Jersey has a ‘new black hole’

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The Jersey Evening Post has reported:

JERSEY could face a new £60 million tax ‘black hole’ by 2012.

The panel of expert economists who advise the Treasury Minister and the States have warned that a ‘structural deficit’ in States finances is emerging.

And they say that States Members have to act now to tackle spending pressures at departments as well as long-awaited pressure from the ageing population and the New Directions health strategy.

The Fiscal Policy Panel says that the deficits ‘require tough decisions on cutting spending or increasing taxation’ and that States Members have to show discipline about approving new spending.

I warned of this in 2007. They really should have heeded the warning I issued. It was timely, appropriate and right. I even provided it free of charge.

The latest report proves what I have said time and again: Jersey is heading for bankruptcy, and that as that becomes apparent the finance industry will be off like a shot. The one thing tax avoiders and evaders want most of all is strong stable government. They refuse to pay for it, of course, but they do demand it. And it is becoming very obvious that this is the one thing Jersey will not be able to deliver.

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