" Darling's Isle Of Man Must Be On Some Other Planet "

[oldmanxfella]

Sounds like 'have to look at this relationship' could mean one of two things: a. tie together the regulation in terms of protecting British savers, or b. attack what we do here and attempt to put us all under the same UK regulation umbrella, with all that goes with that. It's all up in the air, but with the health agreement going, KFS, and them now talking of the 'relationship', IMO things are pointing much more to b. at the moment.

 

I'd go with option two. I've said from the very beginning of this sorry affair that this is exactly what a UK Labour Government has been wanting for 40 years - a chance to shut down the offshore tax centres that sit off the British coast. It has not even had to do anything in this instance, and can continue doing absolutely nothing and slowly strangle our economy.

 

If you also think just how reliant we are on VAT revenue, and tomorrow the pre budget report is likely to suggest cutting VAT rates in the UK to 15% at a cost of £12billion in lost revenue. I wonder what the equivalent revenue loss will be here for our share? IOMG certainly will have to cut its costs back hugely as its likely to leave a big hole in revenue.

 

Its clear to me from what is going on that the UK Government no longer wants 'dependencies': it wants either total control, or totally independent self supporting neighbours that have nothing to do with it.

[Slim]

If you also think just how reliant we are on VAT revenue, and tomorrow the pre budget report is likely to suggest cutting VAT rates in the UK to 15% at a cost of £12billion in lost revenue. I wonder what the equivalent revenue loss will be here for our share? IOMG certainly will have to cut its costs back hugely as its likely to leave a big hole in revenue.

 

The government won't want to cut spending, because that'll damage the economy further. More likely just increase borrowing.

[Albert Tatlock]

The government won't want to cut spending, because that'll damage the economy further. More likely just increase borrowing.

That's not the message that's coming out. There have been many inferences recently that the next budget will be one of the tightest budgets here for a while.

[Slim]

That's not the message that's coming out. There have been many inferences recently that the next budget will be one of the tightest budgets here for a while.

 

Like this message here?

 

http://www.iomtoday.co.im/news/Govt-scheme...ught.4695600.jp

 

"That could mean progressing schemes not currently in the capital programme but would bring employment"

[oldmanxfella]

The government won't want to cut spending, because that'll damage the economy further. More likely just increase borrowing.

 

How will it increase borrowing?

 

KSFIOM will cost the taxpayers £200m in the short term

 

The MEA debt is still at £400m

 

The airport extension is £50m

 

The new school in Onchan is £30m

 

We can't afford to borrow any more money because were fully committed already.

 

Edited:

 

Taxes will be going up and Government budgets will have to be massively slashed in my opinion.

[manxman8180]

Uncertain times maybe and a natural attraction for the doomsayers.

 

But the fact that the Isle of Man runs naturally on a budget surplus, puts us in a very good position. We don't borrow to fund our budget plans.

 

Perhaps a little dip into the reserves?

 

Whereas, to protect the UK economy Darling is going to have to take on unprecedented levels of debt. It will probably work, as the forecast is for a short 'blip'. But of it doesn't............

 

 

oldmanxfella - Government doesn't borrow to fund capital projects. Yes the MEA fiasco will hurt, but that will ultimately be repaid by it's users.

[Albert Tatlock]

That's not the message that's coming out. There have been many inferences recently that the next budget will be one of the tightest budgets here for a while.

 

Like this message here?

 

http://www.iomtoday.co.im/news/Govt-scheme...ught.4695600.jp

 

"That could mean progressing schemes not currently in the capital programme but would bring employment"

In terms of tight budgets, I was referring to what I've been hearing on MR's 'Sunday Opinion' over recent weeks, on which Alan Bell has appeared a few times. Also to the 'noises' I've been hearing about likely budgets next year from a few friends and colleagues.

 

Construction is only one aspect of the economy, though I agree we need to spend some of the reserves on this, as one of the reasons we have reserves is precisely for times such as these. We are also desperately short of affordable housing on the island, as well as hundreds of social housing homes which will be even more important and necessary if things really hit the fan for a while. What I don't want to see though is the housing market and housing values artificially held up, while hundreds of poorer people suffer through any recession.

