The Enterprise Development Scheme has delivered even though only 11 jobs have been created as a direct result, a government minister has insisted.

The scheme will be reviewed as part of an overall shake-up of business support schemes by the Department for Enterprise later this year.

But, with only £3 million issued out of a potential £50 million fund for new businesses – and just 11 jobs created directly as a result – the spotlight has focused on whether the scheme has worked.

Department for Enterprise minister Laurence Skelly said: ‘In terms of delivering, I think we need to go back to why we introduced this particular scheme,’

‘We listened to industry, we listened to business and in the 2016 ISLEXPO, we launched this particular scheme.

‘We were trying to fill a gap in the marketplace where financial institutions were not lending to businesses and we wanted to try and fill that gap.’

He added: ‘Since that particular point, we have reviewed over 300 different proposals. Whilst the number of businesses that have been invested in is only 10 and the figure is only £3 million, there have actually been produced, in the collective view, over 1,400 jobs in our economy since we launched this particular scheme.

‘So it has had a measured effect in terms of promoting the Isle of Man being open for business and we removed that one barrier.’

However, when pressed, Mr Skelly admitted that only 11 jobs had been created at firms that were launched with assistance from the scheme.

‘These are all start-up businesses,’ he said. ‘Currently, there are only 11 jobs. However, there is a number of potential jobs on the back of that, because they are small start-up businesses that we are hoping to obviously accelerate.’

He argued there had been an indirect contribution towards creating other jobs, by demonstrating the Isle of Man was ‘open for business’.

However, when the issue was raised in Tynwald, Mr Skelly admitted that ‘we are in a different place now’ from when the scheme was launched in 2016.

Tim Baker (Ayre and Michael) remained sceptical.

‘Does the minister really think that £270,000 per job created is a reflection of a successful scheme?’ he asked.

Mr Skelly said that 311 proposals had been reviewed as a result of the scheme.

‘There is only a small number that have actually been invested and we are aware that some of those have actually gone on to seek and gain private investment, so they have come through what I would regard as the shop window of business being open,’ he said.

The EDS had helped to remove bring down barriers, he argued, but he accepted the island was in a ‘different place’ from where it was in 2016. Consequently, as part of a wider review, the EDS needed to be examined against the current needs.

‘We are currently in the process of considering options in conjunction with Treasury, which will include all our schemes, and the Enterprise Development Scheme more specifically.’