This was in yesterday's Jersey Evening Post:
Behind the scenes, Island political and business leaders accept that Jersey has never before come under such close scrutiny as a finance centre. Treasury Minister Philip Ozouf said that the Island welcomed the opportunity to show how well regulated it was.
Haven't they got the message yet? Citigroup claimed to be well regulated. So did HBOS, Anglo-Irish bank, UBS, Lehman, and many more. They've all failed. The regulation was inappropriate. It generated vast amounts of paper, contained no risk and delivered no benefit. The regulation was looking in the wrong direction at the wrong problem. Probably deliberately so.
And the same is completely true of the regulation that has applied to Jersey. So what then that Jersey complied with the rules? They were the wrong rules, asking the wrong questions and getting the wrong answers.
The world has changed. Saying you're playing by the old rules is a certain recipe for getting left behind in the new scenario that is being created. Get real Jersey: transform your act, change ahead of the requirement to do so or you and your like will be rightly swept aside. It's a blunt choice. But you've got to make it.
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Jersey is well ahead of many other offshore finance centres. I work in Jersey and I can tell you this from experience.
Grow up Mr Murphy. Sara is correct, the Jersey regulators are ahead of alot of the other offshore jurisdictions, and I can tell you from experience that they do ask the right questions and are very proactive. The world needs offshore centres to keep its fiscal systems moving.
GB
Odd – there is no one who knows me who seems to doubt that I’m ‘grown up’
But let’s move on – and I’ll ask you to justify why the world needs offshore centres to keep its fiscal systems moving. It’s an extraordinary claim. Please justify it – I’ll give you the space you need – but I make clear – assertion will not do. I evidence my work. I expect you to do the same – in detail.
Richard
You evidence your work?
Okay then give us the evidence behind all these figures of tax avoidance you levy at the Channel Islands?
JTM
That data will be published this weekend – I assure you
Now why don;t you get working on yours to prove your claims, also this weekend?
Richard
And the sources of this information? We must be transparent then because if you believe its all legit then this smoke screen accusation is nonsence.
The data all comes from the UK
Jersey doesn’t like data
Richard
But Richard if we are secretive how can their data be accurate?
In any case, I will give you a very simple example of a typical situation through Jersey – Client from Israel, GBP 1 Billion deposited in Jersey, invests some of his wealth in the UK.
What damage is that doing to the UK according to the tax justice network? And be realist here, the UK likes its res non-doms.
Jason
You really are daft, aren’t you?
Do you think my concern is only with the UK?
Is Israel being screwed here is my first question?
Second – is the UK being screwed – yes it is if this person has a reduced cost of capital as a result of paying tax. that distorts the housing and investment markets without justification
Either way, is this bad news. Yes it is
Richard