Experts see opportunity in the economic turmoil
Saturday 20th September 2008, 9:48AM BST.
GUERNSEY’S reputation as a stable business base could benefit from the current turbulence in the financial markets, according to Chief Minister Lyndon Trott (pictured).
He said that the island’s finance industry was well placed to weather the economic storm that had been magnified in the last week.
‘It’s unrealistic to expect the developments of the last few days particularly not to have any effect,’ said Deputy Trott.
‘But it won’t be as severe because our finance industry has nothing to do with what brought Northern Rock down. The Treasury Resource Committee is carrying out an investigation into the role of offshore finance centres and in time we will be seen as stable.
‘Guernsey imports instability, it doesn’t export it. However, we are not able to look into the future.’
The chief minister was speaking yesterday at an Image Group seminar entitled Guernsey – A Positive Future? and held in association with the Financial Times.
- To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Why would Guernsey be better off than any other country when the savings could be under threat. Many warnings have already been made. Banks that might be vulnerable due to actions of their Parent companies Warnings have been given by a large group advising people on investment. Sooner or later the penny will drop with the World media and companies in the Channel Islands might come under pressure and the respective Governments would be faced with a problem where they would be powerless.
Deposits in the UK are covered by the Financial Services Compensation Scheme to a maximum of £35,000. There has been some talk of that increasing to £50,000.
Guernsey and Jersey offer no such compensation schemes although very often deposits held there will be with subsidiaries or branches of large UK companies which might themselves be regarded as safe. In the Isle of Man compensation is available up to 75% of the first £15,000 of any loss.
We all hope that no losses arise but it is better to be informed than otherwise. These are complex, problematic times and the purpose of this note is not to offer specific advice although we will be happy to do so if requested.
I cannot agree with Lyndon if the might of America and other countries find themselves in problems what could Guernsey do?
Report abuse
Guernsey residents as well as the Finance Industry will match these stormy days as they always have in the past. As a regular visitor of your islands _ living just round the corner in North Brittany_ Iam entirely convinced of that.
Wasn’t it Victor Hugo who already noticed Guernsey stimulated creativity ?
Even a certain Catherine Best would’nt deny that, according to what I read in a magazine…
Best wishes to all Guernsey residents !
Report abuse
Whereas it is good to hear we are ‘well placed’ because of our lack of exposure to the Wall Street thieves, it is not good to know that the Island’s political elite are basically puppets for this industry and the ethos that got to the stage that we had to be told we were ok.
Why did he not make these comments directly to the public? Of course he’s going to say all that at a Financial Times associated event. What the public wants to know is; will the continued support the Guernsey tax payer gives to ensure the success of our well run financial services be paid back with improved infrastructure and better social cohesion? Making a few people rich so they can buy ‘a dozen or so’ cars does not solve the issues of education, sewage and hospitals, let alone pensions (how’s that fund doing ‘experts’?).
Oh, and apparently, halting the shorting traders is a ‘necessary evil’. Since when did those institutions that lend shares to these people so they can sell your shares based on their devaluing? It may be legal, like tax avoidance, but it leaves an odd taste in the mouth.
It’s time the global politicians took back control of these hydra and split the heads from the body to take control – better managing a series of small snakes rather than a monstrous conglomerate. Herculean, maybe, but the true necessities of the majority are security in the present and security in the future.
Do we feel secure? Maybe just a few of us. Is that good enough for a place so obviously wealthy?
Report abuse
In response to Pat Genest why would Guernsey be better off than any other country when the savings of people are not protected?Victor Hugo can not come to the rescue. The deposits in the UK are covered by the Financial Services Compensation Scheme to a maximum of £35,000. There has been some talk of that increasing to £50,000. Many warnings have already been made. Banks that might be vulnerable due to actions of their Parent companies Warnings have been given by a large group advising people on investment. Sooner or later the penny will drop with the World media and companies in the Channel Islands might come under pressure and the respective Governments would be faced with a problem where they would be powerless.
Guernsey and Jersey offer no such compensation schemes although very often deposits held there will be with subsidiaries or branches of large UK companies which might themselves be regarded as safe. In the Isle of Man compensation is available up to 75% of the first £15,000 of any loss.
In this World crisis it is very naïve to think Guernsey or Jersey is untouchable if the parent companies fold what next?
Report abuse