A chance for economic renewal

There has been widespread consensus that to prevent a meltdown the government needs to borrow and then spend, but spend wisely, rather than look to austerity measures.

It is still very early days and there is very little flesh on the bone of any recovery plan.

That rightly has concerned States members who want to ensure proper scrutiny of the Policy Council’s agenda.

The recovery will also end up spanning two Assemblies, with the new membership being voted in next June.

Democratically it is important that renewal happens, but it is also vital that it does not lead to a lag in any response to rebuilding the island’s backbone.

There is an argument for a rethink of the States' processes for approving capital spending and it has only been heightened by what has happened.

Committees have failed to get planned projects off the ground this term as they get bogged down in the strictures in place and the politics behind any big spend.

This Assembly and the next will have to start realising projects, not just earmarking cash for them.

Even in these dark times, you can see how the borrowing opens the door to enormous opportunity for boosting different sectors that may have been in their infancy, for adding more diversity to the economy and with it making it more robust against any future shocks.

It is a chance for government to rethink its priorities, to adapt and innovate.

The fear will remain about public sector profligacy and the spotlight will be on the States like never before in this period. That will create a healthy pressure for reform.

Much like the decision to go into lockdown was simpler than how to emerge from it, the decision to borrow the money will be simpler than how it is then spent.

The responsibility is enormous – the future of the island depends on it.