This Is Guernsey

By Gemma Hockey

TREASURY and Resources minister Lyndon Trott’s Budget was criticised yesterday for being just ‘too soft’. Ernst & Young partner Graham Parrott said he believed the department had not taken the risks it should have done.

Describing the 2008 spending plans as predictable, Mr Parrott said that it was obviously a pre-election Budget.

‘We are being told that the black hole is now grey and becoming off-white, but there is not much going on in this Budget.

‘Even if we don’t need to raise the money because of the strong economy and ETI receipts, we need to support an ageing population and we need to educate our population.

‘For two or three years people have accepted that they were going to have to suffer for zero-10 and this Budget is not going to make people suffer.

‘For example, ‘Deputy Trott’ could have put a lot more than 2p on petrol - it’s not a lot really, is it.’?

Mr Parrot believes the tax on rateable property changes - which hit companies benefiting from zero-10 with a fourfold increase - sum up the problem with the Budget.

‘I don’t like the TRP changes on several levels - 100% on commercial property is OK, but 400% on regulated finance industries is a lot.

‘I don’t like this argument about the people benefiting from zero-10 should be the ones to pay for it - he’s firing the wrong weapons,’ said Mr Parrott.

He added that the island as a whole would benefit from zero-10, not just the finance sector.

‘I don’t like the ﾓthem and usﾔ approach and that is what TRP is fostering.’

The tax expert admitted there had been some strong fiscal measures introduced, such as higher social security contributions and capping of public expenditure.

But he said more could be done to ensure that the £80m. ‘grey hole’ was filled.

‘I don’t think we should be dipping so deep into the reserves while we are not adequately charging people.

‘I think the Budget at best is an opportunity missed and at worst it is fundamentally flawed.

‘There’s a lack of courage that gets magnified near an election and I’m afraid that is what has happened with the Budget.

‘Even if Deputy Trott’s numbers are right - and I don’t have access to all the figures, I admit that - it could have been a bit more prudent,’ he said.

‘As a Budget it is fine and there is no bad news. But should it be as good as it is?’

However, not everyone agreed it was too soft and some islanders felt it went too far.