• Holland And Barrett Vitamins Gibraltar Offer

Apr 27 – Chief Minister’s ‘State Of The Nation’ Address To The Chamber Of Commerce Annual Dinner

Here’s the full text of yesterday evening’s ‘State of the Nation’ address delivered by the Chief Minister at the Chamber of Commerce’s annual dinner:

Mr President, 
Ladies and Gentlemen,

Tonight it is just ten months since the vote in referendum on the United Kingdom’s membership of the European Union.

Ten months since Gibraltar was presented with yet another challenge for to overcome.

Ten months since this community once again resolved to pull together to determine and conquer our future for ourselves rather than allow circumstances to pull us in an unwanted direction.

But this is not the most important dinner going on tonight which is considering the consequences of the result of the referendum.

The Prime Minister is presently hosting Messieurs Junker and Barnier in Downing Street this evening as a prelude to the negotiations that will commence after the ongoing General Election in the UK.

I consider that Gibraltar’s interests are very ably represented at that dinner tonight by Mrs May.

You will all know that in the days, weeks and months that followed the referendum, we have met and communicated with the Prime Minister, the Chancellor, the Foreign Secretary, Secretaries of State Davis and Fox, set up the Joint Ministerial Council with the UK Government specifically on Brexit, and have had numerous meetings with Robin Walker, Sir Alan Duncan and other leading politicians and officials working towards making a success of Brexit.

We have also taken our campaign to Brussels.

We have now met up with Ambassadors of 24 out of the 27 EU Member States.

Earlier this year I also addressed the European Parliament’s influential Committee on Constitutional Affairs where I set out Gibraltar’s position and rejected proposals put forward by Spanish members.

They have today published a not unfavourable report in respect of the UK’s devolved nations and Gibraltar.

Even the Leader of the Opposition, who is not paid to be generous in his praise of me, has admitted that the Government has left no stone unturned in the work we have done in these challenging past months.

In a world currently characterised by uncertainty, we have adopted a strategy to deliver as much certainty to our economy as is within our control.

I sincerely believe that is what you, the Gibraltarian entrepreuners, expected from us.

An important aspect of that strategy consists of securing continued access post Brexit for our services sector to the United Kingdom.

Essentially that means that our Financial Services and Gaming sectors will continue to have barrier free access into the United Kingdom market.

We have also agreed with the United Kingdom to explore other areas where we can expand this relationship.

And a further commitment has been forthcoming from the UK to take into account our priorities also in respect of the future trade deals that the UK will enter into with countries around the world.

That will be particularly important in respect of new trade arrangements between the United States and the Commonwealth countries with whom we share important basic attributes, not least the bonds of a common language and the common law.

None of these matters are dependent on the Brexit negotiations.

None of them are affected by Clause 22 of the European Council’s draft Guidelines.

All of them are entirely within the gift of the UK Government.

That is why we have worked hard on those aspects of the future on which we know we can deliver success and on which you can build new business.

Continued access to the UK market was first announced last October by Secretary of State Liam Fox at our Gibraltar Day in London, and confirmed by Robin Walker both in Gibraltar and in giving evidence to the House of Lords Brexit Select Committee.

Within four days of the referendum result we had put this issue to Downing Street.

In less than four weeks it was agreed by the then Prime Minister.

Within four months it was publicly announced by a Secretary of State.

And I have already had written confirmation from the Department for International Trade that the interests and priorities of Gibraltar will be fully reflected and taken into account in talks to establish future trading relationships.

Again, what we are delivering in partnership with Britain are the things that are necessary to establish the ground for a future business strategy that makes Gibraltar an attractive business hub in respect of those nations with which the UK establishes new trading relationships.

That allows you, our business leaders, to plan your growth strategy for the next eight quarters, even if that period is one of uncertainty as to the final position in respect of the trading relationship with Europe.

And why is this important?

