Move to stop work on GST rejected by States

BBC Eleven protestors outside the States with three people holding no to GST placards. A man, Deputy David Dorrity who we see from behind is walking up the stairs to the Royal Court. BBC
A handful of protestors gathered outside Guernsey's Royal Court on the second day of the States meeting

A move to stop work on part of tax reform proposals has been rejected by politicians.

Proposals to halt work on a goods and services tax (GST) has been rejected by the States of Guernsey with only 10 supporting the move from deputy Liam McKenna and 28 voting against it.

Policy and Resources' (P&R) tax package includes a 3% GST, tax breaks for lower and middle earners, the re-introduction of motor tax, States savings and higher taxes for companies, which treasury officials estimate will bring in around £40m a year.

P&R President Lindsay de Sausmarez said the plan would diversify the island's tax base, support people on lower incomes and help fund public services.

P&R committee member Andrew Niles said credit rating agency Standard and Poors would be visiting the island next week.

He also urged members to back the tax package, to show the agency the island had control of the island's finances.

It is expected a final vote on P&R's tax proposals could take place on Friday, however there is a risk deputies could run out of time with a number of amendments still to be debated.

Some deputies have speculated the anti-GST side has been making long speeches on each amendment to ensure the issue drags into the next States sitting in September.

Deputies have voted to shorten their lunch break today and sit until at least 18:30 in an effort to extend debate.

Two placards in a plant outside Guernsey's Royal Court. The placard you can see says Deputies remember who put you are, do not treat us as idiots, do not treat us as meal tickets.
So far all the proposed changes to Policy and Resources' plans have been defeated

Which way did they vote?

On the proposal to stop all work on GST, deputies Chris Blin, Haley Camp, Garry Collins, Rob Curgenven, David Goy, Bruno Kay-Mouat, Liam McKenna, Jayne Ozanne, Lee Van Katwyk and Simon Vermeulen all voted for it.

Deputies Yvonne Burford, Tina Bury, Andy Cameron, Lindsay de Sausmarez, David Dorrity, Steve Falla, Adrian Gabriel, John Gollop, Sarah Hansmann-Rouxel, Mark Helyar, Rhona Humphreys, Neil Inder, Sasha Kazantseva-Miller, Marc Lainé, Ross Le Brun, Marc Leadbeater, Munazza Malik, Paul Montague, Andrew Niles, George Oswald, Charles Parkinson, Sally Rochester, Tom Rylatt, Gavin St Pier, Jennifer Strachan and Steve Williams and Alderney States members Edward Hill and Alex Snowdon voted against it.

Two deputies - Andy Sloan and Aidan Matthews - abstained.

A handful of protestors gathered outside the Royal Court on the second day of debate after about 200 people turned out to protest on the first day.

During debate on the proposal to stop work on a GST, Van Katwyk said: "Do not force GST on us, because it is what the rest of the world has done, Guernsey is unique.

"I implore you not to take the easy path politicians have taken for two decades."

Deputies also rejected an attempt by Collins to create a new committee to look at all States spending and how savings could be made.

During debate on that proposal, Helyar - who is States Trading Supervisory Board President - warned that the States did not have time to create this committee and do its work.

He said the island was running out of money and he was concerned the States could get to the point where the Civil Contingencies Authority, a body set up to deal with emergencies, would have to run the island.

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