Stormont ministers have pledged a multi-million-pound support scheme to financially help non-essential shops and businesses across Northern Ireland that will have to close from tomorrow (Friday 27 November).
The latest two-week NI Covid-19 lockdown comes as the Department of Health reported three more Covid-19 related deaths on Monday - bringing the total to 936 – with a further 280 individuals testing positive.
A £95m voucher scheme by the Executive to encourage shoppers to support local traders by giving them a pre-paid card to spend on the High Street seems to be the point gaining most traction among consumers and business owners across Northern Ireland.
Although Finance Minister Conor Murphy initially told assembly members the pre-paid card will be worth around £200 per household, it is now looking likely that it will actually be worth between £75 and £100 per each individual person in NI.
Mr Murphy said, "It's not meant to support households, it's meant to stimulate growth on the High Street” when questions were posed as to whether every household would receive it, and it was debated that some families would need it more than others.
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The minister added that as the plan takes about six weeks to develop, the Department for the Economy will roll it out in early 2021.
This is similar to a scheme launched in Jersey by its government last month, which saw 105,000 prepaid Mastercard cards with a value of £100 each distributed to those living on the island, to spend locally and by a deadline of 31 October.
Ulster Bank economist Richard Ramsey noted that common comment amongst the fire of social media reaction to the voucher scheme was “Why not just give the businesses money instead?” and “why not means test the vouchers (for those who need it most)?”
In reference to the first question, he said: “Paying the businesses a cash grant does not guarantee any economic activity takes place. A firm could pocket the grant and keep their premises shuttered and staff on furlough.
“Vouchers on the other hand, when used, demand activity actually occurs. A supply chain is stimulated, cash flow keeps moving and staff are kept on. Significantly, the hope is that the voucher would trigger additional spending and activity beyond the voucher transaction (e.g. such as a meal out)."
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As for means testing households, Mr Ramsey added: “The pandemic has led to a surge in online shopping to the detriment of local high street establishments. Targeting households in need does not fall within the remit of this policy.
“If vouchers were only provided to those households in need the impact would be confined to where they shop. Practically all parts of the high street have been impacted and hence the rationale that all households should be included.”
The money can be spent in shops, but not online, and although details are still to be finalised, it is likely that there will be an age limit on the cards and that they may be able to be used in supermarkets, but consumers will be encouraged to use them to shop locally.
Mr Ramsey believes “the design will target the more discretionary areas of retail/hospitality or what is dubbed as “non-essential retail”.
Although some people are hoping to spend their share of what many are calling ‘free money’ on the likes of groceries and petrol, many others are in support of using it to support small, local proprietors.
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Belfast resident, Niamh Daly told Sync NI: “Happy enough with it as long as it doesn't end up in the pockets of Tesco/Asda/Sainsbury's shareholders (as the business rates relief did)!
“If we could restrict it to non-essential retail that would be great – it is difficult to define that though I guess on such a large scale.”
Murray Norton, Chief Executive of Jersey's Chamber of Commerce, told BBC NI's Good Morning Ulster the benefits of Jersey’s similar £11m scheme.
"Jersey is an island, so you can't get off it to go and spend it anywhere else for starters, but there were limits on the pre-paid card that everyone received," he said.
"Yes it did help consumers and yes it did help shopkeepers locally, by how much compared to how much was spent? The jury is still out on that."
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Government voucher scheme aside, cities and towns around NI are also trying to encourage their residents to shop locally more with their own gift card initiatives.
A new Belfast City Centre Gift Card launched in September which when purchased, will allow the cardholder to use it in over 145 of the city’s businesses.
A similar scheme has been launched in Antrim and has been active in Enniskillen since 2017.
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