Following the rules for our benefit

LESS than two weeks ago, HM Procureur delivered an analysis of the history and complexities of Guernsey’s constitutional relationship with the UK and the world beyond.

He told members of the Institute of Directors that it was ‘raw power’ that really counted in a political relationship.

Constitutional rights were of limited importance if the stronger party had the means to bend the weaker to its will.

The Bailiwick’s best chance of economic success, he said, was to strive not just grudgingly to comply with international rules and regulations but to be the standard bearer and champion, the most ‘squeaky clean’ in the world.

Otherwise we risk losing our place at the top table and our lifeblood industry.

A report released today by the House of Commons Public Accounts Committee supports his position.

In it MPs warn that lax regulation in Britain’s Overseas Territories risks doing serious damage to the UK’s reputation in the global financial system.

Guernsey and the other Crown Dependencies of Jersey and the Isle of Man are held up as shining examples for the seven overseas territories with offshore financial centres to follow.

The only exception to the criticism was Gibraltar.

The PAC recommends that the Foreign and Commonwealth Office must do more to help the territories strengthen their regulatory capacity. ‘Where necessary, this should include bringing in more UK investigators and prosecutors.’

In other words, ‘if you can’t do it, we’ll do it for you’.

With the Commons Treasury Committee launching its own investigation into the impact of offshore financial centres on global business, investment and money laundering it is clear that the UK is determined to maintain control of its own financial reputation.

And given the ‘raw power’ it possesses and its ability to exert pressure on Crown Dependencies as well as territories, the Bailiwick must avoid giving it any excuses to tinker in our affairs.