ISLE OF MAN GOVERNMENT

ANNUAL REPORT 2005

Laid before Tynwald on 18th October 2005

by

Hon D J Gelling MLC Chief Minister

October 2005 Price: £5.00

ISLE OF MAN GOVERNMENT

ANNUAL REPORT 2005

To: The Hon. Noel Q. Cringle, President of Tynwald, and the Honourable Council and Keys in Tynwald assembled.

Recommendation

That the progress of Government in achieving its aims and objectives as explained in this report be noted, and that the items identified in Part III be endorsed as the Council of Ministers future priorities for the development of services.

CONTENTS

Foreword by Chief Minister 1

PART I: GENERAL OVERVIEW 2

Part I: 1.1 The Economy 2 1.2 Population 4 1.3 Government Services: 5 1.3.1 Capital Spending 5 1.3.2 Revenue Spending 8 1.3.3 Personnel 12

Part II: The Isle of Man Government Plan 2004/07

Introduction 14 2.1 Economic Progress 14 2.2 Social Well Being 18 2.3 Quality Environment 24 2.4 Sound Infrastructure 26 2.5 Good Government 28 2.6 Positive National Identity 30

Part III: Future Priorities

Introduction 32 3.1 Economic Progress 32 3.2 Social Well-being 34 3.3 Quality Environment 36 3.4 Sound Infrastructure 37 3.5 Good Government 38 3.6 Positive National Identity 39

Part IV: Departmental Progress Reports

4.1 Agriculture, Fisheries & Forestry 40 4.2 Education 43 4.3 Health & Social Security 46 4.4 Home Affairs 49 4.5 Local Government & the Environment 52 4.6 Tourism & Leisure 57 4.7 Trade & Industry 60 4.8 Transport 62 4.9 Treasury 68 4.10 Chief Secretary’s Office 73 4.11 Drug & Alcohol Strategy 76 4.12 Communications Commission 80 4.13 Financial Supervision Commission 82 4.14 General Registry 84 4.15 Insurance & Pensions Authority 87 4.16 IOM Post Office 88 4.17 IOM Water Authority 90 4.18 Manx Electricity Authority 93 4.19 Manx National Heritage 95 4.20 Office of Fair Trading 97 4.21 Personnel Office 100

APPENDICES

1. National Income 2. National Income Compared to the UK 3. Income Generated in Basic Sectors 4. Isle of Man Government Plan 2004 103 Actions Report 5. Tynwald Policy Decisions Report 135 6. Legislation Enacted 172

FOREWORD BY CHIEF MINISTER

During the year 2004/2005 Government has continued to make real progress on issues of importance to the community, notwithstanding the political challenges which have also been a feature of the year. The purpose of this publication is to report back to Tynwald and the public, on what Government has been doing, highlighting what it has achieved and where it could improve performance.

This Annual Report sets out the work being progressed and undertaken by various arms of Government to make a difference in such areas as crime reduction, hospital waiting times, road safety, examination results, air and water quality, and accessibility to public transport for the less agile.

As ever, there is no cause for complacency. There is clear room for improvement, for example, in the delivery of our capital and legislative programmes.

In the field of governance, the financial position at the MEA was a salutary reminder that no country or organisation is immune from unexpected difficulties. The test of maturity lies in how such problems are addressed, and I am pleased that Government and Tynwald have responded to the particular challenges of the period with openness and a strong sense of public responsibility.

There is also a willingness to learn the lessons of experience, and a renewed emphasis on the principles of good corporate governance.

Government’s priorities will continue to centre on diversified growth of the economy, which is absolutely vital for the future employment opportunities and living standards of the people of the Island. This means a focus on such areas as education, training, marketing and branding.

Other priorities indicated in this report include the maintenance of primary care health services, support for low income groups, health promotion and community safety.

The Island has a strong platform for further progress. Our economy and public finances remain sound, as indicated by the national income figures and by the renewal of our ‘triple A’ international credit rating. Our taxation and economic strategies provide a clear way forward, and the Isle of Man is gaining increasing recognition as a small country that is both enterprising and internationally responsible.

Our Island community can look forward to the future with confidence.

Hon D J Gelling MLC Chief Minister

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PART I: GENERAL OVERVIEW

1.1 THE ECONOMY

Overview

Despite ongoing challenges, increasing competition and only sluggish global growth, the Isle of Man economy continues to develop, expand and diversify.

National income accounts for 2003/04 revealed real growth that year of 6.3%, a figure which was three times the EU average. Since then there has been further growth evidenced in all the key indicators, including those relating to employment (numbers in employment have increased by around 600 in the year to June) and job vacancies (notifications to the Job Centre are running at a four year high). The unemployment rate has moved above that of the previous five years but nevertheless still stands at only 1.3%.

Per capita GDP on the Island rose by 6% in real terms. Comparisons put IOM per capita GDP at 106% of that in the UK. In reality the IOM relative position improved by almost 4% but the improvement was masked by revisions by the UK to their official GDP calculations. The Island’s per capita GDP is now some 15% higher than the EU15 average.

Domestic price inflation in 2004/05 has been significantly impacted upon by rising world energy prices. Annual inflation, as measured by the retail price index, hit a peak of 6.4% in December 2004, but has now subsided, to stand at 4% in June. Far and away the main element of the increase in the cost of living has been the category of Fuel and Light, in which average prices rose by 24% in the year to June. Whilst the trend is downwards, the volatility of fuel prices will likely see the inflation rate jump around the trend from month to month.

House prices continue to move upwards but at their slowest rate for almost a decade. In June the average price of a house sold on the Island was £223,511, compared to £211,733 in June 2004, an increase of just 5.6% compared to 13% over the previous year. Despite renewed inward migration since 2003 and the downward pressure on interest rates, the housing market is likely to remain relatively subdued in the year ahead.

The United Kingdom economy is now firmly on a downward path, with growth expectations for the year now only around 1½%-2%, compared to the Chancellor’s own forecast of between 3% and 3½%. The UK economy has for a long time now been driven by debt financed consumer spending. Rising job uncertainty and stalled house prices are serving to curtail borrowing and spending, with implications for future growth.

Both the IMF and the OECD have revised their forecasts of global growth downwards in recent months. Whilst growth has been stagnant in the EU, continued expansion of the US economy is helping to sustain global growth. But it is India and China whose growth rates are powering ahead. In so doing, increased demand pressures are being put on commodities prices, including oil. But at the same time their development will serve to perpetuate the expansion of world trade and investment, to the ultimate benefit of all competitive trading nations.

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Income from Employment

In June 2004 the average gross earnings of full-time employees was £485 per week (up 2.4% over the year) with the middle 50% falling in the band £324 to £577 per week. Full- time employees worked an average of 38.7 hours per week, including 1.6 hours of overtime. Average earnings in the Isle of Man were 96% of those in Great Britain.

The comparatively slow rate of increase in earnings reflects the low rate of inflation being experienced at the time when many wage negotiations would have been concluded in 2003. Around that time annual inflation was typically around 3%. The gradual increase in inflation since then is likely to have fed through into wage settlements in 2004/05 such that average earnings are probably now also rising faster.

Isle of Man National Income

The national income accounts provide a measure of overall growth and development of the Manx economy and indicate the changing importance of its component sectors. The main national accounting measures, Gross Domestic Product (GDP) and Gross National Product (GNP), provide a monetary valuation of the Manx economy as a whole. GDP represents the monetary value of all goods and services produced within the Island’s economy over a one year period, and provides a measure of both personal and corporate income derived from economic activity on the Island. GNP also takes account of net income received from abroad in the form of interest, rents, profits and dividends.

The latest national income accounts relate to the fiscal year 2003/04 and reveal that in that year the economy, as measured by GDP, expanded by 9.1% in cash terms, 6.3% in real terms (when the effects of rising prices are stripped out). This rate of growth was an improvement on the 5.9% in 2002/03 and shows that, though some way off its peak recorded in the late 1990’s, the economy continues to perform creditably.

Whilst the financial services industry contribution to national income in 2003/04 was virtually unchanged at around the £0.55 billion mark, other primary sectors turned in strong performances, particularly in general manufacturing and in e-business (both experiencing double-digit growth) whilst the tourism industry continued its rebound from the foot and mouth epidemic affected year of 2001, posting growth of almost 10%. The overall outcome of the differential rates of growth in the various sectors of the economy was a decline in the share of GDP contributed by the finance industry. Banking’s share was down from 20.6% to 19.7% and the rest of the finance industry from 17.2% to 15.9%.

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1.2 POPULATION

The Census of April 2001 enumerated the Island’s resident population at 76,315. This represents an increase of 4,601 (or 6.4%) since 1996.

The population inflow that helped sustain the Island’s economic performance also further improved the population age balance such that the Dependency Ratio (broadly the ratio of school and pre-school children and the retired to the population of working age) fell from 65.8% in 1996 to 62.1%. The table below shows the age distribution of the population compared to 1996:

1996 2001

Age group Number Percentage Number Percentage of Total of Total

0-15 years 13,483 18.8 14,509 19.0

16-59 years (women) 16-64 years (men) 43,278 60.3 47,081 61.7

Over 59 years (women) Over 64 years (men) 14,953 20.9 14,725 19.3

Total 71,714 100.0 76,315 100.0

The current best estimate is of a resident population of around 78,000, boosted over the last 18 months by a net population inflow of around 500.

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1.3 GOVERNMENT SERVICES

1.3.1 CAPITAL SPENDING

General Policy

The general policy has remained consistent with previous years, namely that in framing the Capital Programme, the Council of Ministers will:- a) Fundamentally and continually assess the need, priorities, scale and required standards of all capital projects and determine an upper limit of capital spending; b) Examine the scheduling of the commencement and progression of the major schemes with a view to avoiding “humps” in the capital programme; and c) Investigate and develop the means of achieving alternative methods of funding of the major schemes in order to reduce the burden on tax revenue, such investigations to be initiated by the Departments involved, with advice and guidance from the Treasury as appropriate.

The upper spending limit quoted in (a) refers to actual spending, excluding Statutory Boards and Local Authority Sewerage and Housing Programmes.

The policy would suggest an upper spending limit of £60m at June 2004 prices for 2005/6.

In implementing its policy the Council of Ministers pays regard to the level of work available to the construction industry and acknowledges that Government’s capital programme can be used to some extent as a means of adjusting the flow of work into that industry.

The policy remains to fund the capital programme for Government Departments without external borrowing, either from the commercial markets or from the public. The policy allows external borrowing to be undertaken in the name of the Treasury for onward lending to Statutory Boards. The rationale for this policy is that the cost of financing such borrowing is met by users of the services provided by those Statutory Boards, not out of taxation, although as a result of the additional recent borrowing by the Manx Electricity Authority taxpayers funding may now be required to service MEA borrowing costs for a number of years.

2004-05 Capital Spending

The original estimate for capital spending for Government Departments and Other Bodies for 2004-5, set out in the Budget approved by Tynwald at its February 2004 sitting was £97,756,700. This included an estimated borrowing by Local Authorities of £2,000,000.

During the year supplementary capital votes of £6,740,000 were approved by Tynwald, which included £5,500,000 in relation to the acquisition of the Nunnery Estate.

Actual Spending by Government Departments (including borrowing from Government by Local Authorities) totalled £43,023,383.

This was 41% of the original estimate and 41% of the revised estimate including supplementary votes. This performance was a significant failure following last year’s performance and the record level of spending in 2002/3, and reflected delays in bringing forward several large new schemes.

5 The historical performance comparing actual spending within the capital programme to estimated spending including supplementary votes is demonstrated in the following table:-

Year Actual Estimated Actual as a Spending £ spending including percentage of supplementary estimated votes £ spending 1992-93 26,173,752 55,083,760 48% 1993-94 30,447,636 49,417,020 62% 1994-95 25,387,185 45,886,410 55% 1995-96 31,595,470 48,449,505 65% 1996-97 32,112,880 57,439,430 56% 1997-98 35,955,757 61,361,800 59% 1998-99 40,889,100 62,543,760 65% 1999-00 48,565,211 76,247,153 64% 2000-01 51,339,993 81,925,300 63% 2001-02 74,816,054 113,974,763 66% 2002-03 97,569,180 161,338,386 60% 2003-04 91,138,420 115,931,933 79% 2004-05 43,023,383 104,496,700 41%

The breakdown by Department comparing actual spending within the capital programme to estimated spending including supplementary votes for 2004-5 is demonstrated in the following table:-

Department Actual Spending 2004-05 Estimated Actual as a £ spending percentage of including estimated supplementary spending votes £ DAFF 109,200 692,000 16% Education 10,773,777 23,433,800 46% DHSS 3,475,710 5,462,800 64% Home Affairs 2,802,191 13,626,300 21% DLGE 10,910,181 29,713,600 37% Tourism & Leisure 1,917,590 4,536,600 42% Trade & Industry 306,486 3,058,500 10% Transport 8,829,917 15,504,600 57% Executive Government 0 100,000 0% Manx National Heritage 1,259,755 2,011,400 63% Expenses of the 2,575,321 4,357,100 59% Legislature sub-total 42,960,128 102,496,700 42% Borrowing Authorities 63,265 2,000,000 3% Grand Total 43,023,393 104,496,700 41%

With actual expenditure in the capital programme for 2004-5 being 41% of that planned, approximately £60m has to be carried forward into 2005-6 and will have the first call on future spending. There remain areas of over optimistic planning in the delivery of the capital programme.

During the year to the 31st March 2005 and as part of the 2005-6 Budget Process, schemes within the programme were re-profiled in an attempt to make the phasing of the capital programme more realistic.

6 Part of the difficulty in delivering the whole of the annual estimate in accordance with the programme is the unforeseen difficulties that can arise in relation to particular schemes. These difficulties can arise from planning or there can be legal or contractual problems and there will always be uncertainties and unforeseen events that deflect the most carefully prepared plans.

The financial year ended 31st March 2005 saw spending fall by £54m below the record set in 2002-3, however the Isle of Man Government continues to invest in the Island’s infrastructure, putting in place the key assets that will allow the Island to be well prepared for the future.

Within the year 2004-5 there was substantial expenditure on:

Nunnery Estate £5,500,000 Red Gap / School Hill Housing £2,179,296 New Hospital £2,143,876 Meary Veg Sewage Treatment Plant (inc Access Rd) £2,046,169 House Purchase Assistance Scheme £2,012,324 Auldyn School Extension £1,811,246 Land Acquisition £1,693,000 Integrated Energy from Waste Incinerator £1,591,911 Iris - Transmission Main (Castletown to Santon) £1,447,885 Multi Site Classroom Extensions £1,425,413 Planned Maintenance £1,030,052

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1.3.2 REVENUE SPENDING

The Taxation Strategy approved by Tynwald in October 2000 as modified in October 2002 and October 2003 continues to be implemented. In the Budget of 2005 six further sectors were included in the zero rate of standard corporate tax, and work progressed on associated legislation including deemed distribution to Manx residents. The intention is that by 2006 the rate will be reduced to zero for all other companies. The Taxation strategy remains an integral part of the Island’s wider economic strategy which has resulted in continued AAA ratings from external ratings agencies, and positive feedback from the IMF in respect of regulation.

Personal taxation rates have not been affected by the introduction of lower rates for corporate entities. A further increase to the Personal Allowance Credit was made in 2005 directly benefiting those who do not fully utilise their Personal Allowances.

As the following chart shows, the growth in Government spending closely follows changes in Government income. In periods of slow growth, taxation and other income is used predominately to maintain services, rather than to reduce taxation or increase reserves. Only in times of buoyant income does the opportunity exist to consider taxation reductions or increases to reserves.

Government Net Revenue At Constant Prices (September 2004 as Price Base) 550 500 Receipts Net Expenditure 450 s

n 400 o

i 350 l l i 300 Note: 250 £ m 2005-06 Estimate 200 150 100 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 0/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 1/ 2/ 3/ 4/ 05- 199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 20 Year

General Revenue Account – Year ended 31st March 2005

In financial terms 2004/5 was a good one with a surplus before transfer to reserves of £14.6m (£37.5m in 2003/4) being generated. This was £4.1m more than the original estimate for the year. Income was above estimate by £21.3m, primarily as a result of improved Customs and Excise receipts.

8 Overall expenditure exceeded estimate by £2.2m. Total Expenditure was £40.5m or 9.5% greater than 2003/4. The general buoyancy of revenues has enabled Government to increase spending on services and provide substantial improvements, for example the first full year of the new Noble’s Hospital and the commissioning of the Integrated Incinerator Facility. Increased spending above the previous year included:-

Agriculture, Fisheries & Forestry £ 3m Health and Social Security £18m Education £ 5m Home Affairs £ 2m Local Government & Environment £ 2m Transport £ 2m

The services making the biggest call on General revenue remain Health and Social Security (£186m) and Education (£85m). Between them these Departments account for 58% of Governments revenue spending.

The following is a summary of the General Revenue Account for the year ended 31st March 2005. This information was originally published in the Isle of Man Government Accounts for the year to 31st March 2005, laid before Tynwald in July 2005.

