Business
Business Barriers Make Island ‘Less Attractive’
The Economic Policy Review Committee has issued a statement on the matter after hearing evidence from Enterprise Minister Tim Johnston and chief officer Mark Lewin.
Recent losses of banking, credit card and insurance options for islanders is a concern but one that is hard to address.
The Economic Policy Review Committee has issued a statement on the matter after hearing evidence from Enterprise Minister Tim Johnston and chief officer Mark Lewin.
One of the most recent instances of the removal of services was from Admiral, which the DfE believes on affects less than 10% of the motor insurance market on the island, following credit card and banking services which have been withdrawn by other companies.
The HKs on the committee, chair Claire Christian, John Wannenburgh and Jason Moorhouse, said they are concerned that as the variety of services on offer to islanders diminishes, the island becomes ‘less attractive to
relocate or start a new business’.
They said: ‘The current situation was further illustrated by the inability to obtain motor insurance for takeaway hot food delivery drivers on the island. The DfE’s efforts to engage with insurance companies and counterparts in Jersey and Guernsey are welcome, but a solution had yet to be found.’
During the hearing, Mr Lewin said that the gov knew about the issue with Admiral insurance ‘a number of months ago’ that the law changes in Gibraltar would lead to the removal of the service from the island.
Mr Lewin also noted that when statements have been issued that point to the withdrawal of banking or credit services, these statements have later been withdrawn by banks and lenders and the service has continued to operate.
However, Mr Johnston pointed out that often the decisions are being taken by people far removed from the island.
He said: ‘Often the the banks on the island are not a separate entity, they don’t have a say on this issue. These this often comes from elsewhere and it’s dependent on the structure and the ring fencing of that of that bank depends on how on their attitude towards the island.
‘Clearly, seeing with HSBC, a global structure, still providing car services for new applicants. Others continue to provide services for their existing customers, but not looking to renew. So there’s a mix, I understand why that has been quite frustrating, why the decisions have been made and often it’s not clear.’
