From Alec Podger.
THIS problem for the British government over the fulfilment industry is similar to one which they faced in the 18th century.

At present, goods can enter Britain free of Customs charges if less than £18 in value, from any country, but if we are to believe the local media Jersey is being targeted as a particular trouble spot, and it is suggested that in future no such goods will be exempt from tax, despite it being pointed out that the administration costs to the British government will vastly exceed any duties received.

In 1453 the kings of England and France agreed that the cost of both defending and attacking the Channel Islands during the recent Hundred Years’ War had been so great that they should in future be neutral – a free trade zone – and the Pope ordered this to be internationally recognised.

This was accepted for centuries, until 1689, when King William lll effectually tore up this treaty, but for decades afterwards the Islanders refused to accept that his action was legal, and continued to sell anything to anyone.

In 1767 the British government sent a small fleet of sailing vessels to be based in the Channel Islands, manned by Customs men, to stop goods being imported into Britain without paying tax – the same reason as now.

The vessels that traded in this way were almost all English, coming to the Islands to buy the goods, and then, in the view of the English, smuggling them into Britain.

This trade was now stopped by the Customs fleet, and the French immediately declared the little fishing port of Roscoff in Brittany to be a free trade port. The English ships bought the same goods there, but had to pay in gold. When they had been buying in the Islands the price had been paid by Bills drawn on London banks, but now there was such a sudden loss of gold to Britain that after only 18 months or so the fleet of Customs ships was unobtrusively withdrawn, the damage to the English treasury being great.

Is history to be repeated? If the British government withdraws the tax in relation to goods from all countries, it will cost them a massive amount in administration, but if they close down the trade from Jersey or the Channel Islands only it is unlikely to help their small traders, which would be the claimed reason.

It is more probable that another ‘Roscoff’ will pop up just anywhere, and the money, instead of finishing up in London, as is still largely the case, will most likely end up in Euro-land.