Exploring the complex relationship between the Bailiwick of Guernsey and Westminster, this article highlights the recent Pickles report on Nazi atrocities in Alderney and Guernsey’s fierce independence as a Crown Dependency. It also examines Guernsey’s economic self-reliance through contributions to global markets and the offshore finance sector.
Jayne Ozanne
Founder and Chair of the UK’s Ban Conversion Therapy CoalitionGuernsey Overshadowed by Westminster
Not for the first time has the Bailiwick of Guernsey found itself eclipsed by events in Westminster. Whilst all eyes turned on May 22nd 2024 to the deluge happening outside No 10, many islanders were instead focused on the long awaited report by Lord Pickles into the scale of the atrocities committed by the Nazis in the island of Alderney and the ensuing coverup by successive British governments.
To date, no one has been held to account for the thousands of lives that were lost during World War II on Alderney, the island that is closest to both France and the UK and the second largest in the group that forms the Bailiwick of Guernsey.
A Crown Dependency, Fiercely Independent
Whilst the Bailiwick of Guernsey may have the misleading title of being called a “Crown Dependency” in truth we are – just like the Isle of Man and the Bailiwick of Jersey – fiercely independent. Take Guernsey, for instance – where we have our own legislature, our own courts of law and importantly, for us, our own flag.
We still have our own money complete with one-pound notes, which continues to generate an income of its own given that it is an ideal keepsake for our many thousands of visitors. Whilst we still need to look to Westminster for our security – a moot point for many of my father’s generation, who had to choose between evacuation or being left to face the German occupying forces- we look to the EU for our electricity and for much of our trade.
It may be of interest to know we have no party system as such in our government, at least none that applies a whip. Instead, we govern by consensus where individuals stand (and fall) by what they believe, allowing the electorate to determine whether they should represent them or not.
It works to a point but has been severely tested in recent years with inevitable stalemates on key decisions regarding tax and spending. Indeed, even if there are no official parties per see there are unspoken alliances between those on the ‘right’ and those on the ‘centre left’. Interestingly, the ‘left’ has still to find its voice in an island which has significant financial inequality, and where the better off are in the majority.
The system is an interesting one but inevitably leads to popularist manifestos, where people risk promising the earth without any means of delivering it. Arguably, one thing we do have in common with Westminster is the urgent need to increase public sector funding, particularly in relation to a looming social care crisis for our elderly.
At least our non-party system is a refreshing change to Westminster, where candidates can feel heavily constricted by their chosen party’s manifesto. That said, the shadow of Westminster can loom tall over the Dependencies, where decisions taken with minimal or no input can have far-reaching impact on our economies, stability and way of life.
Take for instance Brexit, in which the majority of those living in the Bailiwick had no say (unless they had previously been a UK resident within the preceding 15 years) yet which had significant impact on us all, particularly for supply lines and those in our fishing industry. To help mitigate against this, we voluntarily choose to adopt certain EU legislation and appropriate international standards so as to ease our new relationship with our closest international neighbour, France. Indeed much experience in being a long-term third country to the EU from which the UK might learn.
Economic Self-Reliance and Financial Integrity
All things considered, we certainly have learnt to punch above our weight – given we are a jurisdiction that is roughly only the size of Ashford or Stafford. We have consistently created brands recognised on the world stage – from Guernsey jumpers to Guernsey granite (found in St Paul’s cathedral, Blackfriars Bridge and in many London boroughs) to Guernsey tomatoes. More recently, of course, we have become known for our tax neutrality status– creating a significant income boost for many locals working within the finance sector on the island. Indeed, “tax haven” is perhaps the most common (and yet unfair) label now associated with the Crown Dependencies, conjuring pictures of untold wealth being illicitly channelled through our shores. In the modern age, nothing could be further from the truth.
That said, it is worth reflecting that when one accusingly points a finger there are always three others pointing straight back – which those in Westminster and the City of London would do well to remember. We have worked tirelessly over the years to ensure that the Bailiwick of Guernsey meets all international standards and is as transparent and accountable as others are in this complex area of finance.
Whilst the final reports of our MoneyVal examination (an OFSTED like compliance inspection of financial crime standards by the Council of Europe) won’t be available till early 2025, Guernsey’s government has poured millions over decades into making sure we meet – and more often than not, exceed – the exacting international standards. To be fair, most in Westminster would concede they would rather those choosing to use offshore financial centres do so in a jurisdiction that has strong links to the UK, as opposed to those further afield. As such, it is important to point out that ‘Crown Dependencies’ are very different to ‘Overseas Territories’, with which they are all too frequently lumped.
The Bailiwick of Guernsey has therefore an interesting interdependent relationship with the UK, and one that is in the interest of all parties to maintain. We are ostensively an Independent Dependency, which relies on relationship and trust for the mutual flourishing of all.
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