Guernsey Politician Backs Calls to End Abuse of LVCR

A  prominent member of the Guernsey Parliament, Barry Brehaut, who is also the Chair of Guernsey’s scrutiny committee and a member of the Health and Social Services Department has come out against the abuse of LVCR in a recent communication with the Forum of  Private Business (FPB).

“Guernsey has a reputation for being a well regulated ‘white listed’ financial centre, more recently however, in attempts to diversify the nature of the economy, we have moved into areas that have ultimately led to our UK counterparts – not unreasonably – to become more politically inquisitive,” said Mr Brehaut.

“Guernsey has a unique relationship with the UK and a great deal of shared history, however there is the sense that Guernsey is becoming increasingly tolerated, rather than accepted”

“The fulfilment ‘loophole’ has had a real impact on small businesses in the UK, they simply cannot compete with the multinationals exploiting a provision that was initially in place, ironically, to assist with exports from the growing flowers and plants industry.”

He added: “More than ever before there is a sense that the Government will move to close the ‘loophole’ that is conservatively estimated costs £150 million in lost revenue, a figure that is growing”

“No doubt there will be implications for the local postal service and the consumer, however it was always thus. Our commerce and employment department have embraced fulfilment with a fixed short-term view. Guernsey must re-establish a close mutually respectful relationship with the UK  and look at alternative sustainable models to underpin our economy rather than the more transient enterprises that will ultimately only lead to conflict with the national government and have untold reputational issues.”

Mr Brehaut contacted  Richard Allen of RAVAS back in 2006 and his intelligent contribution to this debate is welcomed.

6 Comments

  1. Well said that man! Very impressive – it seems so rare these days to read someone expressing views that resonate with honesty and integrity. Let’s hope someone is listening and takes notice.

  2. What a refreshing take from someone over there. As I watch shops on my local high-street getting shut as a direct result of this avoidance scheme, with the resultant hardship to those directly concerned, I for one will not be putting any money into the Guernsey tourist coffers ever again until this gets stopped.

  3. A commendable quote and highly respectful in the sense that Barry Brehaut is embracing the bigger picture, unlike other CI lobbyists who are purely attempting to protect the income of their ill-gotten gains.

    I hope “http://www.netlaw.co.uk/vat-lvcr” take note, as it appears that Richard and is cohorts arguments DO stack up!

    Crossed fingers for a level playing field, where no one is hurt.

  4. This is amazing that this issue is actually being dealt with instead of just again being swept under the carpet

    This will have such huge effect on UK businesses and in the sort of economic climate this can be nothing but a good thing

  5. prominent member – surely some mistake?
    You guys obviously dont know this person!

    1. Put it this way. Nobody here has heard of any politician from Guernsey other than Barry Brehaut, because he’s said something that actually makes sense which is relevant to what’s going on. That makes him prominent in our book. Actions speak louder than….

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