Finance crisis talks

AN emergency delegation is flying to London for talks after news emerged of a dispute with the UK about an anti-tax evasion treaty which could have severe implications for the finance industry.

Chief Minister Ian Gorst
Chief Minister Ian Gorst

AN emergency delegation is flying to London for talks after news emerged of a dispute with the UK about an anti-tax evasion treaty which could have severe implications for the finance industry.

Chief Minister Ian Gorst has confirmed that the UK is threatening to block a major deal that would see information about all US citizens’ bank accounts in Jersey handed to their tax authorities.

It is because the UK wants the same information about its residents with accounts held in the Island.

It is a demand that is widely regarded as the latest attempt to crack down on so-called ‘tax havens’ and the dispute threatens to become a serious issue if it goes unresolved.

Comments for: "Finance crisis talks"

Concerned.com

Don't panic Don't panic Captain Mainwaring

We're doomed

Et al

CHRISTMAS in the BIGHOUSE

different story, but SAME RESULT.

Hector's pants

Well if we accept that the US can introduce such a system for its citizens, why shouldn't the UK do the same for its? We've seen with the likes of Jimmy Carr that there still are rogue trust companies and lawyers in Jersey who are ok with, lets give them the benefit of the doubt, help facilitate egregious tax avoidance. Those spivvy trust outfits have brought this sledgehammer on to us. Shouldn't the JFSC have been more proactive in basically running them out of town?

paulc

this will be interesting.

Katie

I cant see the States standing up to them, after all, they didnt for mail order companies, and that cost many many jobs !

Maw

ITS TIME JERSEY WENT UDI! UK are acting as a TAX HAVEN,they just want our business.

Kristall Nacht

Yes, and after UDI Jersey will need it's very own Royle Family.

Or maybe we already have.

Kermit

What will happen if we don't ? Invasion ?

Haymarket

No, there's no invasion to worry about, but that might be preferable! If Jersey can't sign up to an agreement with the US over FATCA thus neither can any Jersey based bank. This in turn means that large taxes can and will be levied against transactions going through large numbers of Jersey accounts. Transfer someone £1000, and because you've not been cleared with the US, £300 will be withheld by the bank sending the money, and they'll pay it to the American tax man. Multiply that by the sums transferring to and fro, and soon enough nobody does business here. So Finance winds down overnight, 5000 people sign on with SocSec the next morning and anyone who still has a job now has to pay rampant levels of tax for the brief period before their job no longer exists, and soon enough the rest of our economy unwinds because the monies not there.

Kermit

If you put it this way, we are screwed ....

Judge Jeffries

No, not necessarily an invasion but I'm sure that the French govt would relish shutting us down in collusion with the UK- simply by pulling the plug on our electricity supply a few more times every year thus calling into question our resilience as an offshore centre.

johnl

Kermit, dont worry we have no oil.

Dani

Through the Ministry of Justice the UK is responsible for our defence. Interesting thing to consider I guess.

Jung

We don't know what's happening behind closed doors but we know so called tax havens only have a future for the super rich. It's bad for people employed in this industry but they should be clever enough to know it can end at any time. There will always be a few jobs in finance but when the majority of jobs go things will change again. It might be a good thing, especially for the younger generation to come up with new ideas and especially housing might be affordable again.

Kermit

Meaning your house will be worth peanuts: Peanuts meaning what they are really worth...

Jung

If I bought it for peanuts I'm not bothered:-)

Scrutineer

"....it might be a good thing ......" Perhaps, in the long term, but it will be a very painful transition for most people on the island. How are we going to afford the States members and States employees wages at current levels? They are funded on the back of Finance directly or indirectly. We are not going to be able to afford this, and this is going to be a big problem. Mr Corbel will dig in, as he is paid to do by his members. There is also a big pensions time-bomb looming, and it is all going to come together. We are not necessarily doomed #1, but we need to do something about public sector wages, and do some pretty sharp economic diversification, and do it soon.

gino risoli

Yes, seven years ago l with many others warned against putting our eggs in one basket.

Now what we need is a good dose of accountability to shake up our government.

jim

I see captain spineless has gone to save the day bet he has taken the captain spin ozouf with him god help us

the future

Will the Esplanade Quarter be finished in time and can we cancel the new expensive financial services study/publicity organisation after all i think we need the money here now.

