The Assembly was scheduled to begin debating the Government Plan today, which sets out public spending and taxation for the next four years, under which it is proposed to increase excise duty by 5% on wine and spirits, while freezing it for beer and cider.
The Corporate Services Scrutiny Panel has lodged an amendment instead calling for duties on all types of alcoholic drinks to increase by the rate of inflation, measured by the retail price index, less 1%.
Claire Boscq, chief executive of the Jersey Hospitality Association, has written to all States Members urging them to support the panel’s proposal, claiming that the sector needs further support to be profitable.
In her letter, she said: ‘The last 20 months have had a devastating effect on the hospitality industry, and while many, but not all, in the industry have received financial support from the government, that has served to keep them in business rather than allowed them to make any profit.
‘Ours is a seasonal industry that needs to make a profit in the summer months in order to survive the winter and with two summers of Covid-19, many businesses will not have been able to make what they need to feel confident going into 2022.
‘Christmas is normally one of the busiest times of the year in our venues but with uncertainty over rising cases and a new variant in the UK, planned Christmas parties are being cancelled as Islanders want to avoid the risk of getting Covid over the festive break.
‘We conducted a survey of members last month and of those that responded, 80% said they were receiving cancellations over Christmas.’
She added that the association remained opposed to the States decision to approve proposals lodged by Assistant Treasury Minister Lindsay Ash calling for the reintroduction of drinks promotions, such as happy hours and buy-one-get-one-free offers.
‘All that drinks promotions will achieve is an increase in government revenue as it will receive the same impôt duty from each drink sold while the business selling it will receive less in return,’ she said.
A JHA statement adds that the panel’s amendment would provide ‘breathing space’ for struggling businesses.
‘Apart from last year when duty was frozen due to the pandemic, the industry has faced damaging duty rises every year. The Corporate Services Scrutiny Panel’s amendment took account of the devastating two years the hospitality industry has faced, providing a potential breathing space for the many businesses still facing uncertainty as they head into 2022,’ the statement said.
