Guernsey Goods and Services Tax debate could be delayed

GST is being considered amid a predicted shortfall in funding for services as the population of the island gets older

A debate on whether Guernsey's States should introduce a Goods and Services Tax (GST) could be delayed.

The Policy and Resources Committee had originally planned to bring proposals to the States in June.

Now the committee says a decision on whether the debate should be delayed will be made in May.

GST is being considered amid a predicted £85m shortfall in funding for services as the population of the island gets older.

Policy and Resources Treasury Lead, Deputy Mark Helyar, said the committee was not "ideologically wed" to the idea of a GST.

He said: "We want to find that solution in an open and constructive way.

"All suggestions are welcome, but we need to be realistic that whatever solution we finally go for will not be popular with everyone."

Analysis by BBC Guernsey political reporter John Fernandez

The political realities of the current predicament are catching up with Policy and Resources.

Most, if not all, of its members know there's little to no chance of a Goods and Services Tax being adopted by this States.

The existential problem remains though.

Guernsey's States needs more money or it will need to start deciding whether it wants to close schools, hospitals or stop paying pensions.

Deputy Peter Ferbrache, President of Policy and Resources, said the "stakes are high" and that finding a solution would be an "almighty challenge", but the committee was "exploring every plausible option".

The tax review road show is set to continue, with the next event scheduled for the Vale Douzaine Room on Saturday from 10:00 until 12:00 GMT.