Introduction

"The origin of self-government in the Channel Islands is… to be found in their possession of a customary law that was peculiar to them, and in the separate administration which had to be given to them on account of their customs."

Professor Sir John Le Patourel (medieval historian)

In June 2004 Guernsey and Normandy commemorated the 800th anniversary of the Commise of 1204. That was when William the Conqueror's great-great grandson (John) lost Normandy to King Philippe Auguste of France. Until that point Guernsey had been a part of Normandy but the Channel Islands were not included in the land forfeited to France and accordingly remained part of the English King's lands after 1204. In return for its loyalty to the English king, Guernsey was granted great privileges by King John and subsequent monarchs, including Guernsey's right to be governed by its own laws and customs. Those privileges survive to this day.

As part of the Duchy of Normandy, Guernsey was bound by Norman customary law (known as the coutume). However, even after 1204, when Guernsey was part of the Kingdom of England, Norman customary law, and not English law, dominated the laws of Guernsey.

Soon after 1204 the Channels Islands were divided into 2 bailiwicks each headed by a Bailiff - the Bailiwick of Jersey and the Bailiwick of Guernsey, which comprises Guernsey, Alderney, Herm, Sark, Jethou, Lihou, Brecqhou and some other uninhabited islands.

So began Guernsey's unique relationship with the UK - a part of the British realm, but with its own unique laws and government. This independence forms the bedrock of Guernsey's role today as an international financial centre.

Current status

Officially, Guernsey is known as a self governing British Crown dependency. Guernsey has its own parliament, its own legal system and its own courts, distinct from the UK. Although the Queen is Guernsey's sovereign, Guernsey is not part of the United Kingdom and laws passed by the British parliament in Westminster do not apply to Guernsey. The Lieutenant Governor is Her Majesty's personal representative and official channel of communication between the Crown and the UK Government and Guernsey.

Guernsey is entirely self supporting and does not receive subsidies from nor pay contributions to the United Kingdom. Guernsey does, however, make an annual contribution towards the cost of common services provided by the UK such as defence and overseas representation.

Guernsey's currency is sterling, and whilst UK banknotes and coins are legal currency, the island demonstrates its independence from the UK by issuing its own coins and banknotes.
In recent times English statutory law has come to have a profound influence on certain aspects of Guernsey Law, particularly in the commercial sphere and it is common for English case law to be cited before the Guernsey courts in commercial matters. Nonetheless, Guernsey continues to have a very distinctive legal system - a system which draws on sophisticated modern commercial legislation familiar to the common law lawyer while also paying due regard to Guernsey law's origins in ancient Norman customary law and even modern French law.

Government

The island has its own parliament, the States of Deliberation, which is presided over by the Bailiff. It comprises 45 People's Deputies, democratically elected every four years. There are also two representatives from Alderney and two non-voting members - HM Procureur (the equivalent of the attorney general) and HM Comptroller (akin to the solicitor general) both appointed by the monarch.
There are no political parties in Guernsey. The States members elect from among themselves a first minister and 10 ministers of state to head up the 10 major departments of the government.

Bailiff

The Bailiff of Guernsey is appointed by the Crown on the recommendation of the Lord Chancellor. His principal functions are to act as President of the States of Deliberation, a position akin to the speaker of the House of Commons and Chief Judge of the Royal Court of Guernsey. The Bailiff is assisted by a deputy bailiff and a number of lieutenant bailiffs.

Courts

The court system comprises the Royal Court of Guernsey which has both a superior civil and criminal jurisdiction as well as the (inferior) Magistrates Court dealing with more minor criminal matters. There is a right of appeal from the Royal Court of Guernsey to the Guernsey Court of Appeal - a body comprising the Bailiff and eminent members of the English and Welsh, Scottish and Northern Irish Bar. There is a final right of appeal to the Privy Council in London.

Laws/legislation

The States of Deliberation has broad powers to pass legislation affecting all aspects of life on the island. Most significantly, Guernsey has the power to levy its own taxes.

Powers concerning nationality, defence and international affairs are formally reserved to the UK - although there have been significant recent developments concerning Guernsey's role in international affairs (see below).

Guernsey's primary legislation (a law) is passed by the States but is only brought into force once it receives Royal Assent from the Queen (in the form of an Order in Council) and once it has been registered at the Royal Court in Guernsey. In practice it would be extremely unusual for Royal Assent to Guernsey legislation to be withheld.

The States also has power to pass ordinances which do not require Royal Assent but which are more limited in scope than laws - an ordinance cannot amend customary or enacted law or affect taxation and is void to the extent that it attempts to do so.

European Union

Guernsey is not a member of the EU but has a special relationship with it contained in Protocol 3 to the Treaty of Accession. EU rules and directives do not apply to companies operating in Guernsey. However, Guernsey does benefit from the free movement of goods so that the island is within the common customs area which allows Guernsey's exports access to EU countries without tariff barriers.

International status

Traditionally Guernsey has not played a direct role in international affairs - the UK government has taken responsibility for representing Guernsey on the world stage. Certain international treaties ratified by the United Kingdom have been extended to apply to Guernsey after the agreement of and consultation with the island authorities.

However, in recent years there has been a growing practice by which Guernsey has acted in its own right internationally - for example Guernsey was directly involved in negotiations concerning the EU Tax Savings Treaty. In recognition of this development, in January 2006 Guernsey and the UK agreed a statement of intent for developing Guernsey's international personality. It is anticipated that an agreement establishing principles for the development of the international identity of Guernsey will be signed by Guernsey and the UK in the near future.