C19 funding key to our economic recovery
Interesting to note that the news narrative around Covid-19 business support payments has moved over the past few months from identifying who was receiving the money from the States, and would they be ‘outed’ for doing so, now to a focus on who is repaying that money, and whether they wish to do so in the public domain.
Earlier this year claimants were going to be named, then the States had ‘no intention of publishing details of individual claims’.
Plans to be able to reclaim support from businesses which had turned a profit by the year-end were amended and then suspended.
Invented on the hoof by necessity, business and payroll support from the States to see firms through the pandemic has had complications.
But it was also absolutely crucial. As Peter Creasey, managing director of Creasey’s, which, as a major local employer, was one of the most significant beneficiaries of funding and is now the highest-profile, having just returned a quarter of a million pounds to the exchequer, explained: ‘We were enormously grateful and relieved when the States stepped in. This support provided us with the security required to stand down our staff and close our non-food shops.’
At a time of unprecedented stress, security was absolutely key for those forced to cease trading. The decisive actions of the States offered that and then our response to Covid as an island community created the opportunity for economic recovery.
So one would probably expect more businesses to follow Creasey’s and Blue Diamond’s example and repay business support received.
The government clearly believes this is likely. It has even set up an email address for companies to pursue these discussions.
Of course half a million pounds doesn’t make much of a dent in a Covid support bill of more than £50m. for 2020 alone. But the decision to repay says a lot about these firms, already being recognised as wonderful CSR (corporate social responsibility) or the spirit of Guernsey Together.
But those companies who do feel capable of repaying may well do so with one proviso to the States – ‘spend it wisely, eh?’