Industry backs borrowing
Friday 3rd April 2009, 2:29PM BST.
INDUSTRY heads are supporting Treasury and Resources’ plans for the island to borrow money to pay for major capital projects.
T&R gave members of the Institute of Directors and Confederation of Guernsey Industry a presentation on its report about the prioritisation of States projects, and how they could be funded, before the issue is debated in May.
CGi chairman Peter Budwin (pictured) said industry was in favour of plans to borrow.
‘It’s a way to achieve the completion of some of the projects we all want,’ he said.
‘Having said that, any good businessman will tell you that if you are going to consider borrowing you have to be able to pay it back.’
As part of Treasury’s plans for repaying any loan, the department would want to set up a sinking fund that would receive £10m. a year from the capital reserve to cover the debt and interest.
The sinking fund would be built up over 20 years before repaying the loan – the sum would therefore accrue interest of its own.
‘I think the sinking fund is necessary if we are going to consider borrowing,’ Mr Budwin added.
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What’s the point in arguing with these people; they are hell bent on ruining the Island then one day “Bang” it isn’t Guernsey any longer, but a play ground for the rich.
I may sound pessimistic; (Jackie is sure to say so) however, “Borrow at leisure; repay for ever”
That is what will happen; It has become a fad to live on borrowed things, money included,
They never learn; A penny saved is a penny earned. Only; yes,only these would be borrowers will be long gone leaving the coming generation to pay up: Borrow and you’ll be in debt forever.
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T&R gave members of the Institute of Directors and Confederation of Guernsey Industry a presentation on its report about the prioritisation of States projects, and how they could be funded, before the issue is debated in May.
Why?
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Eric, I actually agree with you. One minute we have Jack Honeybill (English) telling us to borrow next its Charles Parkinson (English) telling us to borrow, now it’s Peter Budwin (North American) and David Jones (English telling us to borrow and don’t forget wannabe politician Barry Cash (English) telling us to borrow.
When exactly is the Guernsey voice going to be heard?
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Jackie can you tell me when I have ever said I supported borrowing? I have been saying around the PC table and other arenas exactly the opposite.
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Sorry Dep Jones, my mistake.
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Hi Deputy Jones
Unfortunately I have been away this week so unable to respond to your comments on the other post regarding the ex Treasurer Dave Clarke.
Shame that as I have a lot of ammunition (information) that would have put you in your place.
And as for your comment when you stated ‘I suppose you want me to shut up now’ well, I have to say that we wanted you to shut up a long time ago really.
But bring on the debate…..
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Eric I am not sure who you are talking about when you say “they will never learn” Guernsey does not have a history of borrowing so I don’t know who you think hasn’t learned? I am not a fan of borrowing. as all it is when a government does it, is deferred taxation for as you say the next generation and talking to several other States Members they are not for putting the island in hock either. It will be a very interesting debate.
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My reference to “They will never learn” is to you and all your country men who think you are dealing with one of your colonies:
We are an Island who could quite well manage without your ‘So called help.
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