PARTY LEADERS PROMISE TO MEET SMALL BUSINESS CHALLENGE

01-Dec-2011 PARTY LEADERS PROMISE TO MEET SMALL BUSINESS CHALLENGE
by Dominique Searle

LEADERS ENCOUNTER: From left, Keith Azopardi, Fabian Picardo, Peter Caruana and moderator Frank Partridge at the John Mackintosh Hall on Wednesday.

Gibraltar’s political leaders made a bid for the votes of Gibraltar’s small business community on Wednesday night, all promising to focus on stimulating enterprise, minimising costs and listening to businessmen.

Peter Caruana, GSD, Fabian Picardo, GSLP/Liberal Alliance, and Keith Azopardi, PDP, were all guests of the GFSB which organised a presentation and debate that was moderated by SKY/BBC TV personality Frank Partridge.

There were strict rules and the focus was kept very much on business.

Mr Caruana made the point that the incumbent in government always has a greater challenge setting out the new programme. But he made a series of commitments to business as well as pointing to huge growth in the economy and saying that much has been done for business.


“We have seen considerable success.”

In his presentation Mr Picardo, pointed to the “real battle” being with the GSD and hit out at Mr Caruana accusing him of having made promises at the last 2007 election - to develop a new bank, deliver e- government - and yet it was not delivered.

Mr Picardo also pulled out a Chronicle from May 2007 where he pointed to a story reporting Mr Caruana promising a £24 m air terminal.

But the PDP leader argued that his team is a real contender. “This,” Mr Azopardi said, “is a three horse race.” He said that the choice is between a step into the progressive future with a PDP, “the status quo with the GSD or a return with the GSLP.”

The change, he said, is the PDP having a full slate and there being a new GSLP leader. And alongside that, he said, a burnt out GSD with a weaker team.

The PDP, he said, provides real and safe change. The team did not contain people who “were there in 1996 and took Gibraltar to the brink with its reputation.”

PDP

In his address Mr Azopardi promised a radical investment in tourism and a reappraisal of products in the financial services as well as “massive” investment in business services.

On taxation Mr Azopardi said that it was important that compliant business do not end up paying for government inaction for years on non-compliant businesses. He also said that if elected the PDP might amend legislation to allow people more time to understand the implications of the changes that have taken place with the switch to the new corporate tax system.

He said there had to be greater consistency on fiscal measures when Government plans these at budget time.

Mr Azopardi said that reductions in tax had nonetheless come with increases to municipal charges therefore increasing fixed business costs.

On Social Insurance the PDP is committed, he said, not to have annual increases and that those increase that are made would not be above inflationary levels.

“That hits businesses very hard, especially at a time when we are in an economic recession when businesses need assistance.”

Mr Azopardi said the difficulties faced with banking and the lack of provision of retail services. He said the PDP would establish a Gibraltar retail Bank which would have as it primary purpose the promotion of small and medium sized business.

The PDP leader also said that much had to be done to promote industrial infrastructure by way of offices, workshops and industrial space. He declared that he hoped to implement the new town project that had also been a 2007 manifesto commitment. “It will be on the east side of Gibraltar and within that we will provide commercial and tourism zones.”

The tourism zone would focus on hotels, resort facilities, marina, water-based sports centres and leisure. The commercial zone would contain a mix of office, storage and warehouses. This would be close to Devil’s Tower Road and would lead to decongestion so heavy traffic would not go into Gibraltar at all hours.

Mr Azopardi also said it was important that utilities and telecommunications be improved for business.

Gibraltar’s power grid, he said, has to be made sustainable and robust.

Another PDP promise is for a one stop shop for business to do all their business with government departments. He also plans a review of the trade licensing regime which hampers business.

A key project for the PDP is a cruise embarkation terminal which Mr Azopardi said would be an important source of revenue. Also a priority is a school of service excellence in tourism, policy of e-government, zero tolerance on illegal labour, better marketing of financial services and a much more vigorous interaction with the business community are promised.

ALLIANCE

Mr Picardo, a former GFSB board member, said the Alliance had looked at all the points raised by the federation. He said that e-government needs real investment to become a reality and he agreed it is a backbone infrastructure of IT. Done properly it would have a massive impact on counter hours and the submission of documents to government.

On fixed costs Mr Picardo said that the Alliance feels that the management of Social Insurance issues has left a lot to be desired in recent years. He said Chamber of Commerce figures showed that SI had gone up 38% in the last five years. Water had gone up 39% and electricity by 50% and all this affects “the bottom line”.

He pointed to reductions in business rates and import duties designed to boost the retail experience.

Mr Picardo said that the Alliance would respond to the GFSB call and set up an Office of Fair Trading.

He said that the plan is to develop the Gibraltar Savings bank as a new bank which would work with business on start-up schemes and small business loans having a minister with specific responsibility for small business.

Mr Picardo said there was common ground on growing the reach of the finance centre and marketing it.

On taxation the Alliance leader said no one will defend people trying to dodge their taxes but time had to be given time to get used to the new system and implement it in a fair way.

The tourism had “never been nurtured as it should have been,” said Mr Picardo adding that it brings customers to the retail trade and to the service industry.

The Alliance leader said that a “one stop shop” was particularly needed for the registration of labour.

“Illegal labour must be eradicated.”

GSD

Mr Caruana declared that the GFSB list of objectives had inspired many things in the GSD manifesto but he was frank that some items had not been adopted because they were to workable for Gibraltar as a whole.

Specific proposals include a specific ministry for not just small business but business and enterprise as a whole.

The call for the GFSB to join the Finance Centre Council was, not supported - nor for the Chamber or trade unions – because they were too technical and but Mr Caruana did say a Business Council would be created “because we understand that there are issues, related to financial services, which interest the GFSB.”

The Business Council would bring together the Government, Chamber, GFSB, the Finance centre Council, Betting and Gaming association, and other relevant representative bodies.

Mr Picardo later said that the Alliance would include the GFSB and others on the Finance Centre Council although he recognised the merit of the Business Council.

Business “incubators” would also be set up to encourage young entrepreneurs to “take the plunge” without getting overly worried about the initial investment in costs. This, he explained, was a physical facility to share managed office space and resources while getting the business off the ground. A small business start-up package would include small business loan guarantees, time and quantity limited tax and social insurance contribution holidays and discounts an element of wage subsidy, one stop shop licensing and registration.

That, he said, would be balanced against the need not to destabilise the market or create unfair competition to

the established market

operators.

The GSD also plan an “independent and empowered Office of Fair trading” set up by statute. That role would, of example, include ensuring government tenders are fair.

On utility costs Mr Caruana pointed out that the government absorbs, because of fuel costs, much of the costs and he did not agree with the suggestion that these costs could be kept below inflation when oil goes up much higher than that. But the subsidy will continue.

On banking he explained that he is committed to a local bank with as much government involvement as in necessary. And he made clear that the new tax regime was years in the making with consultation and included a holiday to allow businesses to get used to it. There had been no penalties yet, he told Mr Picardo. He also reminded that the GSLP in government had put SI up 10% a year barring the election year.

Mr Azopardi, responding urged GFSB members to vote for people who could safeguard the reputation of Gibraltar.Press

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