Finding Me;Mo

Since this follows two other headlines.

Firstly that we might have a literary festival next year (the minor issues like the last one he organised disappeared without a trace, that Guernseys this year was less than a resounding success and that it is usual to book 'hot' authors at least eighteen months in advance!! aside. As diversification.

Secondly, that volunteers were finding out what it is like to sleep in a cardboard box in Pier Rd carpark.As aslternative accommodation.

Should I be seriously worried!and I don't work for the finance industry except very indirectly.

Beaumont

There will be a number of posters on here claiming the UK are victimising us, just like they did with LVCR.

However, if I lived in the UK, I'd think this is a perfectly reasonable request. If Jersey are happy supplying this information to USA, why are the not happy doing the same to the UK?

I think we all know the answer to that!

joker

because they're too tight to pay for the information?

Dave C

Maybe jersey does not want to supply this this information because the agreement would only be between the Crown Dependancies and the U.K. whereas, I believe, FATCA is between the USA and pretty much the rest of the world. Possible end result is that the money moves to somehwere where the U.K. cannot get their hands on the info meaning that they don't get the revenue and Jersey loses buisness. A no win situation.

Would be interesting to see how much business was lost though, as this might give an indication of how much was dodgy in the first place.

Have a word

The usual empty headed replies on here...

Jung, you seem to think it would be a good idea as "housing might be affordable again"?

So if the house market crashes, what about all the people that have lost fortunes on buying somewhere?

Maybe a recent purchase, a young families etc. Not everyone on this island is a super rich millionaire are they?!?!

Jung

Why empty headed? It's empty headed buying overpriced property. Any lender tells you that if you don't keep up with payments you could lose your home, so don't buy if you can't afford it. Now people who are good savers get the mortgages and not the people who might be good earners, but can't save. I kept saving and now have a house 1/3 of what it was a few years ago. Even if was unemployed I could still afford the repayment & you call that empty headed:-)

Jones

Lost a fortune????? If people are prepared to pay these prices, it's up to them. If I see a jacket I like but can't afford it, I just wait for the Sale or buy it during summer. People used to buy homes and it was a home, now it's only about profit.

belonger

Ah well its back to digging spuds and vraicing

Gwasbach

Can't we get some financial investigators to establish if the proponents of this purge, have any ill gotten gains of their own? I am sure few will be whiter than white.

donald pond

A lot of the current negative publicity comes from the Guardian, mainly owned by the GLG trust in the cayman Islands.

And what are the most secretive jurisdictions in the world? Well, Delaware and Nevada would be much higher on the list than Jersey and it is easier to establish a company at the UK Companies House in Cardiff than it is in Jersey.

David Cameron and George Osborne's families have used offshore trusts. Ken Livingstone structures his affairs to minimise/avoid tax.

But there is no logic any more in any of the arguments. It is just a kicking exercise now, no point trying to argue the madness of it all.

I'm afraid being "offshore" in 2012 is much like being Jewish in 1932. There has been a huge financial collapse and someone must be to blame, and that someone must be a minority who are good with money and keep themselves to themselves and ergo run the world behind closed doors.

ILS

To compare the plight of the Jews in 1930's Nazi Germany with that of self serving corporate offshore accountants, bankers and lawyers of the financial services industry, most of whom live priviledged lifestyles at the expense of others is quite possibly the most distasteful and downright silly thing I think I''ve ever had the mispleasure to read on this or any other credible news forum.

Tom Jones

Its actually indicative of the warped morality of people who've worked in that finance bubble most of their lives.

The hypocrisy of some UK politicians is certainly correct though.

donald pond

I am sure many German propogandists would have described Jewish businessmen as being "self serving" and living "priviledged lifestyles at the expense of others". So, ironically (in the true meaning of the word), your very post proves the point I was making.

Brian Jacks

Not true. Comparing the plight of 30's European Jews with people who work in the financial services industry in Jersey in 2012 is utterly distateful.

Propaganda

Err no it doesn't Donald, trying to justify your ridiculous and offensive analogy is just digging yourself a deeper hole.

The UK like many other coutries is struggling to pay it's way and public pressure is calling for avoided tax to be minimised.

I don;t know why anyone is surprised by this or can call it unfair, After all, our very own Treasury Minister was recently quoted as saying "we are going after tax avoiders" when announcing the 2013 budget.

