Fiona Kerley, who said that the proposed charge will ‘threaten the existence’ of the Island’s hospitality industry, has now called on Infrastructure Minister Eddie Noel to consult with the industry on the ‘poorly conceived law’.
Meanwhile, Economic Development Minister Lyndon Farnham said that he believes that, thanks to a more positive-looking public purse, the government could afford to introduce the charge over ‘two or three years’ to help smaller businesses adjust.
They made the comments after Deputy Noel partially bowed to pressure from businesses regarding the new charge. Instead of implementing the full proposed levy – which is still subject to States approval – of £2.27 per cubic metre on 95 per cent of water usage in March next year, Deputy Noel now plans to charge half that amount for the first 12 months to help lessen the impact of the new costs.
Mrs Kerley said the association welcomed Deputy Noel’s ‘realisation that he did not get this right first time’ but said phasing the charge in did not change the fundamental problem.
‘The minister is threatening the existence of an important Island industry without any proper consultation or consideration of the impact on hospitality businesses or the wider-reaching impact on other businesses supplying the industry and those reliant on the visitors such as retail,’ she said.
‘This tax could easily create an inflationary ripple across the Island population. The minister needs to stop rushing through a poorly conceived law and talk to us. That is all we ask.’
