The Island has a buoyant economy, despite a slight drop in national income for 2015/16.

Only vacancies that are critical to the delivery of frontline health and social care services are to be recruited to by the Department of Health and Social Care (DHSC).  The measure, which is temporary and has been introduced with immediate effect, means a freeze on recruitment to non-essential roles.

Sexual harassment is the hot topic of the moment, with two things happening over the last few months to bring this problem to the fore.

The strength of the Island’s eGaming sector has been graphically illustrated in the recent Isle of Man government figures, which show economic growth of over 5 percent and egaming
accounting for 19 percent of the Island’s income.

But they also illustrate what former Chief Minister, Allan Bell described as the Island’s increasingly two-speed economy. Agriculture and manufacturing have fallen sharply and the government’s diversity policy looks increasingly fragile as more eggs are lodged neatly into the basket of eGaming.

With several areas of the economy stagnating the new House of Keys has some massive challenges ahead. One of them – which has seemingly gone under the radar in recent times – is the significant decline in Isle of Man house prices.

It doesn’t take a genius to see they have been falling steadily for some time. Estate Agents would argue that many vendors are still seeking unrealistic figures for their properties, but behind all
the hyperbole the simple truth is that the average house in the Isle of Man is currently worth around 20 percent less than it was in 2011. Such a decline in the UK would be considered catastrophic.

New Chief Minister, Howard Quayle has a monumental task ahead as he leads his rooky administration into the great unknown. Not since Frodo Baggins entered the Land of Mordor, have
the portents of doom been so ominous. His government must continue its battle to balance the books in the wake of the VAT ‘re-adjustment’ of 2011; it must also have to be nimble on its feet to
deal with the BREXIT fall-out, (he’s already been to Brussels for talks which is a good start), and then there’s the little matter of pensions and an ageing population.

Mr Quayle knows that only continued strong economic growth can keep the economy on track, but that’s far from cut and dried. Whilst egaming has been a star performer it masks serious issues elsewhere.

Tourism showed signs of life in 2015/16 but even here, much needs to be done if we are to seriously grow market share outside special events such as the TT and Festival of Motorcycling. Let’s face it, we can’t even make a decision on re-surfacing the promenade.

Meanwhile a positive for the new administration can be taken from the latest unemployment figures, which show the jobless total to have fallen for eight consecutive months to stand at just 1.3 percent in September.

The bottom line is that Mr Quayle and his team have the unenviable task of trying to find a new way for the Island to re-invent itself. It’s done it several times in the past and we have to have faith it can do so again. The Chief Minister is already eyeing the bio-med and bio-tech industries as potentially lucrative new income streams.

Mr Quayle, as former Health Minister, knows what it’s like to deal with the pressure of heading a huge, troubled department, so the trials and tribulations of the Chief Minster job certainly won’t faze him.

He has shown himself to be a pragmatist who is not afraid to make difficult or unpopular decisions. It’s just as well. We sincerely wish him the best of luck in his endeavours.

Middle MHK Howard Quayle has been appointed as the Isle of Man’s next Chief Minister. He comfortably held off the challenges from Alf Cannan and Kate Beecroft, gaining 12 votes in the House of Keys and a clean sweep in the Legislative Council. In the House of Keys poll Mrs Beecroft received three votes and Mr Cannan nine. Mr Quayle, who is the current Health Minister, will now replace Allan Bell as the Island’s lead politician.

The Isle of Man goes to the polls this month to elect a new House of Keys. A significant number of new faces are almost guaranteed following changes to the electoral boundaries and the decision by a number of senior politicians to call it a day and not stand for re-election. They include Chief Minister, Allan Bell and Treasury Minister, Eddie Teare.

The saying goes that a country gets the government it deserves – and to a point it’s true. That’s why it’s imperative that we as citizens take the time to quiz potential MHK’s on the big topics to ascertain their level of knowledge and their ideas for rectifying the problems the Island faces.

One of the biggest threats to democracy is apathy. Fewer and fewer people are taking the trouble to vote in local authority and national elections. It’s a worrying trend that is not exclusive to the Isle of Man.

Candidates in the 2016 election have been setting out their stall on radio and in the newspapers – some with grandiose ideas and ambitions, others more measured.

We must hope that the successful 24 can – collectively – steer the Island to a bright future, though many will certainly face a steep learning curve.

In the first instance our duty is to get out and vote.

If uncertainty is the enemy of economic advancement then the forces of evil are massing on our borders. The recent Brexit vote in the UK took most people completely by surprise.

The day after the poll the nation woke up to the enormity of the decision and the shock waves reverberated through the markets and sent the political system into meltdown.

