NRG International consultant Ken Harper at the Garenne Park premises yesterday. (Picture by Steve Sarre, 0666041)
A LEADING Guernsey business could quit the island with the loss of up to 60 jobs.
Staff at NRG International Ltd learned via internal email from owner the Ricoh Group that a review of the business was imminent and that the lease at its Garenne Park premises would not be renewed.
‘NRGi… has provided its first formal notice to the landlord. The notice advises the landlord of the company’s intention to leave the site in October 2009,’ the email said.
The group confirmed its intention to ‘review the business processes for distribution within its international division’.
An investigation into the feasibility of keeping the Guernsey operation will take place over the coming months but one option is to move the international branch to Holland.
When the review, led by managing director Paul Wilkinson, is complete the Ricoh Group will decide the local operation’s future.
‘I sincerely can’t tell you any more than what is in the release. Until the review is done, I don’t think we should jump to any conclusions,’ said Mr Wilkinson. ‘If we had all the answers, we wouldn’t be doing a study.’
He said they were at the beginning of the process and that all aspects of the company’s international operations were being evaluated.
NRG International Ltd moved its headquarters from Bermuda to Guernsey in 1985.
It is the international arm of the NRG Group plc, a subsidiary of the Ricoh Company of Japan, one of the world’s leading manufacturers and suppliers of multifunctional electronic office products.
NRGi currently has an annual turnover of 170m. euros. It moved to Garenne Park in 1995 and has distribution outlets in more than 85 countries with more than 155 distributors for its Nashuatec, Rex-Rotary and Gestetner brands.
In 2005, it won best medium business at the Guernsey Awards for Achievement.
Former managing director Phil Duquemin said it would be a great shame if NRG International decided to move.
‘There are so many high calibre, professional and dedicated people who work there who have driven the company’s success,’ said Mr Duquemin, who was MD from 1985 until last year.
He said NRGi had grown significantly over its time in Guernsey and had always been successful in terms of turnover and profit.
‘I can only assume there must be pressure from corporate head office to move the operation to the Japanese head office in Holland for other reasons,’ he said.
In 1995, NRGi formed the Community Action Team, which offered financial and hands-on support to charities, local sporting clubs and events and community-based environmental initiatives.
Commerce and Employment minister Carla McNulty Bauer said the department had not been approached but that that was not surprising as the source of the story was unofficial.
‘I am looking to clarify the situation at the earliest available opportunity,’ she said.
Charity concerns – Page 2
Article posted on 5th November, 2008 - 2.30pm
14 Article Comments
Hmmm…
Someone else leaving – together with all the depositors joining the capital flight from the Island – can’t say I blame them.
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Oh Oh!, the shape of things to come.
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Stories like the one above will be all too common. Are we still going to finance outsiders to do business in this island whilst taxing our local companies to the point of collapse? If our tax man does not get you our banking and investment institutions will be next in line to have a bite out of our cake or even sweep up any crumbs.
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Paul – like it or not we need to provide incentives for “outside” investment as Guernsey now has a symbiotic economy that is heavily reliant on foreign companies, mostly financial.
Foreign companies fund many local businesses as many rely on income from these “outsiders” – whether directly or from people whose salaries are paid by them. Without their presence on the island, many local businesses will have more than the taxman to worry about as they won’t have any income to tax.
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Paul Le P
Are you happy to assist the wealthy in becoming wealthier then? In effect we will be left with nostalgic memories of how good old Guernsey used to be. The good old days eh!
Businesses that can compete always will survive those that can’t have no right to expect the taxpayer to help them do so. Let them go. I will happily wave them off. Others will follow with no expectations of cakes being purchased by us locals.
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Paul – when you talk about “good old Guernsey” don’t forget it was the same “good old Guernsey” that greedily swallowed promises of affluence by the finance industry thereby allowing foreign investment into the island in the first place.
As a community we have been happy to reap the rewards of foreign investment yet seem unwilling to accept that such an influx of money also brings consequences – not least the unequal distribution of wealth between rich and poor. As we welcomed this investment, we must therefore accept our share of the responsibility for the consequences it has brought, both economic and social. As we sow, we also reap….
In answer to your question, as a finance industry worker (IT to be precise) I can see where you’re coming from and yes it is difficult at times knowing that my work is effectively making rich people richer. There is however some consolation in knowing that my finance industry salary paid by “foreigners” has contributed in some small way to the local economy. For example the roofing contractor who fixed our leaky house was paid with finance industry money, as were the local growers that produce the veg my wife buys, the electrician that fixed our wiring, the plumber that fixed our radiators etc etc etc. In addition, by giving money to worthy charitable causes, we are contributing in some tiny way to fairer wealth distribution.
Recently I heard a man from Zimbabwe preach in our church, someone well qualified to discuss the gap between rich and poor. He had an interesting perspective on weath saying that we shouldn’t feel guilty for the comparitive wealth we have in Guernsey. We should however hold it lightly and ensure it is used as wisely and fairly as possible.
As a final point, whilst you are happily waving the finance industry off the island, many islanders (from all sectors of employment, local and ex-pat) will be less happily waving goodbye to the jobs that provided the income that put a roof over their family’s head and food on their table.
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So, Paul. Everywhere that a family has a roof over its head and food on the table is an international finance centre? Guernsey as an island of people would be less wealthy (in monetary terms) with a scaled-down finance sector but it would still exist and, in my humble opinion, would be all the richer for it (in non-monetary terms). The sector’s greed, power and influence grotesquely distorts our community and our youth’s perception of what is important in life. A re-balance is needed. The global credit crunch is proof of that.
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Yes, Jean Pierre.
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Jean Pierre
I agree with your comments.
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Jean Pierre – agreed there is a lot wrong with the finance industry and there are detrimental consequences to being a finance centre – as I pointed out in my first post.
What is important is that we use the wealth the finance industry generates wisely and fairly – something I think we all agree isn’t presently happening. We don’t know how long we will have that opportunity.
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Well put Jean Pierre. We need to regain good old fashioned values, and again, not monetary.
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I think Paul Le P is on the money here.
Old fashion values? Grow tomatoes and export flowers?
Are you serious?
This is the problem with Guernsey in the first place, all it ever does is look backwards?
I’m not into greed and don’t like to see people out of pocket or suffer financially, however that is exactly what will happen if three of four banks pull out of Guernsey, and they will if there are no incentives either for employees or for the companies in terms of competitive advantage (which they can offer to offshore customers with lower taxes).
Maybe Guernsey wants to go back to goof old 1943 when everything was in order and there was little greed, plus there was little crime and foreigners from the UK were not welcome.
The world is getting more populated and at some point something will have to give.
If Guernsey really wants to go back to where it was then do not have any foreigners reside here at all, even to rent. That would bring down the population and unemployment.
‘Pardon? There isn’t anyone skilled to do the work?’
All Guernsey people do is moan about how they want old values, well I’m afraid it won’t happen because if the banks pull out the whole island will grind to a halt – housing will be in negative equity status and people will be living in car parks like in the USA.
Local people of Guernsey have become very wealthy themselves on the back of ‘foreign’ investment and employees. I know of many Guernsey folk (especially the politicians!) who have more than two or three properties which they have rented out for many years and are sitting on millions of pounds of assets.
People have had it easy for the last 15 years and now it is going to bite back….
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Paul Le P
Are you actually saying to me that is is your belief that the rich should remain getting wealthier at the expense of the ordinary man then?
It sounds this way to me!
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Well said Jean -Pierre ! You are so right.
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