New version of zero-10 ‘should fill the black hole’
Friday 16th October 2009, 2:30PM BST.
Chief Minister Lyndon Trott was positive yesterday as he addressed States members, business figures and the media about what must change to keep the European Union happy on tax matters. (Picture by Peter Frankland, 0856570)
CORPORATION tax rates will need to rise to 10 or 12.5%, according to Chief Minister Lyndon Trott.
He was speaking after he addressed States and industry figures about the island’s tax strategy following the news that European Union member states had pulled the plug on the zero-10 system introduced almost two years ago.
Deputy Trott is to speak to Financial Secretary to the Treasury Stephen Timms today about what the island plans to do.
Many deputies were yesterday calling for a full States debate and complained that they got more information from the Guernsey Press than through government.
However, Deputy Trott was upbeat about the future. ‘My belief is that the corporation tax rate will need to rise to something around 10 or 12.5%. That is the rate currently employed by some EU member states such as Cyprus.’
That would effectively mean the zero-10 strategy, which was led by Deputy Trott when he was Treasury minister, would cease to exist.
When asked whether he felt any responsibility for the position the island was now in, he said the decision to move to zero-10 was the right one at the time. ‘The zero part of the tax regime would have also been true under zero-20.’
He said that it had not been a mistake to introduce the strategy in the first place and ahead of Jersey, despite the cost to the island of more than £200m. over the two years.
‘The Isle of Man introduced it earlier than us. From its introduction until now, Guernsey has experienced the biggest period of growth. I have no doubt in my mind that zero-10 was the measure for its day. If it hadn’t been, Jersey would not have designed a similar regime.’
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As a resident of Jersey, I can only dream of our Council of Ministers grasping this same problem so rapidly and so firmly.
Our government are seemingly attempting to stall and spin their way out of the mess, with mumblings of passing the buck of their mistake directly to the public. Their attitude is shamefully deceitful in comparison to that of your government.
Think yourselves lucky you do not have an elected dictatorship of Ministers ruling the roost in your political system.
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20/10. And introduce it on January 1st. Please?
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Part of this man’s electoral ‘success’ was based on the perception that he was in control of as bold strategy to improve our finance industry’s competitiveness and create more wealth as a result. He said that the new regime was compliant.
What we have seen is the growth of tax abuses.
He seems quite glad of that.
And now I’ve just read the single most ignorant letter I have ever seen in this Tax Dodgers Apologist Quotidien. How long are you going to keep printing this myth that Guernsey is being ‘attacked’ by ‘jealous’ foreigners? They’re not jealous, they’re aghast at our shameless activities.
Trott has made us into a laughing stock and directed bitterness at Guernsey.
But the worst are GIBA. Daily propaganda for harmful tax practices should be seen as just that. They do not have Guernsey’s best interestsd at heart otherwise they would have advised us not to push forward zero ten in this form. Their institutions rob from other countries and the rob from the locals. The veiled threats that they’ll leave are said in full teenager sincerity.
Pathetic.
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Let’s have a little look at some of the comments in this article
1 Bit of a cheek to represent the debacle as a positive producing 1 when you created the original that resulted in a negative of 2.
2 “following the news that European Union member states had pulled the plug on the zero-10″
The plug was never there. They thought it was there but it wasn’t. Compliant etc system introduced almost two years ago.
3 “He said that it had not been a mistake to introduce the strategy in the first place and ahead of Jersey, despite the cost to the island of more than £200m. over the two years”
Hardly an opportunity was it? Who benefited from zero 10. Politicians should remember they represent the people not the banks etc.
4″From its introduction until now, Guernsey has experienced the biggest period of growth”
And I thought the world’s economies and tax takes had gone down as had tax take in Guernsey and value of funds
5 “I have no doubt in my mind that zero-10 was the measure for its day. If it hadn’t been, Jersey would not have designed a similar regime.”
So that’s all right then. A prize comment.
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So Charles Parkinson was right after all and because he was ignored by The current Chief Minister, then as Treasury Minister and the then Chief Minister Laurie Morgan thought they knew it all, did they feel it felt right, yes, unfortunatly most of the population didn’t agree with them but they still forced ahead. Guernsey is down £200 million in two years and taxes have risen way above inflation. 0/10 was the worst economic decision this island has ever taken and we now have the same Minister, as Chief Minister, influencing further change. That’s when he has time away from his world travels. Perhaps a little more concentrated effort on the business at home would be a good thing.
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Gary
I think you will find that Charles Parkinson’s zero-20 option would have been identically non-compliant. I think you will also find that he voted in favour of NOT delaying its introduction by one year.
In light of that, you may wish to reconsider your comments.
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