Tax change delay would ’save/cost island millions’

By Simon Tostevin

DELAYING the introduction of zero-10 could see the island lose out on £500m. Treasury and Resources minister Lyndon Trott made the claim on yesterday’s BBC Guernsey radio phone-in, which saw him up against Deputy Rhoderick Matthews, who is considering placing an amendment at this month’s States debate to defer zero-10’s introduction until 2009.

Deputy Matthews said the Treasury minister’s statement that ‘£500m. could be foregone in the coming years if we delayed’ was utterly ridiculous. A delay would instead see extra income of £100m. next year.

He said his figures had been confirmed by Income Tax administrator Ken Forman, but he would place his amendment only if he felt there was public support for it.

Deputy Matthews said many people in the island did not know that Guernsey and Jersey were introducing their new tax strategies at different times and this was an important factor to consider.

But Deputy Trott refused to budge and said it would be a terrible mistake to defer.

He said the island should introduce the new strategy without delay. It had the support of the business community and any deferral would immeasurably damage the reputation of the States as well as the island as a place in which to do business, he added.

‘Tens of millions of pounds could be the advantage over Jersey by starting early with business that comes to Guernsey and sticks with Guernsey.’

However, Deputy Matthews again hit back, saying Fallagate had done more damage to the States than delaying zero-10 would.

‘People will see the government as incompetent for not taking advantage of this one-year delay,’ said Deputy Matthews.

‘Where would businesses go? They wouldn’t want to go anywhere else apart from Guernsey. They wouldn’t go to Jersey because they haven’t brought it in before us and if they wanted to go to the Isle of Man, they would have gone.’