The UK now has a new Prime Minister in Theresa May, who – like Gordon Brown before her (and it must be said Winston Churchill) – hasn’t been chosen by the electorate. Furthermore she apparently voted to remain in the EU, but now has to make the decision when to press the button and start negotiating Britain’s exit from the Union, something she claims she is committed to doing.

It’s a bizarre state of affairs, not made any less so by the strange shenanigans in the Labour Party, where Jeremy Corbyn’s rather desperate attempt to cling onto power in the face of a challenge from Angela Eagle and now Owen Smith, highlights the gaping chasm between the Parliamentary Labour Party and the grass roots members around the country.

What has all this got to do with the Isle of Man you might ask? Well, everything and nothing.

The Isle of Man has to find a way of not becoming collateral damage. We can have no influence on the movement of the UK’s political tectonic plates. Nor can we have any real input into the Brexit talks – if and when they finally begin.

Having had no say in the EU referendum we sit, becalmed and rudderless in the middle of the Irish Sea, waiting to see if we can feed from the scraps the disgruntled 27 EU countries are prepared to throw to the UK negotiators. And, to add to our woes we have our own general election in September, with the potential for a new and rather ‘green’ House of Keys, which will need time to bed in before it (hopefully) becomes an effective force.

Many pro-brexiteers in the UK have admitted to having changed their mind since the referendum, after appreciating the enormity of the decision. Many others cling firmly to the belief that they have ‘got their country back.’

It conjures up images of Spitfires patrolling the cliffs of Dover and the iconic theme tune to Dad’s Army with the arrows pointing outwards towards the advancing hordes. They may have their country back, but only time will tell if the economic battle they have committed Britain to will end in another famous victory.

From a Manx perspective let’s hope so.

The Steam Packet Company has a long, proud record of service to the Isle of Man. Inevitably though, throughout its history, the company has endured difficult periods, none more so than through the war years.

Now it faces a new battle, to convince members of Tynwald that it is the right company to be entrusted with the Island’s lifeline ferry services into the future. As part of its bid the company has gone public with a bold offer, which includes the promise of new vessels, additional back-up in the form of the Ben-my-Chree, increased passenger and freight capacity, more special offers and a new ‘frequent traveller’ scheme.

There’s even an offer to share extra revenue growth with the government to fund low fare initiatives.

The total investment involved in the offer adds up to around £170 million – a considerable sum in anybody’s language.

The task facing Tynwald members is whether to make a decision now, and give the company the green light to put its plans into action, or wait until
after the election and then proceed with a full tender process for any interested parties.

IOM Steam Packet Company, Chief Executive Mark Woodward isn’t convinced that any of the major ferry companies currently operating in British waters would be interested in the Isle of Man’s ‘niche’ operation. He may have a point. The issue is not just a case of who offers the best vessels and the cheapest deal for customers. Ferry services are complex operations and some services in British waters are heavily subsidised. Under the terms of the Steam Packet’s offer the company is pledging to take all the commercial risk, based on its assumption that the Manx economy is strong and will continue to grow. Given the uncertainties that abound in the current climate that’s a brave move. Other operators may be more reticent.

The Steam Packet isn’t perfect – something Mr Woodward would openly concede. But the promises made in its offer document suggest the management is acutely aware of its weaknesses, and the improvements that need to be made.

With the summer recess looming and the general election just three months away some Tynwald members will be packing their factor 15 and dreaming of a sunshine break. It’s hoped though that they can retain sufficient focus to give this important issue proper consideration and don’t just kick it into the long grass for the next administration to pick up post election. (See page 12: “Steam Packet throws down the gauntlet’)

The recent anti-corruption summit in London produced more than its fair share of headlines in the UK and international press, though what the event achieved is difficult to quantify.

Six countries, Britain, Afghanistan, Kenya, France, the Netherlands and Nigeria, have agreed to publish registers of who really owns companies in their territories, the so-called registers of beneficial ownership. This is a primary objective of anticorruption groups. Six more, including Australia, have said they will consider doing so.

Meanwhile eleven nations have pledged to join the 29-strong group where lists of beneficial owners are drawn up and shared between governments, although not publicly. The Isle of Man and Jersey are among this group.

Two of the main speakers at the summit were UK Prime Minister David Cameron and US Secretary of State, John Kerry.

Both produced stirring speeches expressing their desire to stamp out corruption and clean up the world, and there was praise from Mr Cameron for the work done by the Isle of Man. Meanwhile Mr. Kerry said he had been shocked at the extent of global corruption since taking up his post – though not it seems shocked sufficiently to commit the US to the pledge to share registers of beneficial ownership.