Apparently Mr Ozouf does not like individuals arranging their income through service companies which minimise their income tax and soc sec liabilities.

What's good for the goose must be good for the gander eh?

pat

when are we going to stand up for ourselves and tell england where to go.They have cost the island enough jobs as it is

Carly

Ridiculous comment

England hasn't cost us any jobs. If you're referring to LVCR, then you're talking absolute garbage

ex-resident

Perhaps when you no longer rely on U.K. for specialist hospital treatment and universities, not to mention the 'consultants' - mind you bet a few of them are dreading a sudden drop in business!! Jersey you reap what you sow!!!!

joker

you mean the specialist services we pay for?

ex-resident

Yes I do, but it's not so long ago that the health service was suspended for a worrying period of time - due to the dishonest declarations made by Jersey States Departments!!

joker

I thought we were talking about specialist services? The reciprocal agreement was suspended not specialist services. Let me explain: the reciprocal agreement applies only to Jersey residents who require treatment when living or visiting the UK which is reciprocated to UK residents here. Specialist services are Jersey residents that need to travel to the UK for treatment. We continue to, and always have paid for specialist services. We’ve also always paid oversees rates for universities.

Seeing as we already pay for these things I’m still not sure what your point is?

uni student

and the uni places that cost over £10k p.a. because they already consider us to be "international"

Overpopulated

Well Uk people now pay £9k per annum for university so not much difference there.

Tobias Worthington

Yup £1k or so more than UK students. Seems cheap given the parasitic relationship that Jersey has to the UK.

Dave

Maw is correct the UK is aggressively promoting the city of london and sees the offshore as competition even if we are British and loyal to the crown.

Just a local

Dave,

But the problem is often that Jersey has an identity crisis when it comes to membership of the UK. On defense, we're in...but we have to pay for a TA unit. On health & education in universities, we're out and seem to have the same status as non-Europeans. We opted out of the European Union so we could have an offshore finance industry without intervention & scrutiny from Brussels, but oh, could we have some money to build wind & water power systems? Maybe it's time to look at alternative industries!

Wrecker

@hector's pants - that's made me laugh so much I could have taken you for one of the few normal people I have ever met. Hold on I have the answer...I have the answer...FATCA us about 10% interests or more. Just go for the domiciled ones...the naughty little tax avoiders who should be paying capital gains!!! Or maybe, the game of chess goes on...washing out that HMRC revenue lifeline by travelling around a bit - it's all like a game of risk and chess mixed together (computer versions these days)...no-one likes paying tax! Do you? Most of its perfectly legal...at least there is a king with a conscience going to blightey and if they don't know it now they will do soon (King Ian). Jersey is being let down and has been by some crooks.

Where are the fines...criminal prosecutions and large gonads to sort the honest from the crooks??? Fairness is not a characteristic of many. There's a mixed bag out there...fair views and fair people are needed everywhere!

Tobias Worthington

Paying your tax dues is the price for civilisation as Jeffrey Sachs says. The goalposts have moved in the UK (re their attitude to the activities in the Crown Dependencies)and US to what they consider the more moral end of the spectrum ( LibDems like to think that's their thing). It will shift back the other way when in say a decade the UK will hopefully have recovered most of its lost GDP and destroyed capital from that bubble period. Then, as Hyman Minsky postulates, they will be happy to use and accept the structures at the more ponzi (using his definition of that word not the pyramid schemes) end of the spectrum which the likes of Jersey do so well.

Losers

Oh Dear we in the Doggie poo again?

Who Cares Really bout time this happened. Hav,nt any of you seen this coming?

Hav,nt any of you realised that the Jersey party is over?

Hav,nt any of you know of someone losing their job in finance recently and other work areas?

Hav,nt any of you seen the local population and blow ins filling them boats each morning ?

Last one in turn the lights out!

Hav,nt you heard that one many times over along with the boat out?

Hey folks its a big world out their you know, alot of this population does not realise that there are other countries on planet earth apart from an insignificant dot called Jersey.

Go grasp it and enjoy once Jersey falls flat on its face.

Finance workers go move somewhere else hotter and sunnier, i would if i was in finance.

Mario

Finance is winding down you only have to look at relocations and downsizing to see this in action.

I agree finance has had it day, time to move on. Trying to stop the inevitable will do no one any favours long term.

