THE States decision to approve the zero-10 tax proposals has been welcomed by the Confederation of Guernsey Industry. However, it warned that the island must encourage the establishment of industries outside the finance sector.

‘Our position is still the same. We still support zero-10 and we feel that the debate has been very useful,’ said CGi director Peter Budwin.

‘But we also feel it is very important to diversify the Guernsey economy by reducing the island’s reliance on the financial services industry.’

Mr Budwin referred to the proposals in the Commerce and Employment Building Confidence document published at the beginning of 2005.

‘We were in favour of their suggestions. We need to attract entrepreneurial people to the island and attempt to keep them here as well.’

Mr Budwin said that until the debate had been settled, there had been a reluctance from entrepreneurs to come to Guernsey.

‘Now that a decision has been made, it should improve business confidence on the island.’

Mr Budwin said that on a personal level, he felt it was the most dynamic debate he had heard during his 12 years in the island.

‘I wasn’t surprised at the number who voted against the motion,’ he said.

‘However, I would disagree with some of the States members who said it was divisive as it’s been a very helpful, useful and healthy debate.’