Wednesday 21 January 2015
The oversight of the States of Guernsey's fiscal policy and performance is to be expanded and enhanced, with the addition of a second UK-based economist.
Professor Geoffrey Wood has written the annual independent fiscal policy review for five years, but he will now be joined by the Group Chief Economist of the Royal Bank of Scotland (RBS) in scrutinising the conduct of the States' fiscal policy and assessing their performance against the rules the States has set for itself. Dr McLaughlin has been RBS's Group Chief Economist for ten years.
Deputy Gavin St Pier, Minister for the Treasury & Resources Department, said:
"I am delighted that Dr McLaughlin has agreed to join Professor Wood in carrying out this important role, and I am grateful to the Royal Bank of Scotland for enabling it. Dr McLaughlin's credentials as an economist are absolutely first rate.
"Developments such as moving towards a balanced budget, bringing spending under control, issuing a Guernsey bond, and the forthcoming changes to the personal tax regime mean that it is perhaps more important than ever to ensure that the States adheres to its fiscal framework.
"Professor Wood has done sterling work in holding the States to account in that respect, but the addition of Dr McLaughlin's expertise marks the beginning of a return to a panel format in the truest sense of word. Our intention at this stage it is to make a further appointment to the panel in due course, but for the time being we look forward to working with Professor Wood and Dr McLaughlin."
Dr Andrew McLaughlin, the Group Chief Economist of the Royal Bank of Scotland (RBS), has taken up the role after two days of meetings in Guernsey last week. Over the 12 and 13 January, Professor Wood and Dr McLaughlin's meetings included:
- Meetings with States Departments including Treasury & Resources, Commerce & Employment, Social Security and Policy Council
- Meetings with representatives of the construction and tourism industry as well as the Chamber of Commerce
- Meetings with business bodies including the Guernsey International Business Association, the Guernsey Investment Funds Association, the Association of Guernsey Banks, the Guernsey Association of Trusts, the Guernsey Society of Certified and Chartered Accountants, and the Guernsey Investment Managers and Stockbrokers Association
Paul Whitfield, Chief Executive of the States of Guernsey, said:
"As a public service, we are committed to developing and implementing policy that supports economic growth, that ensures financial stability, that balances fair taxes with responsible spending, and that is based on the strongest possible data and analysis. The independent Fiscal Policy Panel will play a vital role in that through providing oversight of our fiscal framework. I welcome Dr McLaughlin's addition to that function, it is a very positive development."
Professor Geoffrey Wood said:
"I am very pleased that the States has confirmed the importance of the work in scrutinising the conduct of its fiscal policy by bringing in Andrew's expertise. I am very much looking forward to working with him."
Dr Andrew McLaughlin said:
"I am very much looking forward to working with Geoffrey on the panel. The Royal Bank of Scotland has a strong presence in Guernsey and the Channel Islands, and I know Guernsey well. The meetings I had in Guernsey were productive and candid, and I look forward to contributing to the work of the panel. I was encouraged by the thoughtfulness of everyone that we met and the commitment to the long-term prosperity of Guernsey and Alderney."
Guernsey's Fiscal Policy Panel was first established in 2010. The panel performs the role of independent arbiter on the conduct of the States' fiscal policy, and in particular whether the States remains within the parameters for present and future spending and budget balance as set out in its fiscal framework.
ENDS
