This will be my final opinion piece on minimum wage, and for those who feel this will be the downfall of small businesses; you now know who to blame.
To those who think this is a win, I wholeheartedly disagree. I fear this alleged act of compassion, was reckless, rushed and will have a devastating impact on local businesses.
Why do I care? Because unlike the Members of Tynwald who voted for this, I back Manx businesses with every drop of blood in my body, and believe what they say.
Freedom to Fail
I have never been more ashamed to be Manx and have the tagline “freedom to flourish” attached to our once fine nation.
Collectively this administration have wasted taxpayers money on bureaucracy, legislation that no one asked for and have a civil service that is out of control.
I believe they have killed “freedom to flourish” and have enabled freedom to fail.
I don’t believe I am alone in thinking this, and as you read on you’ll see why I am becoming increasingly worried about whether our government is a true democracy.
What Are we Worth?
In the eyes of Tynwald members the minimum wage debate was only worth two and a half hours of their time.
Many business owners will now have to attempt to foot this increase for the remainder of their businesses lifespan.
The businesses that are crucial to our economy, and the businesses that generate income for government’s vanity projects were worth two and a half hours of our elected members time.
Read that again.
It’s shameful, it’s embarrassing, and there shouldn’t be a single member that is confident in their decision, unless they did the following:
- Spoke to and understood businesses within their constituency.
- Understood the 300+ businesses that wrote to Tynwald expressing their grave concerns.
- Listened to the minimum wage committee’s concerns.
- Considered the long term damage this could bring.
- Explored other alternatives.
Who We Can Thank
There are seven MHKs that we can say listened, understood, and have a degree of economic sense.
And to those MHKs – thank you. Thank you for listening, thank you for caring and thank you for standing up for what many believe was right.
Onchan MHK Julie Edge delivered what I’d say was the best speech of her political career. She hit the nail on the head. Ms Edge, thank you.
Ms Edge told Tynwald, “it’s not because the goal of fair pay is wrong, but it’s because the process we are using is wrong. It’s rushed, and it risks misleading the public.
“The proposal will actually lock the Isle of Man into a formula that hasn’t been tested, built on a benchmark that isn’t fit for our economy and appears to be timed to deliver political headlines rather than sustainable policy going forward.”
Withering Injustice
Douglas North MHK John Wannenburgh explained that it would be a “withering injustice” if MHK’s hadn’t consulted businesses in their area.
He explained how this increase was “playing Russian roulette with businesses” and highlighted that small businesses are an “endangered species”.
Both Peel and Glenfeba MHK’s Kate Lord Brennan and Tim Crookall echoed Mr Wannenburgh’s comments as both had engaged with and understood businesses concerns.
Castletown, Malew and Arbory MHK Jason Moorhouse fought for local businesses, and wanted to look for an ideal and better solution.
Middle MHK Stu Peters and Douglas Central MHK Chris Thomas also understood the real concerns and the devastating impact this would have on businesses and workers.
To those seven, thank you. The seven of you can hold your heads high when businesses close their doors in the next 12 months, when hours are cut, and benefits are relied upon – at least you tried.
To Note
I don’t think it would fair to write this without also noting and showing a nod of respect to Ramsey MHK Lawrie Hooper and Douglas East MHK Joney Faragher.
Although they both ultimately voted for the increase, Mr Hooper sought an amendment to set a living wage which would be phased in over a longer period, as well as the provision of business support to help them transition to paying a living wage, and increase tax and NI thresholds.
Ms Faragher seconded this amendment, but ultimately Tynwald voted no. I appreciate that Mr Hooper and Ms Faragher tried to at least make some form of change.
However, whilst I respect and do understand their views and who they believed they fought for, I am sad to see they both voted for it anyway.
But, they spoke, they explained and they are part of a democracy that I do believe in.
They Said it
I do believe there were several hypocrites that voted for the increase, including none other than the leader of the motion, Enterprise Minister Tim Johnston.
Mr Johnston was voted in on his manifesto that promised to “help create the right conditions for the economy to grow and prosper”.
Instead of seeing government jobs increase, he said he “would prefer to see these jobs being created in the private sector”.
Everything about this motion and this increase, is the complete and utter opposite of that.
Enterprise is there to encourage businesses and assist, not to suffocate them.
Closed Mind
During the debate, Gary Clueit MLC insinuated that the businesses that will fail on the back of this proposal simply have a bad business plan.
He boasted that he had run a business for over 30 years, but his businesses were not within hospitality, retail, trades, care or any of the sectors this would impact.
If I am wrong with this, it begs even more questions, and the lack of empathy for those within the affected sectors.
Mr Clueit had a successful tech company, but that doesn’t entitle him, or anyone, to ridicule businesses that are in depressed sectors without walking a mile in their shoes.
I’m sorry to say that forthcoming small business struggles won’t necessarily be down to their planning.
Small business survival will now largely be down to luck.
Chamber of Commerce
I would also like to point out that the Chamber of Commerce have to take some responsibility.
This methodology was debated and discussed in July. The Chamber of Commerce backed this.
Am I saying they backed it 100%? No, but they didn’t fight hard enough.
It took bravery from businesses to take a stand earlier this month and put their necks and reputations on the line and ultimately take on the role of the Chamber of Commerce themselves.
They stood firm and expressed their grave concerns, something Chamber should have done in the first place.
Arbory, Castletown and Malew MHK Tim Glover accused the chamber of “flip flopping”, and although I disagreed with his vote on this motion, I can’t help but agree with this comment.
Chamber should have fought harder for its members.
To Those That Disagree
Many of us will always disagree, and that is wonderful. It’s the joy, pain and the god given right of being in a democracy.
With that said, this was simple. This didn’t require to be left, right or centre. This motion simply required empathy, understanding, realism and a degree of economic sense.
Whilst many may think this is the right thing to do for the low earner, I fear this will hurt the people it’s meant to help.
An increase of this amount is not sustainable, and some of us are bound to disagree on this, and that’s fine.
But don’t sit there in twelve months time wondering why costs have gone up, more people are in poverty, and less jobs are available.
Integrity
Finally, I question the integrity of our Council of Ministers (CoMin), and whether that system works.
Within Tynwald we will always have the block vote by which the nine members of CoMin will stand together. But is this right? Is this truly democracy?
I believe that several members of CoMin would have voted against this if it wasn’t for their obligation to CoMin and the collective vote.
However, when it comes to a topic this vital to the sustainability of our businesses and our economy – they should have put their necks on the line.
If any members of CoMin were morally against the increase they should have resigned from their ministerial position, rather than going with the grain.
I could also be wrong, they may have voted for it anyway and truly believed in this proposal, and if thats the case – well done to them!
They’re truly part of the Council of Ministers that helped kill small business on the island.
What a legacy to leave.
Below is the breakdown of how our MHKs and MLCs voted. Remember this:
