Memorandum submitted by Members of the
Committee of Attac Jersey (Association for the Taxation of financial
Transactions for the Benefit of the People—English translation)
and the Tax Justice Network
SUMMARY OF
CONTENTS:
Paragraphs 1-12 Inefficient Governance,
John Heys.
Paragraphs 13-21 Employment Laws Jersey, Rose
Pestana.
Paragraphs 22-34 The Jersey Passport Issue,
Pat Lucas & Jean Andersson.
This submission takes the form of an appeal
to the Justice Committee of the House of Commons to urge the British
Government to take responsibility for the good governance of Jersey
by intervening at this crucial time when it is perfectly obvious
to all who have eyes to see that the Ministerial Government headed
by Terry le Sueur is both dictatorial and totally incapable. We
need your help and that of the European Community. We're asking
to be full members of the EU.
INEFFICIENT GOVERNANCE
1. The slow but inevitable ruination of
this beautiful Island of Jersey by an incapable and dictatorial
junta of senior States Members must be exposed to the outside
world, and stopped now as the mistakes are getting beyond recovery
with no accountability at all.
2. Once very prosperous the Tourism and
Agricultural Industries have purposefully been run down in total
favour of the so-called Finance Industry. The Chief Minister Le
Sueur and his cohorts disregard the writing on the wall and pump
millions of pounds into a Tax Haven industry under attack from
many sides.
3. Things have slipped downhill to the point
where our GDP is Finance 58%, the once mainstay of our income,
Tourism, 3%, and Agriculture, famous for the Jersey Royals, tomatoes
and flowers about 0.5%, facts which our Ministers ignore, stating
how wonderful things are.
4. Le Sueur recently proposed giving £100M
in tax relief to the Finance Industry which, of course, a small
economy like ours cannot possibly withstand. So, to make up the
shortfall he suggested introducing a general tax , this as opposed
to many alternatives which he would not contemplate. He insisted
that his proposal of a Goods and Services Tax, would be introduced.
Incensed, the Jersey people held a Petition to which 20,000 signatures
were penned, and when presented Le Sueur's comment was, "I
do not care how many signatures there are, GST will be introduced."
When informed that elderly people on small fixed incomes were
finding it even harder to purchase affordable food he said, "They
will just have to shop around." Both comments are an example
of the total lack of understanding and the dictatorship under
which Jersey suffers.
5. The civil service is totally top heavy,
grossly overpaid and unaccountable for huge financial errors.
For example it was decided to contract a French firm to build
an incinerator costing approximately £107M without taking
account of cheaper alternatives or adequate public consultation.
Although the exchange rate between the Euro and the Pound was
to be accounted for, it was ignored, and we now find that this
glaring error could cost the taxpayer two or three million pounds
extra. There was an uproar from the public, so an enquiry was
held in what Jersey calls "behind closed doors" to enquire
into just who was in the wrong. The result was that the matter
had been dealt with, no one was sacked or moved, and the matter
was now closed!!, I cannot imagine any countries except those
like Zimbabwe, or Iran perhaps having the sheer audacity to treat
the public in such a dictatorial manner.
6. We are constantly spun the line by the
Le Sueur junta that we are so lucky to have the Finance Industry
paying in so much money making this Island rich. But they never
mention that we are so rich that out of the 52,000 working
people, 8,500 are on Income Support because they cannot afford
to live, or that due to the wonderful Finance Industry the average
price of a three bed-roomed house is £470,000, or that Jersey
per GDP capita is the third richest country in the world yet its
minimum wage is the lowest in all of 27 EU Member States,
and that Jersey spends less than 75% of the EU average on social
protection.
7. Jersey is a Tax Haven playing to the
benefit of the rich financed by the poor, who pay 20% in tax whilst
the rich have a nice sliding scale of tax. So, on their first
million pounds they pay 20%, on the next half million 10%, and
1% from then on. So, on a DECLARED £10M their tax bill would
run at just 3.5%, but of course put into a trust which is totally
secret, no tax is paid.
8. A total disgrace is the huge Civil Service
pay cheque:
270 get from £70,000 to £
89,999.
62 get from £90,000 to £109,999.
36 get from £110,000 to £129,999.
19 get from £130,000 to £149,999.
22 get from £150,000 to £169,999.
2 get from £170,000 to £189,999.
1 gets from £ 190,000 to £209,000.
1 gets from £210,000 to £229,999.
5 get from £230,000 to £249,999.
This is an immoral list on an island 9x5 miles
with a population of 90,000, whilst thousands are struggling to
survive in what is one of the highest cost of living areas in
the world.
9. We have been warned that money is scarce
and belts will have to be tightened and painful economies made,
yet our States Departments have overspent more than £8,520,000 as
far as we know, and not one States Member will be held to account.