 

It's a fact of life, that tough times are also a good time for any business or organisation to sort it's wheat from it's chaff, something well overdue during the past ten years, including in construction. There are 10,000 work permits issued every year on the island, and at times like this the scheme should be coming in to its own. I'm not after a debate on work permits slim, so don't start one. That's my opinion, has been my opinion for many years, and I won't change my mind on it as I fully support the work permit system.

[oldmanxfella]

But the fact that the Isle of Man runs naturally on a budget surplus, puts us in a very good position. We don't borrow to fund our budget plans.

 

So the MEA loans (£400m+) and Water Board Bond issues (£200m) are not borrowing money then? Plus how many other big projects (the incinerator for example) have been built and then sold and leased back? With all of these we're still paying the capital and interest costs over 25 or more years to give the government better cashflow. Were still in a 'surplus' though - because we've spread the capital costs over the next generation of taxpayers by selling to banks and leasing back.

 

All running a budget surplus means is that we have to be able to afford to service what we borrow, not that we don't borrow to fund.

 

Also with the MEA - when do you think that will be repaid by consumers then - 2050? particularly as the MEA is still not selling electricity for what it costs to produce it so its losing money by dealing with consumers at the moment.

[%age]

Also with the MEA - when do you think that will be repaid by consumers then - 2050?

 

Well certainly once those responsible for chucking all that money around are well retired in some foreign home away from the mess they have - and still are - creating.

 

Cosy.

[Cronky]

Gordon Brown Interview Transcript

 

JON SOPEL: Okay. Later in the programme we're going to be hearing about a number of British people who've put their money into banks on the Isle of Man that were taken over by Icelandic banks and as a result have possibly lost all their life savings. What can be done to help them?

 

GORDON BROWN: I have a number of people write to me about this and I'm obviously very concerned about this because the Isle of Man is not within our jurisdiction for regulation. We have guaranteed the savings of people in, in British banks in a number of cases, even though they were owned by Icelandic banks themselves. This is now a matter that the international authorities are dealing with. We are talking to the international monetary fund, who've had a deal with Iceland, about the repayment of debts that these banks have entered in to. This is something that we'll have to pursue internationally and I think we may have to look at the relationship between the Isle of Man and Britain in this respect because I think it's sad when people are effectively, an island that is operating in a different way from the rest of Britain.

[bluemonday]

As a statement of intent, I'd say that's fairly unambiguous.

 

Question of course is how the manx leadership respond...............

[%age]

I think they should bring back Its A Knockout up at Onchan Stadium.

[John]

so who else is left to have a pop at Mann, I think Alan Bell hit the nail on the head... Scapegoat.

 

Will wait and see the defense, will we send another group to the UK to attempt to smooth this over or are the signs that true independence is looming.

[homarus]

Good old Gordon! He's f***ed the uk economy, he's pretty much f***ed ours and he 's still digging away ! .

 

 

He states in interview that the I.O.M. is not within U.K. juristiction for legislation yet he plans to look at the "Relationship"?

 

 

What does he plan to do , Invade or blockade us?

 

 

Why doesn't he look at the relationship between the U.K. and Germany or France ( For example) they operate in a different way from the U.k. also don't they?

 

I suspect it's because it's easier to paint us as the bad guys and and he knows he won't face to much opposition !

 

1000yr old Parliment? not worth a w*nk mate!

[pongo]

so who else is left to have a pop at Mann, I think Alan Bell hit the nail on the head... Scapegoat.

 

What Gordon Brown is reported as saying seems reasonable and sensible. He does not seem to be scapegoating or challenging the IOM.

 

The banking crisis has raised issues about the relationship between the UK and the IOM which do need to be clarified. That does not seem contentious. It seems timely.

 

I'm guessing that Alan Bell's reported response has somehow got out of context because he always previously seems quite switched on.