Gibraltar Government Allowing Banking Decline Says Opposition

by Amanda Banks, Tax-News.com, London

15 July 2003

The government of Gibraltar has been attacked by the GLSP/Liberal opposition over its failure to address an apparent decline in the banking sector following Abbey National's decision to withdraw from the jurisdiction.

“The fact that in a number of other countries with much bigger economies Abbey National may be reducing its presence is completely irrelevant to the question of assessing the effects of what happens here,” the opposition group remarked, adding:

“The Government claims year after year that the finance sector of the economy is growing strongly even though we constantly learn of reductions in the number of players and the volume of money in the banking system. This shows that the Government either wants to put on a brave face or that it believes its own propaganda and that explains why it is doing so little to address the problem.”

The group continues:

“The EU banking passporting right, which Gibraltar was entitled to in 1992, was finally obtained a few years ago. The Government however has failed to bring about the expansion of the banking sector that was expected to follow passporting rights.”

“Given that the Government continues to say that everything is well in the industry, that employment and business are expanding, it is clear that no attempt is going to be made to address the very real problem that the provision of banking services continues to contract and the size of the banking sector represent a declining proportion of the national income.”

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