But battle lines have been drawn over the Island’s future economic recovery once the pandemic eases.
Ahead of an in-committee debate in the States today, Reform Jersey launched their ‘New Deal for Jersey’ and party leader Senator Sam Mézec – who sits on the Council of Ministers – said they would not support plans which led to more austerity.
Unveiling Reform Jersey’s manifesto for recovery, Senator Mézec, the Children and Housing Minister, said the Island had a choice between another wasted decade or to build on the momentum that is being created.
The announcement of Reform Jersey’s policy came just one hour after Economic Development Minister Lyndon Farnham and External Relations Minister Ian Gorst began outlining the Island’s proposed economic recovery framework.
Senator Farnham said the government’s approach would focus on three phases ‘Respond, Recover and Renew’. He added that the move would allow hundreds more businesses to reopen, such as in the hair and beauty sector, health and fitness industry and in hospitality, including restaurants and cafés that can provide physically distanced indoor seating.
So far more than 15,000 workers in struggling businesses have had their wages paid by the government under phase one and two of the Payroll Support Scheme, which has cost the taxpayer £22 million.
And Senator Farnham announced that the scheme would continue to operate past its initial end date of 30 June and until the end of August.
‘In March, phase one of the scheme supported almost 7,000 employees to the tune of £2 million,’ he said.
‘And to date approximately £20 million has been paid under phase two of the scheme for April, supporting more than 15,000 jobs.
‘I am therefore pleased to announce that we are extending the Payroll Support Scheme until the end of August, subject to the final sign-off by the Treasury Minister [Susie Pinel].’
Senator Ian Gorst said that the eligibility criteria for the scheme, which is currently open to firms that have seen their revenue fall by more than 30% in a month, would be reviewed and could be changed to be assessed on a three-monthly rather than one-monthly basis.
Senator Farnham said, however, that none of the sectors currently eligible for the scheme would be excluded and that there would not be a cliff edge where businesses would have support cut off suddenly.
He added that the drop in the number of Covid-19 cases had enabled the Island to move to level two of the government’s safe-exit strategy on 12 June.
‘As of today [1June], according to latest statistics, there are no patients in the Hospital with Covid-19 and there are two active cases on the Island,’ he said.
‘This is evidence that our “Contain, Delay and Shield” strategy has so far thankfully proved the worst predictions wrong and enabled us to protect Islanders’ health, particularly those members of our society who are most vulnerable.
‘At the same time, our safe-exit strategy has moved slowly but steadily from level four to level three, allowing many businesses to open with the appropriate safety guidelines.
‘I am also pleased to announce today that, based on expert medical advice, we will move to level two from Friday 12 June.’
Under level two, Islanders will continue to be asked to stay home wherever possible, including working from home, and to maintain physical distancing of two metres outside their home.
Islanders will be allowed to spend time outdoors with up to ten people that they do not live with.
Also during the press conference, External Relations Minister Ian Gorst announced that £2 million of support will be provided for charities using the dormant bank accounts fund.
The fund has collected millions from disused accounts in Jersey after its establishment was approved by the States in 2017.
Meanwhile, Senator Mézec said Reform Jersey would not support a further decade of austerity.
The party’s vision for recovery sets out a number of key policies that Reform Jersey wants to work with the government on, to ensure the Island did not fail in its recovery as, the minister says, it did after the 2008 financial crash.
Senator Mézec stopped short of saying he would step down from his ministerial role if the government did not adopt Reform Jersey’s proposals. However, he warned that the party would not be part of a government of austerity.
He said: ‘It doesn’t question the viability of my position now, but in the future if it looks like the government is implementing what we don’t stand for, we will have to consider how we use our clout to change the direction. We will not support any proposals for austerity.
‘I am prepared to serve in whatever capacity to meet the aspirations of the people of Jersey.
‘But today isn’t about making threats, it is about promoting a positive vision for Jersey.’
The ‘New Deal’ from the Island’s only political party is calling for the reintroduction of corporation tax on businesses.
Senator Mézec believes this is fair, because there are some businesses who have not felt the impact of Covid-19.
He added: ‘Some have been impacted by Covid-19, but some haven’t and some have never had it better in the last ten years.
‘We cannot carry on as we have been before and raise regressive taxes.’
Asked if the party had costed their proposals and worked out how they would be paid for, he said that was open for debate as the party looked to work with the government to implement them.
However, on a plan to tax the rich more, he said: ‘On social security, there is a cap on people who earn over £250,000, that would be scrapped.
‘And with tax changes, as we said before, taxing the rich would be targeting the top 5% of earners.’
Businesses that will be able to reopen under the move to level two with guidelines in place include:
- Some of those in hair and beauty, health and fitness, healthcare and other services that provide close personal contact.
- Restaurants, cafés and other food outlets that can offer a physically distanced indoor seated service.
- Libraries, community centres, youth centres, places of worship; museums and galleries, cinemas, theatres and concert venues, arcades and bowling alleys.
It is also hoped that hotels, hostels, B&Bs, boarding houses, lodging houses, self-catering vacation accommodation, caravan parks and campsites will open soon, primarily for the local market.
