Tynwald approves £400m of government borrowing

The issue was debated by Tynwald members on Tuesday

Tynwald members have approved government borrowing of up to £400m.

The money will be used to refinance Manx Utilities (MU) and Isle of Man Steam Packet Company loans, pay for a new ferry, and fund future government infrastructure projects.

Treasury Minister Alfred Cannan said it would ensure the island could "maximise its opportunities for the future".

However, Juan Watterson SHK criticised the lack of time for parliamentary scrutiny of the proposal.

Under the plans, the refinancing of MU's £178m debt and £80m previously loaned to the Steam Packet would be put back into government reserves, while a further £80m would be used to fund the new vessel.

The remaining £40m would made available for future projects to meet climate change targets and support infrastructure projects for health and social care.

Alfred Cannan said the money would equip the island to face future challenges

Mr Cannan said the proposal had been brought forward "on the platform that significant financial expenditure has been undertaken in the past 15 months delivering for the nation against the ravages of Covid".

The government cost of the pandemic is expected to be between £200m and £250m.

Mr Watterson said although it was "broadly the right thing" to do, the Treasury was "not necessarily doing it in the right way".

Criticising the timescale for the motion being brought for approval, Mr Watterson said politicians had been given "two weeks' notice to consider indebting a generation" and the amount was "based on uncertain and secret information".

Mr Cannan said the move would "ensure that the island is equipped as well as it can be to face up to its financial challenges".

The money would be borrowed for a period of up to 40 years.

The motion was ultimately approved by a majority of Tynwald members.