Assistant Economic Development Minister Kirsten Morel said unallocated funds should be used to support small innovative businesses and he criticised the allocation of grants to the construction industry as part of the first tranche of the fund.
Last week, the government announced that £6.8m would be given to 17 projects in the second phase of the government’s Fiscal Stimulus programme – which was designed to support the Island’s economic recovery from Covid-19. The criteria for securing funding was that the projects should be targeted, timely and temporary.
The government has now spent almost £30m of the £50m fund after £22.8m was granted to 30 projects in the first tranche earlier in the year.
Whether and how to allocate the remaining money is currently being considered, subject to feedback from the Fiscal Stimulus Oversight Group and the Economic Recovery Political Oversight Group.
Deputy Morel has urged Treasury Minister Susie Pinel, who made the final decision on applications for the fund, to use the remaining money to encourage businesses to come up with new sustainable ideas.
‘I believe that there is a fantastic opportunity for the government to use the remaining funds to support social enterprises and co-operatives that seek to deliver economic, social or environmental benefits to the Island with grants, and to also give loans from the fund to support smaller local businesses that seek to innovate in a manner that brings environmental benefit through the delivery of new products and services,’ he said.
‘By using the fiscal stimulus funds in this way, the government will be delivering sustainable economic development that could help shape the Island’s economy for decades to come.’
Deputy Morel said that ‘too much’ money from the first tranche ended up in the construction industry.
‘Due to the innovative requirement when applying for the fund, it was predictable that a lot would go towards building projects. We have to be more clever with how we use the remainder of the money,’ he said.
‘We want to encourage organisations to take the next step and give grants to those that provide more than just an economic benefit. One example of this would be Beresford Street Kitchen who offer employment opportunities and reduce inequality.
He added: ‘We want to encourage creative thinking and get people to come up with ideas which can take them out of the troubles of the pandemic and onto the next step, and there is no better way to do this than by offering them incentives to be brave and push new ideas.’
