ONE of the less eye-catching items in the latest Billet d’Etat is a proposal from Commerce and Employment to establish an aircraft registry in the island.

Yet the recommendation, which is estimated to represent an economic opportunity of around £18m. in the first three years, represents a welcome form of diversification if it gets off the ground.

Guernsey’s nearest rival, the Isle of Man, has successfully established a niche registry based on service and cost but is apparently struggling to meet demand.

C&E and the Economic Development Department of the States of Jersey have jointly identified a CI opportunity. Both concluded it is a viable and desirable project although, for reasons not disclosed in the Billet, Jersey is leaving it to Guernsey to exploit, at least at this stage.

Local practitioners are similarly enthusiastic and C&E, supported by Policy Council and Treasury and Resources, has rightly decided to seek to establish its own high-quality boutique registry but with scope for expansion in the future.

Where the department has been particularly clear-sighted, however, is to see the wider economic benefits as the goal rather than setting up a fresh States bureaucracy to capture as much of the fee income as possible.

Instead, all but the central functions of States set-up decision-making and licensing will be passed to the private sector. Business will maximise profit potential while government will take a revenue-based licence fee.

Quite apart from the direct benefits, a registry will represent an additional ‘product’ that the financial services sector can offer to clients and will be a further reason for doing business here.

What is proposed is a good example of government acting as a facilitator and providing commercial opportunities to a private sector that is, by definition, better equipped and more fleet of foot in exploiting them.

New legislation will be needed but, for a change, that is to provide a business development framework rather than more regulatory restrictions.

The proposals are a welcome sign that government understands the need and benefit of creating the right climate for business to prosper here.