The owner of Just Pizza and Pasta has slammed the LoveIOM Gift Card Scheme, a government-backed initiative to encourage more spending to support the economy.
Mitch Sorbie has refused to sign up to the scheme which was introduced by the government’s Economic Recovery Group in August and is now open for merchant applications.
He said: ’I think it’s a total and utter waste of time. I think that some bureaucrat somewhere has decided this is going to happen.
’We were never consulted about it. They should have come to the industry and talked to us.
’I looked at the eat out to help out scheme in the UK and it was an utter disaster for a lot of places, people put stress on tables and the kitchens, the serving staff and they didn’t eat the food.’
When asked if there was a different approach he thinks the government should have taken, he referred to a report conducted by accountancy firm PwC for the hospitality sector which detailed solutions for the industry during winter.
Mr Sorbie continued: ’They came up with a raft of suggestions for the government.
’First of all, the government tried to discredit the report and they haven’t taken on board any of the recommendations.
’I find it astonishing we have a government that’s paid for a report and then just thrown it to the corner, it’s disgusting.
’They should have looked at the report to see what the recommendations are, not come up with this stupid card.’
The restaurant owner explained his preferred solution.
He said: ’I think one of the easiest ways to boost businesses who are facing VAT increases and Covid number increases is indirect support and salary support.
’Bearing in mind we’re coming up to winter time, it’d be far more beneficial to us than coming up with a card that nobody I’ve spoken to actually really wants.’
In response to this, a spokesperson from Business Isle of Man said: ’The LoveIOM Gift Card is just one of a number of tools that the Economic Recovery Group is using to stimulate demand in the local economy.
’We know that not every initiative will work for every audience.
’We have received positive feedback from businesses in the hospitality trade about the rollout of the LoveIOM Gift Card and 11 in 24 hours are now fully on-boarded to take part in the scheme.
More than half a million pounds has been set aside for incentives to support the LoveIOM Gift Card Scheme and later this month, the gift card will be launched to consumers.
Initially, the card can be used in hospitality businesses that have signed up to the scheme, which includes restaurants, cafes, takeaways and serviced accommodation providers.
More information on the scheme and the consumer incentives ’will be released imminently’, according to the Business Isle of Man spokesperson.
A similar initiative was undertaken in Jersey in July 2020 when all residents received £100 each to stimulate the island’s economy.
In his call for merchants to sign up, Lawrie Hooper MHK, political member for Business Isle of Man, said: ’This is a real opportunity for our hospitality businesses to benefit from increased footfall and consumer spend; especially during the off-peak season, and I thoroughly encourage these local business owners to embrace the scheme.’
Mr Hooper said on social media that the response to the scheme had been ’mixed’ and if there was no take up there was ’no additional cost’.
He mentioned the increases in VATs and prices rising could ’dissuade people from going out’.
Meanwhile, the chair of the Licensed Victuallers’ Association has said there should be more help for pubs.
Geoff Joughin, licensee of the Albert pub in Douglas, said he was supportive of the scheme but felt there should be more support for pubs since the gift card doesn’t include sales of alcohol.
He said: ’The wet trade needs help as well as the food trade.
’The wet trade has never had any help before in this way, so I don’t see it happening. Maybe [the government] will but it could be very complicated.
’I’m all for [the scheme] though, we need support so that it’s not too expensive for people to go out this winter.’