THE Island's Chief Minister has said that 2012 will be one of the most challenging years the Isle of Man has faced for a generation.

Allan Bell MHK has laid out government's plans and priorities for the year ahead which he said will help achieve a sustainable future for the Island.

Announcing what he described as the "road map" of the future Mr Bell revealed that job cuts within government would have to be made along with changes to the benefits, social housing and criminal justice systems and the planning process.

This is Mr Bell's statement in full:

"The coming year will be one of the most challenging the Isle of Man has faced for a generation. Threats to the world economy and their impact on the Island, together with our immediate need to rebalance government revenues, will test us all in the time ahead.

"Despite these pressures I believe that by recognising the need for change, and by working together with a clear focus on national priorities, our Island community can look to the future with confidence.

"There are no quick and easy answers to the problems which confront us. However we must take courage from knowing our economy is still in a position of relative strength.

Our priorities
 
"We have a new government - a government of national unity - and a new House of Keys fully committed to working together in the best interests of the Island.

"Even though the government may be new my vision as Chief Minister reflects my longstanding ambition to maintain a prosperous and caring society based on fairness, opportunity for all, social cohesion and quality of life.

"The caring society, of course, is only possible if there is the economic stability and prosperity to fund it. So our top priorities have to be:

• Delivering further economic growth and diversification to provide new income for government and jobs for our people
• Living within our means by achieving a balanced budget
• Protecting the vulnerable in society

"The road ahead will be difficult and some of the decisions we have to take will not be popular or easy to accept. But it is vital that we all face up to these realities and accept change if the Isle of Man is to survive and, indeed, thrive in the future.

"The people of the Island quite rightly require us to deliver essential services as efficiently and effectively as possible and they understand the need for change. 

"We must focus on both long term and shorter term matters. Positioning the Island's economy so that it is innovative, competitive and consistent with international regulatory standards for the long term must be a key objective.

"To achieve this we must change the way we think and act particularly in the public sector. One of my key themes must be the delivery of a leaner, fitter and more sustainable government."

Taking action

"A number of steps are already under way to deliver this ambition.

"Work to rebalance our finances has started across all departments with the aim of completion within just over three years. This consists mainly of spending reductions to create a leaner government, coupled with the short term use of reserves and the generation of new income streams, on top of the tax increases that have already been implemented.

"Government will also work to reduce its annual salary bill, currently standing at well over £300 million, by 10 per cent in real terms over the next three to four years.

"Achieving this essential reduction will, inevitably, entail job losses and continuing wage restraint.
 
"I have recently asked the committee which first looked at the Scope and Structure of Government more than five years ago to review its original recommendations and report back by the end of March on the relevance of their suggestions to our current circumstances. 

"It is my hope that their conclusions will encourage a wide and considered discussion within our community over the appropriate role of government, though as part of the debate we must not forget the potential impact of reductions in public spending on the local economy.

"Alongside changing the scope and structure it is vitally important that we change the culture across government - modernising the way we deliver services and focussing on greater efficiency in work practices at all levels.

"To do this a Transforming Government group has been established to deliver a strategy to drive through the changes we need and we will work closely with representatives of our work force to achieve a positive outcome.

"There are many further steps I will take forward over the next few months: 

• Historically our national insurance and benefit systems have been closely linked to those of the United Kingdom. Given the significant changes in these areas by the UK, and the need to ensure we have systems relevant to the future needs of the Isle of Man, I will initiate reviews of our national insurance and benefit systems.

My ambition is to have in place, within two years, revised systems which meet our values of a fully inclusive, compassionate and fair society, create incentives to work and are appropriate, sustainable and well-targeted for the long term. This will challenge the principle of universality.

• In addition I will set up an independent body to review how the Island can manage the consequences of our aging population - especially its impact on nursing and residential care, health and state pensions. This is a long term and difficult issue and I would expect to bring forward new proposals in time for the implementation of necessary changes early in the next House.

• A report on the Island's future housing strategies is expected within three months and should lead to an extensive discussion and new thinking on how we best provide for the housing needs of our residents - especially in relation to social and affordable housing.

• Our criminal justice system urgently needs review and improvement and I have asked my Minister for Home Affairs to report back within six months with specific proposals to improve our system.

• I have asked the Ministers for Economic Development and Infrastructure to review the Island's planning process. Achieving sustainable economic growth requires a planning system that includes a presumption in favour of development with greater emphasis on the quality of design whilst still protecting and enhancing the quality of the natural and built environment which supports that growth. 

• I anticipate that we will have agreement on a new structure for the Public Sector Pension Scheme ready for implementation in April. 

To continue reading how Mr Bell aims to meet these targets by spearheading growth for the Isle of Man click here.

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