A CALL in Tynwald to close all of the MEA’s showrooms was watered down when Chief Minister Allan Bell promised the issue of the loss-making enterprise would be considered as part of a wider review of the scope of government.
Liberal Vannin MHK Kate Beecroft (Douglas South) had called for a black and white closure of the five shops, citing an increase in recorded losses from £0.4m in 2009/10 to £0.6m in 2010/11.
But after an amendment to her motion was tabled by Mr Bell, she agreed to go along with the less immediately drastic option of considering their future in the context of a review of the whole of government.
Tabling her motion, Mrs Beecroft said: ‘It is unacceptable for government to use taxpayers’ money to go into direct competition with local business. The retail sector is struggling against off-island competition and to have to compete against a loss-making enterprise being kept afloat by taxpayers’ money must be very galling for them.’ She said it was hard to reconcile paying for the loss-making enterprise when health and education budgets are being cut. While saying she did not want to see the 25 staff made redundant, she said maintaining the status quo would be ‘immoral and financially unjustifiable’.
MEA chairman Eddie Lowey MLC criticised Mrs Beecroft for tabling the motion without first speaking to the MEA. He said, in conjunction with staff, the MEA had recognised the problem long before Mrs Beecroft came to Tynwald with her motion and had been conducting its own review, which included looking at possible collaboration with the private sector.
Mr Bell’s amendment stated government should prioritise its operations and ‘views with concern the loss-making retail operation of the MEA’. It said government supports the MEA’s ongoing review, the reconvening of the Scope and Structure of Government Committee and the work of the Transforming Government Programme. He said the Council of Ministers would report back to Tynwald by June. Mrs Beecroft supported the amendment and the motion as amended received unanimous support from the 31 members present for the vote.