Guernsey’s States of Deliberation has today approved additional funding for Guernsey Finance – the promotional agency for the Island’s finance industry internationally.
States Members gave unanimous approval of the Commerce and Employment Department’s request for £900,000 from the Strategic Development Fund to grant to Guernsey Finance. Guernsey Finance plans to spend the sum over the next three years supporting the development of new markets for the Island’s finance industry.
Jim Gilligan, Chairman of Guernsey Finance, said: “We are delighted that the States has made this unanimous decision which demonstrates its clear support for the finance industry in general and Guernsey Finance in particular. These proposals have been more than a year in the making and so it is good to know that we can now further enhance our efforts to develop streams of business from new markets.
“However, it will not be a quick fix and there is much work to be done if we are to ensure that Guernsey keeps pace with the competition. This funding is only for the next three years so we will continue to work closely with the Commerce and Employment Department in the hope that at least this level of investment from Government will continue in the future.
“The finance industry remains the key driver of the Guernsey economy and not only does it help sustain other service industries such as restaurants, hotels, taxis and retail but it also – through individual and corporate taxation – helps to fund our public services such as health and education. Therefore, today’s decision to further invest in promoting Guernsey’s finance industry internationally is one which is for the long-term benefit of all our future living standards.”
Guernsey Finance received a total of £1.181 million in funding during this year, comprising a grant of £800,000 from the Commerce and Employment Department and £381,000 raised from a compulsory levy on regulated financial services firms (£351,000) and voluntary contributions from the accountancy sector.
The additional £900,000 approved by the States today, which Guernsey Finance will use over the next three years, will be drawn from the £3 million that the Treasury and Resources Department set aside at the end of last year for the Strategic Development Fund specifically to ‘produce substantial new or enhanced growth for the economy and revenue for the States.’
Fiona Le Poidevin, Chief Executive of Guernsey Finance, said: “I am extremely pleased that the States has approved the Commerce and Employment Department’s request for additional funding for Guernsey Finance. The lasting effects of the global financial crisis mean that today we are experiencing a much tougher environment for attracting business, especially from our traditional introducer jurisdictions. This is something that has already been recognised by our competitors and so it is important that Guernsey has responded by investing now and ensuring that we are well positioned going forward, particularly within the emerging markets which are the source of much new private and corporate wealth.
“The extra funding is a one-off payment and while it is still somewhat below the levels of investment being made by similar jurisdictions on a permanent basis, we are confident that we are heading in the right direction. It will allow us to better protect our share of business from traditional introducer jurisdictions, while also developing new markets for the long-term sustainability of our finance industry.”
Category: Finance & Business