Guernsey to seek concessions on LVCR decision

Deputy Carla McNulty-Bauer Deputy McNulty-Bauer said singling out the Channel Islands did not represent fair competition

Related Stories

Guernsey's commerce and employment minister has said the island's fulfilment industry is "not over".

The UK treasury announced on Wednesday that it would abolish Low Value Consignment Relief from 1 April 2012.

This means VAT will have to be paid on all commercial packets or parcels sent to the UK by island-based companies.

The States has estimated that 650 jobs in Guernsey could be under threat but Deputy Carla McNulty-Bauer said: "I don't think it's over."

She pointed to the fact that the UK treasury would not formally publish its proposals until the pre-budget report on 6 December and said Guernsey would seek concessions.

"Bluntly, to me, fair competition does not mean just ring-fencing the Channel Islands," she said.

'More diverse'

The decision, announced by Treasury Minister David Gauke, will apply only to the Channel Islands.

Deputy McNulty-Bauer said: "I think we do have to question whether it is fair competition, so I do think that is certainly one area I would want to pursue."

She said the impetus for the change had been a campaign concerning CD and DVD sales.

"Guernsey's fulfilment industry is much broader, much more diverse," she said.

The department estimates £260m worth of goods are sent to the UK by Guernsey-based companies each year.

These include digital media, flowers, cards and health supplements.

More on This Story

Related Stories

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

BBC Guernsey


Guernsey Airport

15 °C 13 °C


  • Peaky Blinders publicity shotBrum do

    Why is the Birmingham accent so difficult to mimic?

  • Oliver CromwellA brief history

    The 900 year story behind the creation of a UK parliament

  • Image of Ankor Wat using lidarJungle Atlantis

    How lasers have revealed an ancient city beneath the forest

  • TheatreBard taste? Watch

    Are trailer videos on social media spoiling theatre?

  • Agents with the US Secret Service, such as this one, are responsible for guarding the presidentHard at work

    White House break-in adds to Secret Service woes

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.