9 GENERAL REVENUE ACCOUNT - SUMMARY

Year ended 31st March 2005 Actual Note Actual Estimate 2003-04 2004-05 2004-05 £000 £000 £000 Income 2 306,230 Customs and Excise 325,786 304,820 153,052 Income Tax 150,691 150,500 3,333 Other Treasury Income 3,683 3,500 462,615 Total Voted Income 480,160 458,820

Expenditure - Voted Services 3 Government Departments 12,106 Agriculture, Fisheries and Forestry 14,840 14,862 79,949 Education 85,391 85,426 168,444 Health and Social Security 186,593 181,802 27,063 Home Affairs 29,362 29,369 19,979 Local Government and the Environment 22,226 22,923 23,697 Tourism and Leisure 24,275 24,434 14,710 Trade and Industry 15,017 15,082 32,330 Transport 34,476 34,043 24,519 Treasury (Gross Expenditure) 26,254 26,254

Other Bodies 18,319 Executive Government 21,406 22,458 4,624 Manx National Heritage 4,635 4,731 180 Road Transport Licensing Committee 168 217 (4,097) Statutory Boards (Revenue Funded) (2,808) (1,884)

3,260 Expenses of the Legislature 3,707 3,620 425,083 Total Voted Expenditure 465,542 463,337

37,532 Surplus for the year 14,618 (4,517) 18,870 Balance Brought Forward 1 32,402 22,571 (24,000) Transfer to Reserves (19,000) (8,000)

32,402 Balance Carried Forward 4 28,020 10,054

Notes

1. Balance Brought Forward. The actual balance brought forward at the 1st April 2004 of £32.4 million was £9.8 million more than the "Probable" shown at the Budget in February 2004, with income £8.7 million up and expenditure £1.1 million down. The out-turn for 2003-04 was shown in the audited Government Accounts which were laid before the July 2004 sitting of Tynwald. 2. Income. Gross income from all sources at £709.5 million was mostly in line with the various estimates and in aggregate exceeded them by £23.1 million. Within that, Treasury income at £480.2 million exceeded the estimate by £21.3 million. This is almost entirely due to the Customs receipts, which were £21.0 million more than the Estimate. This was mainly due to the finalisation of negotiations and receipt of arrears accumulated in respect of the Decennial test and to additional receipts identified by the Tax Gap and Intelligence Team formed last year. For the fourth year running the total amount of Income Tax collected was actually less than the previous year, in line with the planned tax strategy.

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3. Expenditure. Net expenditure at £465.5 million was £2.2 million more than the revised estimate (the original estimate of £448.2 million plus the Supplementary Revenue Votes of £15.1 million). £10.7 million of those Revenue Supplementary Votes were for pay awards and the next largest single vote was £1.0 million for Waiting List Initiatives. Expenditure under most heads was close to or within the approved Votes, although the Department of Health and Social Security, the Department of Transport and Expenses of the Legislature require Tynwald approval to a Supplementary Vote. Two other Departments (Industry and Tourism and Leisure) are not overspent, but do require authority to apply excess receipts against excess expenditure. 4. Balance Carried Forward. In the 2004-05 Budget it was originally envisaged that the General Revenue Account would produce a surplus for the year before appropriation to reserves of £10.6 million. This estimated surplus was reduced to a deficit of £4.5 million after allowing for the Supplementary Votes approved during the year. However the actual gross income of £709.5 million and the actual gross expenditure of £694.9 million resulted in a surplus for the year before appropriations of £14.6 million. From that surplus, £19.0 million was transferred to reserves, leaving a net deficit on the year of £4.4 million. The transfer to reserves comprised the Government Marketing Initiatives Fund (£2.0 million), the Legal Costs Reserve (£3.0 million), the Land and Property Acquisition Reserve (£5.0 million), the Housing Reserve Fund (£3.0 million), the E-Commerce ICT Fund (£4.0 million), the General Development Reserve (£1.0 million) and the Public Service Employees Pension Reserve (£1.0 million). The net deficit of £4.4 million, added to the balance brought forward of £32.4 million, resulted in a carried forward balance on General Revenue Account at the 31st March 2005 of £28.0 million. 5. Other Balances. The value of internal investments rose by £4.8 million, as a result of the contributions, rolled up investment and other income exceeding the expenditure of the funds on items such as the E-Commerce Fund (£8.3 million), the Housing Reserve Fund (£5.5 million), the Land and Property Acquisition Reserve (£1.6 million), the Capital Equipment and Accommodation Fund (£4.6 million) and the Media Development Fund costs (£14.6 million). Treasury's investment strategies for the larger funds which are externally invested include exposure to equities and although their market values can and have fluctuated downwards from time to time, the broad and long term trend has been upwards. Most world equity markets peaked in around December 1999 and have been trading at lower levels ever since then. Notwithstanding that, 2004-05 was a better year for equity values and although the stated market value of the investments rose by £173.5 million, allowing for the Funds’ transactions the underlying securities rose in value by £135.7 million.

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1.3.3 PERSONNEL

General Personnel Policies

The Council of Ministers recognises the high importance of staff in the Public Service and the valuable contribution they make in delivering Government’s aims, objectives and programmes of work. Such is the importance of staff that the Council has overall responsibility for employment policy and frameworks of best practice while the Personnel Office acts on behalf of Council in coordinating policy developments and monitoring effectiveness across Government.

Recruitment activity remains buoyant and overall there are no major concerns about recruitment and retention. However, where there is a known shortage of certain specialists, pro-active consideration is being given to how these might be overcome, for example, through trainee positions, more rigorous and selective advertisement or contracting for services on an interim basis. In 2004/05, 409 Civil Service vacancies were filled compared to 369 in 2003/04. Those vacancies include new and replacement posts. Resignations for varied personal reasons from the Civil Service during the same period total 90 for 2004/05. This represents a reduction from 2003/04 when the total was 105.

The Civil Service Commission has continued to progress its aims for modernisation of the Civil Service. Proposals are now developed to support a restructuring through an evolutionary process of change and holistic approach to the management of people. More focused performance appraisal arrangements linking to Government’s plans, and programmes of work continue to be refined with staff participation. However, this process needs to be given greater priority as the importance of performance management to demonstrating corporate governance is not always appreciated.

Through the senior leadership within Government and, in particular, the Chief Officer Group there has been further improvement in the corporate working of staff. Programmes of work have been identified during the business planning process and are being progressed through inter-departmental working. Work to introduce and refine performance measurement and management processes demonstrating success in delivering the Government plan continues.

Learning and development remains a priority to assure staff are appropriately skilled and competent to meet the challenges of the future. A range of development opportunities are encouraged including secondments within Government to broaden and deepen experience or to further enhance skills. Management development and skill enhancement remains a priority for the support provided centrally.

Central course provision can be summarised as:

2004/05 2003/04

Training days provided 2,231 1,888 Training places provided 1,565 1,244

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The investment in course provision as a percentage of the central budget amounted to:

2004/05 2003/04 % %

Communication & Interpersonal 8 8 Personal Effectiveness 2 3 Management Skills 19 22 Management Development 58 49 Corporate/Organisational 3 8 Practice & Procedures Health & Safety 10 10

With the introduction of new health and safety regulations in October 2004 and the increased focus on performance management there has been an increased awareness of the need for health and safety advice. Terms of reference for a Government-wide review of those needs have been agreed and the outcomes of that review will be considered in the forthcoming year. A modular programme of training courses designed to provide participants with practical skills which enable them to carry out key health and safety tasks in the workplace has been introduced.

Demand for the Welfare Service continues to grow and remains valued by staff and management. The monthly average caseload for 2004/05 was 119, an increase of 35 when compared to the average caseload in 2003/04. Of significance in 2004/05 was an increase in the number of referrals from the Public Service as opposed to the Civil Service. In previous years this has tended to be a 50:50 split but that ratio is now broadly 60:40. This may be an indication that there is now greater awareness across Government of what services are available to all public servants.

Personnel Control Mechanism

The Personnel Control Mechanism, established in 1991, was conceived to ensure that Government’s workforce did not increase disproportionately in comparison to growth in employment in the private sector and increases in real terms in Government income. The stated aims of the mechanism were to provide an the incentive for Government to maximise the use of labour, lead to a scrutiny of labour intensive marginal activities to release workers for new areas, ensure the personnel implications of capital developments were properly considered and to cause Government to examine whether it would be more efficient and cost effective to buy in services from the private sector.

A review of the mechanism was conducted in 2004, which found that the stated aims are as relevant now as they were in 1991. However, it has been recognised that the mechanism employed to achieve those aims is not ideal. The Council of Ministers is therefore continuing it’s work to devise an improved mechanism for implementation in future.

13 PART II: ISLE OF MAN GOVERNMENT PLAN 2004-2007

INTRODUCTION

The 2004 Isle of Man Government Plan contained over 200 Actions under the six Government Aims of: Economic Progress, Social Well-Being, Quality Environment, Sound Infrastructure, Good Government and Positive National Identity. For ease of reference a progress report on those actions is contained at Appendix 4 to this report and each action is annotated by a status symbol as to whether or not those actions have been achieved, are on-going or have not been achieved, with a short commentary explaining the background to the status as required.

The following pages summarise the Government’s main achievements in the year to 31st March 2005 in respect of those actions, constructed on the basis of the six main Government Aims. However, in recognition of this report being published in September 2005, where there have been important developments on certain issues since 1 April 2005, reference is made to these developments within the commentary.

In addition, the 2004 Government Plan identified a number of Key Performance Indicators for each of the six Government Aims, which were designed to measure how successful Government was being in achieving its aims and objectives. The progress of Government against those targets is also identified in this section.

2.1 ECONOMIC PROGRESS

Diversification

The Government’s Economic Strategy was approved by Tynwald in October 2004 and since that date work programmes have been established to implement its proposals and bring forward the initiative.

One of the key elements of the Government’s approach to economic development concerns the encouragement of a diversified economy to provide manageable and sustainable growth.

The Isle of Man film industry continues to go from strength to strength. Twelve projects were successfully completed during the year, generating a spend in the local economy of £11.4m and total bed nights of 18,051. The 12 projects consisted of eight feature films, three television dramas and one animation project thus reflecting the increasing diversity of production in the Isle of Man.

The encouraging performance of core manufacturing and technical businesses in the Island is reflected in the level of investment and number of offers made under the DTI’s Industrial Financial Assistance Scheme (IFAS). In the financial year to 31st March 2005, the levels of grant assistance paid to businesses has increased significantly by £1.4m to £4.2m, stimulating over £10m of private investment on the Island. This, coupled with some strong financial performances by key businesses, indicate that manufacturing overall is experiencing real growth and is well-positioned for further future growth.

In addition to its existing and on going expertise in the manufacture of specialised high tech materials and components for space craft, the Isle of Man is fast becoming recognised as a centre of excellence for the provision of specialised financial and regulatory services to the global space and satellite industry. This is very much in line with the Island's proposed branding and strategic objective to diversify its economy. Coupled with the Island's existing financial and regulatory expertise, the development of Manx Geostationary orbital filings provides the cornerstone of this developing industry. The Island is now home to active

14 subsidiaries of four of the world's largest space and satellite companies and Manx made CVD Diamond and optics are today used in NASA space craft and satellites.

The international reputation of the Isle of Man as a centre of excellence for Marine Administration continues to grow. The Island is now ranked second in the world on the Paris MOU “White List”, the quality standard for international shipping registers. Over 400 merchant vessels and 22 super-yachts are now registered in the Island, with many more expressions of interest from international businesses having been received.

The introduction of an Isle of Man Aircraft Register is imminent. The process leading to the recruitment of suitably qualified Director is underway.

Tourism generated £112.7m spend for the local economy in 2004 (including travel to and from the Island) compared with £102.5m in the previous year reflecting an increase in real terms of 4.9% and exceeding the target set. Leisure visitor bed nights for 2004 were over 633,000 compared with the 2003 figure of approximately 566,000 (i.e. an increase of 11.8%). 340,902 non-residents visited the Isle of Man during 2004 compared with 337,417 in 2003. The continued diversification in the farming community to provide tourist accommodation is having continued success.

A new five year strategy for Tourism ‘Fit for the Future’ received Tynwald approval in April 2004 following on from Industry consultation and support. To facilitate delivery of the strategy the Tourism Division has been restructured to concentrate on – product development, communication (business and partners), quality and service and events. The Department introduced key elements of the strategy during the year including a review of the Tourism Act and a structured training programme operated in conjunction with the Department of Trade and Industry and the Isle of Man College.

Agriculture

In farming the Department of Agriculture Fisheries & Forestry has put a great deal of effort into pursuing the granting of a milk and cream derogations and renewal of the existing meat derogation. This has involved the establishment of better working relations with the UK authorities, meetings with EU Commission officials and collaborative working with White & Case (the Brussels based legal firm retained by Government). A Commission official visited the Island in April 2005 and met with Members and officers of the Department and various stakeholder groups.

Modernisation

A further element of Government’s approach to continued economic growth concerns the modernisation of all parts of the economy. Government’s e-business strategy is progressing well in the attraction of new businesses. The DTI has seen an increase in the number of new approaches from off-Island e-businesses. Successful contact has been made with the main influencers of the PC game developers in Europe and Government is scaling up its efforts to build on growing awareness of the Island’s strengths in this sector.

Training & Employment

The training of the Island’s workforce to meet the needs of business continues to be a priority and is integral to Government’s Economic Strategy. The ongoing target of an annual increase of 5% per annum in the number of apprentices and technicians under formal training agreements reached 4.3% in 2004/5. Despite a downturn in training opportunities in the construction sector, the overall figure of trainees under agreements remains stable. There has been increased interest in formal training opportunities in the retail and hospitality sectors, and engineering manufacturing has recruited strongly this year.

15

ECONOMIC PROGRESS KEY PERFORMANCE INDICATORS

Key Performance Current Target Status Indicator performance

Unemployment as a Less than 1.5% Maintain at 2% or Achieved percentage of the less economically active population

Comment: Unemployment during the fourth quarter of 2004 averaged 1.4% of the economically active population and stood at 542 people at the end of March 2005. Over the same period Jobcentre vacancies averaged 417 with an end of March figure of 495. Key Performance Current Target Status Indicator performance

GDP per head of the 2001/02 99% (of UK Maintain GDP per Achieved population GDP per capita) capita at greater 2003/04 102% than the UK level 2003/04 106%

Comment: National Income accounts for 2003/4 show IOM/UK per capita GDP ratio to have gone up by almost 4 percentage points. The Isle of Man is currently at 106% of the United Kingdom GDP per capita

% of working 2002 11.9% Annual increase of at Not Achieved population in 2003 13.9% least 5% on the organisations with 2004 12% previous year Investors in People (IIP) accreditation

Comment: There are 36 organisations currently working under the Standard with 14 organisations working towards accreditation. 4214 people (12% of economically active population) are currently working under the standard. This figure has reduced recently due to the down-sizing of a number of organisations.

Increase the number 2002 453 Annual increase of at Achieved of apprentices and 2003 476 least 5% of previous technicians under 2004 497 year formal training agreements

Comment: The engineering manufacturing sector, in response to a shortage of engineers, requested DTI Training Services develop a four week induction course as an introduction to engineering for new recruits. The course was developed in consultation with the IOM Chamber of Commerce Manufacturing and Technical Industries Committee, to prepare recruits for immediate shop-floor activity. Three courses have been run and a total of 14 new recruits now placed within local engineering manufacturers. The second phase of the recruits ongoing training is a formal training agreement and NVQ competency assessment in the workplace by the IOM College. There are now 497 apprentices and technicians under formal training agreements.

Internet Broadband 2003 87% To ensure Isle of Achieved availability to homes 2004 98% Man level remains and businesses ahead of the UK

16 Comment: Manx Telecom has invested in the infrastructure to enable all exchanges to deliver broadband technology. 98% of households on the IOM now have access to Broadband. In terms of Broadband take up on the IOM relative to other jurisdictions this can be measured by the number of broadband lines used as a proportion of the population (in this instance per 100 using the league table compiled by broadband specialists Point Topic Ltd). The IOM is currently 14th out of 72 countries in this league with 7.72 lines per 100 head of population. This compares well with the UK at 22nd with 4.61 and Singapore at 17th with 6.44.

The E-business Division of the Treasury continues to work with the Departments of Education and Trade and Industry with a view to addressing operational issues arising from implementing the digital divide report. A full programme of recommendations is now being implemented and a performance review was undertaken in April 2005.

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2.2 SOCIAL WELL BEING

Health & Social Care

The theme of the developments in the past year has been a drive to increase access to those services provided and to improve further the quality of these services.

The introduction of a new general medical services contract in Primary Care has introduced payments to contractors based on the quality of the service provided and the ability of patients to access this service. The Department has also expanded the provision of community based dental services to ensure that where independent dentists are unable to provide services, these have been provided directly. This ensures that all residents have access to community dental services provided by the Department.

In Noble’s Hospital the levels of clinical activity have further increased with the appointment of additional consultants in Orthopaedic Surgery, Respiratory Medicine, Anaesthetics and Ear, Nose and Throat Surgery. Services have also been expanded in Orthodontics, Dermatology and Ophthalmology allowing greater numbers of patients to be treated.

The Health and Social Services Divisions are continuing with the joint development of the Southern Community facility at Old Southlands, Rushen and enhanced health and social services will be provided from this facility in early 2006.

The Public Health Directorate has published the Tobacco Strategy and public consultation has taken place with the aim of introducing legislation regulating the advertising, promotion of tobacco products and a prohibition on smoking in workplaces and public spaces early in the 2005/6 legislative session. The Directorate has also led the improved co-ordination of Cancer Services along with the Cancer Users Forum representing clinicians and patient’s views on the provision of services.

The Department has established a unified Registration and Inspection Team that works across Health and Social Care, ensuring quality and compliance with standards for Nursing and Residential Care Homes and establishments for Children and Young People. Provision has been made to expand this service to the Department’s own residential provision for Older People and Adults with a Learning Disability which will be inspected to the same standards that are currently applied to the private sector.

Education

The overall attainment of pupils at the end of Key Stages 1 and 2 for the academic year 2003/04 continued the improvements on previous figures, particularly at higher levels. In reading and mathematics, 1 in 3 children again performed above the level expected for Key Stage 1 (7 year olds). However, attainment across the Island’s primary schools shows a more varied picture at Key Stage 2 (11 year olds) with improvement in English, a similar result to last year for maths and a reduction in science. Generally girls continued to out perform boys particularly at the higher levels, with the exception of mathematics at Key Stage 2. Performance against the Key Performance Indicator for the end of Key Stage 2 Assessments are currently in the range for English and Science whilst for Mathematics the performance of 72.6% is just below the target range of 74% to 80%. Overall, the five year trend line to 2004 is upwards in all subjects.

