Guernsey Finance successes “even better news” than the Island Games

Thursday 20 July 2023

Public money should continue to be provided to the promotional wing of the island’s financial services industry, the States was told, with one deputy saying what’s been achieved in the past three years should be celebrated at least as much as Guernsey’s triumphs at the Island Games.

Deputy Lyndon Trott, who is also Chair of Guernsey Finance, urged States members to do all they can to continue Guernsey Finance’s success by agreeing to a continued uplift in its funding for an extra three years.

Baseline funding for the organisation was set at £1.5m per year at the end of 2020, and a three-year deal providing an additional £1m each year was agreed soon after to help it expand its promotional activities in external target markets.

Economic Development has proposed adding another £1m per year until mid-2027 so its educational work across the globe can continue.

“It's a good story that is even better news than our phenomenal results in the Island Games. Whilst sporting achievement is incredibly important for a whole variety of reasons it doesn't butter too many parsnips, whereas economic success and excellence does,” Deputy Trott said.

“That's not in any way to degrade the wonderful achievements we've had, but I think it's important that we play up just how good our dominant economic sector is.”

Deputy Trott listed off multiple awards Guernsey has won in the past three years, such as best international finance centre, Europe’s top captive insurance jurisdiction, and the fact the island has climbed the ladder of the City of London’s global financial centers list.

“That is what the investment of this Assembly, supported by the Policy & Resources and the Economic Development Committees, and most members of this Assembly can get you,” he said.

Board meeting yesterday- impressive reporting and growing new business pipeline so I don’t think so, no.

— Steve Falla (@steve_falla) July 18, 2023

Pictured: Deputy Steve Falla said on Twitter that ED is satisfied Guernsey Finance is providing value for the taxpayer money it receives. 

Economic Development President, Deputy Neil Inder explained the importance of continuing to fund the committee’s projects including Guernsey Finance, which he said was essential since the sector “drives absolutely everything". 

“We may not like it but it is a statement of fact, and we must as a government, and any future government, ensure that we do everything to keep that industry on its legs making sure Guernsey is the premier international finance centre which it is and will continue to be.”

ED’s Vice-President, Deputy Steve Falla told States members that the future funding was a “safe bet and a no brainer” as the industry “for the time being is our future”. 

Deputy Trott reiterated the contribution provided by the sector: “The financial services sector remains the key driver of the island's economy, employing almost a fifth of our workforce with an estimated further 16% employed in supporting industries such as accountancy, law, audit, and other professional services. 

“This rich and diverse sector provides an excellent standard of living for those working in industry, and most importantly the wider population who benefit from the contribution the financial service sector makes to the overall economy. 

“It is therefore paramount that this industry is maintained with provision to continue building on that success. This high value industry can continue to provide much needed tax revenue and economic growth in the backdrop of service cutting and ever-increasingly tight budgets."

The States have agreed in principle to provide extra cash, but final consideration will be given when Policy & Resources presents its Funding & Investment plan for all upcoming government expenditure in September.