10. It is painfully obvious that this Island
does not have the wherewithal to run itself and is being inexorably
driven towards huge rocks with ever-mounting costs due to mistakes.
At this time tax havens and tax avoidance are coming under increasing
scrutiny. As numerous corrupt practices are being exposed and
work in the tax avoidance industry diminishes we will have no
industry to fall back on.
11. Unfortunately the blame lies with the
apathetic Jersey public. When there is a chance at elections to
get rid of all the chaff in our States only 33% of the people
bother to vote stating "What is the point? There is no alternative."
Or "They are all the same."
12. I feel we are at a point now when we
must look either to the UK or the EU to step in and start to provide
professional guidance with some form of local party politics to
monitor the situation. Twelve good States Members are constantly
outvoted by the 41 nodding heads controlled by Chief Minister
le Sueur and his cronies.
EMPLOYMENT LAWS
JERSEY
Rally in the Royal Square, St. Helier, Jersey
2005
13. On Tuesday 27 September at 12.30 pm
a rally was attended by many hundreds of trade unionists. This
rally was called to protest against the anti-union laws the Jersey
Government was about to vote on. Despite the protest the anti-union
laws were passed in their entirety.
14. At the time the rally was the latest step
in the long-running campaign by the Transport & General Workers
Union. It was addressed by the renowned Employment Law expert
John Hendy as well as T&G Regional Secretary Andy Frampton
and the Union's local full-time officer Nick Corbel.
15. The T&G's conference in July that year
(2005) agreed to back the campaign and an approach to Tony Blair
was made. It was especially important as what the Jersey government
had proposed contravened the minimum standards laid down by the
International Labor Organization.
16. In the emergency motion to the T&G
Conference the union explained that the new laws would severely
curtail the rights of trade unionists to take lawful industrial
action in any trade dispute. The T&G had been involved for
many months fighting for union members against a government which
had denied the right to collective bargaining, representation
at work, trade union recognition and the right to time off for
trade union duties.
17. Over the last years trade unions have
fought for polices which have given workers rights if they are
in a union or place of work is union recognized. Please note these
are policies and not legislation here in Jersey.
The following are policies only
18. Maternity and parental leave, anti-bullying,
unfair dismissal, overtime payment, meal breaks, shift payment,
special leave payment, discrimination policy, disciplinary procedures,
inclement weather payment, redundancy packets, pensions' systems
and final salaries.
19. What has recognition in the new Employment
Law 2006:
Minimum hourly rate, public holidays, annual
holiday rest days and minimum period of notice.
20. And many anti-union laws (14 days
notice for a ballot for industrial actions ,7 days notice
for action and the list goes on). The International Labor Organization
said the Jersey laws are one of the worst even including the third
world. The ILO offered to work with the Jersey government to change
them. However, this offer was declined.
21. To give an example of how this government
disregards the wishes of the people and does what it wants anyway—19,000 people
of this Island signed up to petition against a Goods and Services
Tax . Despite this the people's wishes have been disregarded and
GST is in place.
THE JERSEY
PASSPORT ISSUE
22. The cover of a Jersey Passport says:
"European Union, British Islands, Bailiwick of Jersey".
An indigenous Jersey person's passport says: "Holder is not
entitled to benefit from European Community provisions relating
to employment or establishment".
23. This message can be found stamped inside
the passports of people of "pure" Channel Island descent
as well as those born in the Islands to European parents, in other
words, people who have a parentage that is not of the United Kingdom.
24. Channel Islanders are not covered by
the rights of the freedom of movement of workers and, therefore,
have no automatic right to work or start a business within mainland
Europe.
25. The stamp first appeared in Islanders'
passports after the Accession of the United Kingdom to the European
Community 1973. The UK Government negotiated on behalf of the
Islands and the result of these negotiations was Protocol 3. This
was done with the full approval of the States of Jersey. It is
because of this protocol that the stamp was put in the Islanders'
passports.
26. The human cost of being in the customs
territory of the EU benefiting from free movement of provisions
is high. Islanders who do not have either parents or grandparents
from the UK have no right to live or work in Europe.
27. We see this as a flagrant abuse of human
rights where one group of people in Jersey have access to Europe
in this respect but others do not. The irony of this situation
is that those who do not have access to Europe or, in other words,
have a stamp in their passport preventing them from living or
working in Europe, often have European parents or grandparents,
thus the likelihood of them wanting to live or work in Europe
is higher than the former group. Surely it's all a question of
integrity? For years the insular authorities have pointed to the
letter of the law. Now is the time for the spirit of the law to
override the injustices imposed upon our people. It does not matter
if we are talking about only 5,000 Islanders having the stamp
in their passports. One would be too many. Jersey Deputy Roy le
H
rissier who is a recognized constitutional expert
points out in the Jersey Evening Post ( 26.8.2006) that
"Europeans from EU countries have more access to the Island
than the 5,000 or so Islanders who are forbidden to live
or work in the EU". How shameful is this? Most people outside
the Island of Jersey just can't believe this is true.
