‘Island would have little without the finance industry’
Wednesday 5th August 2009, 12:30PM BST.
guernsey must not take the finance sector for granted, according to Guernsey Financial Services Commission director-general Nik van Leuven.
In his first interview with local media since taking up office from predecessor Peter Neville on 1 June, Mr van Leuven, HM Procureur for nearly seven years, said the community and government had to show the industry a little more recognition.
‘The number of people who can remember Guernsey dependent on horticulture and tourism are relatively few and far between nowadays.
‘I’m old enough to remember when people left Guernsey because there wasn’t work here. Many moved to the mainland and some emigrated to places like Australia and New Zealand.
‘The community, and particularly Guernsey’s government, needs to recognise that without the finance sector, there would be no energy-from-waste plant, no new schools and our health-care facilities and public services would be of a far lesser standard.’
He accepted that, at times, finance had not been effective in communicating the message of what it was, what it did and what it contributed.
‘I know Giba [the Guernsey International Business Association] have taken steps to rectify that and improve industry’s message, but more still needs to be done.’
He said funding for GuernseyFinance, the body responsible for promoting the industry, was also of concern.
Mr van Leuven said the figures spoke for themselves.
GuernseyFinance has a budget currently of £1.145m. a year, which is paid in full by the States, although consultation is taking place that would see industry pay around £400,000 of any future budget.
JerseyFinance has a budget of £2.5m., while the Isle of Man announced earlier this year that its government would inject £5m. into promoting its finance industry.
‘The States has resolved that GuernseyFinance should be partly, and substantially so, funded by the finance sector, but of course the sector already spends hundreds of thousands on promoting its businesses. I sense that some States members believe that no promotional and developmental funding should be provided by the States.
‘In Jersey and the Isle of Man, the governments are committed to supporting and promoting their finance sector.
‘I see little evidence of equivalent governmental commitment here, which is not only disappointing but foolish.’
Mr van Leuven said Guernsey would suffer much from any perception of governmental indifference.
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True without the finance industry we would all be financially poorer and services would indeed be much less. However I spend a lot of time in the global south, amoungst many poor communities and the general quality of life in emotional and psychological terms in considerably better. Not that I advocate a return to the stone age, but all that glitters is not gold indeed! I think GFS should be supported to the max, to ensure as best we can that our financial industry is not proping up dictators or buying armenants which are the main thorns for the people I see in Africa and Asia
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I wondered why this man was making such an obvious point.
Then towards the end of the article I realised it was a PR case for Guernsey Finance.
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Peter
Have you ever wondered why Africa is so poor?
Where does all the intellectual and property rights go in relation to the vastest deposits of natural resources that are being exploited to feed our consumerist lifestyles?
Who facilitates, audits and lobbies for the continuation of this?
What part do jurisdictions such as ours play?
How can I find that out?
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I thought the claim that the government & people don’t appreciate the industry enough was a bit rich.
We only just fundamentally changed the entire taxation system solely for this sector, what more homage do they want? I’m sure export businesses in the island which are neither finance-related nor depend indirectly on finance (they do exist you know) would be glad of even half the support the finance industry gets. It would be nice if they’d stop complaining and lobbying, just for once.
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Arnald
African countries must be very rich judging by the fleets of Rolls and Mercedes,the private jets,the palaces,the many wives,the shopping trips,the banquets,the armies that many of the politicians,Police and Security chiefs amongst others seem to have in abundance
I wonder who pays for all that ?
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Ray
Which members of their society owns all these things? Me thinks its called corruption?
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Oh dear, Ray.
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bcb
Thanks for that but don’t tell me… tell Arnald who is fixated with the idea that every one of the world’s ills is caused by tax fiddles
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Ray – corruption is a crime, and in Guernsey we are meant to be proud of the fact that we are actively involved in the fight against financial crime. And yet we discover that Tommy Suharto had millions stashed in good old Sarnia.
It seems that we are, in fact, aiding the corruption in the develping world, does it not.
Arnald has a fair point – and you would do well to consider it.
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This reminds me of some good-looking girls who get spoilt by everyone telling them how beautiful they are. Everyone keeps telling finance that it’s God’s gift to the world/Guernsey and how everyone else owes a living to them. They end up believing it and declaring themselves as ‘masters of the universe’ or masters of Guernsey and go around blowing their own trumpet, telling everyone how important they are. The only thing they are important for is money and, as we all know, money isn’t everything, even if they try to convince us it is.
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Mr van Leuven,
A couple of points I’d like to make, you state that people used to leave Guernsey in the past because there was no work here – I think you will find that probably even more are leaving now because they cannot afford to live here!
