Editorial | Welcome to an innovative voucher system

At times like these, it becomes imperative that public sector responses are quick and effective to reduce uncertainty and mitigate the pressure caused by the pandemic crisis

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There is no doubt that the coronavirus vouchers that are expected to reach individuals aged 16 and over next week will provide a consumption boom that retailers need.

The vouchers are a targeted measure intended to stimulate the economy through personal consumption on those retail outlets and services that took a hammering during the pandemic partial lockdown.

The vouchers have to be spent by the end of September, which is also important because it helps provide a cash injection at a time when the economy is normally kept buoyant by record tourist arrivals.

With tourism practically wiped out by the pandemic, the numbers this year will be nowhere near the 2.7 million mark. The ambitious target is to reach 700,000 arrivals by the end of the year.

Although encouraging, this will mean a significant cut in the country’s export income, which is why it is important to encourage domestic spending.

The voucher system will go part of the way in addressing domestic demand and this is why it is important that the cash redemption by businesses is efficient, non-bureaucratic and quick.

The electronic system unveiled this week for shops to be able to redeem the vouchers that customers will pay with is an important development.

The system, which works through an app and QR code, will enable companies to receive the cash equivalent of vouchers used by their clients within a 24-hour time window.

This ensures that cash is paid out to businesses in the shortest time possible thus protecting cash flow.

The fact that businesses have to also send a photo or scan of the bill against which the vouchers are being offset is positive because it ensures VAT is being paid.

The system requires no complicated technology because all it needs is a smart phone with internet access. The registration process is also simple.

What we expect is that businesses receive their particular registration code by post as early as possible to get the system up and running.

Until now, no details have been given as to whether the vouchers will come with certain conditions on how customers can spend the €100 coupons.

With people already directed on which sectors to spend the vouchers, this leader believes that restrictions imposed on customers should be limited.

While vouchers should be redeemed whole against amounts that are equivalent or higher to the voucher value, customers should also be able to use multiple vouchers for a single purchase.

Quality analysis monitoring of how the system will work and what problems may crop up is important to determine how it can be tweaked and improved to avoid any hiccups along the way.

But more importantly, the experience could be used to deliver other services in the future.

The Economy Ministry’s response and that of entities falling within its remit has been good throughout the pandemic and this bodes well.

At times like these, it becomes imperative that public sector responses are quick and effective to reduce uncertainty and mitigate the pressure caused by the pandemic crisis.

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