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Coronavirus: Guernsey's 'revive and thrive' recovery approved

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Deputy Gavin St Pier described the economic crisis as one of the greatest challenges Guernsey has faced since the Occupation in World War Two

Guernsey's "revive and thrive" coronavirus economic recovery strategy has been approved by the States.

The framework includes infrastructure investment, examining work permits and travel links and a review of taxes and public service provision.

It also lays out the guiding principles the States will use.

The States has agreed a £225m short-term borrowing arrangement, as part of up to £650m of borrowing for the overall recovery strategy.

President of the Policy and Resources Committee Gavin St Pier described the economic crisis as "one of the island's greatest challenges since our liberation following the Occupation".

"In striving to meet that challenge we have the most significant opportunity, I would suggest, of our generation to improve our island and our bailiwick for the better," he added.

'Investment and confidence'

Guernsey's economy is expected to fall by around £300m in 2020, about an 8% drop in Gross Value Added, a measure of economic output before taxes are included and government subsides removed.

Government economic modelling projected it would take more than a decade to recovery from this without investment.

Deputy St Pier said: "Guernsey must restore its financial security and community wellbeing through an initiative which is innovative, dynamic and, I would suggest, co-designed with our community.

"To revive and thrive our vision for recovery requires investment and confidence, rather than cuts and austerity."

In the short term, the States aims to finish the review of air and sea links, invest in infrastructure and regeneration projects, review the population management system and overhaul telecommunications infrastructure.

The report sets out guiding principles of developing a sustainable economy, improving health and care services and ensuring the entire community benefits from recovery.

The framework also lays out the need for a "fiscal strategy" in recovery, including evaluating the "structure of taxes and the size, cost" and efficiency of public services.