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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Treasury Minister says JDA Advertisement on GST is Irresponsible

11 September 2007

The Minister for Treasury and Resources has described a Jersey Democratic Alliance advertisement, published in last Friday’s Jersey Evening Post, as both misleading and inaccurate. The advert claims alternatives to a Goods and Services Tax (GST) have not been fully explored and that the new Income Support scheme will not guarantee that people on benefits will be protected from the effects of the new tax.

Treasury Minister, Senator Terry Le Sueur said: “The States of Jersey agreed GST in 2005 after debating and rejecting a number of alternatives. GST is not a knee-jerk reaction, it has been decided on after lengthy public consultation and numerous States debates over the past few years.

“Furthermore, the JDA’s claims regarding Income Support can only be described as irresponsible and just plain wrong. I have repeated and insisted that sufficient funding will be made available to Social Security to fully compensate people on benefits from the impact of GST.”

The JDA also claim GST will affect house sales. Senator Le Sueur said: “GST will not be added to house sales or mortgages. It will be charged on estate agents, lawyers and surveyors fees but these make up a relatively small proportion of the cost of a property. The average home in Jersey now costs £371,000. The legal fees involved would be in the region of £3,000. Based on these figures, GST on legal fees would add just £100 to the overall cost.

“There is a serious danger that islanders are being misled by inaccurate information in ads like this. This is a really important issue and to have this kind of misinformation being published as fact is very unhelpful indeed”.

The GST Regulations, which govern the administration and operation of the new tax, have been lodged for debate by the States Assembly on 23rd October 2007 . The Appointed Day Act, which decides the start date for GST, has also been lodged for debate on the same day.

Notes to editors:

For further information, please contact Senator Le Sueur on: Tel: 863994.

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