CONFIRMATION from the Commerce and Employment minister that her board is, indeed, treating the introduction of some form of protection of depositors scheme as a priority is a welcome development - and it also marks a considerable policy shift.
As money - substantial sums from at least one locally-based property developer - migrates to the Republic of Ireland where it is 100% guaranteed to be safe, Guernsey’s chief financial regulator has spent nearly eight years trying to introduce some sort of protection of depositors scheme locally. Now that the horse has bolted, putting in place a form of guarantee has suddenly become a political priority.
As the director-general of the Guernsey Financial Services Commission put it, when global circumstances were very different there was no appetite for protection legislation from industry or deputies who were in place at the time.
Islanders with long memories will recall that it was the collapse of Barnett Christie (Finance) Ltd in 1978 that triggered the current framework designed to stop a future occurrence and which, now that a fresh set of chips are down, is found wanting.
With hindsight - but adopting the same ‘just in case’ approach Guernsey has to preparing GST legislation - preparatory work should have been going on for a depositor protection scheme years ago so that it was sitting on the shelf for when needed.
To that extent, political inertia combined with industry foot-dragging overruled the regulator, to this island’s current detriment.
The role of politics, how it affects business locally and, particularly, the speed of decision-making were all topics considered in detail at last night’s Institute of Directors’ annual conference, chaired by veteran broadcaster Peter Sissons.
What the event highlighted was a wide number of areas in which things could be improved but also - thanks to a fluent and unscripted contribution from another veteran broadcaster, journalist and former MP Brian Walden - just how well run the island actually is, especially as judged by its successes to date.
All the resilience and ability currently within the island will be needed to weather the difficulties in the months ahead but, as the conference asked: Cabinet government - is the House in order?
And the answer to that is, probably not.
Article posted on 3rd October, 2008 - 2.30pm
Conference call: ‘could do better’
CONFIRMATION from the Commerce and Employment minister that her board is, indeed, treating the introduction of some form of protection of depositors scheme as a priority is a welcome development - and it also marks a considerable policy shift.
As money - substantial sums from at least one locally-based property developer - migrates to the Republic of Ireland where it is 100% guaranteed to be safe, Guernsey’s chief financial regulator has spent nearly eight years trying to introduce some sort of protection of depositors scheme locally. Now that the horse has bolted, putting in place a form of guarantee has suddenly become a political priority.
As the director-general of the Guernsey Financial Services Commission put it, when global circumstances were very different there was no appetite for protection legislation from industry or deputies who were in place at the time.
Islanders with long memories will recall that it was the collapse of Barnett Christie (Finance) Ltd in 1978 that triggered the current framework designed to stop a future occurrence and which, now that a fresh set of chips are down, is found wanting.
With hindsight - but adopting the same ‘just in case’ approach Guernsey has to preparing GST legislation - preparatory work should have been going on for a depositor protection scheme years ago so that it was sitting on the shelf for when needed.
To that extent, political inertia combined with industry foot-dragging overruled the regulator, to this island’s current detriment.
The role of politics, how it affects business locally and, particularly, the speed of decision-making were all topics considered in detail at last night’s Institute of Directors’ annual conference, chaired by veteran broadcaster Peter Sissons.
What the event highlighted was a wide number of areas in which things could be improved but also - thanks to a fluent and unscripted contribution from another veteran broadcaster, journalist and former MP Brian Walden - just how well run the island actually is, especially as judged by its successes to date.
All the resilience and ability currently within the island will be needed to weather the difficulties in the months ahead but, as the conference asked: Cabinet government - is the House in order?
And the answer to that is, probably not.
Article posted on 3rd October, 2008 - 2.30pm