Wanted: a lesson on lobbying
Wednesday 10th June 2009, 2:50PM BST.
A VISIT last week by members of an all-party Parliamentary group was something of a triumph for the island’s softly-softly approach to trying to gain friends and influence in the UK.
The reason was Treasury Select Committee vice-chairman Michael Fallon MP’s comment that ‘Guernsey is essentially a very important part of the City of London and its success is really a part of our success’.
Admittedly, as a leading Tory backbencher, he is likely to be more favourably disposed to the islands than, say, some of his Left Wing Westminster colleagues for whom Guernsey equals tax haven.
However, the all-party group exists to try to break down some of the barriers and stereotypical prejudices that exist against the Crown dependencies and its members certainly appeared to have gained a favourable opinion of Guernsey.
Although Mr Fallon is a Conservative MP, he is no pushover and has been applauded in national newspapers for the grillings he has dished out to Gordon Brown and over the Northern Rock collapse.
So his endorsement of the level of regulation here is especially welcome, particularly since he is a prospect for the front bench in the event of David Cameron winning next year’s general election.
Breaking down barriers is particularly important, but not just in financial services areas. Guernsey has a hugely important fulfilment sector employing more than 600 people and attracting some top-flight business here.
Yet though it provides work, helps to support air and sea links and has big development potential, it is regarded as an embarrassment by Commerce and Employment which is trying to hold back the industry.
The reason? Although the UK itself admits that the VAT ‘lost’ as a result of a legal waiver that helps to sustain the sector isn’t cost-effective to collect, the UK Treasury feels pressured by Labour MPs.
In turn, it is attempting to turn the screw on C&E, to the detriment of the island as a whole.
The truth is that Guernsey is not costing the UK taxpayer millions in lost revenues nor are exports of CDs killing High Street vendors – Tesco did that.
But that message is not getting through.
C&E needs to take a leaf out of the finance sector’s book on how to lobby effectively.
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
I’m not sure where you’re getting your ‘truth’ from, Opinion writer, but this tax scam is well acknowledged in the fulfillment industry. Jersey and Guernsey’s attempt at shutting out UK based retailers in setting up shop was a good move, but now all they do is subcontract ‘local’ businesses. The goods are shipped here from the UK and shipped back again as ‘tax free’, the saving more than offsetting the shipment costs.
The legal waiver was designed before the advent of mass internet retailing, so it stands to reason that there should be adaptive changes to HMRC rules as technologies develop.
This is not actually driven by ‘evil Left Wing Labour’ but by small businesses in the UK and Europe.
You are really trying to portray black as white here, other media has beaten you to it and arrived at the same conclusions as the high street retailers. Using tax havens as a means to increase profits and so undermine the democratic processes in other countries should not be permissable.
It’s not out fault, as you point out, but pretending it isn’t a problem and that all opponents are misguided is disingenuous and bad journalism.
Report abuse
The writer of this comment should ask the question why do these operations come to Guernsey.
Answer: To save paying UK tax.
Consequence : UK taxpayers loosing millions of unpaid tax
Who makes up the lost UK tax?: The ordinary man and woman taxpayer.
Bit like Guernsey with the ordinary taxpayer making up for zero 10 annual windfall for companies who can afford to pay their fair share of taxes but are too greedy to care.
Report abuse