p6 New Local Bank p26 Pensions Feb/March/April 2010 GIBRALTAR INTERNATIONAL FINANCE AND BUSINESS The Bland Group celebrates its 200th anniversary www.gibraltarinternational.com SPONSORS Gibraltar International Magazine is grateful for the support of the finance industry and allied services (with the encouragement of the Finance Council) in the form of committed sponsorship. We would like to thank the following sponsors: GIBRALTAR FINANCE CENTRE Tel: +(350) 200 50011 Fax: +(350) 200 51818 http://www.gibraltar.gov.gi DELOITTE QUEST INSURANCE MANAGEMENT LTD. Tel: +(350) 200 41200 • Fax + (350) 200 41201 Tel: +(350) 200 74570 • Fax + (350) 200 40901 www.deloitte.gi www.quest.gi EUROPA TRUST COMPANY JYSKE BANK (PRIVATE BANKING) Tel: +(350) 200 79013 • Fax + (350) 200 70101 Tel: +(350) 200 59282 • Fax + (350) 200 76782 www.europa.gi www.jyskebank.gi INVESTGIBRALTAR OFFICE SAPPHIRE NETWORKS Tel: +(350) 200 52634 • Fax + (350) 200 52635 Tel: +(350) 200 47200 • Fax + (350) 200 47272 www.investgibraltar.gov.gi www.sapphire.gi MONARCH AIRLINES PYRILLIUM SOFTWARE Tel: +44 (0) 8700 405040 Tel: + 44 (0)207 3213746 Tel: +(350) 200 47477 Tel: + (350) 200 61449 www.monarch.co.uk www.flymonarch.com www.pyrillium.com HASSANS TRIAY & TRIAY / TOTUS Tel: +(350) 200 79000 • Fax + (350) 200 71966 Tel: + (350) 200 72020 www.gibraltarlaw.com Tel: + (350) 200 76108 www.triay.com • www.totus.com PIRANHA DESIGNS Tel: +(350) 200 45599 • Fax + (350) 200 52037 www.pdg.gi www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 February/March/April 2010 EDITORIAL COMMENT Volume 16 / Number 1 Confidence and opportunity in 2010 Contents f we forever look NEWS P6-10 back, we will never New local bank planned see the way ahead”, Banking expands as I tell everyone Five go before when they declare New projects to create jobs “I2009 a terrible year! GDP growth success For in 2010, Gibraltar is Network of Bay ferry services looking forward to the end of high corporation tax, this being the last TELECOMMUNICATIONS P12 year of paying 22 per cent. More secure internet connections From next January, the rate should be cut to 10 per Gibtel opens new routes cent for all businesses based on the Rock, if the European Court of Justice throws out the Spanish appeal against FUNDS P14 Gibraltar having its own tax system separate from the UK. A new home in Gibraltar The government is certain it will happen. It’s encouraging too that – in these days of ‘tight’ PROPERTY P16-18 money availability – institutional and private investors are Office space set to double this year prepared to put significant money into building A 2020 vision new offices on The Rock to satisfy the demand that everyone expects to follow from new businesses attracted PROFILE P20-23 by the low corporation tax. James Gaggero, Still flying high Not many other jurisdictions can boast such a construction display of confidence. DATA PROTECTION P24-25 And local investors too this year seem prepared to Maintaining principles! back Gibraltar in its drive to create a new, national bank, INVESTMENT P26-27 sympathetic to the needs of small business in particular, Revenue lifts 55% tax threat and less well-heeled residents who find it difficult to gain Helping hand for new business mortgages. Satisfying appetites That’s quite different to most other places, where people fight shy of involvement with banks. Soundly PEOPLE AND PLACES P28-29 based, as it must be to meet strict local regulatory conditions, a new Gibraltar bank is certain to be popular. LAST WORD P31 The people of Gibraltar have much to be proud Spathetic! about, given the success of Kaiane Aldorino in translating her new Miss Gibraltar title into Miss World. It’s not been done before and everyone thinks she will be a great ambassador. GIBRALTAR INTERNATIONAL MAGAZINE One obvious potential benefit is in giving tourism a boost, but is anyone planning to turn it to advantage - is Published by Gibraltar No part of this publication International Publications Ltd. may be reproduced without there a mini-exhibition stand travelling with her, 1/5 Irish Town, Icom House, the written permission of the brochures, posters, etc. And what about Gibraltar airport Suite 6/PMB 104 publishers. The publishers and the Border: will there be signs proclaiming “Welcome PO Box 561, Gibraltar have tried to ensure that all to Gibraltar, home of Miss World”? Opportunities like information is accurate, but Editor emphasise that they cannot this seldom arise. Ray Spencer accept responsibility for any This year will see just how popular the new ferry [email protected] errors or omissions. The service between Gibraltar and Algeciras is after a gap of publishers accept no more than 40 years. The operator believes it will spark Sales responsibility for statements C.A. Tanner made by contributors or for interest in a Morocco / Ceuta ferry link with