IT is "inevitable" that a number of government workers will lose their jobs as government aims to cut its wage bill by 10 per cent.

That's according to the Island's Chief Minister Allan Bell MHK who has said that government has to reduce its annual salary bill which currently stands at £300 million.

Earlier today (Monday) Mr Bell laid out his government's priorities for the forthcoming years and said cutting the wage bill was one way of helping to balance government finances.

He explained: "The ambition is to reduce the wage bill by 10 per cent over the next three to four years.

"When you consider that we have nearly 8,000 government employees, to achieve such a saving will have an impact on the number of people we employ.

"Achieving this essential reduction will, inevitably, entail job losses and continuing wage restraint.

"This is going to mean some extremely painful, unpopular and difficult decisions as we re-adjust the level of service that we offer in some areas.

"That in itself has quite obvious implications and we need to work with employees' representatives to try and find an effective achievement to this ambition."

Mr Bell also warned government staff that there would be no pay increases at this "difficult time".

He continued: "Any wage rises which are approved in whatever form have to be found out of existing budgets.

"There is no, and will be no, allowance at budget time for wage increases to any department.

"Departments, in the first instance, have to make savings either by reduction in services or by reducing headcount.

"Every wage rise jeopardises the job security of others. That discipline has been in for a period and that has to continue for the time being.

"It is far more important to me to maintain the employment levels and to protect the jobs of individuals than support wage increases at this difficult time."

During Mr Bell's address, which comes just weeks before the Budget is announced, he also highlighted other areas of concern including the planning and benefits systems.

He also confirmed that a committee looking into the scope and structure of government would report back to him by the end of March. This he said would "encourage a wide and considered discussion" within the community over the appropriate role of government.

Mr Bell added: "The important thing in this exercise, across the whole of government, is that there are no sacred cows. Nothing can be ring-fenced. Everything has to be investigated and where savings can be squeezed out, they must be squeezed, even at the risk of being highly unpopular in some cases.

"Politicians, union leaders and the workforce have to be realistic. We do not have the money to sustain the level of government in the future in the way we have done to date.

"Unless we can achieve this rebalancing we will not be able to provide the Isle of Man with a sustainable future."

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