Guernsey Banker Warns Over Competitiveness

by Jason Gorringe, Tax-News.com, London

19 November 2002

A leading Guernsey banker has warned that the jurisdiction risks pricing itself out of the market as a location for business, but praised the States authorities for their response to the EU Savings Tax Directive.

The Guernsey Press quoted Peter Rose, managing director of NM Rothschild as revealing on Friday that employment expenses on the Island are the same as in London and 19% higher than on the Isle of Man.

One thing is clear already - that we are becoming uncompetitive compared to elsewhere and there is nothing special about this jurisdiction as compared to a hundred others,' he observed, adding:

'Forget the Edwards Report, forget the EU and the OECD. If this carries on, we will put ourselves out of business without any help from them.'

However, Mr Rose also told those attending Friday's Institute of Directors lunch that the States authorities have played a 'canny game' by agreeing to implement information exchange procedures for non-resident savings accounts by 2011.

'I very much doubt that we will have to implement the commitment on exchange of information because nine years is plenty of EU time for the rules to change in our favour.'

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