I think we need to get back to basics, this south sea bubble is at an end.

Whether finance funds this or that is irrelevant, what is relevant is what is going to happen next. Diversification should have been maintained, as it was up till the early 1980's, before finance took over.

Scrutineer you are right this pension time bomb will go off in the next decade and it won't be pretty. The sad thing is this has been known about for a good 40 years now, yet no one saw fit to factor it into the equation. I ask why was this?

Unfortunately I fear that diversification will come too late to prevent a continuing downward spiral. I expect to see increased negative equity as more up sticks and move to places with a better future. I know of quite a few who have done this, taking all their money with them liquidating their profits on the property market etc. The people that have replaced them are often mortgaged to the hilt. Gone are the days of easy money where you could buy a house for a couple of grand and watch it soar to 500k-1M or more.

However you can always take the rose tinted glasses approach and continue thinking the future is rosey....

Bloggs

What are we worried about, other than the compliance costs? We don't do evasion. That business surely died out years ago. If it didn't, then we deserve all we get.

Why haven't we signed up to automatic exchange of information though under the EUSD? I am sure that Gorst will be told that if you agree to automatic exchange then we let you sign up to FATCA.

There are real idiots on this thread already. UDI? We'd be ostracised and bust within a year. A good thing for Jersey if finance left? Well, every single house owner with a mortgage would immediately be in negative equity and therefore insolvent, and unable to get credit cards etc. Only an idiot could fail to see that.

A rocky road ahead but we are going to be made to pay for refusing to sign up to automatic exchange, and for allowing schemes like K2 to be operated from here.

Meanwhile, over in Guernsey I hear that the response is "oh well, it's an inconvenience but we will deal with it". Maybe Guernsey isn't into tax evasion business at all?

Overpopulated

Every house owner with a mortgage in negative equity - I doubt it, many sensible people with have mortgages much less than the current valuations being handed out by estate agents.

There are already, many, many home 'owners' in negative equity, those people who purchased at the top of the market with 100% or interest only mortgages.

However, everyone has to accept that advertised property prices are way too high and many are already being advertised with priced reductions of £100k or more.

Propaganda

Bloggs said "Maybe Guernsey isn’t into tax evasion business at all?"

You need to watch Panorama more often, particularly last nights episode.

Bloggs

Seems that the guy was unlicensed - not sure how Guernsey can regulate someone who is operating outside the system, all they can do is come down like a ton of bricks on an unlicensed person as soon as they become aware.

Donk

Hi Propaganda, I don't think you took a "propergander" at the Panorama expose. It showed Guernsey closed down the Sark Lark years ago and Minister Stuart came over extremely well in the potentially difficult circumstances. Guernsey is now very well regulated and he made that crystal clear. The fact that some ex-Sark residents (I stress the "ex") have now been revealed as big players in the seedy business of tax evasion is testament to the effectiveness of the Guernsey approach. The "financial advisors" in the UK who starred in the film have some serious questions to answer and I would guess some office shredders are working overtime. An arrest was made on Sark very recently and it is noted that the crime is of a financial nature. Care to bet who was arrested and why ?

gino risoli

Where ever this goes it will be alright, we will still be able to breath. Jersey Royals will save the day.

Tim South

Just three facts.

The UK and all EU countries are bankrupt, so is the USA.

Last month the Uk borrowed how much ?

Public sector net borrowing, excluding financial interventions such as bank bailouts, was £8.6 billion in October, up £2.7 billion on the same month last year.

The Chancellor wants to record borrowing for the full year 2012/2013 of £120 billion, compared with £121.4 billion in the previous year.

The amount held in financial institutions in Guernsey and Jersey two very small islands is,

In the region of £465 Billion.

The point is, why is the money in the Channel Islands ?

Secrecy does not work anymore and for any Commission or politician to say that every cent is clean is ridiculous, the stone turning has started and taxes are needed to prop up failed countries.

Tim

joker

“The point is, why is the money in the Channel Islands ? “

Interesting question. So shut CI finance down and then you can ask the exact same question about another less regulated jurisdiction when the £465bn is transferred there. What, you didn’t seriously think HMRC were ever going to get UK taxation on that money, did you?!

