With Swine Flu in the Headlines and the repercussions from the banking crisis still fresh in our minds, I thought perhaps a light interlude was called for!
Does it ever strike you as strange that it's nearly always a degree or two higher temperature in Jersey than the rest of the islands?
Is it really that much hotter just a few miles South?
Perhaps, the main TV station is operating a bias towards Head Office island?
Well it's just a little simpler than that. They measure temperature at the highest point in the island in Guernsey and down near sea level in the neighboring island. Nothing to do with being more savvy at attracting tourists of course!
Bob
Tuesday, May 5, 2009
Tuesday, March 31, 2009
The Stakes for Offshore Centres like our Islands
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
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
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.
Tuesday, February 24, 2009
Amazon Defies Obama and G20 on Tax Havens
Online retailer Amazon continues to legally evade paying tax to the UK and European Governments (i.e. people) by trading through an offshore operation in Jersey.
With President Obama and the G20 leaders determined to crack down on tax havens, this blatant avoidance of sales tax seems defiant to say the least. Perhaps Amazon can put forward a convincing argument for selling to the UK mainland from a small island 100 miles away from the closest customers with a tiny internal market and the associated shipping costs?
Amazon is exploiting a legal loophole called the 'de minimis' agreement, under which goods falling below an £18 threshold can be supplied without charging VAT.
This kind of operation will not help the Channel Islands' reputation one iota as they come under the increased scrutiny of governments around the world. Whilst any job losses associated with closure of this business will be much regretted, they hardly compare with those that will be lost in the finance sector if the islands fail to convince the world they are not a centre for tax avoidance.
Bob
With President Obama and the G20 leaders determined to crack down on tax havens, this blatant avoidance of sales tax seems defiant to say the least. Perhaps Amazon can put forward a convincing argument for selling to the UK mainland from a small island 100 miles away from the closest customers with a tiny internal market and the associated shipping costs?
Amazon is exploiting a legal loophole called the 'de minimis' agreement, under which goods falling below an £18 threshold can be supplied without charging VAT.
This kind of operation will not help the Channel Islands' reputation one iota as they come under the increased scrutiny of governments around the world. Whilst any job losses associated with closure of this business will be much regretted, they hardly compare with those that will be lost in the finance sector if the islands fail to convince the world they are not a centre for tax avoidance.
Bob
Friday, February 20, 2009
800 Years Old Petition Rights to The Queen Invoked
The action group to help local depositors from the collapsed Landsbanki group have invoked petition rights granted 800 years ago to the Queen of England. It is one of a number of ancient rights arising from the unique relationship between the islands and England, in particular the monarchy.
The petition 'prays' for the queen's indulgence to intervene using her influence with the UK Government.
Local depositors lost out despite the bail out of UK counterparts by PM Gordon Brown. The petition is keen to stress that these are ordinary locals who have lost out, not rich tax dodgers. An explanation perhaps necessary in these times when so many have an opinion about the island's tax status.
Bob
The petition 'prays' for the queen's indulgence to intervene using her influence with the UK Government.
Local depositors lost out despite the bail out of UK counterparts by PM Gordon Brown. The petition is keen to stress that these are ordinary locals who have lost out, not rich tax dodgers. An explanation perhaps necessary in these times when so many have an opinion about the island's tax status.
Bob
Thursday, February 19, 2009
Amazon Bullies Local Awards Site
Local book awards site Amazonclicks.com is being bullied by the giant Amazon group into giving up it's name. A spokesperson for AmazonClicks told me today they had threatened to take the site, which supports aspiring authors, off their Associates program, he went on,
"We won't be bullied and the more they try the more we will fight back. It's our domain name!
AmazonClicks.com carries very clear disclaimers stating the precise relationship with Amazon on every page of the website, Amazon.co.uk approved the name and have worked with the site n their own Associates program for many months accepting hundreds of new customers and taking orders via the site."
A number of other alleged unethical practices are claimed and there is even talk of a class action law suit being filed on behalf of a large number of authors.
Bob
"We won't be bullied and the more they try the more we will fight back. It's our domain name!
AmazonClicks.com carries very clear disclaimers stating the precise relationship with Amazon on every page of the website, Amazon.co.uk approved the name and have worked with the site n their own Associates program for many months accepting hundreds of new customers and taking orders via the site."
A number of other alleged unethical practices are claimed and there is even talk of a class action law suit being filed on behalf of a large number of authors.
Bob
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