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Tuesday, 20 December 2011

"Pissing In The Wind"

Battle to save online industry

Jersey is to sue the UK government to try to save the fulfilment industry

MINISTERS are taking the UK government to court to save the threatened online mail order industry and protect up to 2,000 Island jobs.

With hundreds of families facing an anxious Christmas over the end of a tax clause allowing Channel Islands firm to export some goods to the UK VAT-free, the governments of Jersey and Guernsey have taken a stand.
After Chief Minister Ian Gorst and Senator Sir Philip Bailhache, the Assistant Minister with responsibility for foreign affairs, flew to London for fruitless last-ditch talks last week, a legal challenge to the UK government’s move has been announced.

Economic Development Minister Alan Maclean said that twin legal challenges from Jersey and Guernsey would be made and that he has written to the UK Treasury to inform them of the move.

 Guernsey firms using VAT relief welcome legal challenge

Derek Coates 
Healthspan owner Derek Coates said he welcomed the Bailiwicks' legal challenges

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Guernsey businesses using the UK's VAT relief scheme have welcomed news of a legal challenge to its removal.
Low Value Consignment Relief enables firms sending goods to the UK to avoid the tax when their value is below £15.
Guernsey and Jersey each announced legal challenges on Monday after the UK Treasury announced last month it would end the relief from 1 April 2012.
Healthspan owner Derek Coates, Chamber of Commerce President Julian Winser and flower exporter Mark Fletcher approved.
Mr Fletcher, who is also the chairman of the Postal Flower Association of Guernsey, said: "It's a very serious issue."
He said customers had already shown "resistance" to the payment of UK VAT, following the lowering in November of the LVCR rate from £18 to £15.
"They're opting for the lower price bouquets, so the revenue is going to be impacted," he said.
'Larger beast' Mr Winser said he was happy to see a legal challenge being made, despite the possibility of harming the islands' relationships with the UK.
"I think there's always a small risk if you antagonise what is essentially, in this case, a slightly larger beast than ourselves," he said.
"But on the other hand, if it is fair, what we're doing, then it is absolutely right to challenge it."
Derek Coates had already taken legal advice with a view to mounting a challenge on the grounds of discrimination.
The ending of the relief in April is to apply only to goods sent from the Channel Islands.
Mr Coates said he welcomed the move by each Bailiwick to oppose the decision.


  1. 3 little pigs went weee weee all they way home.if they think there gonna win this then there dreaming

  2. More tax payers dosh down the poop shoot.

  3. Not that I am happy about this because I am not, it doesnt affect me directly but it will affect many workers and that pisses me off.

    That said, if I were the UK government and Jersey comes to me and complains about discrimination I would respond with a question "How would you deal with discrimination in Jersey?", "How would you anti discrimination laws propose to sort this out?".

    Those are questions I would ask because there is no come back, we have no anti discrimination law in place yet. Funny how all the pondering and pontification can really bite you in the ass. You cant go moaning about anti discrimination law when you have none of your own, its a futile exercise. Although, chances are PC Britain may have to bend over and take it because they cant be seen to be discrimiatory whereas our government seem to be able to get away with it.

    I think the whole thing is daft anyway, it might make a difference for a short amount of time for the UK governments coffers but only while the companies move elsewhere where the LVCR is still in place. It wont make any difference to high street retailers...and I thought Jerseys goverment didnt have a clue!!

  4. careful, the nekkid-assed Calvin cartoon probly counts as kiddie porn!