13 March 2009
Jersey’s Treasury and Resources Minister has formally asked for advice on what action to take to mitigate the impact of the economic downturn on the worst affected individuals and businesses.
In a
letter to the Fiscal Policy Panel, Senator Philip Ozouf has asked for guidance to determine how and when cash from the £140m Stabilisation Fund should be used to support the local economy.
It could be spent on a range of options to stimulate the economy including supporting people on low incomes, infrastructure and maintenance spending, spending on skills/training and support for small businesses.
Senator Ozouf has asked the FPP, an independent advisory body, for an update to their November report since which the UK economy has entered recession and the World Bank and global financial overseer the International Monetary Fund now expect ‘the worst performance in most of our lifetimes’ this year from the global economy.
‘It is imperative that we act quickly and decisively to support demand in the local economy and therefore help mitigate some of the effects of the downturn in Jersey,’ he says in the letter.
Although Jersey’s prospects depend on the fortunes of the global economy, the Stabilisation Fund set up by Chief Minister Senator Terry Le Sueur while he was Treasury Minister does provide a means to support employment and businesses in the short-term.
Latest research from the States of Jersey Economics Unit indicates that Jersey’s economy is entering a downturn that could see a contraction of between 2-6% this year, with a further contraction in 2010.
The timetable:
13 March – Treasury Minister writes to the FPP asking for advice by end March
8 April – Strategic Plan (second draft) and economic stimulus package to be lodged with States
9 April to 21 May - Formal Scrutiny process
2-3 June – States Debate on Strategic Plan and economic stimulus package
gov.je