THE housing licence system needs to be more flexible if Guernsey is to harness the increasing flow of business from emerging markets, according to Ernst & Young partner Stuart Phillips.
Speaking about whether the island was ready to deal with the influx of such business, Mr Phillips (pictured) said more people from budding economies such as India, Brazil and Vietnam would be needed for their specialist knowledge.
‘Politicians need to consider the fact that clients from emerging markets are best served by people from those places.
‘Guernsey has a good spread of people from all over the world, which is key to its ability to function as an international business centre.
‘As the sources of money coming into Guernsey change, we need to be able to adapt to make sure we can match it with the appropriate expertise.’
Ernst & Young in Guernsey is able to work with emerging economies due to the cultural diversity of its staff, who represent 15 nations, said Mr Phillips.
But while the focus is on encouraging more such business, that is not at the expense of the island’s reputation.
‘There has been a lot of hard work over the years to build up trust in our abilities and the last thing we would want to do is betray that confidence.
‘Now is a time of prolonged and elevated scrutiny and we are under more pressure than ever to make sure we attract the right kind of business. There are many procedures in place to make sure this happens, as just one failure would cause huge amounts of damage.
‘Sometimes it’s necessary to cut losses and say no – to North Korea, for example. Turn away $100m. of business now to gain $200m. later.’
Mr Phillips gained experience of working with clients from budding economies in places such as Russia and Kazakhstan.
That has stood him in good stead to deal with the various cultural issues that can arise.
‘As they have often come into wealth quickly, they feel confident going into business and demand things to be done by a certain time and in a particular way. Some funds are family-run or even owned by individuals who can make decisions overnight and expect us to make progress as quickly.
‘It’s their right, but perhaps something we’re not so familiar with. The way to communicate with them is very different and while that may be a generalisation, it’s a common obstacle.
‘They want to take it to the next step. You have to put yourself in their shoes. It can be frustrating, but it’s our job to overcome challenges, which we do by using people who have experience of these locations.’
Article posted on 1st October, 2008 - 2.30pm
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