they were less optimistic about the island’s economic prospects. Just 18% said that things could only get better.
‘The reality that local companies will be paying no tax is a fallacy. That is not the case. Businesses will be paying in slightly different ways and probably will be paying more,’ said Chamber president Mark Trenchard.
Firms raised concerns over:
n increasing staff costs;
n housing and licences;
n States spending; and
n the government’s general performance.
‘What is starting to become apparent, and we are highlighting the fact, is that there is still real uncertainty about what it means,’ said Mr Trenchard.
‘The whole point of zero-10 is to create the environment where we send out the right messages, but there is an undercurrent of concern within local business who fear that it is going to have quite a detrimental effect on them.’
He said the States had to work more closely with business and the public and communicate the vision more clearly.
‘We had to wait a dreadfully long time for more information to help businesses to plan for zero-10. Chamber is trying to explain what it really means to our members and how it affects them - but at the moment people still don’t get it.’
Most respondents reported that turnover and profitability had increased by more than 5% over the preceding 12 months.
*The survey was conducted by the Young Business Group on behalf of the Chamber of Commerce.
Article posted on 7th July, 2007 - 12.00am
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