The Treasury Minister has moved to calm fears over the alleged ?1 billion shortfall in the Island's public sector pensions fund.

Allan Bell says the figure is misleading - and any deficit will take decades to emerge.

But he's conceded that the government must take action to control the growth in pensions liabilites for the future.

Business editor John Moss reports (audio file attached):

The funding of civil service pensions has been described as a looming crisis - which some politicians have accused the government of ignoring.

In statment aimed at clarifying the sitation, Allan Bell says ?1 billion is the theoretical figure required if future public sector pensions had to be fully funded today.

The Manx government operates a pay-as-you-go system whereby today's employees fund the pensions of retired staff - along with monies from general taxation.

By the same token, future employees will pay for the pensions of today's civil servants.

He confirms the government's curent pension liabilities are affordable for the foreseeable future.

But the minister admits future generations of taxpayer must be protected - options would surely include a big reduction in the size of the civil service or a limit to the numbers joining the pension scheme.