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GST critic rejects debate

GST critic rejects debate

Monday 12 December 2022

GST critic rejects debate

Monday 12 December 2022


Deputy Liam McKenna has turned down the offer of a head-to-head debate with Deputy Peter Ferbrache over tax and spending policies.

Deputy Ferbrache, the President of the Policy & Resources Committee, called for a public debate between the two men after Deputy McKenna released a video slamming proposals for a new goods and services tax [GST].

But Deputy McKenna, pictured top right, said over the weekend that a head-to-debate would be the wrong approach.

"The proper and correct place to debate is in the States' Assembly under parliamentary procedure, with the Bailiff as Presiding Officer," said Deputy McKenna.

"40 States' members will debate -  not just two."

The Committee hopes its far-reaching draft tax package will be debated by the States' Assembly at the end of January. 

"I am looking forward to 25 January," said Deputy McKenna.

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Pictured: Deputy McKenna believes debate between deputies over tax and spending should wait for a States' meeting at the end of January. 

In addition to a new GST of 5% on almost all purchases, the Committee wants to increase social security contributions, cut tax on income up to £30,000 a year, increase the personal tax allowance and introduce a personal allowance on social security contributions at the same level as the income tax allowance.

The Committee estimates that its proposed changes would boost States' income by £55million a year, but also leave most families better off, with only the most affluent 40% of households paying more.

In the video, published on his Facebook page, Deputy McKenna spoke of "GST to avoid civil service job cuts, GST to punish every Guernsey family [and] GST to cover up Government's failure to control its spending" and said GST would contribute to "our children and grandchildren being forced out of the island where they were born".

He characterised the States as a place "where instant gratification is no longer quick enough".

Deputy Ferbrache, pictured top left, told Express that Deputy McKenna's video "perpetuated completely baseless myths" and said a head-to-head discussion between them would provide "informed and serious debate...without the populist rhetoric".

He appealed to the media to organise and present a head-to-head debate or interview and invited editors to put forward ideas about how to set it up.

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Pictured: The members of the Policy & Resources Committee faces a tough challenge to secure the approval of the States' Assembly for its far-reaching tax plan and get it introduced before the end of the States' term in June 2025.

Deputy Ferbrache defended his Committee's tax plan and suggested that Deputy McKenna's analysis was unrealistic and irresponsible.

"I genuinely welcome all contributions as we try to solve the incredibly serious challenge of how to ensure health, pensions and other essential services can continue to be funded as demand for those services grows. It's a problem I wish we didn't have, but one we cannot continue to ignore," said Deputy Ferbrache.

"But it is incumbent on all responsible States' members who are opposed to our recommendations to put forward realistic and thought-through alternatives.

"Incredibly, Deputy McKenna also rails against the growing pressure on our health service and pensions, which is precisely the problem the tax review is looking to solve. 

"And he ignores entirely that our fully fleshed-out recommendations will see most lower- and middle-income households better off compared to now."

Video: Deputy McKenna's two-and-a-half minute 'say no to GST' broadcast which prompted Deputy Ferbrache's suggestion of a public debate between the two men.

READ MORE...

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ANALYSIS: The States' biggest test

Former Vice President reveals opposition to P&R tax plan

Social security changes help poorer families and 'middle Guernsey'

Tax plan includes 5% GST - but P&R says most families will be better off

Why States leaders STILL think GST and tax reform is needed

"Unacceptable" and "damaging" service cuts if States reject GST

Is corporate tax the answer?

Treasury chief won't lead tax plan

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