It was possibly the hypocrisy of Mr Kerry’s position that finally proved a step too far for Isle of Man Chief Minister, Allan Bell. In an unusually frank and hard-hitting repost Mr Bell told the summit that there wouldn’t be any real progress until the US made its own tax havens such as Delaware more open.

Mr Bell stated that to defeat corruption every nation must sign up – “We need action not fine words,” he said, while later accusing the US Secretary of State of presenting a speech full of platitudes, but little substance.”

How much notice the Americans will take remains to be seen, but it’s about time the outrageous hypocrisy of the their position was challenged publicly.

Mr Bell’s comments will have caused little more than mild embarrassment for the Americans, but at least they have received an airing in many of the world’s most influential newspapers, including the New York Times.

Just how much of the summit’s final 32 point communiqué, full of grand hyperbole and ambitious objectives, ever comes to pass awaits to be seen. A global declaration against corruption needs a coordinated global response. That remains some way off.

The Isle of Man may not be perfect and there is clearly work still to be done, but by its actions the Island has shown itself to be part of the solution, not the problem.

By Chiva Arthurs, Associate Advocate, Gough Law

On 24 March 2016, the Isle of Man Government published a new national strategy which sets out its updated stance on anti-money laundering and countering the financing of terrorism (AML/CFT).

The updated strategy arises out of a national risk assessment completed in respect to the Manx public and private sectors during the course of 2014 and 2015. Such assessments are recommended by the Financial Action Task Force and are intended to inform Governments, policy makers and directly influence the efficient allocation of resources. The 2014/15 assessment identified various goals and actions necessary to increase the effectiveness of the current AML/CFT framework.

Far from sitting on the national risk assessment’s findings and awaiting the publication of the strategy document before taking remedial steps, the Isle of Man has been working hard over the past few years to address the concerns identified in the national risk assessment.

For example, the assessment found that a risk of money laundering and terrorism financing arose from the nature of the non-retail financial business conducted on the Island. Much of this business takes place via intermediaries, and it was deemed that this may assist in obscuring the identity of, and dealings with, the ultimate client. As such, businesses may unwittingly become involved in the money laundering layering process (a process used to disguise proceeds of crime as clean money).

However, perhaps not surprisingly considering the Island’s proactive approach, such concerns have already been addressed to some extent – not least by the introduction of the Designated Businesses (Registration and Oversight) Act in October 2015, which represents a major development in the Island’s AML/CFT framework.  The introduction of the AML/CFT Code 2015 has also assisted the Island’s efforts in creating a solid AML/CFT framework.

The 2014/15 risk assessment also found that domestic authorities could be more effective in following up domestic involvement in international cases.  This includes streamlining the sharing and dissemination of information and intelligence between the Island’s various authorities, but also with international partners such as Egmont and Interpol.  This has led to the launch of the Financial Intelligence Unit, a separate legal entity to the Financial Crime Unit, which will be able to prioritise intelligence gathering.  Consideration has also been given to the creation of an online reporting system for suspicious activity, and it is hoped that this will assist authorities in dealing with reports from local entities in a more coordinated and comprehensive manner which, in turn, may lead to the speedier detection of criminal activity.

On the whole, the national risk assessment concluded that the Isle of Man provides a high level of domestic cooperation, although, as with everything in life, there is always room for improvement. To the Isle of Man’s credit, action points identified within the risk assessment are already being addressed, and there is no doubt the Island’s hard work in this respect will be picked up by MONEYVAL in their forthcoming on site assessment visit to the Isle of Man (due to commence on 25 April 2016).

In light of the scandal which has engulfed Panama as a result of the affairs of prominent law firm Mossack Fonseca, the publication of the national risk assessment and national strategy could not have arrived at a more opportune time for the Isle of Man. From a PR point of view, it is expected that the Island’s commitment in respect of AML/CFT should assist it in distinguishing itself from offshore centres regarded as having dubious track records.

Whilst reputation is not everything, it certainly helps. The Isle of Man’s reputation as a transparent business centre is vital to its continued economic success and the Isle of Man Government has taken the opportunity to reiterate that it will not be used as a refuge for criminals and their activities. In a foreword to the national risk assessment, Chief Minister Alan Bell MHK writes of the Island’s “continuing commitment to uphold the highest international standards in protecting our economy against criminal abuse”.   The Chief Minister has further stressed that:

“As a recognised centre for international business and finance, the Isle of Man is home to many successful companies which have a significant presence around the world.   We are determined to protect the reputation and integrity of our business community by ensuring that the Isle of Man is not a place where criminals can find a welcome.”

The Island’s strong stance on AML/CFT will no doubt assist the global fight against money laundering/terrorism financing and ensure that the Isle of Man remains a trusted and transparent partner on the international stage.