On 25th January 2011 BBC Channel Islands TV in Jersey covered the increasing pressure being put on the UK Government to end the so called offshore fulfilment industry and the exploitation of LVCR that is affecting thousands of mainland UK businesses.
The programme mistakenly suggested that items sold from Jersey are VAT free because Jersey does not charge VAT (when VAT is actually due on all imports into the UK but is waived through LVCR on import) and Jersey Ministers discussing the industry on the news item seemed ignorant of EU legislation.
Charles Parker The Jersey Treasury Minister suggested that it was legal for the UK Authorities to allow the Islands to limit the number of businesses ‘exploiting this opportunity’ when no such discretion exists in EU law. Alan MacClean Jersey’s Economic Development Minister not only misrepresented the Islands fulfilment industry policy by falsely stating that only local goods could be sold, but went on to say that the Jersey Authorities would only support local businesses and were not prepared to allow companies to misuse the Island to abuse another countries tax regime.
What appears to be lost on the senator is that the entire fulfilment industry could be deemed an abuse, and that companies are only moving to The Channel Islands from the UK mainland because the local Jersey companies that he refers to are putting UK companies out of business. UK companies have to move to Jersey or Guernsey and join in the exploitation of LVCR or go bust.
In the same broadcast they also interviewed RAVAS spokesperson Richard Allen