At GCSE (16 year olds) 54.6% of pupils gained 5 or more A* - C passes compared to the English figure of 52.6%. The key performance indicator of 93% of 19 years olds with a level 2 qualification (GCSE or equivalent) has been achieved by 16 year old pupils in 2003, with 97.7% achieving 1 or more A* - G passes, the same level as that achieved last year.

18 ‘A’ level results for 2004 were slightly below the level achieved in the previous year; however the previous year’s results were exceptionally good. Targets set for achievement of Level 3 (‘A’ level or equivalent) and Level 4 (First degree or equivalent) are being achieved in terms of school year cohorts.

Overall pupil performance figures across all Key Stages and Post 16 continue to be in line, and more often significantly well above those of our English benchmarking figures.

The attainment of ‘Looked After Children’ at GCSE remains low and continues to be an area for improvement. However the introduction of the recently developed monitoring and tracking system and its expansion to include data from the Department of Health and Social Security under the Children and Young Person’s Strategy initiatives will assist in targeting resources in this area.

Housing

The DLGE has accelerated the progress of the public sector housing programme. The aim is to increase the completion of dwellings from an average of 80 properties per annum to 120 over a five year period ending 2007. Completions were running slightly behind programme at 31st March 2005 as follows:-

2004 106 homes completed 2005 75 homes completed (Spring 2005) 2005 88 homes under construction (Spring 2005)

The DLGE has also aimed to accelerate the First Time Buyer programme in a similar manner. At the end of 2004/05 completions were behind programme as follows:-

2004 58 homes completed 2005 80 homes completed (Spring 2005) 2005 46 homes under construction (Spring 2005)

The public sector waiting list at 31st March 2005 totalled 1403 compared with 1349 at 31st March 2003. An analysis of the list shows the following:-

Elderly Persons 31/03/05 – 351 compared with 31/03/03 - 373 General List (singles) 31/03/05 – 427 compared with 31/03/03 - 433 General List (couples/families) 31/03/05 – 625 compared with 31/03/03 – 543

The completion of the Lower Pulrose redevelopment will begin to make an impact on reducing waiting lists in 2007/08. However, the completion of the redevelopment projects at the Lezayre and Janet’s Corner Estates will not have an impact until 2010/11.

During 2004/05 the DLGE has carried out various works to refurbish and upgrade some 400 of its public sector houses to raise the living standards of its tenants. This is additional to any similar work carried out, with DLGE oversight, by other housing authorities on the Island.

Community Safety

The year’s Annual Report of the Chief Constable shows that crime on the Island is 29% lower than in 2001/2002 with a detection rate of 38.8%. For the second consecutive year reported crime in the Centurion area (Douglas Promenade) has fallen. Over the past two years reported crime in this area has fallen by 34% which equates to 462 fewer offences.

Support for Neighbourhood Watch Schemes continues with the introduction of dedicated Community Safety Officers in each police Division.

19 There was a reduction in road traffic collisions, particularly those resulting in serious injury or fatality.

Community Spirit

Government continues to underpin, through support funding a whole range of voluntary organisations in care provision.

Implementation of the DHSS Carers Strategy is continuing, during the past year a Live at Home Scheme has been established in the South of the Island, an Emotional Support Scheme has been provided within the Carers Centre and Live at Home Schemes have been expanded in Onchan, St Johns and Foxdale.

SOCIAL WELL BEING KEY PERFORMANCE INDICATORS

Key Performance Current Target Status Indicator Performance

Average number of 2002 Males 171; Reduce the moving Ongoing deaths per year of Females 95; Total average by 20% as persons under 75 as deaths <75 = 32% related to 2003 by a % of total deaths 2008

Comment: Progress towards this target is dependent upon the implementation of the Health Strategy. There is, at present, insufficient information to provide meaningful measurement. The latest available mortality data dates from 2003, and quality of coding of cause of death is currently not reliable and further work will be undertaken in this area, through investment in effective information services.

Number of reportable Data Collection in Reduction of 2% per Achieved road traffic accidents progress year

Comment: Reduction of 4.7% with KSI (Killed and seriously injured) down 21%

Levels of educational 91% 93% of 19 year olds Achieved achievement with level 2 qualification (GCSE or equivalent) by 2006

Comment: Current projections indicate that this target should be achieved. Examination outcomes and projections are evaluated by the secondary adviser when in discussions with schools.

Levels of educational 70% 72% of adults with a Ongoing achievement Level 3 qualification ('A' level or equivalent) by 2006

Comment: Figures will be validated in January 2006

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Key Performance Current Target Status Indicator Performance

Levels of educational 18% 20% of adults with a Ongoing achievement level 4 qualification (First Degree or equivalent) by 2006

Comment: The Department of Education continues to develop strategies for auditing levels of achievement and will utilise the next census data returns to make evaluative judgements. The Graduate survey currently being undertaken by the Education Finance team will also provide information.

Crime rates Data Collection in To reduce by 10% Ongoing progress during the life of the Plan

Comment: Reported crime continues its overall downward trend. Over the whole year from 1st April 2004 to 31st March 2005, reported crime has fallen by 7.1%. This equates to 278 fewer people who were victims of crime over the preceding year.

Attendances at sport, 2002/03 = 737,000 Increase of 10% by Ongoing leisure and 2003/04 = 899,414 2008 entertainment facilities provided by Government

Comment: Attendances for the year to 31st March 2005 total 899,414 - an increase of over 14% on the previous year, which is ahead of that scheduled

Numbers of persons At 31/03/03 = 1349 Reduce by 25% by Not Achieved on the general public At 31/03/05 = 1403 31 March 2008 housing waiting lists and first time buyer lists

Comment: There has been an increase in the number of people on the general public sector housing waiting lists. However, it should be noted that the baseline has changed since the target was set by the inclusion of single people. The rise in single applicants is very noticeable in Douglas.

Continue the Data collection in 95% of referrals Ongoing reduction in waiting progress seen within 13 weeks time between GP by March 2006 referral and first out- patient clinic consultation

Comment: The only waiting list measure available at present is how long a patient has waited between the date of referral and the most current report date. These patients have yet to receive an appointment. Work is still being undertaken to provide accurate data on how long a patient has actually waited from date of referral to date seen.

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Key Performance Current Target Status Indicator Performance

Continue the Data Collection in 95% of procedures Ongoing reduction in the progress delivered within 13 waiting time between weeks by March determination of 2006 need and provision of an elective in-patient procedure

Comment: The only waiting list measure available at present is how long a patient has waited between the date of decision to admit and the most current report date. These patients may, or may not, have already been allocated an appointment to be admitted. However, work is underway to provide a report showing the actual time waited from decision to admit to provision of an elective in-patient procedure.

Ensure the 2002/03 = 74% Target: 75% of calls Not Achieved ambulance service 2003/04 see below reached within 8 meets the UK comment minutes national standard for emergency response times

Comment: The UK national standard requires 75% of category A calls, and 50% of total calls to be reached within 8 minutes. The comparative data for the Island indicates standards of 66% and 62% respectively, although the Department still has concerns as to the reliability of the data generated by the new control centre, an issue that continues to be addressed. The higher standard, in particular, has become increasingly difficult to meet due to increased activity levels, and it is anticipated that the additional resources provided in the 2005/06 budget will assist in meeting and maintaining the standards.

Expansion of the 123 h.a. Acquisition of an Ongoing area of National additional 10 Glens hectares by 2007

Comment: This issue is ongoing

Schools offering Zero 2004/05 2 schools Ongoing Internet facilities to one evening a week; the wider community 2005/06 10 schools 2 hours a week Comment: This project is continuing and it is projected that 5 schools will be involved during 2005. % of bus fleet April 2003 Increase to 80% by Achieved accessible to all 68% Accessible 31st March 2006 disabled and less April 2005 agile users 71.7% Accessible

Comment: As at 31 March 2005 71.7% of the operational bus fleet are low floor, disabled accessible buses. An additional 6 new buses have been ordered which will improve the percentage further.

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Key Performance Current Target Status Indicator Performance

Raise the attainment Currently being Improved tracking in Achieved of Looked After tracked. Provisional place by September Children data suggests GCSE 2004 Grades 5A*-G = 11%

Comment: The ability of the Department of Education to access and analyse pupil performance data has improved considerably and officers are now working more closely with schools to monitor the performance of these pupils. However analysis would suggest that attainment levels for these pupils is not as high as hoped, and the SEN Service along with Link advisers are to work together in developing support for schools. Actions set out in the Children & Young Peoples Strategy will further support the achievement of this KPI.

Behaviour Support 2 rounds of Plan agreed and in Not Achieved Plan consultation place by September complete 2004

Comment: This document is out for consultation.

23

2.3 QUALITY ENVIRONMENT

Waste Management

The Island’s energy from waste facility at Richmond Hill became operational during the year.

The Meary Veg sewage treatment works is operational and treating sewage flows from Douglas, Onchan, Union Mills, Ballasalla, and the Balthane/Airport Industrial Estates. The treatment processes are stable and robust and are producing a good quality treated effluent that is being discharged to sea through the new outfall pipe. The sludge treatment facility is only partially commissioned and has started to produce dried sludge pellets for disposal to land. The Meary Veg sewage treatment works is still in the reliability period and has not yet been handed over to the Department of Transport. The pumps in the White Hoe pumping station are causing noise and vibration problems within the adjacent properties. As a result, the station is switched off between 10pm and 8am daily, until the Contactor has resolved the noise and vibration problems.

Responsibility for developing the new Animal Waste Processing Plant was transferred to the Department of Transport from the Department of Local Government and the Environment in May 2004, because of the former’s particular expertise in dealing with such facilities

The new plant is being designed to meet all current and anticipated industry processing standards. When operational it will enable the Department to meet the commitment made to close the existing plant and cease animal waste processing at East Baldwin. The new plant will be able to process all of the approximately 5,300 tonnes of Animal Waste produced on the Island without adverse environmental impact or the need to export any material for processing in the United Kingdom

Air & Water Quality

Work on the new Sulby Water Treatment Works is due to be completed in September 2005. The raw water main, which will supply this new Water Treatment Works, has also been completed. The construction of the new works at Douglas will commence in the Summer 2005 with completion expected in 2008. In conjunction with this scheme, the Authority will be undertaking a significant number of mains laying schemes which, when completed, will allow the old water treatment works to be decommissioned and the transfer of the whole Island onto the higher quality water supplies which the new works will produce.

There continues to be a reduction in the number of days that the air quality on the Island is affected by moderate or high pollution.

With regard to drinking water, the DLGE continued to monitor the quality of the mains water supply as required by the Water Act and the Water Authority itself has put considerable resources into new initiatives to improve the operation of the water treatment works serving the East of the Island.

Sustainable Development

The All Island Strategic Plan, titled “Towards a Sustainable Island”, was presented by the DLGE to a Public Inquiry in March 2005 and the outcome is awaited.

Tynwald approved the Council of Ministers Energy Policy sub-Committee’s recommendations for a new energy policy in July 2005.

The new Sustainable Development Officer Working Group is up and running and organised training in sustainable development issues in May 2005.

24 Wildlife & Countryside

The new extension to Molly Quirk's Glen is now open to the public following the installation of a footpath network.

The Department of Agriculture Fisheries & Forestry is developing proposals for the improvement and management of the hill lands to balance the interests of recreation, biodiversity and agriculture. A formal Access and Recreation Policy Document is being prepared which will underpin proposals for future site management.

Further Areas of Special Scientific Interest have been designated at Jurby and Ballaugh Curragh during the year.

QUALITY ENVIRONMENT KEY PERFORMANCE INDICATORS

Key Performance Current Target Status Indicator Performance

Days when air Average No. of days Reduce air pollution Ongoing pollution is moderate each year currently = and ensure air or higher 60 - Urban/5 - Rural quality continues to improve through the medium to longer term

Comment: Reported annually. Air quality can be affected by incidents outside the Island's territory. The planned gradual replacement and upgrading of coal fired heating in public sector properties should result in improved air quality in the surrounding areas.

Overall Water Quality Current Average Maintain at an Achieved Index Score 98.25% average of 97.5%

Comment: The Overall Water Quality index for 2004/5 measured both at the Water Treatment Works (WTW's) and in Distribution was 98.25%. Whilst slightly lower than the 2003/4 figure achieved, it remains over the current target of 97.5%.

Increase in the Baseline data in Achieve a 5% Ongoing quantity of materials, process of being increase year-on- reused and recycled collected year each year over the life of the plan

Comment: Work continues in this area as part of the five-year review of the Waste Management Plan. The completion of the new Eastern Civic Amenity Site in August 2005 should assist with increasing the figures.

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2.4 SOUND INFRASTRUCTURE

Transport

The Department of Transport continues to maintain its Port Facilities to a high standard. For example, the refurbishment of the Sea Terminal Departure Lounge has been completed and in February 2005 the Department concurred to a major maintenance programme for harbours.

Air passenger numbers increased by 3.4% with a throughput of 773,743 exceeding the 3% target which had been previously set by the Department of Transport. Income earned was £8.3m which exceeded the budget target of £7.94M, but this increase necessitated further increases in costs, primarily due to the larger numbers of airlines and aircraft that were operating.

The Department is continuing its rolling plan for improvements to the highways infrastructure.

Public Utilities

The Water Authority continues to manage the mains system to deliver a reliable service. The Authority is progressing with its programme to replace those mains which have proved unreliable. These schemes will result in improved supplies to customers in terms of quality, pressure and constancy and form a major part of the rehabilitation strategy included within the asset management plan.

The MEA has supplied enough electricity to meet the growing demands of the Island businesses. The strong financial/commercial sector is underpinned by the security of the electricity supply and it is one of the keys to the economic success of the Isle of Man.

SOUND INFRASTRUCTURE KEY PERFORMANCE INDICATORS

Key Performance Current Target Status Indicator Performance

Satisfaction rates 2002 Quality of Life 80% satisfactory or Achieved with service levels Survey Satisfaction better and landside facilities Levels in air and sea Air 69% passenger surveys Ferry - 67%

Comment: Harbours Surveys were commenced in June 2004. Up to 31 March 2005 the results showed that 89% of customers were "satisfied or better" with the service and facilities. Airport Analysis of survey results show that 84% of air passenger are satisfied or better The Department of Transport intends to continue the survey as it provides a very useful source of information.

% of the Island's 60% will be treated 65% by 2006 Likely to be achieved sewage which is by April 2004 treated prior to discharge to sea

Comment: The catchments of Douglas, Onchan, Union Mills, Ballasalla, Balthane, Ronaldsway, Union Mills, Castletown, Ballabeg, Port Erin and Port St Mary are connected to Meary Veg. This accounts for 60% of the population.

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Key Performance Current Target Status Indicator Performance

Continuity of the 2004/05 21 minutes Outages caused by Achieved supply of electricity electrical faults not to exceed 30 minutes per customer per year

Comment: The MEA has set standards to respond to new supply requests. For modifications to LV services MEA endeavour to respond within 10 days and for schemes which require major network modifications, 22 days or less are targeted. For both standards MEA aim to achieve an 80% or better success rate. This year, for the 10 day standard MEA’s performance was 88.35% and for the 22 day standard 81% was achieved.

With regard to the continuity of electricity supplies MEA’s standard is the average number of customer minutes lost per year and less than 30 minutes per year per customer is targeted. For this year, 21 minutes have been achieved. This figure does not include data from the January storms as this is considered to be an extraordinary event beyond the scope of the statistic.

Effective lifespan of Fieldwork 80% Establish a reliable On target the Highway complete measure of current Infrastructure position by 2006

Comment: A prioritised maintenance programme was established in 2004.

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2.5 GOOD GOVERNMENT

MEA

During the year, certain issues relating to expenditure at the MEA were made known to Government. At the time of writing, the consequences of these discoveries have yet to be fully determined or resolved. However, the additional borrowings incurred by the former Board of the MEA have impacted upon the Government’s finances as funding has been provided to stabilise the MEA’s financial position. The Council of Ministers views with regret this unfortunate situation, but is striving to resolve the issues that have arisen in a manner which will have the least impact on electricity consumers and Government’s finances as a whole. For example, Tynwald has approved the appointment of a new Board at the MEA which is in the process of reviewing all aspects of the Authority’s governance arrangements. The Board is keen to ensure that this process is concluded as soon as practically possible. With effect from 1 October 2005, the Board announced increases in tariffs of 6.5%. However these increases were offset by the reintroduction of the standing charge credit.

Quality Services

The Personnel Office continued to review the terms and conditions of service of Civil Servants providing ongoing support/coaching to Managers in regards to their consistent interpretation and application ensuring that the Isle of Man Government remains an employer of choice. The delegation of the management aspect of recruitment has been very successful with the formal signing of only two departments left to be achieved. The ongoing support and administration necessary is now in place and operating successfully. Key business partners have been identified in order to promote positive relationships and a wider understanding of issues contributing towards the delivery of a pro-active service across the whole of the Isle of Man Government.

The development of a Corporate Governance Code of Conduct continued during the year and will be phased in from September 2005 including a framework for the reporting structures and administrative procedures within Government.

Equal Opportunities

The Department of Trade and Industry’s Equality Officer continued to answer queries from individuals and employers and to provide presentations (seven were delivered during the year). The Department is working towards providing a conference for local employers in order to raise awareness of equality at work issues, including flexible working patterns.

Council of Ministers Committees

During the year, the Council of Ministers restructured its sub-committees to provide a broader and more strategic approach for the consideration of policy issues prior to their referral to Council for approval. Five standing committees have been established as follows:-

• Economic Development Committee • Social Policy Committee • Infrastructure and Environment Committee • Constitutional and External Relations Committee • Governance Committee

The membership of each Committee has, in the main, been determined by virtue of the ministerial positions of members. In addition, each Committee has at least two additional members drawn from Members of Tynwald to ensure a more open approach to policy development and analysis of issues as they arise.

