Page 4 - Bus365 Issue 11 2021 WEB

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SOARING ENERGY PRICES POSE SERIOUS

SOCIAL AND ECONOMIC CHALLENGES

Whilst we warmly congratulate Alfred Cannan Government If, as predicted, there are casualties within the
on his election as the Island’s Chief Minister, sector this Winter there will be an inevitable
nobody should underestimate the challenges knock-on effect into other areas.
his administration faces in the months and needs to grow
years ahead. Government needs to grow the economy, and
the economy, as part of that strategy it needs to attract more
The latest massive rise in fuel costs is an people to the Island. The job will become
unwelcome spanner in the works, which and as part of even harder if our towns and villages are
threatens to have huge implications both awash with empty shops and closed pubs.
socially and economically.
that strategy Sky high energy prices are a worry to many
Whilst previous administrations have managed businesses across the board. From factories
to successfully balance the books they have it needs to with high energy consumption to office blocks
also presided over a widening of the gap that have to be kept warm and comfortable
between the well off and the poorer members for workers, there’s no escaping the fact that a
of Manx society. attract more 27.5 per cent jump in gas prices is a big worry.

The soaring cost of gas, petrol, diesel and people to the The Coronavirus pandemic has been a
food will – in reality – be little more than huge challenge for government but has at
an irritation to big earners, but for those on Island. least given it first-hand experience of crisis
modest incomes the effects can be profound. management. Alfred Cannan as Treasury
The increases are not the fault of our It’s a strange dichotomy that at a time of Minister and David Ashford at Health were
right at the sharp-end of the last government’s
politicians, they have come about from global almost full-employment we face a raft of response.
issues beyond their control. But they do have economic problems that threaten to de-rail
a responsibility to do all they can to mitigate parts of the economy. Post-election they find themselves in different
the effects on behalf of the people of the Two of the weakest areas – retail and roles – Mr Cannan as Chief Minister, and Mr
Island. hospitality – have most to fear from the Ashford at Treasury, though still in the eye of
The hope is that some of the increases may effects of rising prices. Less disposable the storm.
be relatively short-lived, though history has income for many people means fewer visits They may need to develop their crisis-
shown that upward spikes are rarely matched to pubs, restaurants, hotels, leisure facilities, management skills further in the months
by downward movements on the same scale. and shops. This at a time when the sector ahead.
desperately needs a boost in trade.

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Sales: Sarah Ashall Editor: Simon Richardson
T: 01624 696556 T: 01624 696590 Business365iom
E: sarahashall@mannin-group.im E: simonrichardson@mannin-group.im