UK Demands On Passporting Are 'Obscene' And 'Perverse' Says Chief Minister

Panorama

20 June 2001

This story is reproduced by kind permission of Panorama at: http://www.panorama.gi

In the budget debate, different pictures are being painted about the state of the economy. The chief minister Peter Caruana spoke of substantial progress and that the economy is in a "buoyant and robust" condition. But warned of uncertainties lurking round the corner.

The stiffest challenge, he said, comes in the finance centre with challenges from the OECD and EU on taxation matters. He wanted a level playing field to the EU infraction proceedings on state aid and taxation.

On the question of passporting of investment services, Britain was expecting Gibraltar to match its standards, and not those of the EU which are lower. He charged that Britain's demands were 'obscene and perverse'.

Opposition leader Joe Bossano accused Mr Caruana of celebrating every potted plant, attempting to take the credit for everything. The state of the economy cannot be properly gauged because of the lack of up-to-date statistical information. He said that an increase in high paid jobs in some sector gives more income to Government, but this was not necessarily what was happening in the rest of Gibraltar. He painted a picture of the big companies doing well, but not the smaller ones.

In his intervention, trade and industry spokesman and Liberal Party leader Dr Joseph Garcia accused the government of saying one thing and doing something else. The government were tough in words, but weak in action. He said that there was no evidence of improved economic indicators, and asked for more detailed information in a number of areas.

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