Wealth is mobile and it will always find its way to the least onerous holding place. Shutting CI down won’t change a thing.

lewton

When the people who can most afford to pay taxes don't,it is then down to the man in the street to pick up the slack. This has been illustrated clearly in Jersey with the advent of zero ten,which effectively lets businesses off the hook when it comes to tax liability.The outcome of this led to a #100,000,000 black hole, which Mr.Joe average had to fill.This has led to Twenty means Twenty,loss of mortgage relief,GST and generally higher taxation on everything,which has meant that people have had far less disposable income, retail sales have fallen,people are taking to the internet in search of more reasonably priced goods,they are entertaining at home more because it is to expensive to go out, and because there is no confidence in the economy nobody is investing so unemployment is rising, money is worth nothing in the bank so people will be more reliant on state pension, which will almost certainly have nothing in the way of funds to pay out,and this is just on our little island with a population of around 110,000.

HMRC reckons that they are loosing billions in revenue from money stashed away in 'Tax Havens" and not only are they losing patience,but there is now also a concerted media campaign to make the British public aware of the fact that this prolific use of tax avoidance is effecting their lives on a daily basis in the form of austerity measures that wouldn't be nearly as extreme, if everyone was paying their way.HMRC is now aggressively persuing companies and individuals that are not declaring their offshore assets and quite rightly so.

I don't think that Ian Gorst and Phillip Ozouf are going to be cut a lot of slack to be honest, and in an ideal world why should they? Because in honesty the UK's loss of revenue here makes LVCR look like chicken feed, and we all know what happened there, and for the love of god if an appeal is required keep Clanger Mc Claine well out of it.

Bob.

what will be will be greed A.

Archie Rondel

Well now then,is it time to brick up the walls and shut the ship down, cause we're sinking big time. More redundancies today,and huge more unemployed figures announced. What are we going to do Chief Minister. Better ask Phil. I've got an idea. Buy the Plemont headland and fence it off. Declare the area a legit "tax haven" and allow every "Tom,dick and Harriet" to stash their loot there,and then grass them up to their jurisdiction ,and keep the cash rewards that no doubt will be offered for the information. Simples . OR , reintroduce the signs at the airport ," will the last person leaving Jersey please turn off the lights"

sporran

What's the problem?

Our government, civil servants and the finance industry always claim that we are not a tax haven and that we are well regulated etc. etc. so we have nothing to hide, have we?

sporran

http://www.internationaltaxreview.com/Article/3121964/EXCLUSIVE-UK-to-impose-son-of-FATCA-on-Crown-Dependencies-despite-governments-denials.html

Yes -not too much to worry about.

St. Helier Resident

I have a feeling that the multi-storey carparks here in Jersey are going to be used for a lot more people sleeping rough in the very near future!

The finance industry in Jersey seems to be doomed and it doesn't matter how many courses Social Security conjure up for the unemployed masses, as there still won't be enough jobs for them all!

Overpopulated

Best thing is to give people resettlement grants so they can move back to where they came from or move somewhere else with better employment prospects

Pip Clement

It's a rat trap and you've been caught!

adder

jersey is finished sell now or lose everything

Rentokil

Greed hey. Table as many amendments to by laws as you like over decades but the global financial crisis and intellectual property dates back to medieval times.. Land registry in case anyone needs a big fat hint. (Intellectual property) from decades ago.. Tough at the top and even tougher if you haven't done your homework! Hope everyone enjoyed the free ride..

Mark G

By reading the comments its all doom and gloom. Look, if this issue is serious and to be honest I have not got enough facts to make that decision then either way of the out come Jersey will not sink in to the sea. The lights will not go out, we will survive. Yes Finance is the golden goose at the moment and like evolution finance will loose its feathers and turn into something else for which the Treasury will continue to make money out of. If Finance goes BANG overnight Jersey will still survive even though migration will hit all new highs as people leave the island to find new green pastures. The island would suffer short term, Yes, but it would not sink and It will still be here in 100 years time. 2008 has changed views about Finance (Banks) and has now highlighted that powerful companies take billions out of the economy of the country it trades in and hides it away tax free whilst the Governments are left with out of control welfare bills as the companies pay minimum or little wages. The UK residents have a right to be angry when there tax bills are rising in the face of billions leaving the UK, OK the UK should plug these loops holes and change the laws as its their responsibility. Anyway back to the subject of the report, The States are dealing with what ever the issue is and whatever the outcome Jersey will still live on…..

