BRITAIN’S biggest union has totally misunderstood Guernsey’s position as a finance centre, according to the Guernsey International Business Association.
Unite claimed recently that so-called offshore finance centres such as Guernsey were responsible for the credit crunch.
The union said that they should be closed down because they were depriving the UK Exchequer of billions of pounds.
Giba council member Mike de Haaff said he supported the views of former local union members, who in Monday’s Guernsey Press laughed off the suggestion that places such as the island were responsible for the crisis which has hit global financial markets.
They said that organisations in the UK were looking for scapegoats and Guernsey appeared to fit the bill at the moment.
‘It is interesting to see that the reasons for the financial situation in which the UK finds itself appear to be better understood by our former union leaders than their UK counterparts.
‘We would reinforce the point that the HM Revenue & Customs claim is unfounded as it is only an estimate based on assumptions which may be incorrect,’ said Mr de Haaff.BRITAIN’S biggest union has totally misunderstood Guernsey’s position as a finance centre, according to the Guernsey International Business Association.
Unite claimed recently that so-called offshore finance centres such as Guernsey were responsible for the credit crunch.
The union said that they should be closed down because they were depriving the UK Exchequer of billions of pounds.
Giba council member Mike de Haaff said he supported the views of former local union members, who in Monday’s Guernsey Press laughed off the suggestion that places such as the island were responsible for the crisis which has hit global financial markets.
They said that organisations in the UK were looking for scapegoats and Guernsey appeared to fit the bill at the moment.
‘It is interesting to see that the reasons for the financial situation in which the UK finds itself appear to be better understood by our former union leaders than their UK counterparts.
‘We would reinforce the point that the HM Revenue & Customs claim is unfounded as it is only an estimate based on assumptions which may be incorrect,’ said Mr de Haaff.
Unite’s view also missed the point about symbiotic relationship the Crown Dependencies such as the Channel Islands have with the UK, he said.
‘Further, it has always been the belief that if money deposited or invested here was moved it would not go back to the UK, but more likely to another financial centre that might not have the same relationship with the UK Government.
‘It is for this reason, among others, that Guernsey strives to remain a reputable financial centre to not only attract business from the UK but also internationally through its robust regulatory, legal and fiscal regimes while at the same time remaining competitive against other jurisdictions.’
Article posted on 8th January, 2009 - 2.29pm
2 Article Comments
The claims show such a laughable lack of understanding I almost fell off my chair when I read this.
Whether or not offshore centres deprive the UK Government of income is debatable (they may provide a safe haven for some wealthy individuals, but their activities also funnel lots of profitable – and taxable – business to London) but that is irrelevant. The credit crunch was caused by how banks lend to each other around the world, not by poverty-stricken Governments.
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It is a fact that tax havens deprive the UK of billions of tax revenue.
Tax havens might have had a part to play in the global finance crisis. What Mr de Haff can’t do is to say that there is absolutely no responsibility.
A tad provocative of Mr de Haff to say ‘We would reinforce the point that the HM Revenue & Customs claim is unfounded as it is only an estimate based on assumptions which may be incorrect,’.
Such head in the sand “not our problem, guv” statements will not help places like Guernsey. They simply serve to enrage those who want to see tax havens closed.
Better to keep your mouth firmly closed and let the problem go away in a day or so, rather than ensure the problem stays in the public eye by enraging those who want to see tax havens closed.
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