States Minutes 13th May 2005

THE STATES assembled on Friday, 13th May 2005 at 9.30 a.m. under

the Presidency of the Greffier of the States,

Mr.  Michael Nelson de  la Haye.

All members were present with the exception of –

S e nator Jean Amy Le  Maistre – out of the Island

S e nator Leonard Norman – out of the Island

D a niel Joseph Murphy, Connétable of Grouville – out of the Island A l an Breckon, Deputy of St. Saviour – ill

P h ilip John Rondel, Deputy of St.  John – out of the Island

C e lia Joyce Scott   Warr en, Deputy of St.  Saviour–  ill

J o hn Benjamin Fox, Deputy of St.  Helier – out of the Island.

Prayers read by the Deputy Greffier of the States.

Shadow Scrutiny Panels – resignation of member

THE STATES noted the resignation of Deputy Gerard Clifford Lemmens Baudains of St.  Clement from the Shadow Scrutiny Panels.

Fiscal Strategy – P.44/2005 Amendment and Comments

THE STATES resumed consideration of the proposition of the Finance and Economics Committee concerning a Fiscal Strategy as amended and, adopting paragraph  (a)(i) and (ii),referred to their Act dated 29th June 2004, in which they approved the States Strategic Plan 2005 to 2010 and agreed that the States would take steps to maintain a strong and competitive economy and to provide high quality public services, and to their Act dated 7th July 2004, in which they approved the Fiscal Strategy and charged the Finance and Economics Committee to research measures to mitigate the loss of taxation revenues as a result of the agreed changes to the corporate taxation structure, and –

( a ) agreed that a progressive package of tax and benefits, capable of generating additional net annual tax

revenue of £55  million, should be implemented, and that –

(i ) a broad-based Goods and Services Tax (GST) would be introduced in 2008 at a rate of 3%, fixed

for  at  least  3  years,  as  set  out  in  the  summary  of  proposals,  page  40,  of  Section  2  of  th accompanying report of the Finance and Economics Committee; and,

( ii ) t he  proposals  being  brought  forward  for  approval  by  the  Employment  and  Social  Security

Committee, in liaison with the Finance and Economics Committee, would include provision to ensure  that  the  effects  of  GST  on  those  on  low  incomes  would  be  mitigated  through enhancements to benefits implemented prior to, or simultaneously with, the introduction of GST.

Members present voted as follows –

POUR: 31 CONTRE: 15 ABSTAIN: 0

Senator F.H. Walker Senator S. Syvret Senator T.A. Le  Sueur Senator W. Kinnard

Senator P.F. Routier Senator M.E.   Vibert Senator P.F.C. Ozouf Connétable of St. Martin Connétable of St. Ouen Connétable of St. Saviour

Connétable of St. Brelade Connétable of St. Mary Connétable of St. Peter Connétable of St. Clement Connétable of St. Helier Connétable of Trinity Connétable of St. Lawrence Connétable of St. John Deputy of Trinity

Deputy J.J. Huet (H) Deputy T.J. Le  Main (H) Deputy M.F. Dubras (L) Deputy J.L. Dorey (H) Deputy P.N. Troy (B) Deputy F.G. Voisin (L) Deputy L.J. Farnham (S) Deputy S.C. Ferguson (B) Deputy of St.  Mary

Deputy of St.  Ouen

Deputy P.J.D. Ryan (H) Deputy M.A. Taylor (C) Deputy of St.  Peter

Deputy G.W.J. de  Faye (H)

Senator P.V.F. Le  Claire Senator E.P.   Vibert

Senator R.J. Shenton

Deputy R.C. Duhamel (S) Deputy of St.  Martin

Deputy G.C.L. Baudains (C) Deputy R.G. Le Hérissier (S)

Deputy J-A. Bridge (H) Deputy J.A. Martin (H) Deputy G.P. Southern (H) Deputy J.A. Bernstein (B) Deputy of Grouville

Deputy J.A. Hilton (H)

THE STATES, adopting paragraph  (a)(iii), agreed that tax allowances for taxpayers on higher disposable incomes would be phased out over a period of 5  years in the manner set out in the summary of proposals, page  43, o Section  2 of the said report.

Members present voted as follows –

POUR: 30 CONTRE: 16 ABSTAIN: 0

Senator F.H. Walker Senator T.A. Le  Sueur Senator P.F. Routier Senator M.E.   Vibert Senator P.F.C. Ozouf Connétable of St. Martin Connétable of St. Ouen Connétable of St. Saviour Connétable of St. Brelade Connétable of St. Mary Connétable of St. Peter Connétable of St. Clement Connétable of St. Helier Connétable of Trinity Connétable of St. Lawrence Connétable of St. John Deputy of Trinity

Senator S. Syvret

Senator W. Kinnard

Senator P.V.F. Le  Claire Senator E.P.   Vibert

Senator R.J. Shenton Deputy R.C. Duhamel (S) Deputy of St.  Martin Deputy T.J. Le  Main (H) Deputy G.C.L. Baudains (C) Deputy P.N. Troy (B) Deputy J.A. Martin (H) Deputy G.P. Southern (H) Deputy J.A. Bernstein (B) Deputy of Grouville

