Most of Guernsey’s greenhouses fell into disrepair years ago, after the market for growing tomatoes and other fruits and vegetables collapsed in the 1970s and 1980s.

Now the island’s Digital Greenhouse could follow suit, after Economic Development (ED) announced it intends to either close it or transition “some or all its services to the private or voluntary sector”.

The ‘startup incubator’ and office space, in St Peter Port’s Market Square, was set up in 2016 as a States-backed hub to support Guernsey’s digital and creative sectors, by the old Commerce & Employment Department.

The surprise announcement comes as the States faces increasing pressure to reduce spending ahead of September’s GST debate.

An ED spokesperson said the Digital Greenhouse “answered a need at a time
when few alternatives existed in Guernsey”.

“Ten years on, the digital and innovation sector has grown significantly, and the
committee is of the view that innovation and digital development is best taken forward by the private or voluntary sectors, rather than by government.”

Deputy Marc Laine, ED Vice-President, admitted it was time for the States to “get out of the way and let the private sector do what it does best”.

The States current spends about £450,000 a year supporting the Digital Greenhouse.

The committee is now inviting expressions of interest from organisations willing to take on innovation and business support initiatives currently delivered by the Digital Greenhouse, including proposals to run some or all of its existing services.

While the States has signalled it wants to step back from directly running the facility, it has left the door open to providing grant funding for activities it considers economically beneficial.

The committee said some core functions currently delivered by the Digital Greenhouse, as well as other innovation projects not currently available in Guernsey, could still qualify for government support under future arrangements.

Deputy Laine said the private and voluntary sectors were now “better placed than the States to lead and facilitate innovation development initiatives” and said ministers wanted to find the “right guardians” to take the work forward.

He argued that innovation was now best served by organisations able to bring “agility and commercial insight” rather than government oversight.

Still eligible for grants

Despite the proposed changes, Deputy Laine insisted supporting innovation, technology adoption and upskilling remained a priority for Economic Development and for Guernsey’s long-term economic growth.

He thanked the Digital Greenhouse team for its work over the past decade and said it would continue providing startup support, skills development and networking opportunities while the review takes place.

The States has not yet said when a final decision will be made on the future of the Digital Greenhouse.