Deputy shares fears over VAT changes with bulk mailer boss
Saturday 12th March 2011, 2:29PM GMT.
Deputy Barry Brehaut and Rodney Brouard met yesterday to discuss the fulfilment industry’s use of low value consignment relief. (Picture by Adrian Miller, 1107300)
DEPUTY Barry Brehaut said yesterday that he shared similar concerns as bulk mailer boss Rodney Brouard about the future of the industry.
The pair met to talk about the fulfilment industry’s use of low value consignment relief – which allows items worth under £18 to be sent to the UK free of VAT.
Deputy Brehaut caused controversy when comments he made in 2005 to the Forum of Private Business, which he later said were a call for moderation, not a call to arms against the sector, were recently picked up by The Daily Telegraph. That saw some islanders, such as accountant Harry Dick-Cleland, call for his resignation.
Mr Brouard, who is chairman of the Bulk Mailers’ Association, said afterwards that Deputy Brehaut should have done some more research before suggesting the Channel Island fulfilment industry had a big impact on small UK businesses.
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Backtracking so fast you can see the skidmarks!
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Should the headline have read “deputy shares fears of redundancy at next election …” ?
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If Brehaut was misrepresented by the headline “Guernsey politician supports closure of Channel Islands tax-loophole” then presumably he has written to the Press Complaints Commission. Number one on the Code of Conduct is
Accuracy
i) The Press must take care not to publish inaccurate, misleading or distorted information, including pictures.
ii) A significant inaccuracy, misleading statement or distortion once recognised must be corrected, promptly and with due prominence, and – where appropriate – an apology published. In cases involving the Commission, prominence should be agreed with the PCC in advance.
iii) The Press, whilst free to be partisan, must distinguish clearly between comment, conjecture and fact.
iv) A publication must report fairly and accurately the outcome of an action for defamation to which it has been a party, unless an agreed settlement states otherwise, or an agreed statement is published.
if he has done this and the paper retracts its comments then i’ll know where he stands.
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Dear all!
The 1997 LVCR provision makes it clear that the mechanism is there to protect ‘local exports’ my view remains the same. The proliferation of multinationals has dragged this issue out into the harsh light of national politics. I would like to see derogation for growers and alike so the real ‘local product’ can still thrive.
The obvious irony of course is that the mechanism put in place to protect them, if reduced, will bring about their demise.I am aware that calling for an exemption for those who were in the first instance supposed to be exempt is a little perverse.
I met with Rodney in an attempt to draw attention to this, the main focus had been on calls for my resignation rather than the substance of my 2005 ‘quote’. After the 23rd if the government do act, the multi’s will simply trade whatever items fall within the new rate and the growers will have to seriously think about plan b which is not immediately obvious.
Jersey in 2006 had 70 fulfilment companies trading from there, they have since refused entry to 13, they have a control of undertakings, we do not, we have a voluntary code of conduct. My calls, in essence, where to manage an emerging problem,without the loss of long established businesses.
BB.
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Barry
But the growers aren’t really exporting Guernsey products, are they? Many of their exports from here have been imported from Turkey and Kenya. So what’s your view on that? Do you still think they should be protected,
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GM.
You raise an interesting point,as we all know you can order a greeting card on-line from GSY and that clearly sits well within the LVCR. More recently you have been able to send flowers with the card which then takes the whole order over the LVCR (if it was adjusted). And you are right, flowers are imported from Africa, only to be exported pretty rapidly. There are however a small number who do export a ‘local product’ there will also be those who have a product that is produced on island but is supplemented with imported components too. Its not easy but I feel the ‘few’ should be aforded some protection.
BB.
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Barry
Re the greetings cards, the unique aspect of those is that they are personalised, and the personalisation happens in Guernsey. That is the key to that particular company’s offering. That really is a Guernsey “product” as its not merely a repackaging. Without the Guernsey-added element, it is not really a greetings card. Absolutely fine with that.
Re flowers, I agree fully with you re. those which are genuinely grown here. They are unquestionably Guernsey “products”.
Re those flowers which are exported from Africa and elsewhere, that’s not anywhere near as clear-cut. If you are (rightly in my view) fighting for growers who are exporting genuine local produce to be protected, where do you stand in relation to the other flower exporters? How widespread is the problem? How many growers are affected? I have absolutely no idea of the figures and nobody on this thread has so far been forthcoming. Indeed, you are the first person to even admit that you are aware that it goes on – its quite a well-kept secret !
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Mr Brehaut – have you made a complaint to the Press Complaints Commission for the inaccurate reporting of your comments and the headline or do you stand by the headline?
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Jacquie.
A small group the ‘Forum for Private Business’ sent out a press release that stated that I had concerns regarding the growth in LVCR and how it could damage our reputation (it has already). The Telegraph on-line picked up the article and ran the headline you refer to.
“Deputy concerned over growth in LVCR and loss of local growers” would have been more fitting.
However I understand that as of Tuesday this week C&E released a paper entitled ‘putting the record staight’ to the Telegraph which will lead to further detailed comment.
With regard to press complaints, if you ‘live by the sword’ you will get the odd flesh wound, so no complaints.
BB
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Excellent letter today from Richard Allen of RAVAS
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