Deputy of St.  Peter

Deputy G.W.J. de  Faye (H)

Deputy J.J. Huet (H)

Deputy M.F. Dubras (L) Deputy J.L. Dorey (H)

Deputy F.G. Voisin (L)

Deputy L.J. Farnham (S) Deputy R.G. Le Hérissier (S) Deputy J-A. Bridge (H)

Deputy S.C. Ferguson (B) Deputy of St.  Mary

Deputy of St.  Ouen

Deputy P.J.D. Ryan (H) Deputy M.A. Taylor (C) Deputy J.A. Hilton (H)

THE STATES, having recalled that the President of the Finance and Economics Committee had been granted leave to withdraw paragraph  (b) of the proposition on 12th May 2005, adopted paragraph  (c) of the proposition and agreed that enhanced anti-avoidance measures and new information powers as outlined in the summary of proposals, page  50, of Section  2 of the said report should be introduced no later than 1st January 2009.

Members present voted as follows –

POUR: 38 CONTRE: 8 ABSTAIN: 0

Senator F.H. Walker

Senator W. Kinnard

Senator T.A. Le  Sueur

Senator P.F. Routier

Senator M.E.   Vibert

Senator P.F.C. Ozouf

Senator R.J. Shenton Connétable of St. Martin Connétable of St. Ouen Connétable of St. Saviour Connétable of St. Brelade Connétable of St. Mary Connétable of St. Peter Connétable of St. Clement Connétable of St. Helier Connétable of Trinity Connétable of St. Lawrence Connétable of St. John

Deputy of Trinity

Deputy R.C. Duhamel (S) Deputy J.J. Huet (H)

Deputy T.J. Le  Main (H) Deputy M.F. Dubras (L) Deputy J.L. Dorey (H)

Deputy F.G. Voisin (L)

Deputy L.J. Farnham (S) Deputy R.G. Le Hérissier (S) Deputy J-A. Bridge (H)

Deputy J.A. Bernstein (B) Deputy S.C. Ferguson (B) Deputy of St.  Mary

Deputy of St.  Ouen

Deputy P.J.D. Ryan (H)

Senator S. Syvret

Senator P.V.F. Le  Claire Senator E.P.   Vibert

Deputy of St.  Martin Deputy G.C.L. Baudains (C) Deputy P.N. Troy (B) Deputy J.A. Martin (H) Deputy G.P. Southern (H)

Deputy M.A. Taylor (C) Deputy of Grouville Deputy of St.  Peter

Deputy J.A. Hilton (H) Deputy G.W.J. de  Faye (H)

THE STATES, adopting paragraph  (d) of the proposition, as amended, charged the Finance and Economics Committee, working with the Environment and Public Services Committee and the Parishes, to undertake further research, and bring forward for consideration proposals relating to the introduction of environmental taxes and other taxes, primarily aimed at meeting the environmental objectives of the States Strategic Plan 2005 to 2010, including –

( i)  additional taxes on the ownership and use of motor vehicles, on the production and disposal of waste,

and on the consumption of energy;

( ii ) a development gains tax to be considered in conjunction with the development of a planning gain policy;

and,

( ii i) a land value tax. Members present voted as follows –

POUR: 40 CONTRE: 5 ABSTAIN: 0

Senator S. Syvret

Senator F.H. Walker

Senator W. Kinnard

Senator T.A. Le  Sueur

Senator P.V.F. Le  Claire Senator P.F. Routier

Senator M.E.   Vibert

Senator P.F.C. Ozouf

Senator R.J. Shenton Connétable of St. Martin Connétable of St. Ouen Connétable of St. Saviour Connétable of St. Brelade Connétable of St. Peter Connétable of St. Clement Connétable of St. Helier Connétable of Trinity Connétable of St. Lawrence Connétable of St. John

Deputy of Trinity

Deputy R.C. Duhamel (S) Deputy J.J. Huet (H)

Deputy T.J. Le  Main (H) Deputy M.F. Dubras (L) Deputy J.L. Dorey (H)

Deputy F.G. Voisin (L)

Deputy L.J. Farnham (S) Deputy R.G. Le Hérissier (S) Deputy J-A. Bridge (H)

Deputy J.A. Martin (H)

Deputy J.A. Bernstein (B)

Senator E.P.   Vibert Connétable of St. Mary Deputy of St.  Martin Deputy G.C.L. Baudains (C) Deputy G.P. Southern (H)

Deputy S.C. Ferguson (B) Deputy of St.  Mary Deputy of St.  Ouen Deputy P.J.D. Ryan (H) Deputy M.A. Taylor (C) Deputy of Grouville Deputy of St.  Peter

Deputy J.A. Hilton (H) Deputy G.W.J. de  Faye (H)

Adjournment

The States then adjourned, having agreed to consider the outstanding matters of public business on Tuesday 17th May 2005.

THE STATES rose at 3.55 p.m.

A.H. HARRIS Deputy Greffier of the States.