Isle of Man Government Annual Report 2009 on the Government Strategic Plan 2007 - 2011 Government Annual Report 2009
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ISLE OF MAN GOVERNMENT ANNUAL REPORT 2009 ON THE GOVERNMENT STRATEGIC PLAN 2007 - 2011 GOVERNMENT ANNUAL REPORT 2009 CONTENTS: PAGE Foreword by the Chief Minister 3 PART ONE 1.1 Government’s Aims and Objectives 5 1.2 The Economy 7 1.3 Population 11 1.4 Government Services 12 1.5 Personnel 21 PART TWO 2.1 Policy Priorities as set out in Government’s Strategic 24 Plan 2007-2011 2.2 Report on the Achievement of Government’s Aims and Objectives 25 Policy 1: Income, Employment and the Economy 25 Economic Growth and Diversification 25 International Relations 32 Education and Training 36 Employment 39 Transport and Access 41 Policy 2: Government Spending and Revenues 43 Children and Young People 43 Public Services 45 Education and Training 50 Welfare 51 Health and Social Services 52 Housing 53 Asset Management 55 2.4 Policy 3: Legislation and Regulation 57 Governance 60 Local Government 61 2.5 Policy 4: Quality of Life 63 Social Inclusion 63 Identity, Culture and Heritage 67 Energy 69 1 GOVERNMENT ANNUAL REPORT 2009 Climate Change and Sustainability 71 Drugs and Alcohol 75 Population Management 77 Law and Order 78 Responsible Use of Transport 80 The Built Environment 81 Rural and Marine Management 85 PART THREE 3.1 Corporate Key Performance Indicators 88 Annexes 90 Annex 1 Update on Government’s Legislative Programme Annex 2 Isle of Man National Income Figures Annex 3 Isle of Man Government Capital Programme 2009/10 – 2013/14 Annex 4 Isle of Man Government Revenue Estimates 2009/10 Annex 5 Isle of Man Government Personnel Figures 2004 – 2008 Annex 6 Isle of Man Public Service Absences by Department - 1 April 2008 - 31 March 2009 Annex 7 Isle of Man Public Service Pay Scales Annex 8 Commission of Inquiry into the Care of Young People – 2009 Progress Report Annex 9 Report of the Chief Secretary on Cases of Whistleblowing Incidents Against Government Departments, Statutory Boards and Offices for the Year Ending 31 December 2008 Annex 10 Legal Services Commission – Update Report to August 2009 Annex 11 Report of the Chief Secretary on Complaints Made Against Government Departments, Boards and Offices for the Year Ending 31 December 2008 Annex 12 Report of the Chief Secretary on the Code of Practice on Access to Government Information for the Year Ending 31 August 2008 Annex 13 Report of the Chief Secretary on Consultations for the Year Ending 31 March 2009 2 GOVERNMENT ANNUAL REPORT 2009 FOREWORD BY THE CHIEF MINISTER This is the second annual report on the actions being taken to deliver the policy aims set out in the Government Strategic Plan 2007-2011, presented to Tynwald in October 2007. This report shows steady progress across Government in support of the economy, public services, good governance and the quality of life of the Isle of Man. In keeping with the principles of openness and accountability, the report provides important information for the public on various aspects of Government’s activity and organisation. The last 12 months have seen both unprecedented and catastrophic changes in global financial systems, which have focussed international attention on the World’s financial centres, including the Isle of Man. However, the Isle of Man’s proactive stance in terms of co-operation, transparency and high standards of regulation meant that the Isle of Man was able to demonstrate, consistently, that it is in the top tier of countries which meet the international standards. In its review of the Island’s financial regulatory systems, the International Monetary Fund (IMF) Report notes that the coverage provided by the Isle of Man Government, through its Depositors’ Compensation Scheme is ‘unusually extensive for a small, internationally-oriented jurisdiction.’ The report was published on 14 September 2009 and showed that the Island is amongst the top countries in the world in terms of implementing the recommendations of the Financial Action Task Force (FATF) to counter money laundering and terrorist financing. The report says the Island has a general high standard of financial sector regulation and supervision, and a ‘very high standard of compliance’ with the Basel Core Principles for effective banking supervision. Closer to home, Government continues with its efforts to develop and improve services, for the benefit of our community, within the budgets provided and at all times endeavouring to ensure value for money and maximum efficiency I would like to take this opportunity to thank everyone involved in the public service for their commitment to provide good quality services to all our people during the past year, including Members of Tynwald for their continued support and the officers who implement political decisions. I believe that maintaining and developing the Island’s economy in a difficult international environment will be the key challenge ahead if we are to sustain the high standard of living and quality of life for our people. Hon J A Brown MHK, Chief Minister. 