COMMERCE and Employment minister Stuart Falla admitted last night that Guernsey was not open for more business. Although the verdict at an Institute of Directors’ tribunal by chairman Advocate Ian Kirk was that the island really was open, Deputy Falla surprised some with his closing remarks.

‘Are we open for business? At the moment, I currently think not – generally we don’t want growth.’

He compared Guernsey to Jersey and said that while Jersey welcomed new businesses and the island applauded it, when it happened here, he felt Guernsey only ‘put up with it’.

He said the Guernsey philosophy was to make haste slowly.

‘We are moving at a slow pace but not at the speed of Jersey.’

Deputy Falla had support for his view from Guernsey Press editor Richard Digard, who said if the island did not commit to new business, it would wither and die.

‘The Guernsey impression is that we think there is plenty of business out there and if we miss one bus then another will come along shortly, but I think that is a dangerous game,’ said Mr Digard.

Deputy Falla said he doubted the appetite of islanders to expand any more. Some, he felt, were happy with how the island already was and to go for any further growth could damage Guernsey.

However, he felt the biggest blow to opening the island up for business growth was the decision of the States in April to limit population growth.

Back then, the House voted 27 – 19 in favour of a Deputy Peter Roffey amendment, which said numbers should stay at their current level and not the Policy Council’s recommended net annual inward-migration of 200.

Deputy Falla said this was a fault of the House, but also the business community – which fell ‘wonderfully’ silent ahead of the debate.

He asked them where they had gone. ‘If they had contributed to the argument before the debate that day we may have approved a different approach.’

However, his comments drew a sharp rebuttal from some of the sell-out audience, who said that the business and finance community would frequently contact the States with their views, but that these were often not taken on board.

An example one audience member gave was the change in section 67 of the Income Tax law, which was approved by the House last month, despite a number of leading professionals contacting States members with major concerns before the debate.

In summing up and delivering his verdict in front of an audience of 500, Advocate Kirk, said it was crucial for the island’s future and ahead of the implementation of the zero-10 tax strategy that business and politicians consulted and worked together.

However, he said that should be a two-way process.

‘I believe that for a number of States members it is for them to educate themselves better on the finance industry as well. We can’t afford to be complacent.’