From Gerald White.
WE all know that Jersey is a conservative place, and we mostly accept that. But whereas in the recent past the predominant political flavour could perhaps best be characterised as ‘caring conservative’, recent States decisions evidence a more hard-edged and divisive political stance, biased in favour of the ‘better off’ in our community. For example:

lCancellation of a pre-announced intent to raise Social Security contributions for higher earners (by definition, the ‘better off’) – because ‘we no longer need the money’.

• Cancellation of a pre-announced intent to reduce taxpayer subsidies to those choosing and able to afford private education (in general, the ‘better off’).

• Increase in Social Security contributions to fund care for the elderly (in itself a laudable proposal) but in a way that will force all Islanders to pay to protect the capital that only some Islanders (home-owners, in general the ‘better off’) have chosen to invest in housing.

This pattern of decision making in favour of the ‘better off’ in our community is not all down to the present Council of Ministers – it has broad States’ support, as is evidenced by the fact that the second of the decisions listed above was taken against Council of Ministers’ recommendations.

The least well off in our community have also been impacted by broader recent developments, bearing the brunt both of the impact of the recession, through food and fuel inflation galloping ahead while earnings remain static, and of the developing crisis of the lack of affordable housing.

Now, Jersey is a relatively prosperous place, and no doubt the ‘better off’ comprise a relatively large slice of the electorate, at least of those choosing to exercise their vote. But our politicians overlook the needs of the remainder at our peril.

One of the reasons stated for cancelling the Social Security increases for higher earners was to avoid scaring off new business investors worried about high employment costs in Jersey. I predict that they would be a lot more scared of investing in a place with a significantly divided society, and that in my view is where we are heading.

We need strong and visible action if we are to replace the perception that our politicians skew their priorities to protect the interests of the ‘better off’ by a more cohesive sense that ‘we are all in this together’.

My suggestions:
• A 25% tax rate for very high earners – the equivalent UK rate is now 50%, so I do not accept that a top Jersey rate of only half that would scare off potential new business investors – it may not raise a lot of money but it would certainly send a strong message that everyone is bearing their share of the current pain.

• The simple re-instatement of the cancelled Social Security increase for higher earners, to help pay for the cancelled reduction of the subsidies on private education.