Oct 20 - Chief Minister's Speech At Gibraltar Day Finance Centre Lunch
Full text of the speech given by the Chief Minister Fabian Picardo at the Finance Centre Lunch at the Old Library, The Guildhall, London
Ladies and Gentlemen,
I want to thank you all for attending today and warmly welcome you on behalf of the Government and People of Gibraltar.
Every year we gather here to celebrate the strong historic links between the City of London and Gibraltar.
But let not the historic setting of the Guildhall and the long history of our relationship suggest to you that we are here to celebrate a quaint old tradition.
Our links are today modern and vibrant.
Based on a Gibraltar that has stepped up to its international obligations and is amongst the best regulated financial services hubs in the world.
Leading in transparency and commitment to the Prime Minister’s G8 agenda.
And the leading online gaming jurisdiction in the world.
Evidencing thereby how our community has become comfortable with being at the forefront of technological innovation.
And of course with telecommunications links now established as amongst the best in the world.
And for those reasons we have a good news story to tell you today about the socio-economic progress that we are making in Gibraltar.
This year our Treasury and Statistics Office have reported to the Government GDP growth of 10.3%.
Double digit growth unseen elsewhere in Europe.
Inflation is on target at approximately 2%.
The number of jobs in the economy has risen 6.5%.
Our GDP per capita is estimated by the Government’s Statistics Office to now be just over US$75,000 which translates into THIRD PLACE on the International Monetary Fund World Economic Outlook Database Ranking of Countries based on GDP per capita.
And the main drivers for this growth are the continuing increased employment and turnover in the online gaming and financial services industries, as well as the increased levels of construction – both from the public and private sectors - now evident in our economy.
All of this in the context of keeping the cost of doing business in Gibraltar down.
Gross Public Debt is now £70 million lower than when we were elected.
The level of Cash Reserves is estimated to have ended the financial year at a very high level indeed of just shy of £100m or 50 times more useable cash reserve than when I first addressed you in 2012!
The latest figures available from the Government’s Statistics Office indicate that Gibraltar’s Gross Domestic Product for the financial year 2011/12 was £1.17 Billion rising to an estimated £1.28 Billion for 12/13 and the forecast for 13/14 is £1.41 Billion.
This analysis reflects a Net Public Debt at 25% of GDP; all well within the borrowing limits set out in the Public Finance (Borrowing Powers) Act based on UK recommendations to all its Overseas Territories.
We nonetheless obviously face challenges in this challenging world in which we live.
The EU Commission is investigating aspects of our Income Tax Act under State Aid rules. The same is true for aspects of the taxation model applied in London, Dublin and Luxembourg arising from the passing shots of the departing Vice President of the EU Commission.
We are very confident indeed that we will be able to satisfy the Commission that there is no State Aid aspect in the operation of our corporate tax regime as we have the Code Group of the EU which has entirely cleared our legislation; usually a higher hurdle to surmount.
But don’t just listen to my Government’s view.
If you look at the private sector’s assessment as a barometer of our ability to surmount those challenges, let me give you a flavor of how they view our prospects for growth.
Since I last addressed you we have seen THREE private sector office developments take off.
The WORLD TRADE CENTRE is coming to Gibraltar.
The works broke ground just before the summer with project completion estimated by early 2016.
Victory Place is set to break ground in the First Quarter of next year in the centre of our city and will include a new Marriott Hotel alongside offices.
And not far away the Mid Town Project is set to break ground in the Third Quarter.
These are three office developments long in the planning.
Now their respective developers have had the confidence to break ground.
And already a new fabulous 5 Star Hotel, the Sunborn Yacht Hotel, has opened for business in Gibraltar and led to refurbishment programmes underway or about to start at the more established Gibraltar hotels.
This is testament to the reality of the economic expansion I am reporting to you and the prospects for the future.
A future that is based on transparency and compliance with international rules.
And a future facilitated by Government through continued investment in infrastructure.
Investment in temporary power generators in place and operating to provide well in excess of peak demand – required as a result of a catastrophic fire at our power station earlier this year.
A new gas-fired power station to be fully commissioned by late 2016 or early 2017.
A tunnel under our runway – to allow greater aircraft movements and better traffic flow by late 2015 or early 2016.
And all of it in partnership with the United Kingdom.
Our historic relationship transformed into modern working practices that deliver mutual benefit to London and the Rock.
Long may that relationship endure and prosper.