3 GOVERNMENT ANNUAL REPORT 2009 ISLE OF MAN GOVERNMENT ANNUAL REPORT 2009 To: The Hon. Noel Q. Cringle, President of Tynwald, and the Honourable Council and Keys in Tynwald assembled. 4 GOVERNMENT ANNUAL REPORT 2009 PART ONE 1.1 GOVERNMENT’S AIMS AND OBJECTIVES STRATEGIC VISION: The Family and the Community The Government Strategic Plan presented to Tynwald in October 2007 states that the overall strategic aim of Government is: “To protect and promote the well-being of the family and provide for the economic and social inclusion of all the Island’s community” Family and the Community The Isle of Man is a unique place in which to live and work. It provides a safe environment for the family and the community to live and for business to prosper and flourish. The Council of Ministers has determined that the overall aim of this Government is to protect and promote the well-being of the family and provide for the economic and social inclusion of all in our community. The Council of Ministers has further determined there are four main strategic themes which all contribute to achieving that overall aim and it is on those four strategic themes that this Government will focus its policy priorities. Those four strategic themes are: Income, the Employment and Employment Policy: To raise the standard of living of all the people of the Island through the ongoing development of a successful economy and the sharing of its benefits with all in our community 5 GOVERNMENT ANNUAL REPORT 2009 Government Spending and Revenues Policy: To raise revenues and allocate resources for the provision of services in a way that: • meets the needs of the community • ensures that people are healthy and secure • assists those most in need • distributes the benefits of economic growth Legislation and Regulation Policy: To introduce and enforce legislation and regulations which provide for the protection, safety and personal development of the individual whilst minimising the burden of compliance to employers and the community at large Quality of Life Policy: To continue to give people the freedom and opportunity to live and prosper in a safe and caring community, whilst protecting the Island’s unique natural and cultural heritage and way of life This Annual Report highlights Government’s achievements and progress to date with regard to these four main policies. 6 GOVERNMENT ANNUAL REPORT 2009 1.2 THE ECONOMY Overview 1.2.1 The last two years has seen dramatic deterioration in the global economic environment, with the financial losses which originated in the subprime mortgage lending market in the USA, having subsequently impacted on the real economy through restricted credit availability. 1.2.2 The global outlook remains uncertain on a number of fronts, not least in respect of credit conditions and commodity prices (including oil), although the consensus is for slow recovery from 2010. In its latest report the IMF has forecasted the global economy to contract by 1.4 % in 2009 and to expand by 2½% in 2010 (about ½ percentage point higher than the forecast made in April). The IMF is projecting that GDP in the advanced economies will decline by 3.8% in 2009 before growing by 0.6 percent in 2010, with total global output back on the increase, by 2.5%. Key to these projections turning out accurate will be the recovery of the US economy, where stock markets, home sales and consumer confidence are all showing signs of improvements. 1.2.3 The UK economy is carrying the burden in the immediate term of economic slowdown but also into the longer term of colossal government debt, a consequence of efforts to stabilise the financial system and to shore up investment and household spending. UK GDP has fallen by almost 5% over the last year, the largest fall on record. Some 680,000 jobs have been lost in the private sector over the same period. The UK claimant count of unemployment (the measure closest to our own) is at 4.8%, its highest rate for 12 years. 1.2.4 To date the Isle of Man has not suffered the same degree of impact as felt by neighbouring countries and the economy continues to grow. The Isle of Man has now enjoyed over a quarter of a century of unbroken economic growth and the latest set of national income accounts confirm the fulfillment of the Key Performance Indicators relating to gross domestic product (GDP). Before the global financial crisis began to impact, the Isle of Man economy had been growing at around 7% pa, the average for the period 1997-2007. Indeed for most of 2008 there was little sign of deterioration in the Island’s economic performance. In common with economies worldwide, the picture changed noticeably from the autumn onward, resulting in Treasury downgrading growth expectations for the year 2008/09 from 6% to 4½% and for the current fiscal year from 6% to 2½%.