Attac Jersey is a Member of the International Tax Justice Network. We are Members of the Association for the Taxation of financial Transactions for the Benefit of Citizens, (ATTAC) and the Tax Justice Network, (TJN). The aims of both organisations are to research, educate and campaign to further public awareness. We are seeking to alleviate poverty through the creation of just taxation systems to fund social goods.

Thursday, March 10, 2011

10.3.2011  Senator Alan Breckon
PRESS RELEASE from Jersey Evening Post

Embargoed till 6am Thursday10th March 2011

It’s Not Over Yet!

New fight to rectify this injustice

I have lodged today a new proposition to remove GST from foodstuffs in line with the UK’s VAT arrangements as well as from domestic energy and fuel.

Old story: new fight: against background of changed circumstances.

In December 2010 a similar proposal was narrowly defeated by 26 to 24 votes (vote attached A). In the ensuing 3 months new and fresh information has come to light which I believe should tip the balance the other way and rid us of this insidious tax from these most basic and essential items, namely:

  • The  Review of the Fiscal Strategy Review
  • Company Tax versus Personal Tax figures, 2000 -2011

The Review of the Fiscal Strategy Review
The Corporate Services Scrutiny Panel’s “Review of the Fiscal Strategy Review (SR2/2011)” summarizes that the Treasury Minister does not have a “fiscal strategy” or an Economic Growth Plan. What the Minister has is an insistence of targeting individuals through
                                    20 means 20
                                    Social Security Contributions
The Review adds that there should be no further increases in Income Tax, GST or Social Security unless an Economic Growth Plan is compiled and the aims of the Comprehensive Spending Review are met.

Company Tax versus Personal Tax figures, 2000-2011
If there is one table that people should read and digest this year it is the Company Tax versus Personal Tax figures, 2000-2011 table handed out to States Members during question time on 1st March 2011 (Attached B).
This extraordinary table details very clearly the shift of balance from Corporate Tax to Personal Tax

·         Company tax has been slashed from 52% in 2000 to an estimated 12% in 2011
·         Personal tax has doubled from 42% to an estimated 84% in 2011

This policy will cripple the local economy. As people’s spending power is reduced, the economy will spiral down – forget economic growth.

Retail Price Index
Adding to this, the RPI has risen by 2.3% for the 12 months from December 2009 to 2010:
However, within this,
  • Food rose by 3%
  • Motoring costs rose by 4% (the average prices of petrol / diesel rose by 11p / 12p per litre)
  • Fuel & light costs: rose by 5% (Domestic heating oil + 26%, gas + 17%)
More of the same is on the way.

Average Earnings
The rate of growth of average earnings in the private sector in Jersey has seen a downward trend over the last decade. The latest increase of 1.1% is the lowest recorded since private sector earnings were first reported separately in 1995. 1 in 7 households were found to be in the category of relative low income before housing costs, rising to more than 1 in 5 households after housing costs (Jersey Income Distribution Survey report 2009/10)

During 2010 single pension increases were limited to less than £2 per week which many found inadequate to meet the increases in their basic living costs. That is why this proposition seeks to highlight the plight of those on low and fixed income who are faced with difficult and life threatening choice – heating or medical costs. Pensioner households account for half (50%) of the lowest income quintile before housing costs, and for two-fifths (37%) of the lowest income quintile after housing costs (Jersey Income Distribution Survey report 2009/10).     How are they surviving?

UK versus Jersey Price Comparison 2010
  • Over the last 5 years food prices increased by 30% in Jersey, by 25% in the UK. The effect of the introduction of GST in May 2008 in Jersey is clearly apparent.
  • Direct food comparisons show that meat prices were, on average, about a quarter higher in Jersey than in the UK
  • Fresh vegetables were almost a third (31%) more expensive in Jersey than in the UK.
  • Since 2005, bread prices have increased overall by more than a third (35%) in Jersey.
  • Cereals have seen an overall increase of 38% in price in Jersey and of 25% in the UK.
  • Over the five years to June 2010, domestic energy prices rose by almost two-thirds in
Jersey (62%)

How can we expect the ordinary person to pay for GST on top of these rates of increase?

Since the introduction of GST in May 2008, the economy has changed. Consumer confidence reached an all time low as the recession bit into people’s spending power. Jersey did not respond   by helping the ordinary citizen but rather by penalizing the individual with crippling Income Tax rates, impots and of course GST.

All this when some companies are not making a fair, or any contribution, to the tax take.

Unless GST is removed from basic essentials it will continue onwards and upwards, the time to stop it is now!

For more information please contact
Senator Alan Breckon
Tel: 01534 618532
Vote on GST Budget Amendment 9th December 2010
POUR: 24
Senator B.E. Shenton
Senator T.A. Le Sueur
Senator A. Breckon
Senator P.F. Routier
Senator B.I. Le Marquand
Senator P.F.C. Ozouf
Connétable of St. Ouen
Senator T.J. Le Main
Connétable of St. Helier
Senator F.E. Cohen
Connétable of St. Lawrence
Senator J.L. Perchard
Deputy of St. Martin
Senator S.C. Ferguson
Deputy R.G. Le Hérissier (S)
Senator A.J.H. Maclean
Deputy J.A. Martin (H)
Senator F.du H. Le Gresley
Deputy G.P. Southern (H)
Connétable of Trinity
Deputy of Grouville
Connétable of Grouville
Deputy J.A. Hilton (H)
Connétable of St. Brelade
Deputy P.V.F. Le Claire (H)
Connétable of St. Martin
Deputy S. Pitman (H)
Connétable of St. John
Deputy K.C. Lewis (S)
Connétable of St. Saviour
Deputy I.J. Gorst (C)
Connétable of St. Clement
Deputy of  St. John
Connétable of St. Peter
Deputy M. Tadier (B)
Connétable of St. Mary
Deputy of St. Mary
Deputy R.C. Duhamel (S)
Deputy T.M. Pitman (H)
Deputy J.B. Fox (H)
Deputy A.T. Dupré (C)
Deputy of St. Ouen
Deputy M.R. Higgins (H)
Deputy J.A.N. Le Fondré (L)
Deputy A.K.F. Green (H)
Deputy of Trinity
Deputy J.M. Maçon (S)
Deputy A.E. Jeune (B)

Deputy E.J. Noel (L)

Deputy T.A. Vallois (S)

  • B Company Tax versus Personal Tax 2000 - 2011

  • Year Total general revenue income £m* Company Tax £m % Personal tax (IT + impots + GST) %

    2000 398 208 52% 166 42%

    2001 415 227 55% 181 44%

    2002 436 215 49% 198 45%

    2003 444 216 49% 218 49%

    2004 445 212 48% 212 48%

    2005 467 202 43% 242 52%

    2006 524 217 41% 257 49%

    2007 559 238 42% 290 52%

    2008 660 233 35% 352 53%

    2009 674 214 32% 391 58%

    2010 496 (E) 79 (E) 15% 362 (E) 73%

    2011 521 (E) 65 (E) 12% 436 (E) 84%

*2000-2006 Treasurer’s Report p.xi. Financial Report & Accounts, 2006
  2007-2008 Treasurer’s Report Table 2, p.7. Financial Report & Accounts, 2008
  2009 Treasurer’s Report Table 4, p.8. Financial Report & Accounts, 2009
 (E) Estimates Draft Budget Statement 2011 Summary Table B p.74

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