The work we did across Government and the private sector told us that some 92% of our financial services and online gaming business was with the UK. The work we are doing to maintain and increase that business will serve us well and early results indicate we are on the road to achieving these results.

Since the 24th June the FSC has issued 21 licences and has 22 in the pipeline, with a number of new firms engaging with them in the pre application stage.

Some of this business is substantial, and will lead to increased activity and employment in Gibraltar.

This is ironically probably the period in our recent history when we have seen most licences issued.

A truly remarkable vote of confidence in Gibraltar. 
Similarly in Gaming, we have licensed 2 new firms and have 3 in the pipeline.

This is a remarkable performance contrary to our own predictions of what Brexit might mean for Gibraltar.

Of course we will hear of firms restructuring, but this is normal and to be expected as firms grapple with the typical cyclical nature of their businesses and the looming Brexit changes.

And how has Gibraltar performed during this period?
We have now completed a full Gibraltar Financial year on 31 March 2017.

Tomorrow morning all Members of Parliament will receive the Draft Estimates of Government Revenue & Expenditure for the current financial year 17/18.

Members will be required to keep the content of that Estimates Book confidential until the day of the Budget Debate.

This past month we have been examining the forecast outturn to distil the economy's performance since that vote.

After the vote there was the expected negative outlook and concern for the future.

Pessimism was the order of the day as much in London as it might have been in Gibraltar.

My Government did what we do best, we knuckled down and got on with the job of facing the issues and best preparing ourselves for the new look future that we did not want, but will work tirelessly to make the most of.

We cancelled holidays, started the process of unravelling what that future looked like.

So how have we actually done?
How has the economy performed in this period of flux?

In fact, the economy of Gibraltar has defied expectations and all attempted sabotage and has performed extraordinarily well!

Ours is an economy:

  • Where estate agents will tell you they have had the best period of performance over the last 9 months with property at all ends of the spectrum being sold;
  • Where large office and residential space is occupied almost as soon as it is open and new private sector developments continue to break ground.

In fact, many of you will know that the World Trade Centre has had to turn business away for lack of space.

Only this afternoon I have opened the magnificent new offices of BetVictor at the World Trade Centre in which they have invested over £2Million.

Confidence and investment in their people. Confidence and investment in their business. Confidence and investment in Gibraltar.

New firms continue to seek licences to operate from Gibraltar and the employment numbers continue at record levels, with unemployment importantly remaining at record low levels.

The published first quarter average of unemployment is 216, a record low. It is the lowest first quarter average on record!

In fact, I can tell you tonight that the figure of registered unemployed as at the close of business today, with one working day to go before the end of the month, is a record low of 150 persons!

That is half the rate last year before the referendum!

We continue to seek out new market opportunities responsibly and professionally as we are about to do in the FinTech space with a new and exciting regulatory environment.

In this period sectors of the economy that have been static for years have suddenly sprung into life.

After years of successive Governments seeking to attract new hotels, we have already opened one, the five star hotel and seen three of our established hotels invest and undergo the refurbishments they sorely needed.

And since the referendum, two new hotels are in the process of opening their doors in the next 15 months, with construction already well underway on one of these.

I cannot yet disclose too much at this stage on how Government revenues have performed during this period but what I can say is that this anecdotal evidence is more than supported by the figures I am sending to Parliament tomorrow.

Revenues are up on last year and we are projecting another healthy surplus for the year just closed.

But what is interesting is that revenues are not just up in one category, they are up across the board:

  • Income tax is up, signifying more employment;

  • Company tax is up, signifying good results from those performing here;

  • Import duties are up

  • Stamp duty is up, reflecting the confidence and reporting of estate agents;
  • Gaming charges and fees are also up, demonstrating this sector is vibrant and performing;
  • Rates and rents are up showing more effective collection;
  • Airport taxes are up recognizing the increase in air traffic to Gibraltar;
  • Tourist site receipts are up on our projections;
  • Savings Bank deposits are up;
  • Port authority fees are up because bunker dues and Cruise passenger numbers are up.

