CORPORATE tax reform could be an election issue in two years’ time, even when a new system is up and running, Deputy Charles Parkinson claimed last night. The Treasury deputy minister’s alternative tax strategy was yesterday defeated, as expected, by 28 votes to 19.

But he said he would battle on and continue to scrutinise tax changes developed by the States.

‘I’m disappointed obviously, but very encouraged by the huge amount of public support,’ he said. ‘This isn’t the end of the story.

‘I think this will be an election issue in 2008. A number of Policy Council members and their supporters will not be standing again and from the flood of emails I have received, quite a lot of the politically-motivated public out there will want to correct what they see as a mistake.’

Deputy Parkinson still wants his defeated plan to be considered for compliance with the EU Code of Conduct on business taxation.

‘We have a couple of years until 2008, when these changes are going to come in. During that period we will see what growth in the economy there is and see whether the States manages to keep expenditure increases to 0% in real terms. We will know by 2008 whether this policy looks at all credible.’

Deputy Parkinson said that he had no regrets.

‘Public awareness has been enormously heightened. A lot of people were politically apathetic and are now engaged in the process. States members, even some opponents, thanked me for placing the amendment and livening up the debate.

‘I would feel disappointed in myself if I simply went along with everything recommended by the powers-that-be, but I vote with the government far more often than I vote against them.’

He pledged to continue working for the Treasury and Resources Department. He said that he was far from being out on a limb in the department, with Deputy Mark Dorey backing his amendment and Deputy Jonathan Le Tocq seconding others.

‘We have had a severe disagreement. Lyndon and I will have to learn to work together. That’s democracy.

‘Disagreements are bound to put a strain on relationships but we are grown-up people. Lyndon is an experienced politician, used to fighting battles, and some you lose, some you win.’

Deputy Trott said after the vote: ‘The amendment probably helped the debate in the chamber, but it confused some members of the public and that is regrettable.

‘In terms of the political process, the amendment served to illustrate just how much consultation and how much analysis and detail has gone into arriving at this strategic framework for the future.’

The debate should conclude today.