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Each of the new Committees works to defined terms of reference which include:- • Consideration of policy proposals referred by the Council of Ministers • Quarterly review of Government performance against relevant targets within the Government Plan and Departmental Plans • Review of relevant objectives and priorities within the Government Plan • Development of corporate strategies, and • Consideration of ad hoc issues

GOOD GOVERNMENT KEY PERFORMANCE INDICATORS

Key Performance Current Target Status Indicator Performance

Effective 2002/03 = 71% Increase % of capital Not Achieved management of 2003/04 = 87% programme delivered Government's capital 2004/05 = 41% year programme

Comment: The 2003/04 delivery was significantly higher at 87%. However, 2004/05 delivery has only reached 41%. Ultimately Treasury can only report on this figure as the capital programme delivery is outside of its control. However, the drop in delivery has been examined and proposals to review the situation are expected in the coming year.

Progress of July 2004 12 Acts Increase the number Not Achieved legislative promulgated of Acts promulgated programme July 2005 6 Acts promulgated

Comment: Not achieved. Council of Ministers is committed to the efficient delivery of Government’s legislative programme. Emphasis is being placed on legislation which focuses on social welfare and economic growth, whilst ensuring that recognition is made to the resource implications of bringing in new legislation.

Develop a strategic Interim Office To be implemented Achieved approach to the Strategy published in in 2004/05 with full provision and October 2003 implementation from management of 1st April 2005 Government's office accommodation

Comment: Work is continuing to keep the document up-to-date and in identifying elements deserving of priority attention

Youth Forums 1 5 by 2006 Ongoing established on the Island

Comment: The Youth Service continues to work towards securing this, along with a Youth Bank. Most of the Youth Club Management committees are now run by young people. These activities along with a number of other projects led by the Youth & Community team are aimed at giving a voice to the Island's young people

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2.6 POSITIVE NATIONAL IDENTITY

Autonomy

During 2004/05 the Government continued to co-ordinate the promotion of the Island’s interests with the UK, the European Union and other jurisdictions. This work was largely directed by the Constitutional & External Relations Committee of the Council of Ministers and included the following key activities:

• Strengthening the Island’s relationship with the United Kingdom and European Union. • Monitoring and responding to developments arising from the proposed EU Constitution and protecting the provisions of our Protocol 3 arrangements. • Ensuring that arrangements were in place for the Island, by Letters of Entrustment, to sign international tax agreements on our own behalf.

During the year the Government signed tax agreements with all 25 EU Member States instituting the provisions of the European Savings Directive.

The Isle of Man was represented at the United Nations Committee Against Torture in Geneva in November 2004.

International Reputation

During the year the Government continued its work with regard to the recommendations of the Financial Action Task Force and has been involved in the consideration of amendments to the Anti Money Laundering Code, examining recommendations in respect of the Financing of Terrorism.

Work is continuing to seek to extend access to markets for Isle of Man financial and professional services e.g. working to gain recognition for IOM funds in Switzerland.

The Island hosted the British Irish Summit in May 2005 which was attended by the UK Deputy Prime Minister and the Irish Prime Minster.

Other visits to the Island throughout the year included the German and Belgian Ambassadors.

External Marketing

The Isle of Man Branding initiative was supported by Tynwald in July 2004. Research work and consultation has been undertaken throughout the year and it is expected that the final brand will be presented in February 2006.

The Financial Services Division of the Treasury continues to target niche markets for the Island. Opportunities in the expansion of the Island’s fund industry have been pursued as have opportunities in expanding the Island’s e-business sector.

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POSITIVE NATIONAL IDENTITY KEY PERFORMANCE INDICATORS

Key Performance Current Target Status indicator Performance

Perception rate of Data Collection in 80% agreement or Achieved heritage as an Progress better (quinquennial important element of survey) positive national identity

Comment: MORI survey showed that 98% of those surveyed agreed that heritage plays an important role in positive national identity

Contribution of MNH Data Collection in 85% agreement or Achieved to the sense of Manx Progress better (quinquennial Cultural Identity survey)

Comment: MORI survey showed that 94% of those surveyed agreed that the work of MNH contributed to the visitor’s sense of Manx Culture & Identity

Overall high Data Collection in 71% or better Achieved satisfaction rate for Progress (quinquennial heritage site visits survey)

Comment: MORI survey showed an 82% level of very satisfied for visits to heritage sites

Use of Manx 2001 Census 1689 Increase in the Ongoing language people either speak, number of persons read or write Manx involved with the Gaelic language

Comment: The Department of Education continues to provide opportunities for children and young people to develop an understanding, and use of Manx language. However the recruitment of Manx language teachers to meet growing demand continues to pose a challenge

Manx cultural and Primary years 3 & 4; Key Stages 1 & 2 Ongoing history study units History = 8 units History completed by September 2004; Geography by September 2005; Key Stage 3 History completed by September 2005

18 Key Stage 1&2 Manx History units completed and published before the end of the academic year 2003/4. Steady progress towards the other targets is being made and should be achievable.

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PART III: FUTURE PRIORITIES

INTRODUCTION

The Council of Ministers has already identified its key priorities for this year in the 2005 Isle of Man Government Plan, published in April. Members were briefed on the content of the Plan at the Members Conference held on 14th April at the Villa Marina. As part of the conference agenda, Members were asked to identify what they considered to be the challenges facing Government in the coming years and the feedback received from that session will be used by Council when determining its priorities for the parameter setting process due to take place in the Autumn.

Whilst this Annual Report in concerned primarily with reporting Government’s performance against its targets and objectives set in the 2004 Government Plan, it is important that the opportunity is also taken to highlight ongoing priorities for the future. Members will have an opportunity to comment on these issues during the Tynwald debate on the Annual Report in October 2005. Council of Ministers has also, where practicable, taken into account the feedback given by Members in April this year.

3.1 Economic Progress

Economic Growth and Diversification

Economic prosperity through the growth and diversification of the economy is one of Government’s highest priorities. Government will continue to support inward investment by:-

• Maximising the potential of existing wealth creating sectors of the economy, principally the finance sectors, manufacturing, agriculture, tourism, the maritime sector, and film and media; and

• Diversifying the economy by identifying and encouraging new sectors to become established on the Island principally e-business, civil aviation and the space industry.

The further implementation of the Economic Strategy will be a key to success in this area.

Legislation to Stimulate Economic Growth

One of the key elements to economic growth and diversification is the provision of a commercial legislative framework which both stimulates the economy and encourages new business. Government will be therefore giving priority to the following legislation in the coming year:

Agricultural Marketing Bill Company Law Reform Bill Companies Bill Corporate Tax Bill Space Bill

Sustainability of the Economy

The Isle of Man has enjoyed unprecedented economic success in the last ten years. Over this period annual gross domestic product (the value of the economy’s output of all goods and services) has more than doubled in real terms. The Government is working hard to ensure that the success of the Island’s economy is sustained and, in the economic strategy, has developed the key objective to maximise economic growth and prosperity whilst minimising the demand for additional labour. This will be achieved by:-

32 • Improving overseas market access

• Hosting higher value adding economic activity

• Raising economic participation amongst the Island’s working age population

• Re-allocating resources towards productive areas of the economy

• Raising productivity at the work place

Taxation Strategy

The taxation strategy was devised in response to the need to maintain the competitiveness of the Isle of Man economy in the light of changes in the external commercial and political environment. It is designed to secure the future economic well being of the Island’s community by sharpening the competitive edge of companies, helping to restructure the economy and meeting changing international standards.

The Council of Ministers remains committed to the delivery of the taxation strategy and in particular the introduction of a universal rate of 0% (10% for regulated entities) for all trading companies by the 31st March 2006.

The Isle of Man Government tries to minimise barriers to trade and investment through a number of means including the Customs and Excise Agreement. This ensures there is an absence of customs controls and fiscal barriers on goods moving between the Island and the UK, thus facilitating exporting of goods into the UK and beyond. The maintenance of this agreement is essential to the continued economic success of the Island.

The Government is also committed to developing its future policy for raising revenues.

Tourism Strategy

In late 2003 the former Tourism Strategy was nearing completion. Taking this fact and rapidly changing market conditions in Worldwide Tourism, as well as the impact from national and global events the need to develop a new one was recognised and work commenced. The new strategy received Tynwald approval in April 2004 and focuses on product development, communication (business and Partners), quality and service and events. The strategy articulates the need for all bodies to work together as a cohesive unit taking ownership for Tourism and seeing it more as an Island wide issue. Delivery of the strategy is fundamental to the success of Tourism.

One of the key challenges facing Government is the need to develop quality bedspaces to meet the needs of a more discerning and sophisticated customer, this will help underpin potential growth areas such as developing activity holidays and conference business.

On-Off Island Travel Links

The Council of Ministers recognises that one of the key components for maintaining a successful economy is securing a quality transport system to and from the Island. In relation to air traffic, in the last couple of years there have been several major and unexpected changes to the pattern of airline activity and air routes. However, Government has, through the capacity contribution grant, helped to produce continued growth in air passenger figures and help sustain some of the important routes.

It is recognised however, that the airline industry is going through a period of rapid change and it is therefore a priority for Government to continue to monitor the situation and to work with both sea and air carriers to ensure the continued provision of good quality and

33 competitively priced services. The opportunities posed by low cost carriers are currently being explored by the Council of Ministers.

The Council of Ministers is also committed to ensuring the maintenance of sea services to a high standard for both freight and passenger traffic.

Training and Education of the Workforce

The Government is committed to the development, funding and delivery of vocational training designed to raise the skills of the workforce and in turn, the competitiveness of Manx business. The DTI has developed a vocational training strategy in conjunction with key players within Government and the private sector to assess the Island’s vocational skills needs over the next ten years and identify the skills for which Government should provide financial and other assistance based on the economic benefit to the Island. The skill needs and expectations in all primary sectors are rising and the Council of Ministers is committed to ensuring that the Manx workforce in future is equipped to meet those needs.

Marketing

Government marketing is undertaken on behalf of all the primary industries on the Island. Responsibility for marketing is with the individual departments associated with these sectors principally Treasury, Tourism and Leisure, Trade and Industry and Agriculture Fisheries and Forestry. As part of the Budget it was announced that a Government Marketing Initiatives Fund was to be created, to provide further opportunities to access new markets and undertake pilot schemes for new strategies.

In addition the Government remains committed to the Branding Initiative which originated within the private sector led by Isle of Man Newspapers. The branding project is now well underway and is being led by a steering committee comprising representatives from both the public and private sector under the chairmanship of the Chief Minister.

3.2 Social Well-Being

Public Health

The Department of Health and Social Security’s Strategy for Health forms the basis for the development of policies to give greater emphasis to preventative medicine and a health promotion and this is supported by the Council of Ministers. The Strategy has a focus on improving public health which can only be achieved in the long term.

NHS Primary Care Services

The Council of Ministers is committed to ensuring the continued provision of NHS primary care services which meet the needs of the Island’s population. However, the changing nature of demand for these services puts Government under increasing pressure simply to maintain them at existing levels without any aspirations to expand or develop services. The challenge for Government is to ensure that access to existing services can be maintained whilst continuing to ensure that these services develop and deliver the high standards required.

Services for Children and Young People

An immediate priority for Government is implementing the strategy for children and young people which ensures joined up working between the relevant public and voluntary sector agencies, gives clear lines of responsibility and ensures that human and physical resources are cost effective. The Strategy aims to continue to improve the lives and health of all

34 children and young people whilst recognising that some young people and families need extra support.

The current Commission of Inquiry into the Care of Young People will likely make recommendations on matters affecting the development of the strategy. The Council of Ministers will take seriously any recommendations arising from the Commission when it reports next year and ensure that the Commission’s findings are factored into the further development of the strategy.

Government is a key contributor to the provision of sports, leisure and arts facilities on our Island. These facilities are fundamental to keeping our young people involved in positive activity which will help them grow into responsible young adults fit to take their place in the community. A key challenge will be to implement the sports, leisure and arts strategies whilst maintaining current standards of service delivery and customer expectation built over the last decade.

Drug and Alcohol Strategy

The Government has now launched a renewed drug and alcohol strategy with the principal aim of reducing the harm caused by drug and alcohol misuse. It is hoped that the revised strategy will continue to be successful in developing mechanisms for education and prevention, treatment and support, establishing safer communities through the work of the Criminal Justice agencies, and in relation to drug misuse, through controlling availability.

Education Strategy

There are a number of areas within education which Government regard as its main priorities for the next three years. The first involves reforming the teaching workforce. This is an agreement aimed at raising standards in schools by freeing teachers from activities that remove them from the job of teaching. It also seeks to ensure teachers have sufficient time to plan and prepare for teaching and to assess pupils’ progress. This is a phased programme over three years.

The next priority concerns the level of resourcing, technical support and training programmes which need to be sustained by the Department of Education in order to maintain the high levels of access that teachers and pupils have to information communication technology to support teaching and learning and to raise standards.

The Department continues to maintain and further enhance its performance in meeting Special Educational Needs, including working with those pupils who present social, emotional and behavioural difficulties. The training and support programme for Special Education Needs Support Co-ordinators has been running for one year and is ongoing. The Department is seeking to expand the number of nurture groups beyond the nine it currently operates and in this respect, the Primary Advisory Panel has met and identified schools for future development of nurture provision.

It is also vital to ensure that pupils have regular and sustained access to ICT to ensure they are able to operate successfully in an ever increasingly technological world. This, of course, links back to the Government’s commitment to ensure a properly trained and educated workforce for the benefit of economic growth and diversification.

One of the key challenges facing Government in the coming years concerns its ability to continue to support students progressing into higher education. Changes in the UK in respect of tuition fees and “top-up” fees will have implications for the Isle of Man and this is a key policy issue for the Council of Ministers to address.

35 Community Safety

Research conducted as part of the Branding Initiative, identified community safety as being the most important issue affecting the people of the Isle of Man. The Isle of Man Constabulary is at the forefront of ensuring community safety, it is their primary goal and it is that philosophy which drives every aspect of policing on the Island.

Surveys conducted by the Constabulary indicated that 97% of residents feel safe living on the Island (Source: 2004 Isle of Man Constabulary Annual Report). The Council of Ministers is keen to ensure that this satisfaction rate is maintained and will endeavour to support the Constabulary in its continued efforts to reduce and prevent crime, tackle anti-social behaviour and thus sustain the high quality of life and low fear of crime enjoyed by people that live and visit the Island.

Housing

Government established a target to produce 1,200 new dwellings over a five year period from 2002/03 comprising public sector and first time buyer houses. Whilst progress has been good in respect of public sector housing the target for first time buyer housing has been affected by infrastructure and planning difficulties. The Government remains committed to this programme of housing development and will do all that it can to ensure delivery of the programme within a reasonable timeframe. The Council of Ministers is committed, in particular, to providing an adequate supply of public sector housing, to ensure the Island remains a fully inclusive society.

Support for People on Low Incomes

The Council of Ministers is committed to ensuring that the DHSS and Treasury continue to address issues concerning people on low incomes and develop systems to avoid people falling into the poverty trap. Measures to support people in this way are regular features of the annual budget and the Government is keen to develop such initiatives further, wherever possible. The Low Incomes Working Group, comprising representatives of The Treasury and DHSS has made some progress on this issue through benefit up-rating in particular, but is continuing to consider means by which the impact of issues such as higher energy prices can be alleviated for people on lower incomes.

3.3 Quality Environment

Energy Policy

The Council of Ministers has three key priorities in respect of energy. The first concerns the options for renewable energy. The Council of Ministers is keen that these options are fully explored as they may have significant economic benefits for the Island.

Secondly, the Tynwald resolution of April 2004, determined that there should be an Energy Regulator with powers to regulate prices. The Office of Fair Trading and Department of Trade and Industry are working together to draw up proposals to bring this into being, and the Council of Ministers hopes to be able to respond positively to the resolution to enable a bill to be introduced into the House of Keys in the near future.

Thirdly, the Council of Ministers is committed to further develop conservation polices and improve overall energy efficiency.

Development of the Rural Economy

The key objectives of the Department of Agriculture Fisheries and Forestry include promoting efficiency and sustainability in the agricultural and sea fishing industries and promoting an

36 attractive and sensitively managed countryside for the enjoyment of all. As part of this, it is intended to develop a countryside stewardship scheme. This will encourage ecologically sound land management and stocking levels, by re-directing finance away from direct production support towards good land management practices.

The Council of Ministers believes it is important that the rural economy is properly supported and that systems are in place to respond to changing circumstances within the industry. DAFF has identified a need to strengthen its policy and strategic planning with regard to the agricultural industry as well as a need to provide more robust focus on the agricultural division’s advisory role.

A further key priority of Government over the coming months is to seek to define a future role for the Port Erin Marine Laboratory which will be reverting to Government ownership in the summer of 2006. A Project Manager has been appointed to take forward the proposals contained within the report received by Tynwald in July, and in the first instance priority is being given to ensuring the continuation of the research and monitoring work currently conducted by the Laboratory on behalf of DAFF and DLGE.

Recognition of the Island’s Natural Environment

In Tynwald in April 2004 it was resolved that recognition of the Island’s natural environment should be better recognised in the Government Plan and the Department of Agriculture Fisheries & Forestry Plan. Notwithstanding the fact that DAFF is already progressing a number of objectives in support of environmental protection and conservation management of natural habitats it has now raised the profile and autonomy of the wildlife and conservation section by making it a Division of the Department with a direct reporting line to the Chief Executive. Furthermore the resources available to the Division have been increased by creating two new posts through internal re-allocation. One is to deal with the designation of areas of special scientific interest and the second to deal with matters of marine conservation.

3.4 Sound Infrastructure

Future Infrastructure Requirements

The Government has in recent years invested heavily in updating and improving the Island’s infrastructure including, for example, highways development, the new power station, gas pipeline and the IRIS scheme. It is the intention of Government to review future requirements, to address such issues as harbour development and maintenance, highways maintenance, the runway extension at the airport and flood alleviation schemes.

