GUERNSEY’S international reputation would be irreparably damaged if it delayed implementing zero-10, the Guernsey International Business Association said. It yesterday joined the chorus warning politicians of the danger of turning back at the last minute on its plans for scrapping corporation tax from the beginning of next year.
Deputy Rhoderick Matthews has floated the idea of putting it back until 2009.
‘The success of financial services, in particular, depends on the confidence which our clients have in Guernsey,’ said Giba deputy chairman Paul Meader.
‘We will not succeed if the outside world does not trust us. That confidence and our reputation takes years or even decades to build, but it can be damaged very quickly.
‘If the outside world sees that we do not have the commitment to adhere to a path and timetable that was democratically agreed nearly 18 months ago, then that confidence and reputation may be irreparably damaged.’
Zero-10 represented the response by the island to remain competitive in the international arena, he added.
‘Business has flowed to the island in response to the decision taken by the States. To delay now, just six weeks before implementation, would be disastrous to confidence in financial services. Any potential short-term revenue gain would be more than wiped out by the long-term damage.’
He added that those who did not agree with the tax strategy should accept the democratic decision.
If there was not sufficient commitment to making the strategy work in accordance with the timetable agreed and to portraying a clear, concise and confident message about our economy, then the risk of failure is significantly increased,’ said Mr Meader.
‘That failure would be to the detriment of the people of Guernsey as a whole.’
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