Budget: Finance hit back

Budget: Finance hit back

Senator Terry Le Sueur says businesses planning a mass protest are acting in their own interests rather than the whole Island’s.He is likely to face an unprecedented number of amendments to the Budget when it is debated next Tuesday – up to 19 are expected so far.Motor traders, estate agent and finance experts have today sponsored an advertisement in the JEP calling on Islanders to protest in their thousands in the Royal Square on what they are dubbing ‘Black Tuesday’.But Senator Le Sueur is highly critical of them.’I am surprised and disappointed that some of those with particular business interests are not taking a broader view of the interests of the whole Island,’ he said.’Those who are criticising our Budget proposals are ignoring important facts.

Firstly, this Finance Committee wants a tax structure in place in Jersey which is fair to all, not just businessmen and the comfortably off.’Secondly, the critics seem to be overlooking clear injustices in the existing system: those people who own and use vehicles should be the ones who contribute towards the upkeep of the roads and not those who don’t.’Thirdly, those people who can afford to buy second homes or luxury boats should be prepared to pay for them themselves and not expect to be subsidised by the rest of the tax-paying public, which is the effect that interest tax relief has been having.’Finally we do have to ensure that whilst cutting out unnecessary expenditure we do maintain and fund essential public services.’Senator Le Sueur claims that the capping of mortgage interest relief at £275,000 will help make homes more affordable, pointing out that prices here are higher than in the UK and even most parts of London.’I am sorry for estate agents who are concerned that it will affect their business but I am more concerned with the greater good of the Island,’ he said.And he defends the proposals to increase Vehicle Registration Duty by 25%.’The community of Jersey has one of the biggest car populations in the world.

This puts a strain on our network of roads.

Isn’t it fair that those who own and use cars – especially those with multiple car ownership – should be asked to make a contribution?’Senator Le Sueur says his committee consulted widely with the affected industries over the proposals but said the tax structure had to be equitable and sustainable.’We will then have a firm base from which to manage the economy and from which we can manage the growth of the economy.’Putting off facing the problem will only make it worse.’Meanwhile his committee will tomorrow meet the Economic Development Committee, whose vice-president, Deputy Lyndon Farnham, is likely to table a series of amendments, including the abolition of VRD, the phasing out of mortgage interest relief and a freeze on stamp duties except for the most expensive properties.

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