The on-going maintenance and sustainability of Government’s property portfolio remains a priority. The importance of the timetabling of Government’s capital programme is a valuable tool to ensure that the level of work available within the construction industry remains constant and that private and public sector projects achieve a workable balance.

Integrated Transport Strategy

The future successful implementation of the all Island Strategic Plan is to some extent predicated on the development of an effective integrated transport strategy. The Council of Ministers recognises the importance of this and has established a working group of relevant departments to work together in support of the Island’s future transport needs. It is acknowledged that only limited progress has been made to date but it is now the Council of Ministers intention to give the matter higher priority.

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3.5 Good Government

Reform of the Scope and Structure of Central Government

The development of a more corporate approach to working within Government has highlighted the need to review whether the Government is appropriately structured to meet the needs of the population. The Council of Ministers has therefore now commenced a review into the scope and structure of Government with the intention of it being completed prior to the next General Election in 2006. The review will be led by an Independent Review Team comprising people from the Island with wide ranging backgrounds who will report to a sub committee of Council. It is intended that the Review Team will consult widely when conducting its work taking advice from Members of Tynwald, Government employees, representatives from the private and voluntary sectors as well as engaging external support as necessary. The review is addressing the number and make up of Departments, Boards and Offices, the scope of public services on the Island (including the use of direct labour, contracting out, etc.) and the statutory basis for Government through the Council of Ministers Act 1990 and the Government Departments Act 1987.

Corporate Governance

Recent events within the administration of Government have highlighted the need to improve the systems and processes governing the activities of Departments, Boards and Offices. This includes such issues as communication, performance management, risk management and standards of conduct. The Council of Ministers has developed a corporate governance code of conduct, to apply to all agencies of Government, which is underpinned by a series of policies and procedures to ensure Government demonstrates openness, integrity and accountability in all its dealings. Whilst many of the components of the code have been in place for a number of years, they have been reviewed or updated where necessary and the Council of Ministers will be seeking formal adoption of the Code in the near future.

The governance programme will also involve a series of training events tailored to meet specific needs of Departments, Boards and Offices to ensure that all concerned are aware of the requirements of the code and know their responsibilities in applying its principles in their work.

Investment in Information Technology

The Treasury is continuing to ensure the implementation of the Jupiter Programme for the upgrading of systems throughout Government to improve both internal and external communication. The Government Portal continues to be developed which will include an authentication model and a payments engine, to enable online transactions to take place.

The development of the concept of e-services, where joined up services are fully available on line has not progressed as quickly as was hoped. Nonetheless the Council of Ministers regards this as a high priority and it remains the aspiration that services should be available at a time and location and in a manner which is convenient and effective for the end user. The Information Systems Steering Committee, under political chairmanship has recently been re-launched to give impetus to this initiative.

Long Term Pension Policy

There are two priorities for the Council of Ministers in this area. The first concerns the strategic consideration of retirement age, state pension provision and the associated cost implications for future generations. This review is being progressed by the DHSS and includes within it an assessment of the extent to which individuals should make independent financial provision for their retirement years.

38 Secondly, in the public sector, the Civil Service Commission is reviewing public service pensions following the introduction of a modernised and more flexible UK Principal Civil Service Pension Scheme. The Council of Ministers recognises the importance of this issue to the Government workforce.

Government Pay Structures

The pay and grading structures for the Government workforce are complex and diverse taking into account local factors as well as the need to recognise, in some professional areas, the structures that exist in the United Kingdom. This latter point is particularly important in relation to health and education. Nonetheless, the Council of Ministers has an important role to play in monitoring these structures to ensure a consistent approach across Government and the achievement of value for money. This is particularly relevant as public sector salaries account for over one third of annual revenue expenditure.

Legal Aid Reform

The Council of Ministers is continuing to review the findings of the Commission of Inquiry into legal services, and recognises the need for the system to be reformed at the earliest opportunity. The resource implications of the Commission’s proposals are substantial and will clearly need to be considered against Government’s other competing priorities.

3.6 Positive National Identity

Cultural Tourism

The continuation of the development of Manx culture and the provision of cultural tourism remains a priority.

Development of Wider International Relations

The development of improved management of the Island’s relationships with the UK and the EU, and of wider international issues, is a key priority for the next few years. It is intended to progress a co-ordinated programme to support the Council of Ministers in the elevation and management of the Island’s profile in the EU and internationally. One element of this will be ensuring timely access to important international intelligence on issues relevant to the Isle of Man, through networking with the right international organisations and individuals.

Demographic Change

With the development of new immigration legislation for the Island, the Council of Ministers has sought to establish greater autonomy in this area which has traditionally been the responsibility of the Crown, through His Excellency the Lieutenant Governor. In future, this will mean the immigration rules are made by the Council of Ministers which increases their flexibility in terms of meeting specific needs of the Island.

Government also has to address new requirements for the issue of passports, to counter identity fraud and this will include the introduction of bio metric features. In the longer term, the United Kingdom remains intent on introducing national identity cards following on from the passport changes and this will have implications for the Isle of Man. This is a long term project which will, in due course require widespread consultation throughout the Island in considering the implications and the options available.

The Council of Ministers is continuing to consider the appropriate stage for introduction of the Residence Act and this issue remains high on the Council agenda.

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PART IV: DEPARTMENTAL PROGRESS REPORTS

This section of the report highlights performance against KPIs contained within the 2004 individual Departmental and Office Plans which were not highlighted in the 2004 Isle of Man Government Plan. The section gives a broad understanding of the key areas of activities within individual Departments, Boards and Offices undertaken during the year.

4.1 DEPARTMENT OF AGRICULTURE FISHERIES & FORESTRY

KPI: Sales Value of branded cheese.

Target: Sales value to exceed £1m. for 2004

Achieved. Sales for 2004 had a value of £1.2 million (320 tonnes sold compared to 196 tonnes in 2003).

KPI: Maintenance of a viable dairy industry.

Target: Maintain Island production at above 25 million litres per annum

Achieved. Against a perceived trend of falling production levels the actual achieved in 2004 was 35.97 million litres. As well as an increase in sales of branded cheese, the price received for commodity cheese held up reasonably well

KPI: E.U. approval to new derogations in respect of milk and cream and bread and bread-making flour

Target: This remains a major Department priority which we are actively working towards. However, the date of any approval is a matter for the EU Commission and a target date cannot be realistically set

On-going. The Department has put a great deal of effort into pursuing the granting of a milk and cream derogation and renewal of the existing meat derogation. This has involved the establishment of better working relations with the UK authorities, meetings with EU Commission officials and collaborative working with White & Case (the Brussels based legal firm retained by Government). A Commission official visited the Island in April 2005 and met with Members and officers of the Department and various stakeholder groups. The visit appeared to go well, although the official now has to report back to his superiors. The bread application, which is more complicated, was put on hold by the Department until the milk and cream application has been processed. White & Case is being consulted on how the submitted case can be beneficially revisited.

KPI: Improve Beef Producers ability to meet the demands of the local market

Target: Maintain imports at below 20% of domestic consumption

Achieved. Imports supplied 17.6% of the domestic market

KPI: Development of a Migratory Fish Enhancement Regime

Target: Implementation plan to commence in April 2004

Not achieved. However a draft Migratory Fish Enhancement Regime has been prepared and is out to consultation with stake-holders.

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KPI: To have in place an economically viable Manx Fish Producers’ Organisation (MFPO)

Target: Year on year increase in quota held by the MFPO

On-going. The Department was unsuccessful in its attempts to devise a means to fund quota purchase which was acceptable to the E.U. State Aids Directorate. However, an environment has been created where some fishermen have had the confidence to purchase small amounts of additional quota themselves.

KPI: Extension of Island’s autonomy to manage fisheries activity in the territorial sea

Target: This is a key Department priority and negotiations are on-going. The date of extension is subject to United Kingdom and other Irish Sea stake-holders agreement. As such, a target date cannot be realistically set

On-going Although relations with the UK DEFRA were much improved at officer level and resulted in agreement on a consultative document for issue to all stakeholders in late 2004. Unfortunately it still awaits the political approval of the UK Fisheries Secretary in spite of the Isle of Man authorities’ best efforts to have the matter progressed.

KPI: Continuation of control of beef imports

Target: Secure extension of meat derogation by June 2005

On-going. As stated earlier, the Department has put a great deal of effort into securing the renewal of the existing meat derogation. This has involved the working with UK and EU Officials and collaborative working with White & Case, (Government’s consultants in Brussels).

KPI: Up-dating of agricultural marketing legislation

Target: Draft Bill out for consultation by June 2004

On-going. Extensive consultation has been undertaken and the Department is endeavouring to address any remaining concerns the industry has with the proposed legislation.

KPI: Area of land under good conservation management

Target: A further 125 acres (50 ha.) in positive management by March 2005 (currently 1420 acres (574 ha.)

Achieved. Area covered by management agreements is now 2875 acres (1163 ha.).

KPI: Area of most important habitat under statutory conservation designation under the Wildlife Act

Target: A further 25 acres (10 ha) designated as Area of Special Scientific Interest by March 2005

Achieved. Sites designated in reporting period total 687 acres (278 ha.).

41 KPI: Adaptation of Island agricultural support schemes to take account of the 2003 reform of the Common Agricultural Policy

Target: Countryside Stewardship Scheme out to consultation with the industry by December 2005

On-going. Consultation continues but the industry has concerns regarding the Scheme.

KPI: Expansion of the area of the National Glens

Target: Acquisition of an additional 25 acres (10 ha.) of land by 2007

On-going. There is optimism that the target will be achieved.

KPI: Reducing slaughter costs in the Meat Plant

Target: Year on year reduction to more closely mirror average United Kingdom charges

Not achieved. Relinquished as an objective by the Department in light of EU State Aid difficulties. Available budget has been channelled to the industry by way of Tynwald approval to enhancement of other support schemes.

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4.2 DEPARTMENT OF EDUCATION

Objective 1 Maintain and Raise Standard of Achievement – Economic Progress

The overall attainment of pupils at the end of Key Stages 1 and 2 for the academic year 2003/04 continued the improvements on previous figures, particularly at higher levels. In reading and mathematics, 1 in 3 children again performed above the level expected for Key Stage 1 (7 year olds). However, attainment across the Island’s primary schools shows a more varied picture at Key Stage 2 (11 year olds) with improvement in English, a similar result to last year for maths and a reduction in science. Generally girls continued to out perform boys particularly at the higher levels, with the exception of mathematics at Key Stage 2. Performance against the Key Performance Indicator for the end of Key Stage 2 Assessments are currently in the range for English and Science whilst for Mathematics the performance of 72.6% is just below the target range of 74% to 80%. Overall, the five year trend line to 2004 is upwards in all subjects.

The overall attainment for the end of Key Stage 3 (14 year olds) was good with increases in English and Mathematics, and a small decrease in Science. At GCSE (16 year olds) 54.6% of pupils gained 5 or more A* - C passes compared to the English figure of 52.6%. The key performance indicator of 93% of 19 years olds with a level 2 qualification (GCSE or equivalent) has been achieved by 16 year old pupils in 2003, with 97.7% achieving 1 or more A* - G passes, the same level as that achieved last year. ‘A’ level results for 2004 were slightly below the level achieved in the previous year; however the previous year’s results were exceptionally good. Targets set for achievement of Level 3 (‘A’ level or equivalent) and Level 4 (First degree or equivalent) are being achieved in terms of school year cohorts.

Overall pupil performance figures across all Key Stages and Post 16 continue to be in line, and more often significantly well above those of our English benchmarking figures.

The attainment of ‘Looked After Children’ at GCSE remains low and continues to be an area for improvement. However the introduction of the recently developed monitoring and tracking system and its expansion to include data from the Department of Health and Social Security under the Children and Young Person’s Strategy initiatives will assist in targeting resources in this area.

Objective 2 Ensure Inclusion by Meeting Individual Needs and Aspirations – Social Well-Being

The Department continues to maintain and further enhance its performance in meeting Special Educational Needs, including working with those pupils who present social, emotional and behavioural difficulties. The training and support programme for Special Education Needs Support Co-ordinators has been running for one year and is ongoing. The Department is seeking to expand the number of nurture groups beyond the nine it currently operates and in this respect, the Primary Advisory Panel has met and identified schools for future development of nurture provision. The overall picture of children identified, as having special needs achieving their targets consistently exceeds 85% in all areas, well in excess of the Key Performance Indicators. The Secondary Behavioural Support Unit at Glencrutchery is operational with a full complement of six pupils. The Youth Service now supports all secondary schools and the IOM College, engaging in a range of projects to support pupils at risk of disaffection. This is an increase from the two secondary schools supported last year and fulfils its performance target.

43 All full time and substantial part time students have access to Key Skills in use of number, communications and information technology at the appropriate level. In April 2005 over 100 adults were receiving Basic Skills part time provision in literacy and numeracy, either in the community or in the prison.

The Student Awards Service supported 1,538 young people to progress into higher education comprising 1,261 at UK institutions and 277 in the Isle of Man, including 129 vocational courses. Secondary school pupils in years 10 and 11 continue to be involved in enhanced vocational curriculum provision via a range of courses delivered by the Isle of Man College and DTI as part of the Department’s 14– 19 strategies.

Objective 3 To Promote Contributions to the Community – Positive National Identity, Social Well-Being

Work on developing Manx aspects of the curriculum is continuing with the objective of ensuring that pupils have a better understanding of the history, geography and culture of the Island. Manx Geography units Key Stage 1 & 2 are on schedule for September 2005. Priorities with regard to the introduction of other subjects have been re-ordered with the introduction of the Key Stage 3 History unit in September 2006. Work on the Arts unit starts September 2005 for implementation in September 2007, whilst that on Geography Key Stage 3 starts in September 2006 for implementation in September 2007. The national curriculum programme of study for Citizenship is being followed in secondary schools. Work has started on the creation of an Isle of Man citizenship policy and programme of study for Key Stages 3 & 4. Whilst not compulsory in primary schools, many are including citizenship with the curriculum.

The Youth Service continues to increase the contact rates with young people. The total number of contacts in 2004, excluding summer holiday schemes, was 75,000 compared to 74,000 in the previous year. This is despite a reduction in the membership of Youth Service projects. During the year 27% of the Island’s young people aged between 13 and 19 have been involved with the service, compared to the English DfES target of 25%. The Youth Service operates eighteen play clubs for years 4, 5 and, 6, twenty three youth clubs for years 7, 8 and 9, and twenty seven special projects.

The Life Education Team continue to support schools in the delivery of personal, social and health education both in primary and secondary, emphasising the role of the individual in relation to being safe, healthy and responsible for their actions. Cross Department working with DHSS, Public Health the Police and other agencies continue to be built upon successfully.

Objective 4 Prepare Individuals to Contribute to the Economic Prosperity of the Island – Economic Progress

Young Enterprise continues to involve a high percentage of Year 12 pupils, in excess of the UK benchmark figures.

Work experience for secondary pupils continues to engage the majority of pupils, and operational difficulties which presented problems before the start of the 2004/05 academic year have been overcome. Current figures suggest that the Department is on line to achieve the targets set for Level 2, 3 and 4 qualifications. The Department continues to explore opportunities for students to follow higher education and teacher training programmes on Island, and an agreement with academic providers in establishing a Manx teaching qualification which will allow trainees to qualify on Island has been reached with Edge Hill University with the first year’s entrants starting in September 2005.

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Objective 5 Maintain a High Quality Infrastructure to Support the Delivery of Education – Good Government

The Department’s Works Department completed disability access reports for all educational buildings and introduced additional practices relating to risk assessment and construction design management to comply with new regulations. During the year the Department received Tynwald approval for the acquisition of the Nunnery Estate, thus ensuring the continuing provision of higher education courses and continuing professional development through the IOM International Business School (IBS). The IBS currently has over 140 full and part time students studying undergraduate and post graduate degree courses and operates a number of others including some in cooperation with the IOM College. The development of the IBS continues to be addressed by the Department. With regard to the development of plans for a new secondary school in the East of the Island, planning permission for the development has been approved and the Department is working on a revised business case to progress the scheme. The establishment of the Human Resources team has significantly improved the quality and efficiency of personnel services to schools. Tracking, data collection and analysis systems have expanded across a number of sections in the Department. The establishment of a new data and information handling and analysis unit is providing an improved service to schools as well as the Department.

The monitoring of strategic and operational business objectives across the Department is now much more systematic. The planned restructuring of the Department has been completed although further ongoing changes will be introduced as appropriate.

The high speed broadband network which links the Department and the schools is operating at a satisfactory level and teachers and pupils continue to benefit from enhanced resourcing and technical support.

The second phase of the remodelling of the teacher workforce has been secured and will continue to be rolled out over the next two years.

Training is now underway with regard to the Department's school leadership and management course and the department is seeking external validation for the course with an ITT institution. The strategy for the replacement of Ofsted style school inspections has been agreed in partnership with schools. The School Self Review Framework has been launched for use from September 2005 and the first external validations will begin in September 2007. A system of regular visits to schools by advisers has been introduced and schools recognise the benefits of a clearer agenda for school improvement being provided by the service. Two schools have been reviewed by the Department this term to evaluate standards and the quality of provision. In addition a review of Modern Foreign Languages was concluded in February 2005.

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4.3 DEPARTMENT OF HEALTH & SOCIAL SECURITY

Health Services

KPI: Reduction in the waiting time between GP Referral and first out-patient clinic consultation Target: 95% of referrals seen within 13 weeks by March 2006

On-going. The only waiting list measure available at present is how long a patient has waited between the date of referral and the most current report date. These patients have yet to receive an appointment.

It will soon be possible to provide information on the waiting time between GP Referral and first outpatient clinic consultation on a quarterly basis, pending ongoing validation checks. The first measure should be available in September for the first quarter of the year.