Also whilst it may be disappointing to you that the States are reluctant to put more money into promoting Guernsey Finance I think its fair to say the adoption of zero-ten is a fair commitment to the finance sector at massive expense to EVERYONE on this island regardless of whether they work within it.
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http://www.nytimes.com/2009/08/07/business/global/07exile.html?pagewanted=1&_r=1&ref=business
I know the Murdoch worshippers amongst you will find the NY Times a little ‘liberal’ for your tastes, but see, this is the image we portray.
The link has two pages. Page two has some quotes from “Lyndon S. Trott” who “runs Guernsey”.
Good ole Guy Hands. Thanks.
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“there would be no energy-from-waste plant” This could be a good thing, then. IF we haev no finance industry, no MASS BURNING of RUBBISH. I wish they’d stop giving it fancy names, making it sound good for the planet…
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OK. Before the finance industry became the alter upon which many worship, the island was not ‘rich’ in the sense of money – but it was rich in other things. We had a sense of loyalty to each other, we knew our neighbours, we could leave our doors open without worrying that we would be burgled, there was not trouble with drugs and alcohol – and the traffic problems were nil.
I am not that old (late 40′s) but Guernsey was certainly a wonderful place to live when i was young. OK – it was a bit boring at times but it was safe and beautiful. It still is beautiful but we are becoming obsessed with money and forget about the real things that matter: friends, family and a sense of worth. I know many people working in the finance industry who absolutely hate their jobs, are taking anti-depressants to get them through, some turning to alcohol and drugs, and when i ask why they don’t change jobs they all say MONEY! Money is not everything but in todays climate we are becoming a ‘must have’ community rather than a ‘could do without’ community.
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Molly – I work in the finance industry (in an IT department) and I heartily agree with much of what you say. I see many people who have sacrificed their time, health, families and happiness on the altar of their careers – and the money they provide. It truly is sad to see how money has become a god to so many. It is also easy to get trapped in the web of a finance-industry lifestyle, the only real opportunity for escape being to leave the island.
I would say though that this is not true of everyone. It takes significant effort and resistance but it is possible to work in the finance industry without being corrupted by it – although you are unlikely to rise to the top. From where I’m standing I cannot say I love my job however it enables me to support my wife in her new career as a full time Mum – something she wanted to do but wouldn’t have been possible if I worked in another industry on this island – we are not “spend happy” people – in fact we’re both quite tight actually! The way I see it, as long as we remain on Guernsey, the ends justify the means.
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Belinda, I’m sorry to say that you are mistaken, corruption is not a crime in Guernsey. Any business in Guernsey is allowed to make offers to political entities in return for favourable service. Furthermore any politician is allowed to accept any offer in return for favourable service.
Several years ago the States of Deliberation (our deputies) during a States meeting discussed the merits of introducing anti curruption laws. At that time John Langlois opinioned that there was no need for them and the house voted to drop them. It seemed a strange comment at the time given that on a previous occasion when the house were discussing bringing in anti money laundering laws John Langlois opinion was that although they were not needed the island should be seen to be clean.
I for one believe that anti curruption laws should be introduced in order to be seen to be clean.
At the present time a Guernsey politician has to declare if they have a financial interest in any discussed topic, however they don’t have to declare if an entity has approached them waving cash about.
Anti curruption laws should also cover ‘bursaries’ offered to civil servants.
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Definitely agree with the basis of the argument, despite it being GFSC propaganda! I totaly agree that money isn’t everything, but I really don’t know whether us Guernsey folk appreciate our dependence on those dastardly bankers.
I see how much hate and vitriol directed towards UK folk on short-term / essential workers licences indirectly (and normally in private), that I wonder if people realise who is paying for the pensions. Like it or not, take the finance industry away and Guernsey would collapse into an unemployed, bankrupt, economic morass. What we should be doing is supporting them.
The few independent employers outside the finance industry DIRECTLY rely on the banking and legal services wages paid. No man is an island and alot of these businesses would collapse when the Banker’s money is taken away. Lets get back to the field and grow tomatoes?
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simple simon
i really must take issue with much of what you say.What gets on my wick with this island is the people’s perception of the finance industry being full of the most talented workers who the rest of us owe a huge dept to. my experience of dealings with many folks in and around finance is that many are over promoted. Many are not particularly talented in any way. many cannot use common sense. Many lack drive. many have no idea how well thay are looked after compared to the majority of the islands workforce. Those of us outside the finance also pay taxes and insurance and never get the credit we deserve for what we put into the islands coffers. You seem to forget that the majority of people are not working in finance but are making money for the island also. I do not blame anyone for doing what ever work they choose but this idea that finance workers are all doing us a favour is rubbish the driver for folks working in finance is what they can get for themselves.By the way i’m paying for my own pension thank you very much as are the rest of the working population.
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