LONG Port’s vision for the eastern seaboard could eventually reduce the tax burden for islanders. Chairman Charles Billson said that if the States and the community bought into the proposals, it would help stimulate the economic growth required under the recently approved tax proposals.

Phases one to three would require the developer to invest £500m. and would generate a £100m. return for the States.

‘It would show the world that Guernsey PLC means business. It would be good for the finance industry which is good for the community.’

A stronger finance sector would be attracted by the better facilities and housing options.

The return to government would be generated through duty on property sales, income streams from commercial property and commercial streams from the sale of the short-term interests in land, he said.

‘Government would have in addition to income tax, a total receipt of over £100m. at 2006 prices,’ said Mr Billson.

‘The structure we’re suggesting in the public/private package means that if house prices go up, government would be a participant in that, in one option earning 10% rental of the buildings there.’

Mr Billson said it was as much about the community as Long Port getting a return for its investment.

The black hole needed to be filled, he said, and that needed to be done by growth.

‘Jersey is forging ahead with its waterfront, it’s now 11 years ahead of Guernsey,’ said Mr Billson.

‘Why are we doing it? To encourage investment in finance, create jobs and maintain those jobs.

‘It’s also about creating value out of the community assets, making sure it gets this to lower taxes, making sure it has money to invest in hospitals, schools etc. It starts a virtuous circle.’

The economic reality was the States had voted for the zero-10 tax package, which included using up to half the strategic reserve, he said.

‘Guernsey cannot stay the way it has been. The financial process is determined to be zero-10, there’s a black hole, government is in the scenario where it’s saying we’ve got to grow to stand still,’ he said.

‘We’re proposing to get the States’ assets used in a way to meet that target and hopefully reduce tax.’

Under the proposals, the commercial land assets would remain in the freehold ownership of the States with a 99-year lease granted.

Long Port would pay for all of the proposed developments.

Funding for any of the projects would come from the Royal Bank of Scotland International.