This Is Guernsey

By Tom Edwards

HM Procureur Nik van Leuven at the IoD lunchtime seminar yesterday.

GUERNSEY’S finance industry must be ‘squeaky clean’ if it is to continue trading with major international players, says HM Procureur.

Nik van Leuven said the island must comply with the wishes of bodies such as the Organisation for Economic Cooperation and Development to keep business links alive.

‘In a heavily regulated world where offshore jurisdictions are ranked against each other, major players such as the USA and UK will only do business with the best.

‘We have no option other than to hurl ourselves to the top of that list. Guernsey is already better than the UK in many aspects of regulation.’

Mr van Leuven was speaking to business leaders at the Institute of Directors lunchtime seminar yesterday.

When asked whether he thought that Guernsey’s efforts were being hampered by other islands in the Bailiwick, his response was a simple ‘yes’.

It is a challenging time for the States because Guernsey is increasingly engaged with the wider world and exposed to international pressures, said Mr van Leuven.

Anti-offshore sentiment had become like a national sport for some.

‘Last July I visited [US presidential candidate] Barack Obama’s officials and explained to them why the Channel Islands should be treated differently from places like the Cayman Islands, which are loathed.

‘Obama recognises the difference between us and other jurisdictions, but he can’t avoid the political bandwagon for offshore-bashing.

‘For years the argument has been that offshore territories are not competing fairly on a level playing field.’

During his speech, Mr van Leuven spoke at length about the history and origins of Guernsey’s constitution and its relationship with the UK.

He said during his time as HM Procureur, the UK had never directly interfered in island matters.

‘It has enquired about legislation that could affect it, but nobody in the government has told us what to do.

‘However, it is in a position to make life difficult for us if we are not compliant.’

Mr van Leuven has set up a panel comprising States and private members to examine Guernsey’s constitutional issues.

‘It considers what would happen if Guernsey was forced to either become part of the UK or independent due to some international initiative and what would happen if we chose independence.

‘The work of the panel has only just started and will prove to be important in the future.’