2019: Another annus horribilis?

Wednesday 25 December 2019

The Institute of Director's Vice Chair Stretch Kontelj has penned a summary of 2019, and what has happened throughout the year. What impact has the UK, and the world's, turmoil had on Guernsey?

"What a year it’s been, engrossing in same measure as frustrating.

"Brexit uncertainty and climate change activism dominated news stories in 2019. Given the goings-on in Westminster, one had to wonder if politicians live in the same universe as the rest of us. The Brexit intransigence was infuriating and damaging for business and the community at large. Politicians seemed so preoccupied with their own agendas that they put the community’s interest second to political point-scoring and feigned outrage. It was rather pathetic at times and in the meantime, businesses were closing down across the UK.  

"The UK voting public was fed up with the ongoing uncertainty and when given the opportunity at the general election, regardless of their political persuasion or referendum vote on Brexit, they galvanized en mass behind Boris Johnson in the hope that he will bring the uncertainty to an end. The Tory's won the election in a landslide and Labour was punished for its failure to articulate a definitive position to end the malaise. Business hates uncertainty. While many in the business community would have preferred the UK to remain in the EU, the vortex caused by the resultant uncertainty moved many in business to call for Brexit via a negotiated position if possible, but if not, a hard Brexit to allow them to get on with dealing with the known.

"A hard Brexit will create a short to medium-term economic shock, it would, however, allow business to adjust to the new world order. The other issue that has dominated business and the community’s thoughts has been climate change. Regardless of your view on the impact of human activity on CO2 emissions and the resultant climate change, governments worldwide and political parties of all persuasions have embraced the need to be seen to be dealing with climate change containment and climate change abatement. In many ways, Guernsey is an observer of these dramatic events and is well placed to take advantage of the opportunities that inevitably exist in such turbulent times. In the instance of Brexit, Guernsey sits outside the EU yet is a beneficiary of any negotiated UK deal.

"Guernsey is increasingly seen as a place of economic and financial stability in a world dominated by uncertainty and turbulence. In the case of climate change, as discussed at this year’s Institute of Directors Guernsey Branch Convention, Guernsey’s nimble and responsive regulatory regime is ideally suited to take advantage of the ‘rivers of gold’ that are flowing into green finance and climate change adaptation projects and initiatives. So, despite the otherwise global annus horribilis, every cloud has a silver lining and in fact, if it plays its cards rights, the global uncertainty provides an ideal opportunity for Guernsey to clean up."

Pictured top: Stretch Kontelj, the IoD's Vice Chair.