Gibraltar [email protected] any claim made in an too, which would be a practical demonstration of good advertisement. relations with Spain. Design Bil Brooks Gibraltar International The enthusiasm now being shown in La Linea to [email protected] Magazine is available on develop the Spanish side of the new Gibraltar airport subscription, 4 issues posted terminal – albeit in part fuelled by the need to create fresh UK Agent: to: UK £24 - EU £32 - employment and investment in the area – is perhaps the Tel: 0044 (0) 1993 703560 Rest of World £44. most far-reaching sign of a good year ahead. © 2010 Gibraltar International As we enter the second decade of the 21st century, the Publications Ltd. future for business in Gibraltar looks exceptionally bright. 4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS NEWS part social and part private in total, and the government Bank earning higher rates of be controlled and managed by or the Danish Jyske Bank - to housing. is thought to be considering interest than generally avail- professionals independent of pull out; some bankers are New local bank Local businesses are also taking a stake of up to 40 per able, with an option to utilise government, which essentially thought to be “nervous” said to be suffering, despite cent in the project. Post Office Counters. is acting as a catalyst. about the project, fearing the fact that the Gibraltar Rather than provide fresh As such, the venture is “unfair competition”. economy is growing by at cash, this may involve the new Local control expected to be hugely popular David Parody, the to ease funding least 6 per cent (see GDP venture absorbing the State- The amount required to with residents. It is understood Financial Services Commission growth success, page 8) owned Gibraltar Savings finance the new bank depends by Gibraltar International that chief executive officer, last An independent feasibility report has been prepared for Typical business loans by the Bank, where individuals’ on how broad its activities the Bank would be more “sym- Autumn predicted at the new bank would be up to deposits are guaranteed by the will be, and one possibility pathetic” to the local market Finance Centre Council 2015 government to establish a Gibraltar Bank dedicated to local £10,000. government. Or the new under discussion is a staged than the international banks conference, that “there is residents and small businesses during this year, In November, Chief bank may provide the bank- opening, perhaps tackling operating on The Rock. room for another player or Minister Peter Caruana, ing facility for the Savings first either business loans or One concern is that the two in the retail banking Editor, Ray Spencer has discovered. revealed that “the Bank. mortgages. new Bank must not become so sector” which, he felt, The idea has been prompted sidised housing schemes, par- risky in today’s economic cli- Government continues to Local people would be But the Bank’s destiny popular that it causes any of was “under-represented” in by the current difficulties ticularly the new sitting ten- mate, or too small to make actively study the desirability, encouraged to save with the and lending decisions would the others - NatWest, Barclays Gibraltar. being experienced by local ant right-to-buy homes at up the administration worth- viability and feasibility of a predominantly small busi- to a third of the true market while. new locally owned Bank” as nesses to arrange overdrafts price. The commercial rates part of projects foreseen in the to help with short term cash Reportedly, main banks being demanded - typically next two years. Bland new projects to “create many jobs” flow issues, and reasonably with local offices are falling 5.5% over 20-25 years for priced loans for start-up and foul of policies set by head mortgages of under £100,000 Finance promised Five new and on-going invest- it slightly less straightforward expansion projects. offices elsewhere in the UK. - are generally not too high The new Gibraltar bank - no ment projects – three large than elsewhere”, he said. Similarly, residents are They see mortgages, typically for government housing ten- name has yet been proposed - and two smaller ones – that Gaggero added: “I’ve finding it tough to find mort- of £30-40,000, with little or ants, but banks are said to be is already understood to have would create many jobs in learned through experience gages to enable them to take no prospective of owner con- further worried about becom- attracted local investors pre- Gibraltar are being worked that deals are never done until advantage of government sub- tribution, either as being too ing involved in blocks that are pared to deposit some £25m on by the Bland Group for they’re done.” For the future, launch this year, the 200th he says: “We will hold back anniversary of the business.