COM-Mentator

Why worry. We are squeaky clean. Only the clients that do not pay THEIR taxes will go to jail.

Jersey will still be a finance centre but some of the funds and trusts may leave.

Eventually like HSBC Private Bank the island will be rationalised by the larger corporate entity and they will relocate to cheaper jurisdictions.

Nothing to do with taxes the HMRC or even FATCA. More to do with the island being TOO expensive to get to, to do employ and to operate in.

big bad barry

The finance industry pays (directly or indirectly) ALL the tax in the Island. Unlike Ozouf, who said this month that he believed the best times for the finance industry are still to come, I think it is struggling and the future is uncertain.

The prudent thing to do is to slash public spending now to preserve what revenues we have. If all benefits, including pensions, and all States salaries were cut by 20% IMMEDIATELY that would give us some breathing space. Cut by 50% the staff at the JFSC - no point paying top dollar for regulation when you are in wind down mode.

We need to face up to the significant risk of bankruptcy unless we get spending under control.

S2

FATCA. That's only one initial off a very appropriate acronym.

How about we adopt it here and the Jersey Tax authority demand that all rich Jersey residents pay what they should. Or is that just wishful thinking?

S2

Can anyone name one of the world's largest tax havens, where the directors can be anyone holding the bearer bonds and where, in one state (giveaway), you don't even have to name the directors.

Hypocrisy is under valued

Sensible

Delaware please Bob

Mjolnir de Jersiaise

The best solution to Jersey's financial woes is to drastically increase the Overseas Aid budget, yet again. We might all end up sleeping in multi-storey car parks but at least we'll feel all warm and fuzzy inside.

Clanger

I think I do know the answer? Ah yes we already have an exchange of tax information with the UK and pass tax on all qualifying income producing investments owned by UK residents to the UK every year.

You need to get your facts straight before making a post.

The USA also has a system where tax is based on US nationality as well as residence the UK does not have this system.

David Rotherham

Interesting. We have two current threads on TIJ where the finance industry is insisting that they won't touch dodgy customers with a pole, and now one in which they say a UK clampdown on tax fraud would be a local disaster. They must be lying to us on at least one of these threads.

Worse, I fear this is the one where the truth is coming out. For two generations, the States have asked "Can somebody make a fast buck?" when the question to ask should have been "Is it right?" Anyone who did ask "Is it right?" got shouted down as a traitor.

Now the trap has sprung. Our unsustainable, indefensible cash cow is about to be slaughtered, and it is too late to put anything else in its place. I would love to have a solution to promote, but the reality is that we are all facing a very unpleasant time watching a catastrophic economic meltdown from the inside.

Beaumont

I completely agree, David

On previous threads over recent months, I've also questioned the direction, and even the integrity of Jersey's finance industry.

However, I've always ended up being abused by posters claiming I have no idea what I'm talking about. It's clear there's a number of finance workers in Jersey on excellent salaries, who turn a blind eye and will do anything to protect the finance image, purely to protect themselves.

egalitarian

The best outcome could be that we don't need to go ahead with the Esplanade development.

Overpopulated

Good thing, the most attractive thing about the whole 'waterfront' debarcle is that car park.

Mulvie Le Phew

Gino Rissoli - Yes, seven years ago l with many others warned against putting our eggs in one basket.

Now what we need is a good dose of accountability to shake up our government.

Really Gino what did your crystal ball tell you it should be replaced with, tourism - too expensive to get and stay here. It's easy to criticise Jersey's dependance on finance but it's not as if there is anything else, tell us what we should have done instead of criticising what we did do.

Mario - bang on the party is well and truly over, I sold up and left 6 months ago, took a hit on the asking price of my house but still walked away with a 6 figure sum. Bought a house cash and still have enough money left for a new car and some toys. Don't get me wrong it's tough in the UK at present too but at least I can see a future long term. Jersey is in for a shock and will have to make some very tough decisions. Should have shut the gate years ago with immigration, this elephant in the room will cost you dearly.

Short term profiteering by greedy landlords and business owners ( otherwise known as states members ) was never sustainable and is now crumbling. Finance is pulling out and only a minor presence will remain. Don't knock finance it gave you what you could never have otherwise had - long term prosperity.

Bloody shame I love the place and the people, damn I'd been there so long I can even remember some locals.

