GUERNSEYFINANCE could be partly funded by the industry from next year. Deputy Janine Le Sauvage believes the promotional agency should not be a burden on taxpayers.
Commerce and Employment has defended the organisation, which costs £605,000 a year, but revealed funding arrangements were expected to change during next year.
Deputy Le Sauvage said public funding for GuernseyFinance should have been stopped to coincide with the introduction of zero-10.
‘[Commerce and Employment minister] Stuart Falla told me that ways of funding from the industry itself were being looked at a year ago and yet its budget has just been increased by £5,000,’ she said.
‘The contribution the finance industry makes to Guernsey’s economy will be practically wiped out from 1 January, so if the companies themselves can’t afford to pay for it, then there is something seriously wrong.
‘There is no tangible evidence as far as I can see of exactly how much business GuernseyFinance brings to the island and that is why it needs to be investigated.’
Deputy Le Sauvage said she had raised the issue a year ago in the States debates and had never received a reasonable explanation.
‘Many people would much rather see the money going to a struggling department like Health rather than GuernseyFinance,’ she said.
‘All departments are supposed to be trying to cut their spending at the moment, but GuernseyFinance is paid to go to far-flung places like Hong Kong at taxpayers’ expense.
‘With [chief executive] Peter Niven’s salary, I expect we are looking at something around £750,000 from the public purse.
‘My only option now is to approach Public Accounts or Scrutiny and ask them to try and get some answers.’
Deputy Falla said GuernseyFinance was an excellent institution that did a superb job on Guernsey’s behalf.
‘I have made it clear that we are in a consultation process with the finance industry on how businesses can best contribute to the industry.
‘We are looking at charging the industry half of the costs for promotion and I would hope that the States would be able to start charging at some point in 2008.’
The claim that there was a lack of tangible evidence of the difference GuernseyFinance makes to the island could be made about any promotional agency, Deputy Falla added. ‘You can’t measure the effects but you can measure how much you are struggling when you take such things away.
‘I know that Jersey and the Isle of Man spend significant amounts doing exactly the same thing and in order to remain competitive we must also put money in.’
Deposits held by Guernsey banks hit a record £112.7bn in November.
Mr Niven said the proposal for business to pay half the agency’s costs had received very favourable feedback.
‘There is a lot of support from businesses for GuernseyFinance and the indication is that they are willing to put their hands in their pockets,’ he said.
‘We are putting Guernsey on the map. When we go out promoting, we are not just promoting the finance industry but the island as a whole. GuernseyFinance is by no means a one-trick pony.’
Article posted on 10th December, 2007 - 12.00am
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