TREASURY has been warned it will be difficult to change the open market housing rules to collect more tax. Some are concerned that people living in such accommodation do not necessarily contribute to the economy.

The matter is being looked at as the States bids to fill the annual £100m. black hole under the zero-10 strategy.

Former deputy Treasury minister and long-term advocate of an alternative tax package Charles Parkinson said everyone was aware of quite a few residents of open market houses who did not contribute much in the way of tax.

‘In many cases it is because they are not principally resident in Guernsey, but it’s not a condition of buying an open market property that you have to pay tax,’ he said.

‘Unless we go to a similar housing licence system as Jersey, I don’t see how we can change what we’ve got.’

He added the open market was a resource for the economy as a whole.

‘Not just for wealthy rentiers but for people coming over to work in finance or other industries. It’s a breather valve for the economy which allows more-successful companies to bring in staff outside the housing licence system,’ said Deputy Parkinson.

‘I think it’s important to have that flexibility. It contributes to the economy in many ways, not just tax take. At this stage it would be difficult to impose a condition that people residing in these houses should pay any tax.’

During last week’s Government Business Plan debate, Deputy Peter Roffey said the contribution to the economy from the open market needed to be looked into.