Guernsey's States is abolishing corporation tax in 2008 and bringing in several changes to fill deficits.

However, the Vision Alderney group fears Alderney will suffer unduly under the proposals.

It said the small size of island companies meant any increases to their running costs could be damaging.

Opportunity presented

Vision Alderney spokesman Bredin Harding said he believed the island would be worse hit by the proposals than Guernsey, and that its government had not taken the entire bailiwick into consideration.

He said: "We're waiting to add to the debate, but Guernsey needs to look at its own spending and get its own house in order before it goes off increasing costs everywhere in the bailiwick."

Guernsey's States said it realised that change of this magnitude presented risks and created uncertainty, but said they also presented opportunity.

It said in its Future Economic and Taxation Strategy document: "This opportunity must be grasped so that it can be the catalyst for future benefits and prosperity.

"In order to meet these challenges, it is essential that all parts of the community join together in a positive and constructive manner."