A FORMAL appeals process for the government’s Co-Funded Payroll Scheme will be introduced within the first 100 days of the new administration, Treasury Minister Ian Gorst has confirmed.
And, reversing the approach taken by his predecessor, Deputy Susie Pinel, the minister has formally accepted five of the six recommendations made by the Corporate Services Scrutiny Panel after reviewing the government’s scheme through the pandemic. In a letter to panel chair Deputy Sam Mézec, the minister said he ‘[took] a different view on the recommendations of the panel’s report’.
The payroll scheme caused controversy earlier this year when it emerged that 270 self-employed Islanders had been asked to repay some £1.9 million without a formal appeals procedure, following an audit of the scheme. Chief Minister Kristina Moore was one of the critics of the previous government’s response.
In a reply which appears to signal a fresh tone on the part of a new administration, Deputy Gorst said: ‘I agree that an appeals process should be introduced. The Chief Minister included the introduction of an appeal process as part of her 100-day plan and I am in the process of working with her and other ministerial colleagues to establish a process within the first 100 days of the new government.’
On 25 July, Deputy Mézec wrote to the minister to seek his views on the Scrutiny recommendations and to ask whether he would be reviewing the approach taken by his predecessor, who had formally rejected each recommendation.
Those recommendations covered the introduction of a formal appeals procedure for this and any future schemes; more rigorous testing of the guidance and criteria; a formal audit within three months of the closure of the scheme; and a more flexible response to issues arising from such schemes.
Although Deputy Pinel did not oppose many of the stated aims of the panel, she formally rejected each of its six recommendations, stating that the informal process for those unhappy with repayment demands was ‘leaner’ and ‘in many cases it will also have allowed for more timely responses to made’. Some of the other recommendations were already being followed, she said.
Deputy Gorst’s approach was to give formal acceptance to all of the recommendations, except the one requiring an audit within three months of any future schemes. ‘Should similar audit mechanisms be necessary, I will certainly commit to ensuring that they are conducted on a timely basis. However, the exact time should be determined by a variety of factors, including risk and the availability of data,’ he said.
Welcoming the response, Deputy Mézec said: ‘The panel is grateful to the minister for reviewing his predecessor’s response and is pleased to note the reconsidered position on the recommendations, especially in relation to recommendations that were previously rejected. We hope that businesses will welcome this change in position.’
