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The politicians behind the tax plans which include GST have hit back at claims they are "scare-mongering" or "making threats" and they're instead encouraging the public to "consider all the implications of not acting, with their eyes fully open" if the proposed changes aren't made.
In an open letter to the public - published in full by Express today - the Policy and Resources Committee has apologised if they have come across as bullying members of the community around what is a "difficult and unwelcome decision".
Pictured: The open letter to the public is published in full HERE.
P&R's plans will be debated by the States in January.
They include a package of measures that mitigates the introduction of a goods and services tax with increased personal allowances and higher caps at entry level for lower earners making their contributions.
P&R says that the plans aim to "ensure those on lower and middle incomes are not worse off, but also raise enough revenue to ensure we can provide the essential services that people rely on for the coming decades."
The committee believes that "many people" will be better off as a result of this package of measures and it is also warning that "if we do nothing, we’re genuinely concerned that (providing essential services) won’t be possible."
The letter is signed by all five members of the Policy and Resources Committee, including Deputy Bob Murray who only joined P&R a fortnight ago after being voted in to replace Deputy Heidi Soulsby who resigned from her role as P&R Vice President.
She said that her opposition to GST was the final straw and led to her decision to quit after she had increasingly felt that she wasn't listened to and her views were not appreciated.
Pictured: Deputy Heidi Soulsby quit P&R claiming the proposed introduction of GST was the final straw.
Deputy Soulsby is not the only politician opposed to the proposed introduction of GST.
Deputy Liam McKenna shared a video via social media this week where he criticised the plans, while Deputies Charles Parkinson and Gavin St Pier are expected to be among those lodging amendments against the plans.
P&R are sticking to their guns though and have again said that too many people are focusing just on the GST element and not on the wider package of measures.
Through their open letter, P&R have jointly said:
"We cannot stress enough, that a 5% GST is just one part of a package which has been designed especially to ensure those on lower or middle incomes are not worse off, in fact most would be better off. But in order to make that whole package work, it does need to have a GST in it, because that gives us both a means to raise significant amounts plus the flexibility to redistribute some of the money so it genuinely helps lower and middle-earners."
P&R says the package of measures proposed will also see the States:
P&R also says that "a GST also means businesses will contribute more, and tourists, business visitors and anybody spending money in Guernsey will make a contribution which they don’t currently."
Above: P&R tax presentation can be watched back in full.
It was at the public presentation on the P&R tax proposals that some allegations of members "scare-mongering" and "bullying" the public into backing GST originated.
Deputy Dave Mahoney asked a member of the audience if those signing a petition against GST could also note down which school or hospital ward they would close if there isn't enough money to run them in the near future.
P&R now says that details are "being lost in the public debate" and that it is the entire tax plan as a whole that is proposed that needs to be considered - not just the GST element.
P&R says the package of measures are "so important" because they will "make all the difference between what some people fear – a tax hike that hits the poorest hardest – and what we are proposing – a way to raise more funding from those on higher incomes and from businesses while protecting those who earn less."
Overall P&R says they collectively have one aim, which they see the tax proposals as being crucial component of.
"Our goal is to secure the best outcome for Guernsey’s future and in particular for the next generation of Islanders. If we don’t act now we will be putting them in an impossible situation where they have no hope of funding the sorts of services we think of as essential. But it’s not yet too late to do something about that."
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