[BBC News] Diverse economy gives protection

[Newsbot]

The Manx economy's diversity has provided protection from challenging global conditions, the Treasury minister says.

 

Source : http://news.bbc.co.uk/go/rss/-/1/hi/world/...man/8218058.stm

[Vulgarian]

Diverse?! We're almost totally reliant on the finance sector. The other things Bell mentions, "E-gaming, shipping, tourism, aircraft registration and manufacturing" make up a tiny percentage of our economy.

[bluemonday]

Yes but nothing can stop Bells paean of self praise.

Let us all feel smugly reassured.

[manshimajin]

Yes but nothing can stop Bells paean of self praise.

His state pension is still secure...that's what matters. Now stop whingeing and think positive.

[manxman8180]

Diverse?! We're almost totally reliant on the finance sector. The other things Bell mentions, "E-gaming, shipping, tourism, aircraft registration and manufacturing" make up a tiny percentage of our economy.

Do you know what percentage it is, or are you just guessing that it's tiny?

[GD4ELI]

Yes but nothing can stop Bells paean of self praise.

Let us all feel smugly reassured.

Alan Bell has done and is doing a magnificent job for the Island. He's worth his salary ten times over - he could earn far more in the private sector.

[Bobbie Bobster]

Digest of Economic and Social Statistics 2009 - IoM GDP 2006/07

 

Insurance,Banking,FinanceandBusinessServices 36.0%

ProfessionalandScientificServices 20.5%

Construction 6.7%

Engineering,TextilesandOther 6.1%

TransportandCommunication 5.8%

RetailDistribution 5.7%

PublicAdministration 4.5%

MiscellaneousServices 3.9%

InformationandCommunicationTechnology 3.4%

Gas,Electricity,Water 1.6%

OtherCateringandEntertainment 1.5%

Manufacturing:FoodandDrink 1.2%

WholesaleDistribution 1.2%

TouristAccommodation 1.0%

Agriculture,Forestry,Fishing 0.9%

 

So, although financial services is the single biggest contributor to GDP, professional services, construction, engineering and transport combined is a bigger contributor.

 

This compares well with, for example, Jersey's Gross Value Added (sectoral analysis 2007) which shows Finance at 53%, with the next largest sectors "Other business activities, rental" at 11% and "Other business activities" and "Public administration", both at 7%.

 

So, these numbers would seem to support the view that, although the IoM has an economy that is significantly biased towards the finance industry, it has started to diversify away from it.

[xbones]

I'd still say that a lot of the non-finance industries still depend on there being a finance industry here though.

[Albert Tatlock]

I'd still say that a lot of the non-finance industries still depend on there being a finance industry here though.

That is so correct. Most of the 10/15/30% plus cuts in many business areas I have seen first hand are a direct result, e.g. furniture, which has to be transported, warehoused, delivered and installed etc. and of course construction which has major dependencies on the finance sectors' performance here. As are numerous professional businesses tied. All inextricably linked - of course they are. All areas of business are fighting a general recession on top of any impacts on the finance sector.

 

Cretney and Bell are painting a rose tinted picture between them, but there are a lot of people suffering because of this recession, and more to suffer IMO. It might be their job to paint such a picture, but it should not be at the disadvantage of Manx and IOM workers. They need to consider tougher restrictions on work permits, not less restrictions as there is a year or two of this ahead of us at least.

 

900+, and rising, people on the dole is not acceptable when the doors are still wide open to their outside and equal equivalents in many cases - e.g. day to day IT and business support being prime examples, with of course the exception of specialties.

 

It's not just about jobs though, it's all about types of jobs too. I know many well qualified people working in quite shitty jobs at the moment because of this failure to tighten up on work permits. I have monitored the job situation for months, and it is predominately only McJobs that are available, very few professional roles, and for those few professional jobs that do arise most are well over subscribed.

 

I fundamentally believe Cretney has little understanding of many roles in the economy and is simply seeing unemployment figures. The picture is far more complex than that and needs to be looked at far more closely, especially when he holds the Ace, the ability to ensure the WP system is operated to maintain the standards of living and aspirations of capable Manx and IOM workers.

