Time for diplomacy over tax

Many of those who continue to describe the Island as a secretive tax haven are, of course, critical individuals. Their comments in the press and online are irksome, but generally of no real significance. However, when our nearest neighbour, France, gets it wrong, we would be foolish in the extreme not to sit up and take notice.

Perhaps because of delay in a case in which the French are waiting for tax information or, quite plausibly, because of ingrained political attitudes in a left-wing administration, Jersey has been put on a blacklist of supposedly unco-operative jurisdictions. This is of clear concern in the context of the finance industry, but it will also worry those who own property in France because of the threat of swingeing withholding taxes.

Quite rightly, figures in government and the industry and the chief executive of Jersey Finance, Geoff Cook, have reacted with astonishment to the blacklisting. That said, the solution to the problem will not lie in fulminating about what has happened. On the contrary, this is a time for skilful diplomacy.

Appropriately, initiatives are already under way. Senator Philip Bailhache, effectively our foreign minister, has arranged to speak to the French Ambassador and senior officials will be making contact with the French finance ministry.

In itself, high-level contact is vital, but what is said to make our position clear will be of the utmost importance. Fortunately, our representatives will have no shortage of material to put on the table with a view to securing our removal from the blacklist.

As Geoff Cook has pointed out, the Island has signed more than 50 tax exchange agreements, including one with France. In addition, bodies ranging from the European Union to the Organisation for Economic Co-operation and Development have signalled their approval of our tax information exchange mechanisms and their track record.

As is apparent on the international as well as the local level, politics is seldom simply a matter of logic and objectivity. We must nevertheless pin our hopes on the high quality of the evidence that we can present as our politicians and their advisers attempt to explain to their French counterparts the difference between fact and fancy.