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WQ.276/2021
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY R.J. WARD OF ST. HELIER QUESTION SUBMITTED ON TUESDAY 1st JUNE 2021 ANSWER TO BE TABLED ON TUESDAY 8th JUNE 2021
Question
Following news reports that a company in Guernsey has repaid £146,000 of furlough scheme money to the States of Guernsey as the company felt it was not needed, will the Minister advise how many Jersey companies have either voluntarily repaid, or been asked to repay, money received through the Co-funded Payroll Scheme, stating in particular whether such companies include those that may have made a profit during the last year?
Answer
Since the launch of the Co-Funded Payroll Scheme (CFPS) in March 2020, 11 businesses have voluntarily offered to repay funding. A further 486 businesses are repaying as part of the rigorous audit process that is in place to ensure payments are only made to businesses that have been significantly affected by Covid-19 in line with the terms of the Scheme.
The CFPS does not capture data on businesses' profitability though it should be noted that the Scheme exists primarily to sustain employment and livelihoods while the pandemic continues to prevent the economy from operating as normal. Businesses may make profits, but still be in a position of having to consider reducing employment so, to avert this outcome, the CFPS allows qualifying businesses that have suffered at least a 20% fall in income to make a claim even if they remain profitable. The Government nevertheless continues to encourage voluntary repayments of CFPS support from businesses that have gone on to have a successful financial year whilst recognising that Covid-19 presents the most significant economic challenge to have faced the Island in a generation, so such businesses will always be a small minority.