THE States could be doing more to support local industry. Commerce and Employment minister Stuart Falla is keen to see more support for the finance sector and the right climate provided to stimulate economic activity in other industries.

‘The last thing one should do is interfere in the economic activity of the island and try to do the job of those people that are leading business or creating new opportunities. However, what can happen and has happened is that a part of the economy can decline because of changing circumstances in the world, for example quarrying or the tomato industry. The past tells us it can happen,’ said Deputy Falla.

‘What the States should be doing is making contingency plans to help support economic activity. These can include reserving land for alternative uses, preparing laws that might assist further types of business and improving communications to create opportunities for new, as-yet untested industries.’

He said it was important to encourage other kinds of industry to

the island, but that should not be dictated by the States.

‘One of the things we do not want to do is be prescriptive about what the diversification should be. I am certain that nobody in the States decided that we needed a company based on ophthalmics.

‘However, the government might have been interested in increasing employment in light industry and therefore tried to create the right environment for companies such as Specsavers and Healthspan to find Guernsey an attractive place.

‘We have to try and encourage diversity. However, we need to ensure businesses here continue to prosper and offer opportunities for employment and profits. Therefore, what we must make sure of is that we adequately support those industries.’

Deputy Falla said more help should be given to the finance industry, which last year contributed more than £6m. to regulate itself.

‘Currently, there is insufficient support in the States for financial services and particularly for the promotion of that industry and defending its good reputation: getting the message across to the people that matter and those that might wish to challenge our very existence as an offshore finance sector.

‘I believe more financial resources and possibly more people should be taken on to help remedy that situation.

‘Currently, we ask the industry to contribute to the cost of regulation, training and promotion and I believe we must help that most important industry to achieve some of those goals.’