GUERNSEY’S fiscal strategy has been given a solid endorsement by the Foot Review, according to Chief Minister Lyndon Trott.
He said the report into British offshore finance centres had vindicated the Crown Dependencies.
‘Mr Foot finally confirms the issue that we do provide a positive economic benefit to the UK.
‘At the time of its announcement, we believed the Foot Review would be an opportunity to dispel some myths about our financial sector.’
Deputy Trott (pictured) said that Guernsey had been proved correct.
‘There is explicit recognition that the Crown Dependencies make a significant contribution to the liquidity of the UK market. It acknowledges that business flows into the UK would probably disappear elsewhere if these financial centres were to shrink significantly.’
At the start of yesterday’s States meeting, he told members that although Guernsey had a good story to tell, there was no room for complacency.
The review covered Jersey, Guernsey and the Isle of Man and jurisdictions such as Bermuda, the British Virgin Islands and the Caymans.
It was commissioned by the UK Government in 2008 and covers international tax transparency, regulation, financial crime, crisis prevention and resolution measures.
It suggests that the recommendations it makes be used as a benchmark to assess performance.
Guernsey, as a Crown Dependency, was held up as an example for other jurisdictions to follow.
Article posted on 30th October, 2009 - 2.29pm
.gif "Sula Gallery")
6 Article Comments
How disappointing that the Chief Minister fails to make a statement on all aspects of the Foot Report, namely:
‘Jurisdictions that propose to offer protection to retail depositors must ensure that compensation schemes can be understood by those depositors’.
Quite clearly questions have already been asked regarding Guernsey’s Depositors Compensation Scheme and have, to date, failed to be answered.
Surely with this clear endorsement from the Foot Report could the Guernsey government and the GFSC reassure bank depositors by answering their current concerns.
Continuation of this ‘wall of silence’will only enhance the feeling that depositors do not understand the DCS and the implications it may well have for them, should another bank go ‘belly up’.
Report abuse
Deputy Trott is rather selective as to which bits he picks out of the Foot report I suspect the bits that make Guernsey look good. Some of the less compimentary comments, for instance, it says that the Guernsey Depositors protection scheme is misleading to Guernsey Depositors, that it is unlikely that depositors would get back the £50,000 mentioned in the scheme and this should be made more clear to them.Something the LGDAG have been telling the States for at least three months. That Guernsey should have a Financial Ombudsman, something recommended in the Edwards report of 1998. Guernsey Government did nothing about it and still fail to address it. The Foot report also dares to tell Guernsey how it should be running itself from a tax point of view and I think oversteps its authority. So let us take it all into consideration Chief Minister, not just the bits that suit you and sound good.
Report abuse
If the tax base had been more robust, a more useful DPS would have been easier to sell.
Criticising the report for suggesting how similar disasters could be mitigated using a sustainable tax model is hardly going to help.
The arrogance of the FS and politicans, fed grapes whilst a-lounging, was to believe that the completely incomprehensible games they were playing would keep those tills ringing.
Report abuse
Just another example that Deputy Trott cannot be trusted by us, his electorate.
He claims to have done all he can to help mediate between Landsbanki and the UK, then freedom of information request to the UK shows he hadn’t met even once.
It was pointed out that he hadn’t even discussed the situation with Iceland, then after many months he went and tried claiming his belated visit as a major achievement, even though nothing was secured (unlike UK/Holland).
Now the Foot report is published and rather than publishing a balanced view, he does a one sided spin. No mention of how limited the Depositors protection scheme will be, in terms of either how much will be paid out or how little people may understand it , nor mention of criticism of not having a Financial Ombudsman.
This just comes across as another nail in the coffin of Guernsey’s finance industry, no matter how Deputy Trott tries to spin it. The sooner we vote in politicians who can be trusted to not only act with our interests at heart, but also act with integrity and honesty in the message they chose to communicate to those whose support they need, the safer I will feel.
Report abuse
How silly can one get?
Fancy thinking, yes even giving it a thought that any politician can be honest with those who put them in office.-
However some good comes from all that oily speeches (oily, very hard to grasp)
On the next round of elections people will know who to vote for; and those to be rid of
‘
and a clause should now be entered., Those who do not keep their promises, be sacked instantly-
Report abuse
Yes, ian
“The sooner we vote in politicians who…..act with integrity and honesty in the message they….communicate to [the electorate], the safer I will feel.”
This is the essence of the political stability ‘pillar’ our business model relies on.
Remove the trust of the public by this constant obfuscation of meaning and the pillar is built on sand.
However, thank the sea I’m not in Jersey.
The defence of the prevailing ideology is bordering on extremist militancy.
Report abuse