In a 'State of the Nation' speech given yesterday (Wednesday 27th January) to the Compliance Institute, the Chief Minister, Tony Brown MHK, has pledged that the Isle of Man will emerge from its current economic crisis "better equipped" to face the future.
The Chief Minister outlined proposals to manage a period of financial transition following the revision of the VAT sharing arrangements with the United Kingdom.
Addressing the Compliance Institute’s ‘State of the Manx Nation’ conference, he said that government and business should embrace the opportunity to emerge leaner, fitter and even better equipped to face the future.
He stated that despite declining government revenues, the Island would begin its readjustment from a position of relative strength, with low unemployment, no external borrowing, sound reserves and a solid reputation as a centre for international business.
"I am confident that we will not only cope with the fiscal challenges that lie ahead, but that we will continue to provide a world-class, business-friendly environment that meets global standards on financial regulation and taxation", he told the audience.
The Chief Minister confirmed that attention would be focused on generating new revenue streams, further diversification and more inward investment in order to build on the Island’s 26 years of unbroken economic growth.
"If we are to put public finances back into anything approaching their state of health of recent years, economic development, particularly in high value added activities, is an absolute imperative", he said.
The Chief Minister also urged members of the Manx public and business community to contribute to a national discussion about the fundamental issues facing the Island.
"I would encourage everybody who cares for the Isle of Man, and values the business opportunities and the quality of life it provides, to have their say in this process.
"As a government we pride ourselves on being open, transparent and willing to take on board the views of our citizens. Public opinion helps to shape our decisions, our policies and our future".
The Council of Ministers has already announced a four-point action plan as part of efforts to improve government’s effectiveness, efficiency and overall value for taxpayers’ money.
The Chief Minister, who praised business leaders for their work to sustain the Manx economy during difficult times, said those initiatives were intended as the first steps in a programme of readjustment.
Calling for a positive and united approach in the years ahead, he stressed the importance of the relationship between the public and private sectors.
He concluded, "This spirit of co-operation will be the key to continuing the resounding economic success of the last two decades – a period in which our GDP has increased fourfold in real terms and where employment is at its highest ever level".
The full speech can be read here:
http://www.isleofman.com/library/chiefministerscomplianceinstitut.pdf
