A RADICAL restructuring package to save the Isle of Man's meat plant from "looming closure" was announced by government in October.

Government said the proposals were necessary to enable the meat plant to take a more commercial approach, maintain supplies of locally produced meat and secure the future of the livestock industry.

The meat plant, run by the Fatstock Marketing Association (FMA), was said to be facing insolvency within six months despite major cost-cutting and government subsidy.

The Department of Environment, Food and Agriculture (DEFA) supported the new proposals which were to wind up the FMA and transfer the plant to a new government backed company which would not be bound by the constrains of the pre-war legislation allowing it to be more responsive to consumer needs.

DEFA said it was fully prepared to continue to support the plant from its Agricultural Development Fund during its transition to a new commercial structure.

The then Minister John Shimmin MHK said: "The Island's taxpayers cannot be expected to continue supporting a meat marketing system that does not meet consumer's needs.

"Equally we have to recognise that closure of the meat plant would be a major blow to farming, industry and the Manx countryside.

"The way forward is to modernise the operation of the plant so that it can provide better value for the taxpayer’s investment, better quality for the consumer, and a better future for the farmers.

"It is of critical importance that both local farmers and consumers support the new company - without them it will not succeed."

Scott Barker, a representative from the FMA, said: "In the past year the meat plant has made real progress in cutting costs and improving quality.

"However recent extreme market conditions have driven up prices for livestock to unprecedented levels. While the FMA remains obliged to accept all animals at any time whatever their quality this causes supply issues that threaten the plant’s continued existence.

"Our responses to these market threats are severely limited by a legal framework created nearly 80 years ago. If Manx meat is to have a future we need a marketing structure designed for the satisfaction of consumers in the 21st century."

Update: In December the new DEFA Minister Phil Gawne MHK said the "clock is ticking" on the Isle of Man's meat plant. For more on this story click here.

This story is part of isleofman.com's Review of the Year 2011.