To delete all the propositions and substitute therefor:
1) To agree that the longer-term financial position of the States of Guernsey is unsustainable and effective measures must be implemented in a staged approach; and to agree that the work associated with this issue is a very high priority for government
and resources need to be re-prioritised accordingly.
2)
a) To agree that the States must determine the role and size of government to
establish the revenues needed to fund the services that are required by the community; and in order to do so, to agree that a States’ Investigation & Advisory Committee (SIAC1) be established with terms of reference as set out in the Report entitled, ‘A Fairer Alternative’ attached to this amendment and to report back by the end of the current term with proposals and recommendations; and to agree that SIAC1 should comprise:
i) Five members elected by the States at the February 2023 States’ meeting:
and
ii) Two Non-States’ Members nominated by SIAC1 and approved by the States.
And that SIAC1 shall elect one of the States’ Members to act as chair.
b) To agree that a States’ Investigation & Advisory Committee (SIAC2) be established with the overriding objective of investigating changes to the corporate tax system, with terms of reference as set out in the Report entitled, ‘A Fairer Alternative’ attached to this amendment and to report back by the end of the current term with proposals and recommendations; and that SIAC2 should comprise:
i) Five members elected by the States at the February 2023 States’ meeting;
and
ii) Two Non-States’ Members nominated by SIAC2 and approved by the States.
And that SIAC2 shall elect one of the States’ Members to act as chair.
c) Pursuant to Proposition 1, to direct the Policy & Resources Committee to reprioritise and make the necessary funding and resources available to SIAC1 and SIAC2 to discharge their mandates.
AND ONLY IF PROPOSITION 2 IS APPROVED:
3) To agree that, before increasing revenues, it is essential to control expenditure and deliver savings; and, accordingly, each committee’s baseline general revenue cash limits for 2024 should be subject to a 1% real terms reduction, excepting the budget of the Committee for Health & Social Care, and to direct the Policy & Resources Committee to reflect this when preparing the 2024 Budget Report.
4) To agree that the total general revenue budget for 2025 should be subject to a further
1% real terms reduction and to direct the Policy & Resources Committee, after
consultation with SIAC1, to make recommendations in the 2025 Budget Report to achieve that outcome.
5) To agree that, bearing in mind the islands’ capacity to deliver infrastructure projects, Principle 6 of the Fiscal Policy Framework should be amended to state, ‘Capital expenditure over any States term should be maintained at a level which reflects the need for long- and medium-term investment in infrastructure and direct capital expenditure by the States should average no less than 1.5% of GDP per year averaged over a four year period.’
6) To direct the Policy & Resources Committee to introduce a new ‘Community & Infrastructure Contribution’ from corporate entities as set out in the report entitled, ‘A Fairer Alternative’ attached to this amendment, to raise up to £10m annually by 2025.
7) To approve the development and implementation of the following changes no later than
the end of the current States’ term:
a) A restructure of the Social Security Contributions system, as outlined in section 8 of the policy letter, save for a reduction in the employer contribution rate to 7% in respect of any employee over the retirement age for States Pension purposes.
b) That for Income Tax and Social Security Contribution purposes, the totality of each individual’s allowances and withdrawable deductions are reduced at a ratio of £1 of allowances and withdrawable deductions for every £5 that that individual’s calculated income is above £80,000 (such limit being pro-rated in the year of arrival or departure, based on the proportion of time spent in Guernsey in the relevant year).
8) To direct the Policy & Resources Committee to review the structure, application, and rates of TRP on non-domestic, non-public parking areas and to include appropriate propositions in the 2024 Budget Report to raise a minimum of £500,000 per annum.
9) To direct the States’ Trading and Supervisory Board, having regard to comparable systems internationally, and in accordance with the Scope 3 element of the States’ net zero target, to investigate the potential to implement an emissions levy on visiting cruise ships sufficient to raise a minimum of £500,000 per annum and report back in sufficient time to inform any recommendations in the 2024 Budget Report.
10) To direct the Policy & Resources Committee, to investigate the options to ensure that high net worth individuals make a minimum tax contribution.
11) To direct the Policy & Resources Committee, in the absence of GST, to investigate options to ensure an alternative contribution is made from visitors to raise up to £2m annually and to report back in sufficient time to inform any recommendations in the
2025 Budget report.
12) To direct the Policy & Resources Committee to investigate the potential to raise capital for eligible projects through the issue of a sustainable bond and to report back by the end of the current States’ term.
13) To direct the Policy & Resources Committee to investigate the viability of investing the States’ reserves in local projects that align with, and are in support of, States’ policies as set out in the report entitled, ‘A Fairer Alternative’ attached to this amendment and to report back by the end of the current States’ term.
14) To note that the Committee for Employment & Social Security is investigating what further measures will be required in the coming years to ensure the sustainability of the Long Term Care Insurance Fund and the Guernsey Insurance Fund and will be reporting back by the end of the current States’ term.
15) To direct the Policy & Resources Committee to provide an estimate of the structural deficit, if any, in future annual budget reports.
16) To direct the Policy & Resources Committee to report back on the impact of the measures arising from the above propositions by June 2026 and, if required, set out any measures necessary to address the sustainability of the financial position.
17) To agree in principle that the public servants pension scheme should be closed to all new entrants with effect from 1 January 2025 and direct the Policy & Resources Committee to deliver an appropriate alternative.
18) To agree, that to better enable commissioning of services, legislation should be introduced in relation to the Transfer of Undertakings (Protection of Employment) in respect of the public sector and to direct the Policy & Resources Committee and the Committee for Employment & Social Security by 1 January 2024 to bring to the States proposals for such legislation.
19) To direct the Policy & Resources Committee to prioritise the actions arising from the above propositions in the Government Work Plan.
20) To direct the preparation of such legislation as may be necessary to give effect to the above decisions.
