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A majority of States Members have said no to Deputy Heidi Soulsby's 'Fairer Alternative' to the Tax Review plans with Policy and Resources trying to come up with a compromise agreement to try and bring everyone together.
Although her proposals were defeated by 24 votes to 16 after almost two days of debate, many deputies voiced concerns about the introduction of a goods and services tax.
GST is the main revenue raising measure of P&R's policy letter and it was left out of the FA plans - although Deputy Soulsby said it would be kept as an option for the future.
Deputy Soulsby had tried to gather support for her proposals by highlighting the distrust many sections of the community have in the States.
"Most importantly, this amendment addresses the concerns of the public who have right now lost trust in their government. They want to know we are doing our bit before they are expected to shoulder new taxes that they believe will just be the start of a slippery slope."
Pictured: Ultimately Deputy Soulsby's amendment was rejected - with 24 States members voting it down. 16 backed the Fairer Alternative.
P&R President, Deputy Peter Ferbrache had urged the States to throw out the FA saying it would just create more problems by not addressing the financial deficit strongly enough now.
“What we should be doing is investing every penny of public money sensibly for the benefit of the people of Guernsey and Alderney," he said, "but we've got to make decisions. We've got to make decisions now. It seems to me with respect that some people in this Assembly are using various things as their lifeline.
“We live in the real world where we've got to get money in before we can spend it. Now, it's all too easy to say, ‘you can just make cuts’.
“We've had lots of emails and letters and people rushing to the media say they hate GST. So do I. In the purest form I could not accept it. But it's been abundantly clear that people have not read the policy letter. The proposals are not just to bring in GST, but a consumption tax and mitigations, mitigations that would actually make the poorest in our society better off.”
In closing, he said: “We have to deal with what we have to deal with. So if members, if it gives them comfort, means they haven't got to make a decision, means they can go into the next election saying, ‘well, we haven't made a decision. We bashed those boys'... instead of looking at something that's been progressively put forward by intelligent people over a period of time, do it. That's the Guernsey that you'll be giving to the next generation.”
Pictured: Deputy Peter Ferbrache facing protestors on the States steps on Wednesday morning.
Realising the suggested introduction of GST remains highly unpopular among politicians as well as the public, Deputy Jonathan Le Tocq asked the Bailiff for a recess "in order for P&R to consider a potential way forward bearing in mind how the debate has gone so far".
Following that short break, Deputy Charles Parkinson spoke to lay his amendment which would bring in corporate taxes if approved.
Other amendments laid have included a pledge from P&R that GST would be held at 5% for a decade - something current and former politicians have confirmed they cannot ensure would happen as one States is not bound by the decisions of a previous States.
Another amendment would see P&R's plans butchered - removing GST and cutting spending elsewhere.
Nothing else has been announced by P&R at the time of publication but further amendments are expected, with a compromise of sorts likely to be drafted.
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For: Yvonne Burford, Tiny Bury, Andy Cameron, Lindsay de Sausmarez, Simon Fairclough, Steve Falla, Adrian Gabriel, Sasha Kazantseva-Miller, Marc Leadbeater, Aidan Matthews, Charles Parkison, Lester Queripel, Heidi Soulsby, Gavin St Pier, Andrew Taylor, Lyndon Trott. 16
Against: Sue Aldwell, Al Brouard, David de Lisle, Andrea Dudley-Owen, John Dyke, Peter Ferbrache, John Gollop, Sam Haskins, Mark Helyer, Neil Inder, Chris Le Tissier, Jonathan Le Tocq, David Mahoney, Liam McKenna, Carl Meerveld, Nick Moakes, Bob Murray, Victoria Oliver, Rob Prow, Steve Roberts, Peter Roffey, Alex Snowden, Simon Vermeulen. 24
Abstained: 0
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