Steady, Unadventurous and Financially Prudent

Chamber of Commerce President Kristan McDonald has described the 2022 Budget as ‘steady, unadventurous and financially prudent Budget’.

This week David Ashford delivered his first Budget since taking over as Treasury Minister last year.

Mr McDonald has also expressed concerns about the hospitality and tourism sectors facing a very difficult situation if, as suggested in the Treasury Minister’s speech, the gov does not support businesses in those sectors as they recover from the impact of the pandemic.  

A statement said: ‘While acknowledging that there are also positives, and taking into account that it’s the first Budget announced by the current Government, Chamber feels that there a number of important issues that its members (who represent businesses employing approximately half of the Island’s private sector workforce) would like to have seen addressed. These include:  

• Taking action to address the comparatively high cost of doing business in the Isle of Man (especially freight and utilities). 
• Greater efforts to improve Government efficiency, especially by investing in technology and ‘agile’ processes and systems.  
• More action to attract inward investment and address the skills gap. 

‘Chamber is also keen to understand how CoMin plans, with ‘sensible’ measurable data, to ensure that the proposed investments deliver the desired impacts in a cost-effective way. In particular, the Island’s leading business network feels that investments in health and in housing need scrutinising. Chamber acknowledges that investments in both are necessary, but has concerns regarding whether it will deliver benefits to the general public (and indirectly to business) in the medium and longer terms, or result in ‘normalising’ the growing cost of Government.’

Climate Change

Mr McDonald has also welcomed the gov’s commitment to moving to net zero as ‘very welcome’, saying the island has a chance to ‘lead the way in facilitating the upgrading of housing and in the electrification of transport’.

The Chamber added: ‘Government should also recognise the long-term economic value of massive wind energy resources and invest in a strategy to maximise the potential economic and fiscal benefits of being an energy exporter for the first time in the island’s history.’

It has also welcomed its improved relationship with the gov and welcomed the opportunity to advise on ‘where and how opportunities for economic growth can be realised during the transition out of the pandemic’.