Tynwald has given its backing to a backbencher’s calls for a new strategy to rebalance the public finances.
Michael MHK Alfred Cannan raised concerns that £406m had been drawn from reserves since 2009, with £137m in the last year alone - and claimed a further £100m would have to be taken from reserves and that it would cost every household £2,500 to meet the shortfall.
Referring to comments by the Treasury Minister Eddie Teare and Chief Minister Allan Bell that the government was close to rebalancing its revenue account following the loss of £200m of VAT revenue, Mr Cannan said: ‘Let’s start being honest with the situation.’
His comments came as Tynwald debated a Council of Ministers’ mid term report on securing a sustainable future for the island.
Mr Cannan hit out ‘hotchpotch’ of reforms and charges forced on the community and argued that Tynwald should have a role in developing strategy and not just the CoMin.
His amendment calling for a new rebalancing strategy was carried and the amended motion approved unanimously.
Mr Cannan said afterwards: ‘I am pleased my amendment was given such strong support. It is clear now that Tynwald is concerned about the current policies that are being pursued and that we require a much clearer and more sustainable plan to deal with the £100m shortfall.
‘We cannot carry on delivering a reform programme which appears to be disjointed and lacking cohesion. On the one hand the government chooses to save a baggage handling service that can easily be delivered by the private sector and on the other hand chooses to close down two highly popular central post offices. That is not acceptable.’
Mr Cannan welcomed the offer from the Chief Minister to engage widely across Tynwald to come forward with a clear strategic plan and policies.
The Michael MHK said: ‘These matters can no longer be the sole preserve of CoMin.’
Mr Teare insisted the figure was £60m not £100m but accepted that ‘we need to be bold’, and steps had to be taken to replenish the reserves including the capital fund.
Figures given in a written reply to a Tynwald question last month show that £179m will have been transferred from various reserves to the revenue accounts over the five years from 2009-10. The total amount used from reserves over that period is £406m including £92.9m transferred to the capital fund and £134m on other expenditure excluding the National Insurance Fund.
In a clear attack on Infrastructure Minister Phil Gawne, Alex Downie MLC hit out a ‘mealy mouthed’ Ministers putting up charges.