Jennifer Carnegie, President of Jersey’s Chamber of Commerce has issued a heartfelt plea to the States of Jersey to act swiftly in support of local businesses.
Her fear is that the States will offer too little, too late. In a memo to all Chamber members, she said:
“CEO Murray and I have been talking, meeting and emailing with many of you over the last week. What has become clear is that we are experiencing a complex and fast-moving crisis, the like of which hasn’t happened in living memory.
Governments around the world are watching the impacts of coronavirus and acting independently of their neighbours in a manner unprecedented since the end of the Second World War. We are reverting to national solutions, driven by a combination of medical evidence and local politics. The UK is locking down rapidly, with consequent huge and immediate economic implications for the retail, hospitality and travel industries in particular. Other sectors will, undoubtedly, follow suit.
On Tuesday evening the UK Treasury announced a massive financial relief programme for business that equates to 15% of GDP. It is then offering more once that has been exhausted.
Its clear line is that it will do whatever is necessary to support British society, jobs and the economy. UK already has an eye to bouncing back when the recovery is possible; the scale of this expenditure effectively matches that of fighting a war. Similar sums are being discussed by our neighbours in France.
The deduction for our Island community is that we need similarly unprecedented engagement and economic support. Chamber’s message to Government has been unequivocal: “go big, go bold and go early” and the Economic Development Minister announced yesterday that he stands firmly behind the economy and does not want any businesses to fail because of the coronavirus.
Chamber was, and remains, at the forefront of pushing for action. We have been in a constructive and frank dialogue with Ministers to air the concerns of our broad-based membership, many of whom are running businesses that are increasingly vulnerable and badly in need of support. We have helped to instigate the business task force, chaired by the Economic Development Minister, with whom we have established a good working rapport. We are now holding regular meetings at which Chamber is able to represent the views of business in Jersey. We have also passed on the offers of specialist support to Government from our members. The only response to this clear and present danger is to pull together and pool our considerable talents.
The first significant announcement on economic support from Government was made yesterday by Senator Farnham. Whilst we welcome this news, the reaction from Chamber members has been one of disappointment at the lack of immediate action to assist the business community or allay their fears. Waiting a further six days for the States Assembly to discuss this further is intensely frustrating for businesses needing help now.
The measures announced offer little comfort today to the majority of small and medium sized enterprises and a small amount of cash flow will not save many businesses. Reducing taxes, amending tax rules, giving regulation a lighter touch, increasing benefits and offering immediate grants, for example, do not appear to have been considered so far. Nothing should be off limits for the Government’s review in supporting the livelihood of every resident.
We are not yet confident that everyone has grasped how deep and painful the next few months will be for businesses and the majority of the population of Jersey. Many businesses are already laying-off staff, dealing with mass cancellations of bookings, negotiating with their remaining staff over pay cuts, contract changes and unpaid leave, and staring at their businesses and everything they have worked for going to the wall. Until there is a realisation that we are facing a drastic commercial decline that will shatter the economy, the reality is that many more businesses will suffer the same fate.
The measures that have been announced urgently need technical details and timelines for implementation. If the business loan scheme is not ready for another two weeks it will be too late for many. If companies start going under, the ripple effect will be massive along with significant unemployment.
We will continually and robustly press Government to enable us to work together to solve what may seem intractable problems. This is not beyond our combined efforts. To bolster that message, we recommend you get in touch with your Parish Deputy and Connetable to support their understanding of the severe pressures on your businesses and those you employ.
We will keep you abreast of Chamber activity with regular updates and please do continue to actively engage with us so we can best represent you. Meanwhile we wish you the very best in these testing times. We recognise the challenge of supporting your employees financially, minimising the health risk where business continues and looking after yourselves, your families, your employees and colleagues.
There has never been a more difficult time to lead a business in Jersey and we must support one another as best we can.”
