Island Life Magazine Ltd December 2007/January 2008 | Page 13

ANDREW TURNER MP 24 The Mall, Carisbrooke, Isle of Wight PO30 1BW Tel: [phone] email: [email protected] BY - ANDREW TURNER MP Spare a thought for the circulating pound One of the many highlights of living on the Island is attending functions such as the recent Food and Drink Awards celebrating the very best of what the Island has to offer. It was a thoroughly enjoyable evening, but it also got me thinking about a subject that can transform areas and change people’s lives. When you buy something from a shop, do you ever wonder where the money goes? Have you even pondered where your pennies end up? The way money flows through organisations and businesses is something that I have always been interested in. Spending money locally doesn’t necessarily mean that it stays local. I take little notice of ‘think tanks’ but one of them, the New Economics Foundation has done some interesting work in this area. They point out that money that stays in a local area brings real long term benefits to that area – the circulating pound. Let’s take an example. If you do all your weekly shopping at a supermarket, does the money stay on the Island? Some is spent on employing people but the profits go off the Island and goods on sale are rarely from local producers. Are local stores any different? Perhaps. If you spend money at local shops owned by local people, the money they earn will most likely be spent again on the Island and the food and goods on sale are often from local farmers or producers. It is not only where you spend your money that counts – it is where the people you give it to spend theirs. Every time your pound is spent and re-spent on the Island it means income for local people. Of course, this is an oversimplification to some extent but the principle is sound. The rise of large companies in all areas of retail has led to many local stores being forced out of business. Small towns and villages find it difficult to compete with national and international companies, even though the benefits of supporting local businesses can transform an area. Many organisations work hard at attracting investment to the Island, but that is only half the story. That money Island Life - www.isleofwight.net can easily flow back to the mainland. It is only through sourcing local products, using local services and making the most of local resources that the Island will feel real long term benefits. In fact, by relying more on local shops and services you can generate more money for your local area even when you spend less! Major retailers have had an enormous impact on the British economy and have generated jobs along the life way. I can’t claim that I don’t use supermarkets or large retailers – we all do, they offer choice and convenience. Even so, the role of smaller, local shops and stores should never be un