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.