KPI: Reduction in the waiting time between determination of need for and provision of an elective in-patient procedure Target: 95% of procedures delivered within 13 weeks by March 2006

On-going. The only waiting list measure available at present is how long a patient has waited between the date of decision to admit and the most current report date. These patients may, or may not, have already been allocated an appointment to be admitted.

It will soon be possible to provide a validated measure for the actual time waited from decision to admit to provision of an elective in-patient procedure. The first measure should be available in September for the first quarter of the year.

KPI: Reduction in the total waiting time for elective surgery Target: System in place by March 2005 for measuring time between GP referral and elective surgical procedure being performed

On-going. It is not possible to provide this information from the current Patient Administration System. A business case for a replacement Patient Administration System is currently with Treasury. A new system should enable this information to be provided.

KPI: A system established for benchmarking the quality of hospital service performance Target: System in place by late Spring 2004

Achieved. It is now possible to benchmark data quality on a quarterly basis providing indicators on the quality of clinical coding, demographics and administrative information on the Patient Administration System.

KPI: A system established for reporting on diagnostic and therapy services performance Target: System in place by late Spring 2004

Achieved. Activity information has been available and reported upon since April 2004 for diagnostic and therapy services as part of the Hospital Services Activity Data report.

Diagnostic information includes Radiology and Breast Screening activity for Inpatients, Outpatients and GP Referrals along with total examinations taken and total number of units (time) taken plus corresponding Waiting List information. Pathology activity currently records the numbers of requests received by each department plus Mortuary statistics.

46 Therapy information includes a combination of Inpatient and Outpatient activity, as appropriate, for new and total patients seen plus number of units (time) taken for Dietetics, Physiotherapy, Occupational Therapy and Audiology. Waiting List information is also available.

KPI: Ensuring the provision of an effective childhood immunisation programme Target: Immunisation delivered to 90% of the target population (excluding objectors) at the relevant times

Achieved. Information provided by GP practices indicates that nine out of eleven GP practices reached the 90% target for childhood immunisation in the year ended 31st March 2005, with the two remaining practice achieving 70%. The overall figure across the Island was 91.12%

KPI: Procedures in place to ensure the ambulance service meets the UK national Standard for emergency response times Target: 75% of calls reached within 8 minutes

Not Achieved. The UK National Standard requires 75% of category “A” calls, and 50% of total calls to be reached within 8 minutes. The comparative data for the Island indicates standards of 66% and 62% respectively. Work is being undertaken in conjunction with the Centre to establish robustness in the performance data figures, which are at present indicative. The higher standard, in particular, has become increasingly difficult to meet due to increased activity levels, and it is anticipated that the additional resources provided in 2005/06 budget will assist in meeting and maintaining the standards.

KPI: Improvement of the oral health of 5 year olds in line with the oral health strategy Target: No more than one decayed, missing or filled tooth per 5 year old by 2006

On-going. Delivery of the Oral Health Strategy has been previously deferred due to the ongoing difficulties in securing a comprehensive NHS dental service. A situation now, in the main, remedied through the development of a Primary Care Salaried Dental Service.

In view of the timescale since the Oral Health Strategy was produced, and the many changes since then in terms of service delivery, the opportunity is being taken to have the strategy reviewed by a specialist in Dental Public Health to ensure it continues to accurately reflect the relevant aims and objectives. Arrangements are currently in hand to commence that process.

Social Services

KPI: Developing the scope of residential care provision for adults with learning disabilities Target: Provision of an additional 8 places by December 2005

On-going. Four new places will come into operation in July 2005. Plans for a further 8 new places are currently under development with DOLGE.

KPI: Developing the scope of respite care provision for children with disabilities Target: Provision to be doubled by March 2006

On-going. The new Children’s Resource Centre in Douglas will come into operation in the Autumn, thus doubling the level of respite provision for children with disabilities.

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KPI: Developing the scope of home care for older people Target: By December 2004 to have established quality systems in Home Care Services and Learning Disability Service

Achieved. Home Care Services are now being monitored against National Service Framework standards. In addition, new technologies have been implemented which provide high levels of monitoring management information. Learning Disabilities Services are developing a total quality approach comprising quality assurance, supervision and training.

KPI: Developing quality and standards of service Target: By December 2004 to increase by 10% the number receiving high level support (10 hour + per week) and the number of day care places.

Achieved. 10% more Home Care Service Users are receiving higher levels of support. The number of day care places for older people has increased by 10%.

Social Security

KPI: Income-related beneficiaries to receive detailed analyses of their awards Target: New IT supported system rolled out to this group of beneficiaries by April 2005

Not achieved. Budgetary constraints have resulted in the development of the benefit payments system not being progressed as quickly as originally planned. A revised schedule of works is to be drawn up, which may result in this objective being re-prioritised.

KPI: Identification of level of satisfaction of customers of the pensions forecasting service Target: Satisfaction rate of 4 on a five point scale (5 being very satisfied and 1 being very dissatisfied)

Achieved. The response rate to the survey conducted in July 2004 was 27.7% and the average satisfaction rate was in excess of 4.

Chief Executives Office

KPI: Publish service delivery standards for each service area. Target: By June 2004 (with annual evaluation of effectiveness)

Achieved. All main service areas have now developed an individual leaflet detailing service standards available. Leaflets are available in large print or audio print on request.

KPI: Raise awareness among staff of quality and customer service issues Target: Introduce the DHSS Quality and Customer Service Strategy to new employees within 8 weeks of commencement of employment by June 2004

Achieved. The Department of Health and Social Security’s first Quality and Customer Service Strategy was introduced in June 2004. It was made available to staff at the Department’s Corporate Induction Scheme and on the intranet. All new employees must attend the Corporate Induction Scheme within 8 weeks of commencing employment.

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4.4 DEPARTMENT OF HOME AFFAIRS

The year 2004-05 was one of significant change, challenge and achievement for the Department of Home Affairs.

The core purpose of the Department is to ensure community safety, which in turn is a major contributor to the overall Government objective, which is “To maintain and build on the high quality of life enjoyed by the Island’s community”, this is something that affects everybody either living on or visiting the Island.

In terms of change, challenge and achievement, the following is not by any means an exhaustive list of the activities that the Department has undertaken during the year, but is a sample which exemplifies the diversity of issues the Department deals with on a day to day basis.

Often, people regard community safety as being solely linked to levels of crime, but community safety if far broader and the following does provide a good example of the breadth of the responsibilities of the Department:-

1) To ensure that the Isle of Man Constabulary remains flexible and responsive, the force underwent a complete structural reorganisation ; 2) To ensure that progress is made with the construction of a New Prison, planning permission was obtained for a New Prison at Jurby; 3) To ensure that the people of the Isle of Man receive a truly integrated response to emergencies, 2004-05 was the first year of operations of the world’s first truly integrated Emergency Services Joint Control Room; 4) To ensure robust radio telephony communications, 2004-05 also saw the successful implementation of the new Digital Trunked Radio System (TETRA) used by the Emergency services and thirteen other organisations within Government; 5) To ensure transparency and to demonstrate Force integrity, the Cheshire Constabulary concluded their investigation into alleged covert audio surveillance at the Police Headquarters; 6) As an alternative to custody, the Probation Service has implemented Electronic Monitoring of Offenders which became operational in July 2005; 7) The Civil Defence Division continues to plan and prepare for major incidents by organising and completing a multi-service, mass casualty exercise at the Airport; 8) To ensure that our Fire and Rescue Service has use of the latest equipment and technology, a new Ariel Ladder Platform vehicle with a Feros camera system was procured.

In addition to the above achievements, all of the emergency services had to deal with the aftermath of the storms of January 2005, which required the establishment of a major incident centre at the Emergency Services Joint Control Room.

All of the above has required the commitment and dedication of the staff of the Department, who have risen to the challenges commendably.

The Department remains committed to ensuring the Isle of Man is a safe place to live, however, we must ensure that our high standard of community safety is not taken for granted. We must guard against becoming too complacent by ignoring the threats both within and off the Island, which may effect the present reality of the Island being a low crime environment which is regarded with envy by other jurisdictions.

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KPI: Crime Rates Target: To sustain low levels of crime

On-going. Reported crime continues its overall downward trend with a pleasing reduction of an overall reduction of 7.1% for the period 1st April 2004 to 31st March 2005. The 7.1% reduction equates to 278 fewer victims of crime.

KPI: Improving crime detection rates Target: To improve the detection rate for recorded crime

Achieved. The detection rate continues to improve. The year ended 31st March 2005 enjoyed a detection rate of 38.8%. This is compared to 30.0% for the previous year and is the highest in 4 years.

KPI: To sustain low levels of Road Traffic Collisions where death or serious injury occur. Target: to reduce the number of Road Traffic Collisions

Achieved. Overall collision levels have been reduced by 11%. The Isle of Man Constabulary, working in partnership with other agencies, has reported a significant 22% reduction in the number of collisions resulting in death or serious injury.

KPI: To implement the principles of Corporate Governance across the Department Target: To have achieved this by 31st March 2005

Not achieved. This target has not been achieved. A Government wide Corporate Governance framework is currently under development and the Department will adopt that framework and implement Corporate Governance in accord with the Government wide time- table.

KPI: The Probation Service will continue to aspire to reach National Standards Performance Target: Ensure attainment in 90% of cases

Achieved. The Probation Service regularly monitors a total of 14 National Performance Standards. In the last year, the Probation Service achieved National Standards in 94.91% of cases.

KPI: To improve fire safety awareness through increased public education. Target: To continue to deliver structured fire safety training to specific groups within the community.

On-going. This target was achieved by formulating and delivering fire safety seminars to certain group and organisations within the community. In particular, Hotel Managers, Boarding House Keepers and Public House Licensees were provided with detailed fire safety training and education specific to their roles and responsibilities.

KPI: to establish, source, test and validate a robust response to a major CBRN incident including a Major Integrated Exercise.

Achieved. This target was achieved by running exercise “Kruger” which was a multi- service mass-casualty scenario at Ronaldsway Airport.

KPI: To ensure there are no escapes from the Prison, the Courts or from escort. Target: no escapes

Not achieved. This target was not achieved. During 2004-05, one prisoner escaped from custody whilst being escorted to receive dental treatment.

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KPI: To have produced a strategy for the development of the Emergency Services Joint Control Room to become Government’s emergency response centre. Target: to be achieved by 31st March 2005

Not achieved. This target was not achieved. Discussions ongoing with relevant Departments and Agencies, delays have resulted caused by the slowness in response from these organisations.

KPI: To build the prison Target: To progress the scheme during the period of this plan

On-going. The Department received planning approval for the construction of a New Prison at Jurby in August 2004. Despite delays due to planning issues and environmental concerns, the Department received Tynwald approval for the construction of a New Prison at Jurby. Work commenced on the site in August 2005 and is due to complete in September 2007 and is planned to be operational by December 2007.

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4.5 DEPARTMENT OF LOCAL GOVERNMENT & THE ENVIRONMENT

KPI: Construction of public sector and first-time buyer homes Target: Build 120 per annum on average under each category during the life of this Plan

On-going. The DLGE has accelerated the progress of the public sector housing programme. The aim is to increase the completion of dwellings from an average of 80 properties per annum to 120 over a five year period ending 2007. Completions were running slightly behind programme at 31st March 2005 as follows:-

2004 106 homes completed 2005 75 homes completed (Spring 2005) 2005 88 homes under construction (Spring 2005)

The DLGE is confident that the average will be achieved over five years as the Lower Pulrose redevelopment reaches completion and major redevelopments commence at the Lezayre Estate Ramsey and Janet’s Corner Castletown.

The DLGE has also aimed to accelerate the First Time Buyer programme in a similar manner. At the end of 2004/05 completions were behind programme as follows:-

2004 58 homes completed 2005 80 homes completed (Spring 2005) 2005 46 homes under construction (Spring 2005)

The DLGE will not reach the average target for completions because of problems associated with land ownership, obtaining planning permission, slow progress by developers and in one case withdrawal of a scheme by a developer. Planning problems have been compounded by the one year delay caused by the refusal of planning permission for the new Douglas water treatment works. The refusal of the planning application for Ballanard Road, Douglas will also mean that there will be a shortfall of around 100 dwellings against the target of 600 dwellings over five years and it will be extremely difficult to compensate for this.

KPI: Number of persons on public sector waiting lists and first-time buyer register Target: Reduce the April 2003 number by 25% by 31st March 2008

Not achieved. The public sector waiting list at 31st March 2005 totalled 1403 compared with 1349 at 31st March 2003. An analysis of the list shows the following:-

Elderly Persons 31/03/05 – 351 compared with 31/03/03 - 373 General List (singles) 31/03/05 – 427 compared with 31/03/03 - 433 General List (couples/families) 31/03/05 – 625 compared with 31/03/03 – 543

The completion of the Lower Pulrose redevelopment will begin to make an impact on reducing waiting lists in 2007/08. However, the completion of the redevelopment projects at the Lezayre and Janet’s Corner Estates will not have an impact until 2010/11. Until these major redevelopments have been completed, the waiting lists will continue to be under pressure because of the high cost of home-ownership and the level of private sector rents. A 25% reduction in waiting lists will not therefore be achievable by March 2008.

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KPI: Effective control of houses in multiple occupation Target: Introduce a new Bill and subsequent regulatory regime by 31st July 2004

Achieved. Housing (Multiple Occupancy) Bill has been passed and Regulations are being prepared by the DLGE for consultation.

KPI: Number of Unfit Dwellings as a percentage of the housing stock Target: Reduce the number of unfit dwellings identified in the 2002 House Condition Survey by 5% by 31st March, 2008, and undertake a further survey in 2007

Not achieved. This KPI is currently under review by the Department.

KPI: Existing air and drinking water quality measures Target: Evaluate the adequacy of the current monitoring programmes by 31st March 2005, and review annually thereafter during the life of this Plan Introduce improvements to the monitoring programme by 31st March 2006

On-going. An initial review of the air quality monitoring regime was undertaken by the DLGE within the target period. The historic NOX diffusion tube survey was rationalised and reduced down to only those monitoring points where results are affiliated into the UK survey. Available resources have been refocused on mobile dust monitoring plant enabling remote reporting of site-specific problems in order to bring about desired improvements.

KPI: Environmental Protection Strategy Target: Publish Strategy by 31st July 2004

Achieved but after target date. The Strategy was laid before Tynwald in July 2005.

KPI: Existing river and bathing water quality measures Target: Introduce the remaining provisions of the Water Pollution Act 1993 by 31st October 2004 and issue deemed consents for all point source discharges to water by 31st December 2006

Achieved but after target date. The target date for introducing the remaining provisions of the Water Pollution Act 1993 was not achieved because of delays in recruiting a qualified Freshwater Biologist. However, they were introduced from 1st February 2005.

Significant progress has since been made on the issue of deemed consents with the target of December 2006 still appearing realistic.

KPI: Provision of land for economic development Target: Approval of Strategic Plan by 31st October 2004, and comprehensive range of Area Plans in operation by 31st March 2007

On-going. A modified draft Strategic Plan was published by the DLGE in November 2004 and a Public Inquiry held in March 2005. Report of the independent inspector is awaited. Further work on Area Plans has had to be deferred until the Strategic Plan has been progressed.

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KPI: Conservation of the countryside and wildlife and protection of the cultural heritage Target: Designate first National Heritage Area by 31st October 2004. Designate 2 Conservation Areas and register 50 buildings each year during the life of this Plan

Not achieved. Consultation on proposed National Heritage Areas was undertaken in March 2005. Consultation responses are to be analysed with a view to designation of first Area by the end of 2005. Conservation Areas for Kirk Michael and Glen Wyllin will be subject to consultation during Summer 2005. St Johns and Sulby Conservation Areas are to be drafted by 31 March 2006. Six buildings were Registered in 2004/5. Progress on Historic Buildings was delayed in 2004/05 by the number of appeals against Registration.

KPI: Number of Food Safety Initiatives Target: Undertake at least 2 Food Safety Initiatives per annum and continue to provide at least 10 food safety training courses per annum

Achieved. In June 2004 the DLGE’s Food Safety Unit took part in the National Food Safety week with a poster competition for Schools and a Calamity Kitchen was erected at the Strand Shopping Centre, Douglas. In addition, the Unit shared a stand at the Lifestyle Exhibition at Mount Murray in September 2004 to promote an understanding of food labelling prior to the introduction of the Food Labelling Regulations 2004.

During 2004/05, 13 Basic Food Hygiene Courses were run by the Unit with 178 persons gaining the Foundation Certificate in Food Hygiene. Although the Unit has been providing these courses since 1984 this was the first year when it had students whose first language was not English. There were ten nationalities involved and, for the time, two students took the examination in Mandarin.

KPI: Number of Safety Initiatives Target: Pilot a new “Work Safe” Initiative by 31st March 2005, and hold at least one Health and Safety Awareness event each year during the life of this Plan

On-going. The “Work Safe” initiative was one of a number of measures submitted to a Select Committee on health and safety for possible alternative approaches to enforcement work. The report of that Committee is awaited and a change of direction will not be undertaken in advance of that.

In respect of awareness initiatives, the DLGE’s Inspectorate has significantly exceeded the target. Four half-day sessions have been held on fire risk assessment (with Isle of Man Fire & Rescue Service); three full-day sessions on designer duties under Construction, Design and Management (CDM); numerous sessions on other CDM requirements, often working with the Employers’ Federation; monthly construction safety workshops; presentations to Union representatives, to the Chamber of Commerce; a week-long series of events for European Health & Safety Week which attracted support from Members of Tynwald; and two event safety evenings, one in partnership with the Department of Transport (Harbours).

KPI: Number of unlicensed Waste Disposal Sites Target: Ensure by 31st March, 2005, all Waste Disposal Sites are licensed before waste is disposed in them

Not achieved. Following the initial secondment by the DLGE of an additional resource to hit this target, this was subsequently depleted due to factors beyond the Department’s control. Consequently, whilst good progress has been made in issuing licences for all known

54 applications, it has not been possible to target “illegal operations” as effectively as had been planned. This means that this target could not be achieved.

