Plans to run the Post Office as a state-owned private company have been thrown into disarray - after Tynwald voted down most of the recommendations in a report proposing corporatisation.
After a long debate, the court voted to receive the report on the structure for Isle of Man Post Office written by independent consultant Elmar Toime.
But the only one of his recommendations that won Tynwald backing was that the Post Office be transformed from a statutory board into a company owned by the government.
Five other recommendations were rejected – including the proposal that the Treasury Minister be the sole shareholder and that Tynwald approve a memorandum of understanding on the Post’s purpose, aims and objectives.
Economic Development Minister Laurence Skelly said that with no real mandate for corporatisation the Post Office would continue as a statutory board and it would be up to the next administration after the September general election to come with any new proposals.
He admitted he was ‘disappointed’ at how the vote went.
In Tynwald he accepted there were risks associated with the proposals but there were greater risks in not following the recommendations of the Toime report.
But critics claimed that the corporatisation proposal was put forward without any clear business plan and without the memorandum of understanding having been drafted.
‘This is completely back to front,’ argued Douglas East MHK Chris Robertshaw.
Juan Turner MLC said he struggled to understand the rationale for the move given the Post Office is one of the most successful areas of government. He said there was not a ‘shred of evidence’ that the current model was preventing it pursue new business opportunities.
Lib Van leader Kate Beecroft (Douglas South) said members had not been given the detailed information needed for them to be able to vote.
Michael MHK Alfred Cannan agreed there was no detailed business case.
Malew and Santon MHK Graham Cregeen, who was sacked as Post Office chairman over his opposition to the corporatisation policy, said the move would benefit only the executive and the board in terms of significantly increased pay.
He said he was not opposed to changes at the Post Office but added: ‘We are being asked, or told, to jump out of an aircraft and then we are going to told as we are falling to the ground if and what type of parachute we are going to get and if it will work. This is ill-conceived, it’s premature and it sounds like a desperate government looking to try to prove they are still working.’
Mr Cregeen said he had expressed concern during his time as chairman that the Post Office has started negotiations to buy two local businesses, something he claimed would ‘unbalance the local market’.
He also alleged that during his conversations with the chief executive the latter had mentioned that ‘prior to my arrival at the Post Office he had been contacted by a Minister requesting that the Post Office did not compete for a piece of work as the Minister wanted another local company to get this work. I think that is totally inappropriate.’
Policy and Reform Minister John Shimmin described those allegations as ‘scurrilous’. ‘I find that disgraceful,’ he said.
Treasury Minister Eddie Teare ruled out the alternative idea of setting up a subsidiary company, pointing out what happened when that was done at the MEA with the scandal over unauthorised loans.