The Treasury Minister surprised Tynwald today by announcing that the Manx Electricity Authority and the island’s Water and Sewerage Authority might merge.
Eddie Teare has circulated the following letter to Tynwald members:
‘I am writing to you as chairman of government’s Business Change Steering Group to provide you with an update on the work of the group in relation to the Manx Electricity Authority (MEA) and the Water and Sewerage Authority (WASA).
;As you will know, in January this year Tynwald agreed a Council of Ministers report on the Scope and Structure of Government. This included a commitment to a comprehensive review of the efficiency and effectiveness of services across Government to see what can be done differently to achieve better value for the public’s money. The Council of Ministers is due to report back to Tynwald in December this year.
‘Under the auspices of the Business Change Steering Group, an initial review process was undertaken which will now be progressed. The work is detailed and time-consuming, but must be carried out in a structured and logical manner to ensure that all options are considered.
‘One of the many options that are being explored is a possible merger of the MEA and WASA to create a single utility authority for the Isle of Man. Initial research indicates potential for significant efficiency savings to be realised by merging the two authorities. Among the objectives for such a merger would be the ability to trade at a surplus within a short space of time, thereby avoiding the need for Treasury loans to be written off or an enforced sale of assets.
‘I must stress that examination of this option is still in its early stages and that over the coming months we will be talking to all relevant parties before a conclusion is reached. We will, of course, also ensure there is appropriate consultation and develop a robust business case to support any proposal which may come forward. Any recommendation for change would also be subject to approval by the Council of Ministers and by Tynwald.’
More on this story in the Manx Independent on Thursday.
