Not a Time for Knee Jerk Reactions

Islanders face perhaps the greatest challenge to the cost of living than at any point since the 1970s.

That was the warning from the Chief Minister as he delivered a statement on the rising cost of living and energy prices on the island.

Addressing MHKs, Alf Cannan said the recovery from the pandemic, the war in Ukraine and damage to the global supply chain had left its mark on the economy.

He said: ‘I must be candid with everybody – we are talking about a substantial increase of household costs that is likely to be up to 20% more of weekly incomes that will need to be allocated to basic essentials for lower income households.

‘These are significant figures and will bring forward a challenge for many, many household budgets across our island. But just because the challenge is far greater than expected and because the key economic drivers lie out with our control, now is not the time for knee jerk reactions or for us to panic.’

Not Standing Still

However, while refusing to make knee jerk reactions, the Chief said the go was not ‘standing still or determining action without a strategy’.

Mr Cannan pointed to underwriting routes to London City and Heathrow and the previous administration’s decision to buy the Steam Packet, which as Treasury Minister he was at the heart of, as decisions that were helping to support the island’s economy.

The Chief also noted that the gov’s decision making had ensured that electricity prices would be increased in a two phase approach that would give ‘vital time to adjust for all concerned’. Much like a burglar breaking into your house a second time gives you vital time to adjust to losing both your TVs.

Over £2.8m

With David Ashford’s April statement on the horizon, the Chief pointed to nearly £3m in support that the gov is currently providing to households on the island.

This includes:

• The new £300 Energy Support Payment households in receipt of income-related benefit
• Providing all families receiving the full rate Child Benefit with £300 per household
• An additional £50 will be paid to all families receiving Child Benefit with at least two children, and £100 for families with at least three children
• Re-introducing food vouchers for those on free school meals for the Easter Holidays
• More substantial proposals to help children in the summer holidays

Motoring By

As well as this, the gov is working on plans for cheaper journeys on public transport which the Chief said will be a ‘workable policy initiative that as as well as giving people a viable transport alternative to save costs, also supports our longer term climate commitments’.

Renewables

The Chief added: ‘And talking of climate change, there are other matters that now need urgent attention.  I can confirm that we will be meeting the MUA within the next few weeks to give clear policy direction on the acceptance of onshore renewable energy onto our grid. And the Enterprise Minister is engaged in speeding up and streamlining our plans to insulate homes on the island, bringing greater heat retention, fuel efficiency and reducing energy costs.’

We Won’t Shirk

He finished by saying: ‘I cannot hide you, this house or the community from the naked truth that the cost of living is increasing at a rate that is going to bring hardship and distress to some.  I have to accept that we cannot protect everybody and there are those who will suffer – But I can tell you that this this Government is not going to shirk its responsibilities to protect the weakest and those left most exposed to the worst of the inflationary pressures’