Cash boost ‘may not be enough’

Saturday 11th July 2009, 3:00PM BST.

Chamber president Ray Shead

BUSINESSES are ‘unsure’ if the new States economic stimulus package will help them, according to a survey.

The Jersey Chamber of Commerce quarterly survey also reveals that local businesses are still facing tough trading conditions and a fifth say they are considering making redundancies.

Around 25% of the total Chamber membership – which collectively employs up to 20,000 staff – responded to the questionnaire, which is the second to be circulated this year.

Asked ‘Do you believe the States economic stimulus initiatives published so far will be helpful for your business?’ 39% said no, 46% said maybe and only 15% said yes.

The businesses say that a reduction in red tape would be of more help to them at the current time than any other government measure. They would particularly like to see the scrapping of the Regulation of Undertakings restrictions, which require them to have a licence to employ staff, of which a percentage must have lived in Jersey for at least five years.

Chamber president Ray Shead said: ‘As well as confirming the continuing tough trading conditions, the results make very clear the need to progress with the economic stimulus package and to communicate its contents as soon as possible.

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1
Nick

July 15, 2009 at 5:01 pm

If ever there was a fatuous, self centred and self interested response to the current economic situation in this Island, it is using the current downturn situation to call for the scrapping of the Regulation of Undertakings restrictions on the employment of Staff! I would like to see any of the “Employers” falling into this category trying to do business in say Saudi Arabia, the U.A.E.,and most African countries (just to mention a few) where 50% of your ownership of a business has to be by a nominated local before you can even open a business, let alone staff it!
All these people want is to move in on the local market using staff from some other unproductive area their business is operating in, or alternatively employ citizens of 3rd world or former communist block countries willing to relocate and work anti social hours for minimum wages.
The economic stimulus package would be totally mis spent on such businesses whom I suspect are chasing such handouts because they have history with their previously long suffering bankers!
This public money should concentrate on supporting businesses who are out there demonstrably adapting under the current rules to the currently challenging economic environment, or are at least providing a vital and ongoing service in an area of economic activity regarded locally as essential.Any spare money should be used to lay down support for either reviving industry in areas of previous economic activity which with a new cash injection would serve to successfully diverify the ongoing macro economic footprint of the Island, or to open up new areas of profitable economic activity not previously explored and supported.

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