Business leaders have warned government policy is driving economic decline after a ‘totally unproductive’ meeting with Treasury and Enterprise Ministers.
Representatives of the Local Economy Forum (LEF) said discussions with Ministers had failed to address concerns over minimum wage policy.
Business leaders are accusing government of ideological decision making that is damaging employment, businesses and public finances.
Ideological Blindness
LEF Secretary Brett Martin said the Forum had proposed measures aimed at increasing take-home pay for lower-paid workers without risking job losses or business closures, but claimed ministers were unwilling to engage.
“We’ve presented government with a way of putting more money into the pockets of lower paid workers without risking job losses and business failures, but they just don’t want to engage,” Mr Martin said.
“Tynwald policy seems to be the excuse, regardless of the fact that government’s own Minimum Wage Committee and Economic Policy Review Committee have said the approach is wrong-headed.”
Mr Martin pointed to recent economic data showing the island’s GDP has fallen by more than 11% since the pandemic, describing the economy as being in “significant recession”.
“For some strange reason, government seems to think that the way out of this is to continue expanding the public sector, impose unrealistic costs on business and increase taxes on the lower paid,” he said.
“You don’t have to be a professor of economics to see that the inevitable result of such a policy is inflation, economic decline and job losses.”
Wider Failure of Government
Forum Chairman Chris Robertshaw said the minimum wage dispute was symptomatic of a wider failure within government to listen to businesses and the public.
“The minimum wage debate, or rather the lack of debate, is a symptom of an underlying disease that has gripped our government,” he said.
“They have become totally self-centric and have lost their way when it comes to listening to the people they’re supposed to represent.”
Mr Robertshaw cited a series of recent policy decisions as evidence of what he described as systemic issues, including the introduction of 20mph speed limits, a refusal to explore the economic potential of gas reserves, the decision not to hold a referendum on net zero policy, capacity issues at the island’s airport, and ongoing difficulties in balancing government finances.
“Every week we hear of another example,” he said. “The list goes on and on.”
Vote for Change
Looking ahead to the House of Keys elections in September, Mr Robertshaw said he hoped voters would bring about change, but warned that further damage could be done before then.
“I worry greatly about the lasting damage that will be done in the interim,” he said. “I urge voters to contact their local MHKs and make plain their dissatisfaction with the policies of the current administration.”
He added that the LEF would continue to campaign on minimum wage policy and what it views as wider failures in economic governance.
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