Political review of 2023: Guernsey's GST showdown

Protests were held in Guernsey earlier in the year against plans to introduce a goods and services tax

Debate on GST dominated 2023 and saw the factional lines which have characterised this States dissolve in front of our eyes - at least for now.

Deputy Andrea Dudley-Owen warned divisions were baked into this States from the moment "parties" were sat on opposite sides of the assembly.

Despite this, public protests and widespread opposition led to some States members whose alliances were previously known switching sides.

It ended with the ruling coalitions inbuilt majority collapsing and the end of Deputy Peter Ferbrache's Presidency of the Policy and Resources Committee (P&R).

Deputy Peter Ferbrach's Presidency of the Policy and Resources Committee ended on 13 December

Mr Ferbrache started this year with one key mission - fixing Guernsey's public finances.

His committee believed the only option was for a goods and services tax (GST) and tax reforms to mitigate its regressive impacts.

GST had been identified as a problem in 2022, with a tax debate indicating this States would not coalesce behind the controversial tax.

Pundits predicted defeat for P&R's plans and, much like proposals for a GST to address the demographic timebomb in 2016, these reforms were beaten.

Deputies voted mostly along the factional lines which became well established in this assembly, but a few deputies switched sides on this vote which was enough for P&R to lose the day - a theme which developed throughout the year.

Funding and Investment Plan

Despite defeat, P&R continued with warnings that without a GST, Guernsey's long-term financial prospects were grim.

The committee's approach changed - GST was no longer solely about future finances, instead it became about how Guernsey's States could pay for the two planned big building projects.

The choice was extend the hospital or build a new post-16 campus, but, if deputies wanted both, more revenue was needed which could come in the form of a GST.

The deputies decided... and it was a no at the second time of asking for GST, but yes to raiding the island's reserves to pay for the hospital and a screeching halt to plans to build the new campus as there just wasn't the funds.

P&R reacted, saying the States was facing an impasse between the two warring factions, and called for an early general election.

A plan which was quashed when P&R was told the earliest one could be organised was October 2024, eight months before the next scheduled poll.

The first meeting of the new P&R Committee was held on 19 December and was also attended by Mark De Garis, the Head of Public Service

That defeat led to a motion of no confidence in P&R, led by former Treasury Minister Charles Parkinson.

The motion was successful, with the departing Chief Minister Mr Ferbrache even predicting in private he would be forced to resign.

His downfall was the defection of those previously supportive of P&R including Deputies Simon Vermeulen, Chris Le Tissier and John Dyke, who moved to oust the committee.

Mr Ferbrache was replaced by Deputy Lyndon Trott, a former Chief Minister.

Tasks in his in-tray include uniting the States, finding a way to fund Education's plans and bringing back proposals for motoring taxes including paid parking.

Mr Trott said: "The mandate is clear, let's make the best fist of the next 18 months and lets try and get to a situation where we are considered much more favourably by the people of Guernsey."

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