A DELEGATION of Jersey politicians intends to visit Guernsey to find out why we do not feel the need to rush into ‘panic’ changes to our tax structures in the build-up to 2008. But Deputy Laurie Morgan, president of the Advisory and Finance Committee and a possible candidate for chief minister, doubted whether it would be appropriate for the Policy Council to meet Jersey backbenchers.

‘We talk at government level with Policy and Resources president Senator Frank Walker, as we do with the chief minister of the Isle of Man,’ said Deputy Morgan.

He said that veteran politician Dick Shenton, who would lead the delegation, had made no approach about the visit.

Senator Shenton has publicly admired Guernsey’s stance over zero tax. The island has pledged to cut income tax paid by local firms to zero from 2008, with some finance companies paying 10%.

It has also stated that personal income tax will not rise to cover the anticipated shortfall and ruled out the introduction of VAT.

Senator Shenton has criticised ‘draconian tax-and-spend proposals’ drawn up in Jersey.

The Finance and Economics Committee and Jersey finance sector representatives groups are adamant an early decision on the tax-and-spend proposals is essential to maintain confidence in the island’s premier industry.

It plans a States debate in July to discuss the biggest change to the island’s tax structure since 1928, but Senator Shenton said that there had been a lack of information given to the public and States members.

Senator Shenton said: ‘Guernsey is in a similar position to ourselves but not prepared to panic under the pressure of the Blair Government. In my view, they are taking a measured and sensible approach toward a future tax gap.

‘Deputy Morgan has said publicly they do not have to do anything until the end of 2005. I want to go with other like-minded politicians to find out why Guernsey has been confidently able to adopt that position.’

The senator said that Jersey politicians would also ask their Guernsey counterparts what tax-and-spend proposals they were examining to plug a future projected tax gap when corporate taxes are abolished in 2008.

‘This is the start of the fight for information,’ he said.

Deputy Morgan said the new States would outline its tax-and-spend proposals in the Budget in December.

‘We will then have a year of consultation and final proposals will be debated in the Budget of 2005.

‘There is still four years to deal with this issue and we see no great urgency. Unlike Jersey, Guernsey does not face a black hole in its finances that it has to plug now,’ he said.

Senator Stuart Syvret is one of a number of politicians who have discussed the Guernsey meeting with Senator Shenton.

‘The days when our politicians just sit around and do what Policy and Resources tell them are over. We have to be much more proactive in getting to the bottom of complex issues,’ he said.