Time for Jersey to discuss Plan B?
John Heys
June 18th 2010
In Jersey we are constantly told that we cannot survive without the Tax Avoidance Industry. Without them we’re warned that we’ll suffer from unemployment, increased crime and a collapse in house values so how could we possibly entertain the hope that they might leave?
As Pat Lucas has said elsewhere, “…undesirable though these problems are the real problem is not primarily crime or unemployment or rising house prices or any of the other evils which may befall us. The root of the problem here is tax avoidance and corruption. It’s that which we need to get rid of.
Now, please don’t talk down to us or say we don’t understand anything because we do. When the tax avoidance industry leaves Jersey - and it will- we’ll need to completely restructure our economy with professional advice from our friends and colleagues.”
Even now huge money-making vested interests do not want to acknowledge the demise of the self-centered finance industry. They even have the gall to hotly deny that the set-up is not a tax haven!
Of course it is a tax haven which has ruined this once beautiful Island with sheer greed, avarice and concrete. Now with 0/10 we the people are paying the tax the Finance Industry should be paying. Particularly since finance has been the dominant industry here the price of housing has risen well beyond our children’s reach at £470,000 for a basic 3 bedroom starter home. Many in the business are from the UK and will, when they’re ready, simply leave having had a great time and having built up a healthy bank account. Already much of the backroom work has been hived out to places where labour costs are less.
Certainly it will be difficult for those remaining when it all goes. Along with others I have been calling on our Government for years to diversify in preparation for the inevitable, only to be sniggered at by Chief Minister Le Sueur and his cronies.
So what do we have? Two other industries - Tourism and Agriculture which have been allowed to shrink to about 3% and 1% of our GDP. This in itself is a disgrace while at the same time the States of Jersey have pumped millions of pounds into the finance industry - and remember this is a private industry.
We need to take another look at Tourism and offer the kinds of holidays that people really want to enjoy. Walking around our beautiful cliffs, horse riding, nature study, learning more about the Island’s history, enjoying delicious local produce – these are the things that many visitors enjoy, savouring the unique quality of life of each location. Reading this you would imagine that Jersey would generate some income from Tourism but there is a problem.
The way the Tourism Industry is structured at the moment means that Jersey makes a mere pittance. The airlines which bring visitors here make money for the UK; the hotels which are mainly UK owned reap all the profits. Again the money goes to the UK. Due to the Chief Minister’s policy on taxation of 0% corporation tax UK owned businesses do not pay tax in the Island. As a result most of the profits made in the High Street go straight to the UK as well.
To remedy this situation we need radical political change. Party politics seems to be the only way to go. We need a General Election and a clean sweep to start again. Our Island must look to the EU and the UK for help so that we can start afresh. The longer we are persuaded that the so-called finance industry is the Holy Cow the less time we have to prepare for the inevitable crunch.
 | Time for Jersey to Discuss Plan B John Heys.doc 25 Ko Afficher au format HTML Ouvrir en tant que document Google Télécharger |
A very interesting article. With regards to diversification, it seems that all of our politicians - and potential ones - all speak of the importance of it, but most are simply paying lip service.
ReplyDeleteBut is meaningful diversification even possible in an island which channels most of its resources into finance?
jersey needs to change this is becoming a polarised enviroment similar to Monaco rich v poor withthe poor footing moist of the bill for the indulgences of the rich. If they think that trickle down economies as in the Thatcher idologies work then they dont that is a fallacy the rich want to keep the money for themselves through tax avoidance anf Jersey is encouraging this attitude. Jersey is the whore of the Channel where money is concerned it does not care who its clients are so long as they pay their money into one ot the many many finanacial institutions over here
ReplyDelete