 

I don't think Cretney is doing his job properly at all, and is living in cloud cuckoo land, and in the meantime letting down quite badly many hundreds of Manx and IOM workers.

 

The main part of this recession here is yet to come.

[manshimajin]

The GDP figures give some perspective but don't show where the jobs are. This Report gives some numbers on page 16. It shows 1961 to 2006. Some trends are interesting and show the change in the employment and economic sructure:

 

Agriculture 10% to 2%

 

Manufacturing 11% to 5%

 

Finance and insurance 2% to 23%

 

Tourism & catering 23% to 14% (note how tourism accommodation has fallen from 7% in 1971 to 1% now)

 

Professional etc 9% to 20%

 

Public admin 7% to 7%

 

So relatively speaking we are quite dependent on the finance sector for jobs. It is also probably a reasonably good payer. Is this sector out of the woods? IMO it isn't.

[bluemonday]

Yes but nothing can stop Bells paean of self praise.

Let us all feel smugly reassured.

Alan Bell has done and is doing a magnificent job for the Island. He's worth his salary ten times over - he could earn far more in the private sector.

 

So why doesn't he?

I'm sure he would be snapped up.

 

I agree 100% with all the points in ATs post above

 

In particular

The main part of this recession here is yet to come.

[Albert Tatlock]

So relatively speaking we are quite dependent on the finance sector for jobs. It is also probably a reasonably good payer. Is this sector out of the woods? IMO it isn't.

They've just began the journey. They're only at shit creek, and haven't even reached the scary forest yet...never mind the woods after that.

 

[Declan]

Germ Warfare relocates to IOM

 

"We have gone to the Isle of Man because of their IT set up, which will help us reach a worldwide market," he said. "Where we are at the moment we have lots of trouble with broadband."

 

The former Royal Army Medical Corp medic added: "The Isle of Man [government] are also fantastic. It's 100pc the grants from them to help us set up. R&D (research and development) and marketing; everything a small business would need they have offered to us."

[Slim]

900+, and rising, people on the dole is not acceptable when the doors are still wide open to their outside and equal equivalents in many cases - e.g. day to day IT and business support being prime examples, with of course the exception of specialties.

The main part of this recession here is yet to come.

 

Albert, can you provide a little backup to your thinking? We've seen some pretty large cuts already as a knock on from the economic devastation from the last year, mostly from UK based outfits that have felt the pinch from other areas and made the cuts here. Our deposit base is still good for the banks, funds under management took the expected hit from the drop in equities but have risen again this quarter. We've seen that the markets and the economy are all about sentiment and the short term sentiment appears to be positive, I know I've made personally some very good returns over the last few months, and a lot of people are saying the same.

 

Government debt is an issue, but not a problem locally. High taxes are on the way to pay for UK and other countries debt, which is surely another positive for the island to capitalise on with competitive tax.

 

I too think it's a challenging environment, and I definitely think there's still pain to come, and it certainly could go either way, but I also think we may have seen the worst of it and there's a fair chance we could actually benefit too.

[rednik]

Germ Warfare relocates to IOM

 

"We have gone to the Isle of Man because of their IT set up, which will help us reach a worldwide market," he said. "Where we are at the moment we have lots of trouble with broadband."

 

The former Royal Army Medical Corp medic added: "The Isle of Man [government] are also fantastic. It's 100pc the grants from them to help us set up. R&D (research and development) and marketing; everything a small business would need they have offered to us."

 

It's really good for all concernerd to have business like this relocating to the island, and I guess it doesn't hurt for the likes of the dragon's to understand a bit more about what the island does and possible benefits to them of moving businesses or themselves here.

 

I understand the need to offer incentives for people to relocate, but if I read the quote below correctly, our government are making a big contribution to the running of his business. I appreciate the benefit of them relocating and generating jobs etc, but who's to say a local business isn't worthy of the same investment to help them expand? I may be mistaken, but based on my dealings with the DTI in the past, I'm pretty sure I know what the response would be if our work approached them for money to help pay for marketing and so grow the business.

 

"will see up to 40pc of his capital investment, property and marketing expenses paid for this year."