Financial Assistance Scheme

Summary

The requester asked if the Financial Assistance Scheme is statutory and for total payout figures. The Department for Enterprise clarified that the scheme operates under the Enterprise Act 2008 without requiring a specific signed scheme document, and disclosed that over £37 million has been paid out since 2009.

Key Facts

• The Financial Assistance Scheme is not a statutory scheme in the sense of requiring a signed document under the Financial Provisions and Currency Act 2011.
• The scheme derives its legal authority from the Enterprise Act 2008, specifically Part 2 of the Schedule and sections 2 to 5.
• No signed and dated scheme by the Minister exists because the Enterprise Act 2008 does not mandate one.
• Financial assistance under the scheme has been provided since 2009 based on Department policies and guidelines.
• The Department publishes annual reports to Tynwald regarding grant assistance paid out.

Data Disclosed

• £37,109,191
• 31st March 2021
• 2009
• 2016 to 2021
• £28.6m
• 279 existing businesses
• 75 new businesses
• 1,285 new jobs
• 10,123 existing jobs
• £18.1m
• £34.9m
• 2013/14 to 2020/21

Original Request

1. Is the Financial Assistance Scheme a statutory scheme? 2 If so, please provide me with a statutory reference to it. 3. if it isn't a statutory scheme please let me have a copy of the Scheme signed and dated by the Department 's Minister. 3 How much has been paid out under the Scheme since its introduction?

Data Tables (1)

Full Response Text

Freedom of Information Co-ordinator 1st Floor, St Georges Court Upper Church Street, Douglas Isle of Man IM1 1EX

Telephone: (01624 682381) Website: www.gov.im/ded

Our ref: 2310162 28 March 2022

Dear ####

Re: Request for information under the Freedom of Information Act 2015

I write further to your request which was received on 5th March 2022 and which states:

"1. Is the Financial Assistance Scheme a statutory scheme?

2 If so, please provide me with a statutory reference to it.

1. if it isn't a statutory scheme please let me have a copy of the Scheme signed and dated by the Department 's Minister.

3 How much has been paid out under the Scheme since its introduction?"

In accordance with the criteria laid out under the abovementioned Act all of the information you have requested can be provided. Each question you have asked is answered sequentially as follows:-

“Is the Financial Assistance Scheme a statutory scheme?”

The Financial Assistance Scheme is the name of the programme of financial assistance provided under the Enterprise Act 2008. The legal authority for financial assistance under the Enterprise Act 2008 is provided in particular by paragraph 3 of Part 2 of the Schedule and sections 2 to 5 of that Act.

A copy of the Enterprise Act 2008 is available online here:
https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/2008/2008- 0017/EnterpriseAct2008_2.pdf 2

The criteria by which a business is eligible, under section 7 of the Act, are specified in the Enterprise Act 2008 (Eligible Businesses) Regulations 2018, available online here:
https://tynwald.org.im/links/tls/SD/2018/2018-SD-0177.pdf

Please note that, unlike financial assistance provided by the Department under the Financial Provisions and Currency Act 2011 (e.g. the Coronavirus Business Support Scheme 2020), there is no requirement nor mechanism under the Enterprise Act 2008 to make a Scheme for financial assistance. Section 3(1) of the Financial Provisions and Currency Act 2011, in contrast, specifically states:

“ (1) Provision may be made by way of a scheme appropriating sums from: —

(a) the General Revenue; or
(b) other reserves or funds maintained by the Treasury; for expenditure under the scheme.

(2) A scheme under subsection (1) may be made by: —
(a) the Treasury; or
(b) any other Government authority with the concurrence of the Treasury.”

Section 3(7) of the 2011 Act goes on to require that:

“(7) Schemes under subsection (1) and orders under subsection (6) must not come into operation unless approved by Tynwald.”

The Financial Provisions and Currency Act 2011 is available online here:
https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/2011/2011- 0021/FinancialProvisionsandCurrencyAct2011_3.pdf

In summary: Financial assistance under section 3 of the 2011 Act requires a scheme to be made by a Government Department and to be approved by Tynwald. Financial assistance under the Enterprise Act 2008 does not require such a scheme to be made.

“If so, please provide me with a statutory reference to it”

As noted above, there is no “statutory” Financial Assistance Scheme in the sense of a Scheme made under section 3 of the Financial Provisions and Currency Act 2011.

“If it isn’t a statutory scheme please let me have a copy of the Scheme signed and dated by the Department’s Minister.”

There is no Financial Assistance Scheme signed and dated by the Minister as such is not required under the Enterprise Act.

Financial assistance under the Enterprise Act 2008 has been provided since 2009 in accordance with the policies of the Department and guidelines are published which reflect the current types of assistance offered, these are available online here:
https://www.iomdfenterprise.im/assets/PDFs/b98283f52b/FAS-Guidelines-October- 2021-LIVE.pdf 3

“How much has been paid out under the Scheme since its introduction? "

From the inception of the Financial Assistance Scheme under the Enterprise Act 2008 to 31st March 2021, the Department has paid out £37,109,191 in grant assistance to eligible businesses.

The Financial Assistance Scheme helps businesses of all sizes in our targeted sectors and is the main economic benefit and job creating scheme that this Department administers.

During the period 2016 to 2021 £28.6m was offered to 279 existing and 75 new businesses. Approximately 1,285 new jobs have been created and 10,123 existing jobs protected.

During the period actual grants paid are £18.1m which will have stimulated £34.9m private sector investment (NB: Not all financial support is claimed in full).

The Department provides a comprehensive report to Tynwald annually, which is a requirement under the Enterprise Act 2008, concerning grant assistance paid out during the previous fiscal year. Copies of this report for the period 2013/14 to 2020/21 are published on this website url: https://www.iomdfenterprise.im/enterprise-act-2008- annual-reports/

Please quote the reference number 2310162 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
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More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.

I will now close your request as of this date.

Yours sincerely