Electricity Price Hike

[Cambon]

So, what is the solution? 
Everyone moans about the £400M MEA debt. It has been in existence for around 20 years. Why has none of it been paid off? Part of any loan repayment scheme includes capital repayment. What has happened? I reckon it had been reduced but creative accounting is being used to keep the propaganda alive. 
 

Government own MU. How about they make it public? Create a billion shares at £2.00 each and sell 49% to the general public, in return for realistic dividends, and buy 51% themselves. Transfer funds from reserves to new MU Shares Account, which handily forms part of reserves. The funds raised, just short of £1Billion, can pay off all MU debts, and the rest can be invested in renewables, geothermal, even nuclear power. 
 

Problem is, who would trust them with that amount of money? 

[Albert Tatlock]

35 minutes ago, Cambon said:

So, what is the solution? 
Everyone moans about the £400M MEA debt. It has been in existence for around 20 years. Why has none of it been paid off? Part of any loan repayment scheme includes capital repayment. What has happened? I reckon it had been reduced but creative accounting is being used to keep the propaganda alive. 
 

Government own MU. How about they make it public? Create a billion shares at £2.00 each and sell 49% to the general public, in return for realistic dividends, and buy 51% themselves. Transfer funds from reserves to new MU Shares Account, which handily forms part of reserves. The funds raised, just short of £1Billion, can pay off all MU debts, and the rest can be invested in renewables, geothermal, even nuclear power. 
 

Problem is, who would trust them with that amount of money? 

Pay realistic salaries and get rid of the chaff and extra layers of management/admin for starters.

All Manx organisations never face up to getting rid of dross.

[Omobono]

i cant understand why government doesn't have a sovereign  fund  where people can invest money  with a slightly higher return then the banks , and the money invested can by used for major capital schemes ,  it used to be possible to do this with the local authority bonds at one time ,  perhaps the post office  or a new peoples  bank could  facilitate it ,  at least people could invest in their own islands future , there would be more interest taken  in whats happening in government , and sharpen them up !

[finlo]

7 minutes ago, Omobono said:

i cant understand why government doesn't have a sovereign  fund  where people can invest money  with a slightly higher return then the banks , and the money invested can by used for major capital schemes ,  it used to be possible to do this with the local authority bonds at one time ,  perhaps the post office  or a new peoples  bank could  facilitate it ,  at least people could invest in their own islands future , there would be more interest taken  in whats happening in government , and sharpen them up !

Don't you just know where any money given to government would end up!

[Non-Believer]

2 minutes ago, finlo said:

Don't you just know where any money given to government would end up!

Filling a certain £40M pa hole....

[Banker]

1 hour ago, Omobono said:

i cant understand why government doesn't have a sovereign  fund  where people can invest money  with a slightly higher return then the banks , and the money invested can by used for major capital schemes ,  it used to be possible to do this with the local authority bonds at one time ,  perhaps the post office  or a new peoples  bank could  facilitate it ,  at least people could invest in their own islands future , there would be more interest taken  in whats happening in government , and sharpen them up !

AML, KYC , due diligence etc put an end to these small bonds & don’t think anyone does them know. The cost of administering such schemes would be astronomical & why would Government pay more than bank deposits ie c5% plus all extra costs when they can borrow cheaper? Doesn’t make sense 

[WTF]

12 hours ago, Omobono said:

i cant understand why government doesn't have a sovereign  fund  where people can invest money  with a slightly higher return then the banks , and the money invested can by used for major capital schemes ,  it used to be possible to do this with the local authority bonds at one time ,  perhaps the post office  or a new peoples  bank could  facilitate it ,  at least people could invest in their own islands future , there would be more interest taken  in whats happening in government , and sharpen them up !

NSI  .

[Blade Runner]

13 hours ago, Cambon said:

So, what is the solution? 
Everyone moans about the £400M MEA debt. It has been in existence for around 20 years. Why has none of it been paid off? Part of any loan repayment scheme includes capital repayment. What has happened? I reckon it had been reduced but creative accounting is being used to keep the propaganda alive. 
 

Government own MU. How about they make it public? Create a billion shares at £2.00 each and sell 49% to the general public, in return for realistic dividends, and buy 51% themselves. Transfer funds from reserves to new MU Shares Account, which handily forms part of reserves. The funds raised, just short of £1Billion, can pay off all MU debts, and the rest can be invested in renewables, geothermal, even nuclear power. 
 

Problem is, who would trust them with that amount of money? 

The £400 million was a bond, the capital does not get paid off until the end of the loan period.

What normally happens at that point is that it is simply re financed and you just keep repeating until over many years centuries? The  debt "goes away" due to inflation.

The low inflation we have had for a long time has not helped the island in this case and you would hope when they re finance it the interest rates are low again.

[Happier diner]

13 hours ago, Albert Tatlock said:

Pay realistic salaries and get rid of the chaff and extra layers of management/admin for starters.

All Manx organisations never face up to getting rid of dross.

Dross? That's what keeps our economy going. 

[finlo]

2 hours ago, Happier diner said:

Dross? That's what keeps our economy going. 

Quite, they're the only ones left with any disposable income!

[cissolt]

The article in the paper this week stated that the mua had to draw down on its reserves, leaving only £109,842,000 remaining.

How has such a large reserve been generated and for what purpose?

[cissolt]

20 minutes ago, cissolt said:

The article in the paper this week stated that the mua had to draw down on its reserves, leaving only £109,842,000 remaining.

How has such a large reserve been generated and for what purpose?

18.1 million surplus for 21/22.  Makes the whole price rise even more galling.

 

[Declan]

What are the "reserves" for? Pension liability?

Is the return on investing those reserves more than the interest rate on the treasury loan.

[Banker]

23 minutes ago, Declan said:

What are the "reserves" for? Pension liability?

Is the return on investing those reserves more than the interest rate on the treasury loan.

They haven’t got any reserves the £420m of assets showing in balance sheet are mainly the power plants, gas pipelines, water treatment plants, vehicles etc whilst they owe IOMG £420m

[cissolt]

35 minutes ago, Banker said:

They haven’t got any reserves the £420m of assets showing in balance sheet are mainly the power plants, gas pipelines, water treatment plants, vehicles etc whilst they owe IOMG £420m

Not according to their own accounts, reserves comprise of all current and prior retained profits and losses. £18 million income surplus for 21/22