Guernsey's Chief Minister is out there pressing the flesh and persuading the world that we have sufficient disclosure agreements (13) to avoid being black listed as a tax haven.
According to him the OECD agree with him and the G20 summit should confer a 'white list' status on Guernsey. If he is right and Guernsey is differentiated from other less open jurisdictions the local economy will undoubtedly benefit big time. If he is wrong, his reputation and the island as a whole may sustain the most damaging assault since the days of Dutch subsidies brought about the decline of the tomato industry.
It's a high stakes game for Minister Lyndon Trott and the economy of these offshore islands.
Bob
Tuesday, March 31, 2009
Monday, March 23, 2009
Life After Finance
The islands seem as unprepared as ever for the withdrawal of the Finance Industry and we continue to place all our eggs in one basket.
What can we do?
Well there aren't that many options but one absolutely gold plated option is the investment in Tidal Energy. Not only will this provide a potential future income stream by selling electricity to France but it will also enable the island to power other industries as much reduced cost thereby increasing their competitiveness.
Two examples of this are the Data centre Hosting business and - dare I say it - Growing!
Data centres run mainly by the telecoms providers locally currently consume huge amounts of electrical power and generate large income streams. The gambling industry uses most of this, probably more than the financial sector and it is set to increase. In London the capacity is limited not by available space for data centres, but available power. So an offshore jurisdiction without such constraints will be highly attractive to a number of industries.
More conventional industry also needs electrical energy and with escalating costs this offers a potential opportunity for Guernsey Growers. Remember the decline of out tomato industry? It was subsidised fuel offered to the Dutch growers that finally put the last nail in our coffin. The Dutch could extend their growing season at very little cost and so produce more fruit and reap more benefits of scale. Of course, the Spanish have always had the advantage of a naturally extended season but, and it's a big 'but' consumers are becoming increasingly aware of 'food miles' and they want to but from closer to home. Imagine a locally growing industry powered by Tidal Energy to once again extend the season!
Not only are these opportunities emerging as potentially decreasing our dependence on the single financial industry, but they are also bang on the environmental issue as well.
Guernsey needs to wake up and recognise this opportunity fast.
This might just be what life after finance looks like - and it doesn't look bleak!
Bob
What can we do?
Well there aren't that many options but one absolutely gold plated option is the investment in Tidal Energy. Not only will this provide a potential future income stream by selling electricity to France but it will also enable the island to power other industries as much reduced cost thereby increasing their competitiveness.
Two examples of this are the Data centre Hosting business and - dare I say it - Growing!
Data centres run mainly by the telecoms providers locally currently consume huge amounts of electrical power and generate large income streams. The gambling industry uses most of this, probably more than the financial sector and it is set to increase. In London the capacity is limited not by available space for data centres, but available power. So an offshore jurisdiction without such constraints will be highly attractive to a number of industries.
More conventional industry also needs electrical energy and with escalating costs this offers a potential opportunity for Guernsey Growers. Remember the decline of out tomato industry? It was subsidised fuel offered to the Dutch growers that finally put the last nail in our coffin. The Dutch could extend their growing season at very little cost and so produce more fruit and reap more benefits of scale. Of course, the Spanish have always had the advantage of a naturally extended season but, and it's a big 'but' consumers are becoming increasingly aware of 'food miles' and they want to but from closer to home. Imagine a locally growing industry powered by Tidal Energy to once again extend the season!
Not only are these opportunities emerging as potentially decreasing our dependence on the single financial industry, but they are also bang on the environmental issue as well.
Guernsey needs to wake up and recognise this opportunity fast.
This might just be what life after finance looks like - and it doesn't look bleak!
Bob
Wednesday, March 11, 2009
UDI for Guernsey?
A leading Guernsey Advocate has today barely fallen short of proposing the island declares UDI perhaps in conjunction with the rest of the Channel Islands.
The frustration arises from continued interference by the UK into constitutional matters within Guernsey.
He points out that the island never set out to be a so called 'tax haven', it has evolved into a low tax jurisdiction primarily by adopting prudent fiscal policies that many - including the UK - would do well to emulate.
Guernsey people are proud of their independence and this call for a 'movement' to sponsor a major change in the relationship with the UK is likely to receive popular support locally.
The frustration arises from continued interference by the UK into constitutional matters within Guernsey.
He points out that the island never set out to be a so called 'tax haven', it has evolved into a low tax jurisdiction primarily by adopting prudent fiscal policies that many - including the UK - would do well to emulate.
Guernsey people are proud of their independence and this call for a 'movement' to sponsor a major change in the relationship with the UK is likely to receive popular support locally.
Subscribe to:
Posts (Atom)