KPI: Number of pest control initiatives Target: Hold at least one training course for farmers in the safe use of poisons each year during the life of the Plan

Achieved. This target has been met. However, it has been decided not to hold this training event in 2005/06 as the number of interested farmers is dwindling. The situation will be reviewed in 2007/08.

KPI: Increased awareness of climate change Target: Undertake a climate change scoping study using the BIC Scenarios for Islands within the BIC region during 2004/05 and develop a climate change adaptation strategy by 31st March 2005

Not achieved. The target was not met as resources could not be allocated for 2004/05. However, a Scoping Study has now been commissioned.

KPI: Waste produced for disposal in WMB(DLGE)-managed landfill/Energy-from-Waste facility is minimised Target: Fraction of waste for disposal at Government’s landfill sites and the Energy-from-Waste facility does not exceed 0.8 tonne per head of population per year by 31st March 2005

On-going. The introduction of waste charging has led to a significant decrease in the waste being delivered to landfill in 2004-05. However, the above measurement does not really reflect a decrease in waste produced for disposal, which is the Government aim, only that the waste being sent to the Department’s landfill has reduced. The future target should be to reduce the amount of waste being produced/imported to the Isle of Man and in 2005/06 the Department is revising its strategy to concentrate on this new aim.

KPI: The public and businesses are educated in the need for their support in improving re-use and recycling rates Target: Continue the public education campaign to ensure at least three schools are brought into the programme each year during the life of this plan

On-going. During 2004/05 the DLGE’s Waste Minimisation and Recycling Section has worked successfully to develop a wide range of activities as part of its role to educate about and promote the three Rs (Reduce, Reuse Recycle). Focusing in primary (including pre- school) and secondary schools, the Section offers individual classroom and all school activities which support the national curriculum. School visits have been completed in 13 primary and 2 secondary schools, ranging from dustbin assemblies to paper-making activities, provision of wormeries and all-year group geography lessons on resources. The Section has also attended 9 meetings of beaver, scout and guide groups, youth clubs and interest/church groups. To promote the 3 Rs to a wider Island audience, the Section has utilised press and milk carton advertisements, interviews on the radio, feature articles in the newspapers, the design of a 'stand alone' web site, and has had stands at both Tynwald and The Royal Agricultural Show.

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KPI: The risks to the environment from illegal waste disposal are minimised Target: All reported incidents of illegal tipping are dealt with within 5 working days

On-going. It was envisaged by some Island residents that introducing waste charging would increase the incidence of illegal tipping significantly. Albeit there has been an increase in reported incidents since waste charges were introduced, this is felt to be due mainly to people being more aware of items illegally tipped, and the need to report them.

The DLGE has built up a good working relationship with Local Authorities, which collect and dispose of illegally-tipped items in their areas. All illegal tipping is dealt with in five working days of the incident being reported, provided access to the land concerned has been granted by the landowner. In addition, the Department is developing a working relationship with the police with a view to reducing the incidents of fly tipping through securing more prosecutions under the Litter Act.

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4.6 DEPARTMENT OF TOURISM & LEISURE

KPI: Total Visitor Spend Target: To increase visitor spend by 3% by 31 March 2006 (in real terms)

Achieved. Tourism generated £112.7m spend for the local economy in 2004 (including travel to and from the Island) compared with £102.5m in the previous year reflecting an increase in real terms of 4.9% and exceeding the target set. Leisure visitor bed nights for 2004 were over 633,000 compared with the 2003 figure of approximately 566,000 i.e. an increase of 11.8%. 340,902 non-residents visited the Isle of Man during 2004 compared with 337,417 in 2003 and a low of 287,063 in 2001. This was when precautions to prevent the spread of the UK foot and mouth epidemic to the Isle of Man succeeded but impacted significantly on air and sea arrivals.

A new five year strategy for Tourism ‘Fit for the Future’ received Tynwald approval in April 2004 following on from Industry consultation and support. To facilitate delivery the Tourism Division has been restructured to concentrate on: product development, communication (business partners and visitors), quality and service and events. The Department commenced introduction of key elements of the strategy during the year. These include the review of a new Tourism Act to meet modern day standards. Introducing the ‘failt manninagh’ (Manx Welcome), a structured training initiative programme run in conjunction with the Department of Trade and Industry and the Isle of Man College. The programme covers a number of modules enabling staff to acquire the right skills to work in the Hospitality Industry and the progression of an on-line booking facility to assist our customers with access to our product.

KPI: Number of bed spaces Target: To facilitate an increase in total number of hotel, guest house and self catering bed spaces to 8,000 by 31 March 2007

On-going. The target of 8,000 bedspaces was set based on the likely development of Summerland and the inclusion of a 100 plus bedroom hotel as well as development at the airport, Castletown Golf Links and Douglas. Due to a combination of external factors these projects have either been cancelled or delayed which has contributed to the continued erosion of bedspaces which is now 6,467. This target has been revised from 8,000 to 7,000 in recognition of these issues.

One of the mechanisms the Department uses to encourage the redevelopment of Tourism infrastructure is its Grant Scheme. During the year the scheme was reviewed and new support material produced. This year six grants have been offered totalling £501,761 compared to four in the previous year which totalled £112,093.

KPI: Hotel and Guest House Standards Target: 5 Hotels or Guest Accommodation to achieve Gold or Silver Awards by 31 March 2007

Achieved. A new grading scheme was introduced in the 2003 Assessment Year which awarded gold and sliver awards to hotels and guest accommodation achieving the highest levels of quality, service and hospitality within their ratings. 2004 saw ten gold and silver awards which was an increase on the previous figure of four for 2003 meeting the target set.

KPI: Hotel and Guest House Standards Target: 50% of Hotels to achieve 3 star rating or above by 31 March 2007 75% of guest accommodation to achieve 3 Diamond or above by 31 March 2007

Achieved. The 2004 ratings saw 50% of hotels achieve a 3 Star rating or above and 80% of guest accommodation achieve a 3 Diamond rating or above meeting both targets.

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KPI: Number of patrons using leisure facilities Target: To achieve usage numbers for departmental leisure facilities in excess of 792,000 per annum by 31 March 2007

On target. Attendance at leisure sites totalled 899,414 compared to 784,379 for the previous year i.e. an increase of 14.65%. This includes over 600,000 users at the National Sports Centre, nearly 210,000 for the Villa Marina and Gaiety Theatre Complex and almost 57,000 for the Wildlife Park. Both the National Sports Centre and the Villa Marina and Gaiety Theatre Complex increased attendances this year with the Villa Marina exceeding its target of 150,000 in its first operational year by 50,000. Overall performance is on schedule to deliver against the target in the Isle of Man Government Plan of 10% increase by 2008.

KPI: The independent quality assessment score Target: To achieve relevant external accreditation for all leisure services by 31 March 2007

On target. The National Sports Centre achieved 'Highly Commended’ status in 2001 and 2003 under the leisure industry standard QUEST scheme placing it in the top ten centres in the British Isles. The Department is committed to expanding QUEST registration to sports development and a ‘dry run’ assessment took place in March 2005 which highlighted some areas to be addressed. The Wildlife Park is working towards compliance with the standards of the British and Irish Association of Zoos and Aquariums and several possible options are being explored for the Villa Marina and Gaiety Theatre Complex. The Department remains committed to external accreditation for leisure services.

KPI: % of bus fleet accessible by disabled or less agile users Target: 80% of bus fleet accessible to all disabled and less agile users by 31 March 2007 ED SOME On target. As at 31 March 2005 71.7% of the operational bus fleet are low floor, disabled access buses. In terms of the core timetable, well over 90% of journeys are now serviced by low floor, disabled accessible double deck buses. An additional five double deck buses and one single deck bus will join the fleet during 2005 and this will improve further the ratio of low floor, disabled accessible buses owned by the Department.

KPI: % of bus fleet compliant with EU exhaust emission standards Target: 70% of bus fleet complies with EU exhaust emissions standards (Euro 2) as at 31 March 2007

On target. The Department’s operational bus fleet is comprised of 85 buses of which 55 are compliant with EU exhaust emission standards. This equates to 64.7% of the fleet. The continuation of the ongoing bus replacement programme will ensure that the proposed target will be reached by the date set.

KPI: Level of customer satisfaction with public transport services Target: To review outcome of the customer survey undertaken in 2004 and prepare a plan for phased implementation of recommendations

On-going. An independent customer satisfaction survey on the bus service provided by the Department was completed during 2004. In the main, the feedback and comments received were favourable however, wherever possible suggested improvements were implemented. A new feedback mechanism has been introduced within the 2005 Bus/Rail Timetable and an independent customer survey is to be conducted during Summer 2005 targeting both users and non users of bus and rail services.

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KPI: Number of passengers on the bus service Target: To maintain March 2006 level of passengers carried by the bus service as at 31 March 2007 (Target of 4.4M as at 31 March 2006)

On-going. The total number of recorded passengers using the buses during the 12 month period ending 31 March 2005 was 4,205,115. This total represents a 4.2% reduction in the number of bus passengers using the services over the previous year. Fare box income for the same period has shown an increase mainly due to the implementation of changes in fare structures and the increase in charges for 12 Journey and Explorer tickets. It is accepted that the Bus Industry is price sensitive and there will be a need in the future to balance the need to encourage use of public transport and revenue generated.

KPI: Number of passengers on the rail service Target: To achieve 337,000 annual passenger journeys by rail per annum by 31 March 2006 (2% increase on previous year)

On-going. The total number of passengers using the railways during 2004 – 2005 season was 326,370. On the current level of performance the Department looks set to achieve the target set although the proposed closure of the MER during winter 2005/2006 will have some impact.

KPI: Compilation and submission of individual service plans and budgets Target: To deliver the Department's annual plan and budget within pre- determined deadlines

Achieved. The Department delivered its service delivery plan, annual report and revenue and capital estimates in line with the corporate timetable.

KPI: Equivalent advertising value of UK press articles Target: Increase the equivalent advertising value of UK press articles by 10% pr annum

Achieved. The equal advertising value of UK press articles for the period January to December 2005 was £553,855 reflecting an increase of 23.43% over the previous year.

KPI: Journalist visits Target: One journalist visit from each of the UK national newspapers by 31 March 2007

On-going. Multiple coverage last year in the UK national press from journalists visits sponsored by the Department. This coverage converted into equivalent advertising value of approximately £190,000 excluding the Isle of Woman Publicity obtained through working with Yorkie’s PR company. The total value of this particular campaign across national and regional newspapers was an additional £400,000. To achieve coverage in all remaining publications over the two year period will only require editorials in two daily papers and four Sunday papers.

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4.7 DEPARTMENT OF TRADE & INDUSTRY

KPI: Change in GDP generated by the sectors of the economy within the departments remit. Target: Identify and publish information demonstrating the development of the sectors within the Department’s remit.

Achieved. The performance of core manufacturing and technical businesses in the Island is reflected in the level of investment and number of offers made under the DTI’s Industrial Financial Assistance Scheme (IFAS). In the financial year to 31st March 2005, the levels of grant assistance paid to businesses has increased significantly by £1.4m to £4.2m, stimulating over £10m of private investment on the Island. This, coupled with some strong financial performances by key businesses, indicate that manufacturing overall is experiencing real growth and is well-positioned for further future growth.

The DTI has continued to work closely with local ICT services and e-business companies to help attract new businesses in targeted sectors and to encourage the use of e-business amongst smaller businesses. Regarding the latter, 39 ICT/e-business projects were completed under the Business Support Scheme and over 4,000 new broadband connections to the Internet were facilitated by the DTI (more than double the previous year – as a result, IOM now has more broadband connections per household than Singapore).

The most significant sub-sector of ICT/e-business, and the area with huge growth potential, is e-Gaming. Since the DTI became involved in promoting e-Gaming two years ago, this sector has grown from a handful of jobs to over 150 jobs, many highly paid.

Target: Commission and complete a detailed feasibility study for an Isle of Man Aircraft Register by 31st December, 2004.

Achieved. The study drew on independent air and legal expertise, who concluded that not only could the Isle of Man establish a viable aircraft register, but that it offered significant opportunities for economic growth. The presentation on feasibility was delivered to DTI in October 2004 and to the Council of Ministers in March 2005. As a result, manpower and funding for a new Civil Aviation unit within DTI was agreed for 2005/6. The recruitment process for the Director of Civil Aviation has now commenced.

KPI: Local spend generated from production activity by the film sector. Target: Generate a local spend of at least £10m per annum and 18,000 bed nights from film production activity.

Achieved. 12 projects were successfully completed during the year generating a spend in the local economy of £11.4m and total bed nights of 18,051. The 12 projects consisted of eight feature films, three television dramas and one animation project thus reflecting the increasing diversity of production in the Isle of Man. The ability to secure US rights and to act as a Sales Agent are two important steps forward made by Isle of Man Film during the year. The animation project will hopefully stimulate the creation of a permanent industry in animation in the Isle of Man.

KPI: Status of the IOM Shipping Register. Target: Maintain the Class 1 status of the IOM Shipping Register.

Achieved. Participation at the 2004 Red Ensign Conference confirms and all action points from the conference met.

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Target: Retain the position on the European “White List” of quality flags.

Achieved. The international reputation of the Isle of Man as a centre of excellence for Marine Administration continues to grow. The Island is now ranked second in the world on the Paris MOU “White List” which is the quality standard for international shipping registers. This places the Island above the UK and behind only Germany. Over 400 merchant vessels and 22 super-yachts are now registered in the Island, with many more expressions of interest from international businesses.

KPI: Proportion of the working population in organisations with the IIP standard. Target: Add to the number of organisations with IIP accreditation so that the proportion of the working population working under the Standard grows by 5% per year.

Not achieved (for technical reasons). The number of people working under the standard has in fact fallen recently due to factors out of the DTI’s control such as the down- sizing of a number of large organisations. 36 organisations currently work under the standard, with a further 14 working towards accreditation.

KPI: Numbers of apprentices under formal training agreement with the Department. Target: Increase the number of apprentices and technicians under formal training agreements by at least 5% per year.

Almost achieved. 4.3% achieved in 2004/5. There has been increased interest in formal training opportunities in the retail and hospitality sectors, and engineering manufacturing has recruited strongly this year with a number of formal training places. However, demand for places continues to outstrip supply by a considerable margin.

KPI: Achievement of Level 2 and Level 3 vocational qualifications. Target: Ensure that at least 85% of apprentices commencing Level 2 and Level 3 training achieve appropriate qualification.

Achieved. Target rate attained. Apprentices undergoing Level 2 and 3 training and assessment continue to reach the appropriate qualification levels within agreed timescales. In the well established areas such as construction and engineering achievement rate assessment in the IOM College ensures a high level of attainment. Increased levels of workplace assessment are also continuing to meet target levels.

KPI: Operational Efficiency. Target: Complete development of a new training centre by the end of March 2006.

On-going. Following a joint study by DTI, Department of Education, Treasury and the Personnel Office, it was agreed that training delivery would transfer from DTI to DoE and that the proposed new training centre would be in stead be a new construction crafts centre on the Isle of Man College Campus. The Project is now the responsibility of the Department of Education. It is likely to be delayed for operational reasons until 2007.

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4.8 DEPARTMENT OF TRANSPORT

KPI: Highway related complaints (reported defects) Target: Reduction of 5% per annum

Year Number of complaints 2003-04 3196 2004-05 2955 Percentage reduction 7.5%

The target was achieved and exceeded.

Economic Progress (Modernisation)

Airport Operating Capacity Aim: To provide sufficient Operating capacity to meet present and anticipated demands

On-going. Throughout the year the Airport has made a strategic contribution to the accessibility of the Island for visitors and inward investment, and therefore a great deal of management effort has been devoted to the design of the airport “business model” with a view to progressing participation in the ‘low cost phenomenon”.

Several large capital projects have been progressed including: the feasibility study for the RESA/Runway project; the major refurbishment of the aircraft parking stands; an extension to the Departure Lounge; and the design of a new Control Tower. In a growing traffic environment these projects are essential to address new safety standards, and provide the operational space needed to handle larger volumes. Nevertheless in the short-term they will add to the pressure on resources to maintain the integrity of service.

Air Service Development Aim: To encourage and facilitate growth in aviation activity, passenger numbers and air services for the benefit of the Isle of Man , its people and economy

Achieved. Air passenger numbers increased by 3.4% exceeding the 3% target which had been set. Income earned was £8.3m which exceeded the budget target of £7.94m, but there were further increases in costs, primarily due to the larger numbers of airlines and aircraft that were operating. This increased the aircraft handling workload, requiring additional temporary staff to be taken on for the whole year, primarily to maintain the enhanced security regime for baggage and freight.

The pattern of airline activity remained volatile with many changes of contract-airlines and aircraft types. These changes resulted in severe pressure on aircraft parking and stand utilisation leading to long periods of bussing passengers to remote stands. Air travel in general was affected by steep rises in world fuel prices, which put pressure on ticket prices, and led to renewed efforts throughout the industry to lower operating costs. In turn this put pressure on the airport to deliver greater efficiency which was very difficult given the operating conditions described.

Harbours Passenger Traffic Aim: To encourage and facilitate the growth in passenger and related vehicle traffic

Not achieved. The Department’s income from passenger related harbour dues fell slightly compared with 2003/04 (03/04 £1.09m and 04/05 £1.05m) and the loss of growth has raised concerns for the Isle of Man Steam Packet Company’s (IOMSPCo) performance in the short-

62 term. The stand-still in income from this important source was due to the company’s income being adversely impacted by:-

• A general slow-down in the economy. • Capacity Contribution Grant (CCG) available to airlines on the Liverpool route.

The loss of harbour dues income, IOMSPCo’s performance and the reasons for it, resulted in considerable Department effort being devoted to finding a framework to advise and assist the company. In particular, the development of an incentive scheme, that would compare with the airline CCG, to facilitate a return to growth in sea passengers. This has resulted in the drafting of the Passenger Traffic Development Initiative which will reward the company for meeting a range of additional service provisions, including operating vessels with a greater capacity and offering more “special offer” fares.

