Make savings, not taxes on food and fuel

Thursday 5th June 2008, 2:59PM BST.

From Lyndon Farnham.
IT has become very obvious that the States have made a gross error of judgment in allowing GST to be applied to food and fuel.

n their haste to defeat the motion to delay the introduction of GST to 2009 – which, in light of recent financial information and unpredictable world commodity prices, was a sensible idea – they have overlooked their duty of diligence on the whole issue.

I would suggest that members were concerned that if the tax was delayed then it would a) become the key election issue later this year; and b) as a result of which may not be introduced at all.

Regrettably this deflected from further necessary reflection on the fundamental issue of the financial equation appertaining to the potential income shortfall, or lack of, to the States Treasury in the medium term.

While I applaud Deputy Labey’s move to rectify this, I feel some unease at the suggestion that new ‘progressive’ taxes should be introduced to make amends for the estimated £4 million or so annual reduction this may produce. Apart from Islanders feeling over-taxed and deeply let down by the present state of affairs, the States simply do not need the money.

I respectfully suggest that further savings be hunted down and driven out quickly, efficiently and with the same determination with which GST was introduced.
Chant de la Mer,
Mont Rossignol,
St Ouen.