We tried to regulate exploitation, says C&E
Friday 11th November 2011, 1:00PM GMT.
Commerce & Employment minister Carla McNulty Bauer
Commerce and Employment has defended the department’s attempts to regulate companies using the island to take advantage of VAT relief.
UK retailers using the Channel Islands as a base to ship items such as DVDs and CDs VAT-free to undercut their rivals generated a great deal of negative publicity about the fulfilment industry.
But minister Carla McNulty Bauer (pictured) said the department had actively taken steps, such as publishing a code of conduct for the industry, to discourage exploitation of low value consignment relief.
In 2006, pressure from HM Treasury led to Jersey’s decision to kick out companies, including Tesco, which were considered to be using the island as a post box.
That same year Guernsey’s Commerce and Employment brought in its code of conduct.
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What a pathetic excuse. As if big, multi-national companies are going to take notice of Carla’s code of conduct! They will just walk away when they feel like it, leaving us to take the flack. Didn’t anyone in authority see this coming from the outset? Isn’t it time Guernsey had an industry built on solid foundations instead of always being parasites of the UK tax regime?
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You have a point, Joyful. A code of conduct carries no more weight than a sheet of toilet paper unless it is enforced by legislation and financial disincentives.
Unfortunately what will now likely happen is the big multi-nationals will walk away and the small local grower will be left in the lurch.
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Joyful, in answer to your question the GBMA made their feelings clear to Deputy Bauer whilst she was busy trying to get HMV in, as did Barry Brehaut.
So yes, this outcome was at the forefront of many peoples minds, but now CMB is saying they did their best.
Well their best should have been to listen to to the people that know “best” i.e those in idustry who were telling her this could happen.
“la la la la I am not lis-ten-ing”
………….
“oh, they have done what????…………… erm, oh yes we tried to stop exploitation”
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Another completley predictable scenario, excuses, excuses no responsibility taken, same rubbish different day, do us all a favour and pass a law enabling the electorate on a majority to call an election, if you cant surely some computer whizz can set up an independant on-line poll so we can all vent our spleen and not have to put up with the Establishments Mewling!
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You are right that the code of conduct does not have much force. It is voluntary and merely sets out guidelines as to what sort of fulfilment business will be assisted by the States, and that which will not be assisted.
But it is not fair to call this a pathetic excuse. What else could the States do? Commerce is not controlled by the States. If anyone wishes to set up a legal business in this island it can, thankfully, be set up without having to get the approval of the States. There are very few places in the world where you would need government approval to set up a business legally selling goods over the internet. Ironically, Jersey is one such place since JFSC approval is required before any Jersey company can start business.
The States had no power to stop these businesses from operating as it was, and remains, a legal trade. The only thing the States could do was to refuse to grant housing licences for businesses which were at the abusive end of the scale, and they did that as much as they could.
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“The States had no power to stop these businesses from operating as it was, and remains, a legal trade” Oh Terry you were so cocky a few months back. How does it feel now ? Read up on your EU law yet ? What a screw up.
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really? tell me what is incorrect about that statement.
EU law does not allow a Member State to apply the LVCR differently to different countries, and it will be interesting to see if this is challenged formally.
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