We are well on target to achieve the commitment set out in our manifesto of achieving GDP growth of at least 7.5% a year.

What this shows is that our decisions are indeed coming home to roost.

And they are delivering an economy that is performing well despite the uncertainty caused by Brexit and by those that would seek to derail our success.

Why?
Because you and your employees are the economy.

And you – and we - respond well to these challenges and in partnership with our prudent stewardship of this economy.

An economy that has faced serious challenges in the past and will do so in the future.

An economy that is resilient and in the hands of a Government and an entrepreunrial class that will prudently ensure that it is steered towards success.

Because we all know that Brexit won’t be a bed of roses.

But we can now see that neither will it be a bed of nails.

Gibraltarians wouldn’t blink in either case.

Together, we know history doesn’t give us time for bed.

We are out there getting things done - not lying back and thinking of England leaving the European Union!

Every generation has a moment to turn history.

This is our time.

And it is our responsibility – however difficult it may appear - to safeguard our future for generations to come in the same way as those who voted in the referendum of 1967 secured our future before us.

It is therefore right that this year we celebrate the referendum of 50 years ago, without allowing the referendum of last year to overshadow our success in this past half century.

Successes of successive governments of different political complexions and of different ministers and chief ministers.

Successes not of politicians but of a whole community that in the end delivers results that defy those who would thwart our very existence as a distinct people.

It is therefore right that we should continue to deliver homes for the elderly, for the referendum and evacuation generations, as they vacate properties to grow families that produce our future generations.

And it is right that we light the way for the next half century of growth and prosperity in an exclusively British Gibraltar by continuing to improve public services.

Our health service, our schools, our Sporting facilities, our new tunnel under the runway, our new power station and our new LNG plant that will secure our energy independence and stability of power for years to come.

We will deliver in all of these areas in the coming three years despite the Brexit challenge.

Across Government we will continue to work to build on our strong foundations.

And we will continue to improve the service we give to you as clients and the value for money that we offer you as taxpayers.

As you would expect, we plan to continue to work of prudently keeping expenditure in check, seeking to make more efficiency savings, to deliver value for money and to ensure we can deliver critical services to those that are most needy in the economy.

And those companies operating in Gibraltar can rest assured that across all areas, we are working to make your interaction with Government more efficient, more effective and very much easier.

Because Brexit provides challenges but also many opportunities which we are studying to make life easier and more efficient for those that operate here.

Mr President, we are working well with your Board across all these areas and I am grateful to them for their cooperation, advice and assistance, even if we do not always agree.

Together with the Federation of Small Businesses and with the Unions, we work in a de facto social partnership that is critical for Gibraltar’s success.

Given the wealth created by us is shared with many that come across the border each morning, it is a shame we cannot work together with the neighbouring nation to address many of the issues that afflict us to make life easier for those that commute every day.

If we did, it would allow this engine that is the Gibraltar economy to work even harder to power the whole region around us.

As you know, this is not for want of trying, and we will continue in our efforts.

We will continue to offer our hand of friendship to the Kingdom of Spain to develop joint strategies for dealing with the consequences of Brexit in a way that makes people’s lives easier, not harder.

Because Brexit is not a game for Spain to seek political advantage. Brexit is a challenge for all of Europe, not just the UK and Gibraltar. But Brexit we will not break Gibraltar.
It will remake Gibraltar.

We will emerge from being a European business hub to being a business hub for the whole World.

Truly a World Trade Centre.

Mr President, this is often billed as a State of the Nation address by the Chief Minister at your annual dinner.

Given what I have told you Mr President, let us conclude with this message from Gibraltar to the world:

Our economy is thriving and growing;


Our public finances are robust and more stable than ever. Our political foundations are as enduring and solid as ever. Our Nation is steadfast and strong. 
Mr President: All’s well. The fortress is secure.




{fcomment}