28. This short letter from John Heys to
the Jersey Evening Post (19.1.09) illustrates the schizophrenic
nature of the Passport issue:
"My wife purchased a dress in Italy last
month, and I enquired that as Jersey was not in the EU, could
we claim back tax? The answer was yes and the form was duly filled
in, which had to be presented to the Customs Office at Naples
Airport, which we duly visited.
It was then pointed out that it was not possible
as Jersey was in the EU. I said it was not but emblazoned across
both our Jersey passports was "European Union", and
no matter what persuasion nothing would convince them otherwise.
It was suggested we talk to the UK Customs at
Gatwick which office once found was closed due to staff shortages,
and we were told by phone to put the form into their letter box.
As we are not in the EU why do we have passports
that are not correct? It is ridiculous and, as we found out, can
cause all sorts of unnecessary problems."
(NB: to date (5.9.09) nothing more has been done
about this.)
29. As an Association we have campaigned
on this issue for years. So far no authority in the UK or Jersey
will look at the problem. We are constantly referred back to Protocol
3 of the Treaty of Accession to Europe 1973 saying it
would have to be re-negotiated and that they are not prepared
to do. We are thoroughly familiar with the content of Protocol
3 and the fact that it was agreed between the insular authorities
and the UK. The insular authorities have no desire whatsoever
to re-visit Protocol 3. This is unacceptable and it is for this
reason that we have high expectations that this inquiry by the
Justice Committee of the UK Parliament should see that justice
is done. We've waited far too long already for this!
30. Sending us back on a regular basis to
the insular authorities only produces comments like this from
The Bailiff of Jersey, Sir Philip Bailhache, The Bailiff's Chambers,
Royal Court House, Jersey JE1 1BA 27.5.2002:
"... It seems to me, with respect, that
your letter reveals a misunderstanding of the constitutional position.
No discrimination is involved in the special position of Channel
Islanders under the Protocol... Jersey is for all purposes save
one outside the EU.... We are therefore inside the Community for
the purpose of freedom of movement of goods.... The abolition
of the restriction on the freedom of movement of Channel Islanders
as defined by the Protocol could only be achieved by the re-negotiation
of Jersey's position vis-a-vis the EU. My understanding is that
Jersey's government has no such intention at the present time,
but this is of course a matter for our elected representatives.
I am sending a copy of this letter to Senator Horsfall".
31. However, we contest the justice of this
and are asking for it to be re-negotiated so that we can have
a full European Passport. We see going into Europe as a distinct
advantage Time has moved on; other treaties have been signed with
Europe eg Maastricht, Lisbon,but along the way "our
dear Channel Islands" seem to have been forgotten! Time to
put this right.
32. We wrote to the UK government many times
on this subject. On one occasion we received a reply from Mr.
Richard Miles at the Lord Chancellor's Department Constitutional
Policy Division dated 1 October 2002. He said, "The
nature of the relationship between the Crown Dependencies and
the European Union is essentially a matter for the insular authorities
to determine, not Her Majesty's Government in the United Kingdom".
33. There is a discrepancy between Mr. Miles'
understanding of our situation and that outlined by Lord William
Wallace when he says in the Jersey Evening Post (26.8.2009):
"Jersey and Guernsey are dependencies of
the British Crown. The British Government represents the Crown.
The British Parliament, within a constitutional system which is
based on parliamentary sovereignty, holds the government—and
through it the Crown—to account. Both Houses of Parliament
have neglected this duty, so far as the Crown Dependencies are
concerned, for many years. The Justice Committee of the House
of Commons is now remedying this neglect by launching an enquiry
into how well the British Government manages the relationship
with the Crown Dependencies".
34. The UK is happy to maintain the status
quo in Jersey as a tax haven for its own purposes. We would like
your Commission to look very seriously at our plight which we
do not think stands up to scrutiny in respect of human rights.
We wish to thank you for taking the time and
trouble to remedy the shortcomings of the relationship between
the UK Government and the Crown Dependency of Jersey.
We want you to know that, despite living on
this small Island, our windows to both Europe and England are
always open. Over the years we have had information, help and
encouragement from Attac Saint-Malo (French Liaison Officer Jacques
Harel) and the Tax Justice Network (Director John Christensen).
Richard Murphy of Tax Research UK and Professor Prem Sikka of
the Association for Accountancy and Business Studies have also
highlighted the moral and ethical issues involved in finance and
good business practice. No wonder we want good governance for
a Jersey that can earn its living in an honest and sustainable
manner without the tax avoidance industry!
September 2009
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