Relax employment laws to help boost economy say GRG

Tuesday 21 February 2023

Employment laws need to be relaxed in a bid to help grow the economy, the Guernsey Retail Group has said.

It welcomed last week’s decision by the States to reject a GST and wants it to now take “bold steps” to address the issues facing the Island.

“​​We understand that P&R has to find ways of increasing revenues to pay for essential services, which is not an easy task, so we need to look at ways of growing and diversifying our economy,” said Korinne Le Page, Head of Retail Development at the Guernsey Retail Group.

“This should include addressing the housing shortage and making it easier for people to live and work here through a relaxation of employment laws which have been so restrictive.

“We also believe that externally, a GST-free Island should be used as a unique selling point to visitors, the vast majority of whom come from jurisdictions where there is a tax on consumption.”

States members failed to agree on any major reforms to the tax package on Friday, throwing out Policy & Resources' plans that included a GST and other income tax and benefit changes to balance the impact - as well as all the alternatives.

“We are naturally pleased that the States opted not to introduce GST and would applaud the decision that the Assembly has taken although it is disappointing that no other progress seems to have been made,” said Ms Le Page.

“The GRG was highly concerned by the potential critical impact that a GST would have on retailers and other businesses within the Island and the predictions from many that this would lead them to close.”

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