MercoPress. South Atlantic News Agency

Falklands' survey: 84% of businesses report negative impact from the pandemic

Sectors experiencing the greatest impact include the hospitality sector and social and community functions like daycare

The Falkland Islands Government, FIG, recently carried out a business survey in conjunction with the Chamber of Commerce that resulted in 283 responses.

Top Concerns Identified

· 84% of businesses reported they have already experienced a negative and direct impact on their businesses
· Key impacted areas across all businesses are operations, customer demand, business finances and liquidity
· Employee availability was a key concern for businesses and organizations
· Sectors experiencing the greatest impact include the hospitality sector and social and community functions like daycare

FIG Measures so far

Introduction of a Private Sector Employee and Self- Employed Support Scheme that provided certain types of support for a period of fourteen days for those required to isolate because of hospital advice or upon the general advice of government to stay home due to not being classified as being in an essential occupation.

It also provides assistance for a period of up to three months for those classified by KEMH as vulnerable.

We realize that the 14-day period of payroll support for non-essential workers as allowed for in the Support Scheme is now expiring. Announcements will be made next Monday morning to address the issue.

A second broader set of measures is now under consideration that will address other issues being faced by businesses and households.

Business Issues

Some examples of the types of issues being faced by businesses include:

· Retention of labor – How do I retain my staff for extended periods of time if the economic effects of the pandemic persist?
· Liquidity – Will I have enough cash to cover my fixed costs or to keep operating when my sales are critically affected?
· How can my business survive for the period of time that the Pandemic will be affecting sales?

Household Issues

Households have similar issues to businesses in many ways:

Falkland Island residents will be asking how they will be able to pay the household bills - costs like food, utilities, mortgages, rents - if they have been laid off or if they have been instructed to stay home for an extended period of time and cannot earn a wage.

What are we doing next?

· We have considered the feedback from the business survey.
· We have looked at what other countries are doing to help businesses and households.
· We are analyzing what measures would be best suited to solving the problems identified through our consultations and research.
· We anticipate being in a position in the near future where we can announce decisions.