Half the battle is recognising that you have a problem

Friday 20th February 2009, 2:30PM GMT.

Ernst and Young partner Graham Parrott.

GUERNSEY is currently facing many challenges. The airport, sewage on the beach and parking in Town would be on many lists. Getting a cab on a Friday night is going to be even more difficult now.

But I would highlight three of particular significance.

The first is the global financial crisis and wider economic recession, to which no one is immune. If in doubt, take a stroll down the High Street.

The second is the direct challenge to tax all offshore centres, including Guernsey, which is coming from many directions and is perhaps a consequence of the current financial crisis.

Third, and perhaps most dangerous of all, is the failure to recognise the problems.

The recent difficulties at the airport is the most recent and frankly most obvious example.

To read Guernsey Press stories in full, click here for subscription details. Individual editions are now available online.

View more: Financial Crisis news, Recession news, Zero-10 news.

1
Bobster

February 20, 2009 at 9:06 pm

Is Mr Parrott saying it is time to wake up and smell the coffee ?

Report abuse
2
Paul

February 21, 2009 at 11:04 am

The upbeat brigade are quietly munching away at their humble pie! I’ve no doubt a few will come and blast me for such a simple and factual one liner.

More fool them if they do though!

Report abuse
3
Stephen John

February 21, 2009 at 11:41 am

Bobster

I think you can say it is a wake up and smell the coffee call.

It seems to me that Mr Parrott is calling for more realism, as distinct from the everything is all right view of the CM and others, who feel that by signing an exchange agreement removes the tag tax haven.

Problem is that others will decide if and when Guerney c eases to be a tax haven. They would have in mind the tax avoidance (legal) associated with trusts and companies using tax havens.

Report abuse
4
Frank

February 24, 2009 at 8:19 am

I totally agree with Stephen John. Guernsey may be well regulated and may be transparent with it’s business, but the concern of the G20 is the tax revenue that they are losing, no matter if the business is being legally conducted in one of the better offshore centres. We cannot assume that Guernsey will be in the clear. CM Trott and Guernsey Finance do need to get real and face the possibility that all will not “be alright”.

The salvation of our finance industry will not come from China either – why would they use Guernsey when the same services can be provided in a more convenient time zone in Singapore or Hong Kong? Maybe they like the Guernsey finance industry model for their own economy and are talking to our officials to obtain the detail they need to set up a similar operation? It just does not make sense that China would bring business to Guernsey.

We are in turbulent economic times, and over the next few years it is highly likely that we will see a shift of major finance centres to the Far East. Not even London will be immune from this power shift.

Report abuse