GUERNSEY’S chief minister is expected to call a media briefing today to comment on yesterday’s surprise announcement by the UK Government that it is to launch a review of the role of the offshore areas it is responsible for as finance centres.

While the official line is that the examination will centre on supervision and international cooperation provided by these islands and the offshore territories, the terms of reference have yet to be disclosed and such a review would not be needed except for the tax competition provided by the centres.

What will be telling is the degree of notice provided to the Channel Islands that the UK Chancellor was to launch what has widely been regarded as a hostile move and, indeed, whether this is a sort of ‘Edwards Report II’ move that raises significant constitutional relationship issues.

The official Policy Council response yesterday gave little indication that it was and both Guernsey and Jersey have promised to play full and constructive roles in the review.

The Chancellor said that the recent financial turbulence has ‘highlighted potential problems’ with overseas territories and Crown Dependencies, such as the Isle of Man and Channel Islands.

As he put it, they attract banking customers with lower taxes but without contributing to the UK Exchequer.

The other element discussed in the UK pre-Budget statement was the level of protection provided to savers using banks operating across borders, like Landsbanki.

The council’s response highlighted the high level of regulation and transparency here and the number of clean bills of health already provided by various investigations and bodies.

It is also said that this latest review will in fact complement the IMF assessment to be carried out in January.

On the face of it, then, Guernsey has little to worry about.

However, according to the Treasury’s own press office, the review is one element of the Government’s international priorities and will look at ‘the long term opportunities and challenges for the UK’s Crown Dependencies and overseas territories as financial centres’.

That is probably a clearer statement of the UK’s intent and an area that needs clarification.