ESTATES agents have defended the island’s open market housing. Swoffers and Cooper Brouard have highlighted the sector’s value in reaction to comments made by Housing minister Dave Jones.

Swoffers managing director Matthew Henry condemned politicians’ focus on the open market as one means of plugging the black hole.

‘Open market residents contribute a lot through taxation and investments.

‘At a time when the island needs to bolster its income and prepare for the future, it seems ill advised to publicly target a sector that provides the island with such a substantial income.’

He added that property buyers who invested multi-million-pounds in the island often had several homes around the world.

‘We need to be sensitive to the fact that many of these people could choose to live in any one of several tax-friendly areas and not alienate them to a point where they are worried that any investment in property could result in a heavy tax liability.’

Swoffers co-director Shauna Clapham said that residents living in the open market contributed a great deal to the economy through investment and buying property.

‘To target this area as a part of the bid to fill the black hole on taxation is illogical and short-sighted because they will simply move elsewhere.’

She added that Deputy Jones’s use of the media to raise the issue was inappropriate because there were other avenues through which he could have voiced his concerns and had an informed response.

‘The open market sector of our economy is hugely important to the island. Posting comments on a blog which are ill considered and potentially damaging to that vital part of investment in Guernsey is a rash move.’

Cooper Brouard partner Ross Le Marquand said it was inappropriate to speculate with no clear proposals.

‘I do, however, disagree with the comments that the ﾓopen market has not always been a great successﾔ,’ he said.

‘On the contrary, I think it’s been a great opportunity for Guernsey to have its cake and eat it.

‘We’ve controlled immigration more successfully then other jurisdictions and given people with the income and means the chance to make their home here in Guernsey.’

But Deputy Jones defended himself.

The issue of anyone living in Guernsey and not contributing tax was under review as part of zero-10 – not just the open market.

‘The ‘Treasury and Resources’ department already knows that there are some wealthy residents who live in the open market housing sector who do not pay proportionately the level of tax that other residents pay because they may be domiciled in several different jurisdictions in the course of a single year, enabling them to adjust their financial arrangements accordingly.

‘They do use the island restaurants and fill their cars with fuel, but because of their personal financial arrangement they are not liable to other taxes. The question is, is that right and should it be allowed to continue?’

* For more of the debate, go to:

http://www.thisisguernsey.com/blog/?p=257