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MEA retail controversy under question again

by isleofman.com 24th May 2010
THE controversy over the loss-making MEA retail outlets competing with private electrical retailers will again reach the floor of the House of Keys in Douglas tomorrow (Tuesday).

MHK for Michael, David Cannan, has tabled a question to be answered by the Chief Minister Tony Brown, who has very recently closed his own business dealing in electrical goods in Castletown.

The question asks whether it is right that the Island’s electricity consumers should continue to subsidise the loss-making outlets in Peel, Port Erin, Castletown, Ramsey and Douglas.

He is also asking for the MEA to supply copies of annual accounts of each of its retail outlets for the last three years.

Local electrical retailer TH Colebourn Ltd brought the matter to the attention of the public recently when the company said it was “unfair competition” to compete on the high street with the MEA outlets which are so heavily subsidised because they do not make any money.

Managing director Tony Lyth said, “We welcome competition in the marketplace and have competed with other commercial retailers happily for many years, but it just isn’t right that a subsidised loss-making Government department is involved in what has become a highly competitive market in recent years where internet sales and the expansion into the market by many other retailers, such as supermarkets, has made a big difference to the industry.”

“If the MEA retail outlets are competing on a major level in the market - which they are, with shops in Douglas, Ramsey, Port Erin, Peel and Castletown - and losing money in the process then how can that be considered fair?”

He stressed, that it was not a case of ‘sour grapes’ as suggested by some critics. “To compete against a Government subsidised commercial outlet is simply not fair.”
Posted by isleofman.com
Monday 24th, May 2010 12:12pm.

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