The costs incurred by the government’s LoveIOM gift card scheme, launched last year, has been questioned by MHKs during this week’s Tynwald sitting.

In response to a question by Jason Moorhouse MHK, Enterprise Minister Lawrie Hooper MHK revealed the latest figures on the scheme, saying that 2,497 cards have been sold with just over £70,000 spent in the local economy as a result. This is despite £240,000 being spent on the initiative.

Speaker of the House of Keys Juan Watterson MHK also joined in the discussion as he questioned whether the scheme was a ‘complete failure in terms of value for money’ given its ‘three to one’ cost to benefit ratio.

Mr Hooper’s response pointed out that the frequent use of the cards as corporate gifts from employers to their staff, replacing what would normally be offered in the form of vouchers for ‘international suppliers’ such as Amazon, means they were providing a new source of income for the local businesses signed up to the scheme.

Mr Watterson then accused the department of ‘throwing good money after bad’ on the project, prompting Mr Hooper to claim that the Speaker had ‘singularly failed to understand the potential benefits’ of the card.

Claire Christian MHK also joined in with the scrutiny of the scheme, asking how long Mr Hooper estimated it would be before ‘it possibly could be extended out to other areas of the economy, not just hospitality.’

Alongside his defence of the scheme, the minister suggested that marketing for the card could be ramped up over winter, he said: ‘As we head into the winter period, the department will be looking to use the LoveIOM gift card to encourage individuals and corporate business to give these cards as a gift this Christmas, to keep spend on-island and support the hospitality sector as we enter into a traditionally slow time for the majority.’

Mr Hooper responded to an accused low awareness of the card, highlighted by Tim Glover MHK, and said that, though future plans for a winter push would sit with the economic strategy board rather than the department, ‘there would have to be marketing and communications around that to raise awareness, also to see if we can get more suppliers on board’.

On that point, the minister said he couldn’t commit either way to any possible further government spend on the card and its promotion but said ‘we should be exploring all options as to how we support local businesses and people over the winter’.

The scheme, which stems from the Economic Recovery Group, has previously been criticised by business owners who accused the department of not engaging with them before launching the card.

In his initial answer, Mr Hooper also committed to publishing more data about the card, he said: ‘Going forwards the department is planning to release data at regular intervals on the number of LoveIOM gift cards sold, the total value loaded on to these cards and the remaining balances to provide greater transparency on this initiative.’

You can buy a LoveIOM gift card on the website, www.loveiom.com, or at the Welcome Centre in the Sea Terminal.