St Helena : St Helena: Questions for Written Answer
Submitted by Saint Helena Herald (Public Relations Information Office) 14.07.2012 (Article Archived on 28.07.2012)
Over recent months, public debate has shown a lack of understanding about how and why Enterprise St Helena is being funded.
St Helena: Questions for Written Answer
ESH FUNDING - Answer by Financial Secretary Paul Blessington at LEGCO of 6 July 2012 to the Question: How is the recently created ESH being funded?
Over recent months, public debate has shown a lack of understanding about how and why Enterprise St Helena is being funded. I therefore welcome this opportunity to set the record straight in a public forum. For convenience, I have provided Honourable Members with a printed handout (attached to this release) which provides them with detailed information to accompany this response.
To begin, it may be helpful to remind the public what the purpose of ESH is, and how it has been created. Enterprise St Helena has been created to assist the private sector development of the economy in conjunction with the airport investment being made by DFID. The new organisation has been formed by amalgamating the existing SHDA and Tourism Development Project, with additional resources being added to take on new responsibilities identified in the Sustainable Economic Development Plan. The new body has been named Enterprise St Helena and it is there to help private enterprise to flourish on the Island.
Next, I would like to explain where the funding for ESH is coming from. The total funding for ESH in 2012-13 is £2,763,863. DFID is providing 76% and SHG 24%. Just under half (49%) of the £2.76m is existing funding from the old SHDA and Tourism projects, whilst just over half (51%) represents new funding for additional activities. The new money being provided to ESH in 2012-13 amounts to £1,410,000. £950,000, or two-thirds of this comes from DFID and the remaining £460,000, or one-third is being funded by SHG
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Next, I would like to explain where the £460k of new money from SHG is going. The new money from SHG will be used to support the following new activities:
£112k on Investor Generation
£140k to Develop Commercial Sites
£89k to provide Additional Support to Businesses
£105k on Skills Training
£14k on support to the Fishing Sector
The £460k of new money which SHG is contributing to ESH this year amounts to about 1.6% of SHG’s recurrent budget.
Finally, I would like to address the question as to why SHG is providing financial support to ESH. Honourable Members will be aware that the top priority in the new Sustainable Development Plan is economic development. Unless St Helena successfully grows its private sector economy, on the back of the opportunity provided by the airport, there can be no long term improvement in living standards for current and future generations of Saints. There are many competing demands out there for scarce public funds, but this Government has wisely agreed that some of those funds must go towards economic development, if progress is to be achieved.
An extra commitment of 1.6% of the budget is a relatively small price to pay in relation to the potential long term return to the Island. This is about investing now to ensure a brighter future. A future with better rewards and opportunities for those in employment. A future with more money to invest in essential services such as Education, Health and Social Welfare.
Paul Blessington, Financial Secretary.
6 July 2012
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