I sincerely hope Jersey finds a way through this but one things for sure, it will emerge a leaner more austere place, retirement home for rich ex pats perhaps if quals for such are removed?

HOWLER

well said and totally agree i think some people are writing Jersey off too soon Jersey is in for a rough ride but she has weathered worse and will survive and may even be better for it where a good hard working person can have a good life. My heart sincerely goes out to people who are at risk of losing everything they have worked for i only wish the short sighted and greedy politicians who were in cahoots with the developers could be brought to account and sued for there behavior before they disappear over the horizon with there pockets stashed with cash.

Cerys

I have worked in the Finance Sector in both Jersey and currently back in the UK, and I can tell you this has nothing to do with sorting out tax evasion and everything to do with grabbing more money into London and Westminster. All this will achieve in the long run is ordinary people in Jersey losing their jobs while the fat cats relocate elsewhere. Believe me, there is no pure of heart method behind this other than clawing in as much cash as possible. Any monies gained by the UK government will vanish into the usual black hole and Joe Public in Jersey and the UK will be no better off.

John Bull

Rubbish. We've seen quite a few examples where the crown dependencies have been used to facilitate tax evasion and egregious tax avoidance. What an absolute flailing statement you give above. The UK government are trying to prevent those abuses and as a natural consequence result in people paying their dues which should result in a higher tax take. There is significant political and public pressure in the UK for the abuses of the affluent to be closed down as a quid pro quo for reduced public expenditure and tax rises which effect those on more limited means. Given how the offshore islands were happy to facilitate the excesses of the flawed and unregulated shadow banking industry, which was a major contributor to nearly blowing up the world economy a few years back, measures like this are welcome and small beer.

Wilson Riou

Can you provide evidence of the evasion examples relating to Jersey? Don't bother with the avoidance ones because 'egregious' or not they are legal.

Mario

So because its legal its fine and dandy is it?

James

Looks like Gorst & Co are taking the right line on this. We'll sign up with the US because they are doing it to everyone so we'll have a level playing field. We're not signing up with the UK because its just us in their sights and that creates an uneven playing field - they'll not benefit because funds will simply move elsewhere, we'll be hurt. I hope that this prompt action by our leaders will have a positive outcome.

Why oh why this story has to be followed with such guff from the usual failed soothsayers is beyond me. Actually it isn't beyond me - Gino, Mario and Pip simply relish any bad news. Sorry to disappoint you, but we have a strong industry that many are working hard to preserve. I wish them well because they are off their butts fighting for the island, rather than sipping coffee and sniping.

(Dear CM, this doesn't mean that I agree that we should squander ten million quid on Plemont at this precarious time!!)

Mario

Uneven playing field? Please explain what LVCR was and why it was stopped.

Yes I would be worried.

Or if you prefer stick your head in the sand and pretend all is hunky dory.

I would much prefer the £10M to be spent on Plemont rather than £300M or whatever it is on a finance quarter.

As for precarious you can blame that on those who allowed a one legged economy to evolve. I warned about the dangers of becoming reliant on one sector 30 years ago. Others thought they knew better! The old saying all one's eggs in one basket comes to mind. Don't say you haven't been warned.

Thirtysomething

"Uneven playing field? Please explain what LVCR was and why it was stopped."

Can *you* explain what LVCR is and why it has *not* stopped?

Can you explain why it still exists in the UK for everywhere else other than for the Channel Islands, (UK Customs confirmed that 85% of goods covered by LVCR came from China)

You cannot argue against an "Uneven playing field" by using LVCR as an example.

Mario

Thirtyplus I was arguing in the context of the CI affecting UK retail by the use of LVCR (which UK retail didn't have access to themselves). This was a concession given by the UK government to the CI to enable perishable goods to get to market before they rotted.

This was therefore an uneven playing field between the UK and the CI. Now people are whinging about the boot being on the other foot.

Just pointing out the double standards of some on here who are quite happy to defend something when it benefits them, then attack something else that costs them as being unfair!!! Pot and kettle and all that.

Overpopulated

I quite agree with the comment about Plement.

I would envisage that if our government goes ahead with the 'finance quarter' they will bankrupt the island.

A much cheaper choice would be even £20m for Portelet.

gino risoli

66% of people that can vote, do not vote.

That means the 66% allowed for our ptresent government.