Isle of Man's meat plant posts loss despite £2m subvention

Auditors said the facility would "no longer be a going concern" if state subsidies were pulled

The Isle of Man government-owned meat plant has posted a £96,000 shortfall despite receiving a £2m subvention.

Directors of Isle of Man Meats blamed "operational losses" for the deficit at the end of the last financial year.

Auditors warned the plant would "no longer be a going concern" without the annual grants.

Environment, Food and Agriculture Minister Clare Barber said she remained focused on moving the company to a "more stable trading shape".

Her department was in the process of transferring its controlling stake in the firm to the treasury, she added.

Tynwald backed the move in July last year over fears the Department of Environment, Food and Agriculture (DEFA) had a "potential conflict of interest" in its dual role as regulator and promoter of the island's meat sector.

Meat plant directors said they were working to make the facility more sustainable

Ms Barber, who was a member of the committee which recommended the transfer before she was appointed minister, said several changes had already been made to the company's board.

These included the appointment of Graham Crowe as interim chairman and Claire Christian MHK as an interim director, she added.

The meat plant currently receives a subvention of about £2m from DEFA each year, paid in two tranches.

The firm's directors said changes were currently being made to make the facility in Braddan financially sustainable, and they were confident government funds would be provided to keep it operational for the "foreseeable future".

In the firm's 2020-2021 financial report will be laid before Tynwald in March.