Social Well-being (Community Safety)

Marine Safety Aim: To operate the harbours in a manner that reflects UK and international best practice. To manage developments in the territorial waters in order to maintain safety of navigation

On-going. Douglas Harbour Control provides all-Island operational support to all the other harbours, the Coastguard and the Department’s activities in the territorial sea. Its radio system is therefore a key element to effective and safe operations. In May 2004 a major component failed and after evaluating the options a decision was taken to renew the radio system to improve effectiveness and to obtain value for money. In March 2005 the new radio system was successfully brought into operation.

On the 1st July 2004 the International Ship and Port Safety Code (ISPS) came into effect. To comply with this international obligation, the port security at the harbours - principally Douglas - had to be improved. In addition to installing more fencing there has been a need to provide more security staff. In order to provide 24 hour cover on a year-round basis all of the Terms and Conditions under which Port Security and Marine Operations staff (35 people in total) are employed, have had to be renegotiated. Sufficient agreement was reached so that the 1st July 2004 deadline was met and it is expected that the new Agreement will be signed off before the end of 2005.

Sound Infrastructure (Transport)

Highway Maintenance Aim: To maintain and manage roads, footways and facilities to enable their use in a safe, comfortable and convenient manner

On-going. The Highway Division has invested in a computerised Pavement Management System. This prioritises work requirements under three headings: ‘Safety’; ‘Structure’ and ‘Comfort’ and uses data provided by the deflectograph condition survey of the Island’s roads which was carried out in 2003/04. This data output is being used to prepare our programme of major maintenance projects and surface treatments to achieve the best value for money. This work is supplemented by ongoing visual inspections. The first year’s work using this system has been successfully completed to budget and on time and has improved road ride quality and safety, including: Clannagh Road, Sulby; Waterloo Road, Ramsey; Handleys to 11th Milestone; Castletown Bypass to Ballakaighen. In addition 25 kilometres of surface treatment has been carried out on Strategic Routes and a length of the Brandywell Road was reconstructed using in-situ recycling.

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Social Well-being (Community safety)

Road Safety Aim: To continuously improve the safety of the highway environment and its users

On-going. The Road Safety Initiative was launched in 2004, with a dedicated team of officers targeting, in conjunction with the Traffic Police, the reduction in serious road traffic accidents. The initial analysis of “accident cluster sites” identified the A.5 route from Douglas to Port Erin as a priority for signage and other immediate measures (the ‘Route Alert’). Further investigation has shown that the top five “accident cluster sites” are on the A.18 Snaefell Mountain Road. Improvement schemes for two of the priority sites at Windy Corner and Brandish Corner have been developed to the planning stage.

Sound Infrastructure (Transport)

Strategic Highway Development Aim: To determine highway development plans and the resource requirements to ensure timely provision of future highway infrastructure and related aspects

On-going. Many highway network improvements were completed to improve safety for both pedestrians and vehicles, including three new pedestrian crossings and new signage. £500,000 was spent on over 8000 metres of pavement renewals. Private Street Works were completed at Laureston Grove and Close, Douglas enabling these roads to be adopted. Following completion of IRIS pipeline contracts, resurfacing works and road drain renewals were carried out on the Old Castletown Road and in Port St Mary. Repairs were also made to the highway damage caused during the 2005 January storms.

The division undertook the study for the future of the highway network in Kirk Michael and completed public consultation. The public rejected the concept of substantial extra housing being built to justify the construction of a relief road.

Good Government (Quality Services)

Highway Services Aim: To provide customer orientated services relating to the highway and its users

On-going. Working closely with the Treasury and Isle of Man Post during 2004-05, the Department completed the smooth transfer of the agency for the issuing of driving licences and registration of vehicles from the Treasury to Isle of Man Post on 1st April 2005, providing an enhanced service for the public. Arrangements with UK for introduction of Reciprocal Disqualification for drivers were completed. It is anticipated that this will have a beneficial effect on road safety, particularly during the TT period in future years.

Social Well-being (Community safety) Land Drainage

Aim: To afford a reasonable level of protection to the public from undue flooding from rivers and watercourses and to work with other Departments of Government to encourage good practice in the management of the Island’s rivers.

On-going. Planned drainage area studies in Ballasalla and Rushen were completed on time. The study indicated some minor capacity constraints in the existing sewerage systems

64 which will be addressed. The models will be used to determine the impact of additional flows from new housing developments on the existing sewerage systems.

Good Government (Quality Services)

Sewerage agents Aim: To direct and assist the local drainage authorities (Douglas, Onchan, Ramsey, Peel, Port Erin, Port St Mary and Castletown) in undertaking their delegated functions acting as the Department’s Sewerage Agents

On-going. A review of the performance of the Department’s Sewerage Agents has been undertaken. The results of this review will assist in the preparation of an efficient strategy for the future. A sewerage agency service level agreement has been established with Douglas Corporation.

Sound Infrastructure (Drainage)

Sewage flow transfer Aim: To provide adequate and suitable sewage collection, treatment and disposal arrangements, in the interests of public health and environmental protection.

On-going. The transfer of the sewage flows from the Port St Mary, Port Erin and Rushen catchments was delayed until the commissioning process at the Meary Veg sewage treatment works was carried out. Whilst the sludge drier is not yet fully operational, the treatment processes are working well and producing a good quality treated effluent.

Quality Environment (Waste Disposal) Animal Waste Processing

Tynwald transferred the responsibility for developing the new Animal Waste Processing Plant from the Department of Local Government and the Environment to the Department of Transport in July 2004. Design fees were approved to take the scheme to the planning approval stage. The design team have been working to produce the detailed design of the new plant which is expected to cost in excess of £6m. The new plant is being designed to meet all current and anticipated industry processing standards. When the new plant is operational it will enable the Department to meet the commitment made to close the existing plant and cease animal waste processing at East Baldwin.

The new plant will be able to process all Animal Waste produced on the Island without adverse environmental impact or the need to export any material for processing in the United Kingdom.

Good Government (Quality Services)

Corporate Services Aim: To provide an effective interface between the Department and Central Government and to support the Divisions by providing a level of expertise relating to all corporate affairs, business planning and performance measurement.

Achieved. Health and Safety and Strategy and Process Units have been established within the division during the year to provide specialist support to the Department.

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Good Government (Financial Management)

Aim: To develop and monitor management procedures that ensure the operation of good financial control and administration throughout the Department, in accordance with Treasury regulations and guidelines

On-going. The Department exceeded its net expenditure vote for the year by £405,787 and will seek Tynwald approval for Treasury to apply additional funds from General Revenue Account. During the year the Department reappraises its spending priorities in the light of its business priorities and forecast receipts and has absorbed over £1.0m of unexpected loss of income/increased expenditure. Excess expenditure that the Department could not foresee and for which a supplementary vote is sought, includes storm damage (£120k), port security and cargo handling (£194k) and the liquidation of Atlantic 360 cable company and consequent loss of rent (£116k).

Good Government (Value for Money, Quality Services)

Aims: To provide good quality value for money design services and to be able to measure performance of these services.

To develop multi disciplinary teams with a commercial and customer orientated philosophy.

Achieved. The division operates as an internal contractor providing a civil engineering inspection, consultancy, design, project management and planning supervisor service. ‘Client’ divisions are charged for these services. A surplus of income over expenditure of 1.2% was achieved, meeting the objective to break even within 3%.

During 2004-05 the division carried out work on many schemes including: survey work, a baggage area extension at Ronaldsway Airport, Ballakillowey surface water sewer replacement, Raggatt Weir, Peel Footbridge and Water Retention Scheme, North Quay and Douglas Inner Harbour Development, Vicarage Road Improvement Scheme and Braddan Bridge Junctions Improvement Scheme. A performance management review was carried out in 2003-04 as a result of which new procedures were introduced in 2004-05 to improve the quality of service; in particular improved programming of work, implementation of health and safety regulations, and the introduction of project reviews on completion of the work on site.

Good Government (Value for Money)

Aim: To provide the works and services at a cost and quality and within time constraints no less favourable than could be reasonably expected from the private sector

Achieved. Income generated from Clients topped £29m of which £1.7m was from external sources. The division achieved its objective to break even within 3%, achieving 2.56%

Good Government (Quality Services)

Aim: To carry out works and to provide services for the Department and other Departments of Government, or the private sector where Government policy permits

On-going. The division continued to operate as an internal contractor for the Department’s ‘client’ divisions. Three Service Level Agreements were negotiated and brought

66 into place with these divisions covering: maintenance of Aerodrome equipment, maintenance of harbour fixed mechanical systems and for horticultural provision.

Various major civil engineering projects have been progressed during the year, including:- Vicarage Road Improvement Scheme, Peel Harbour Water Retention Scheme, Ballafletcher Roundabout, Ballanard Roundabout, North Quay and Douglas Inner Harbour Development, Vehicle Testing Centre, Port St Mary Walkway re-build, Friary Park Drainage Scheme, Old Castletown Road re-surfacing, Douglas Harbour Bridge – Replaced lifting arms and bearings. Glen Duff Salt Barn, Lower Foxdale Treatment Works, St Ninian’s Improvement, Laureston Grove Private Street Works, Airport Baggage Area Extension

Good Government (Quality Services)

Core Capability Aim: To Maintain an adequate workforce and resources and to be capable of carrying out essential works on the infrastructure, independent of the state or the buoyancy of the private sector construction industry.

On-going. Planning approval was granted on appeal, for the Poortown Quarry Development Plan, work is expected to commence (subject to Tynwald approval) in early 2006. Approval to continue operations at Stoney Mountain Quarry for five years has been negotiated.

A new dive boat, the “Kesh Varrey” was brought into service and new marine digital radio communication system was installed in Harbour Control. Under a special procurement agreement 76 new vehicles were supplied at a saving of £180,000.

Social Well-being (Community safety)

Emergency response Aim: To train and maintain an organisation capable of responding quickly and efficiently to emergencies.

On-going. A major emergency clean up operation took place following the destructive storm conditions in January 2005. Over 300 fallen trees were cleared from the Island roads. All major roads were re-opened within two days.

A major rock fall at Bulgham, necessitating a complete road closure, took three weeks to clear and make safe.

Migration to the new Tetra mobile radio communications system was carried out within the planned time frame. This involved fitting out the new control room at Ellerslie Depot and the installation of new radio systems in over 200 vehicles.

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4.9 TREASURY

Treasury Aim: Collecting revenue

Targets: Customs and Excise Division to collect at least £285m from indirect taxation receipts in the period to 31/3/2005

Achieved. Net receipts at 31st March 2005 stood at approximately £326m, which is approximately 107% of the adjusted estimate. The additional revenue was largely generated to the finalisation of negotiations with UK Customs and Excise, the receipt of arrears accumulated in respect of the Decennial test and additional receipts identified by the Tax Gap and Intelligence Team formed in 2003/4.

Target: Income tax Division to collect at least £163m from direct taxation receipts in the period to 31/3/2005 Achieved. A revised estimate figure of £150.5m was established after the early publication of the Treasury Business Plan in 2004. The total achieved for year was £150.7m. Treasury Aim: Assisting in economic development and in setting the broad economic policy framework for the Island

Targets: To have implemented the Taxation Strategy by 31st March 2006 such that: • for companies the rates of tax shall be 0% and 10% • for individuals to maintain the 10% rate and review the higher rate On target. On target subject to completing the necessary legislative programme. Zero rate will be implemented by April 2006. Treasury has agreed to the deferment of Manx Corporate Tax until April 2007. Target: To complete the passage of legislation to support the Taxation Strategy by January 2006

On target. On target as elements of the Strategy have now been moved to April 2007 (see above). Elements which are time sensitive to Jan 2006 will be dealt with by that date.

Target: To review and update the overall Government economic strategy on an annual basis.

Achieved. The final Economic Strategy document was approved by Tynwald in October 2004. Work programmes to review and further develop the strategies outlined have now been established.

Target: To publish a report on addressing the digital divide in the Isle of Man by the 30th April 2004

Partly achieved. Partly achieved as the report was slightly delayed and was only published in July 2004.

Following the publication of the report, the E-business Division of the Treasury has worked with the Departments of Education and Trade and Industry with a view to addressing operational issues arising from its implementation.

A Full programme of recommendations is now being implemented and monitoring measures are in place for a performance review in April 2005.

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Target: To produce a strategy and associated initiatives by 30th June 2004 aimed at stimulating further e-enablement across all key sectors of the economy.

Partly achieved. Partly achieved as the completion date was deferred to 31st December 2004, due to other work pressures. Following completion, a working group of interested parties was formed in order to co-ordinate the strategy and associated initiatives.

A further target of 31st December 2005 has been set by which time the E-business and E- society strategy will have been reviewed and revised as necessary, in order to ensure its existing and ongoing relevance.

Treasury Aim: Providing advice and direction regarding public finances

Target: Subject to extraordinary volatile areas of income, to develop the accuracy of income forecasts such that the actual income falls within 100-110% of the estimate for the year

Achieved. The overall income for the year was approximately 107% of the estimate.

Target: To report capital expenditure figures to the Council of Ministers on a quarterly basis

Achieved. Capital expenditure figures were reported to the Council of Ministers on schedule each quarter.

Target; To ensure a statutory surplus of at least 5% of Government net spending is achieved each year

Achieved. A surplus of approximately 5.4% was achieved.

Target: To co-ordinate corporate governance disclosure requirements through the development of the Statements of Internal Control (SIC), with a view to securing compliance and publication in the Government Annual Report for 2004/05

Partly achieved. This has been progressed over the course of the year, but is still a developing area of activity, which is subject to many issues which impact upon achieving the objective. For example, the Council of Ministers adoption of “the Code”, subject to an ongoing Department of Education trial; a proposed review of the Audit Act and Audit and Accounts Regulations; and political deliberation following the Mount Murray Inquiry. The Steering Group established under the Chief Secretary’s Office is tasked with developing this policy further and it was accepted that full compliance could not be achieved within the year. There is a likelihood of only partial SIC disclosure for 2005/06 and continued development for target completion during 2006/07. The Steering Group are in the process of developing a much wider ranging handbook of guidance and promotion of an internal Government training course which will become available later in 2005.

Target: To produce a report on the membership of the Financial Supervision Commission for Treasury consideration by June 2004

Achieved. The report was produced and the Chairmanship of the Financial Supervision Commission was resolved at the October 2004 sitting of Tynwald.

69 Treasury Aim: Developing the financial services sector and ensuring its sound regulation

Target: To maintain and extend access to markets for Isle of Man financial and professional services

On-going. In general terms, the development of the Market Access Group and International Tax Unit concept is aimed at the development of this area.

Target: To identify new markets for development

Achieved and on-going. For example, the Financial Services Division of the Department has identified Islamic Finance (the Middle East and Far East) as a new market segment which is under ongoing review.

Target: To seek greater involvement in influencing the decision making process in relation to key international organisations in regard to issues such as taxation, the economy, regulation and perception

On-going. During the year the Department appointed a team of external Treasury advisers involved in Market access and taxation matters. As already reported, the Department also has representatives within the Market Access Group which is now operational.

Target: To maintain the Island’s AAA rating from Standard & Poor’s and Aaa rating from Moody’s

Achieved. Both ratings were confirmed in the first half of 2005/06 in relation to 2004/05.

Target: To complete an annual review and updating of the Financial Services Marketing Plan

On-going. The Financial Services Division of the Department has reviewed its own internal business plan and following on from this, the further review and development of the Financial Services Marketing Strategy is currently the subject of discussion with a recently formed Isle of Man Finance Marketing Steering Group.

Target: Establish a Treasury working party to co-ordinate action in response to international issues affecting the Island

Achieved. During the year a new International Tax and Policy Unit was instigated and a new Market Access Group was created including high level representation from the local business community. Both groups work closely together within the framework of the Economic Strategy and the Island’s Taxation Strategy. Additional international experience is being provided by three international experts, appointed on a contract basis to advise on global taxation issues and market access opportunities.

Treasury Aim: Protecting society

Target: To maintain and enhance both activity in and external perception of, the Treasury’s responsibility in respect of protecting society and law enforcement matters

Achieved. Whilst the local and international investigations undertaken continued to maintain the Treasury’s external perception in relation to law enforcement matters, relationships with various other jurisdictions were also enhanced and the Customs and Excise Division of the Department facilitated interaction between two jurisdictions which did not have communication routes set out. In the future, Proceeds of Crime legislation will assist in this area.

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Target: To review the effectiveness of, and revise as necessary, the Income Tax Division’s Compliance Strategy by 31st March 2005

Achieved. A full review was undertaken during the year which resulted in presentations of proposals together with draft guidance notes and draft penalty and interest proposals to all relevant parties for feedback. Internal workshops were also given to Divisional officers regarding the proposed changes. The final documents were issued following this process and are now in place.

Treasury Aim: Maintain an organisation committed to high quality service and continuous improvement

Target: To prepare the staff of the Department and ensure they are fully aware of and equipped to deal with all current and forthcoming legislation

Achieved.

Target: Deliver a final report on the ongoing detailed review of the Department for Treasury consideration by July 2004

On-going. Various options for the future structure and organisation of the Department have been discussed internally and will continue to be developed in the coming year.

Target: Deploy a central Treasury strategy for the ongoing use of the EFQM Excellence Model by June 2004

On-going. An internal review has been undertaken, summarising action to date and setting out a strategy for ongoing use of the EFQM Excellence Model within the Department. This will be further developed in the coming year.

Target: Examine the benefits of deploying balanced scorecard performance management systems at divisional level by September 2004

On-going. The Department has continued to use the Balanced Scorecard as a method of internally monitoring its performance throughout the year whilst reviewing its effectiveness and instigating ongoing improvements. This will continue in 2005.

Treasury Aim: Delivering and implementing corporate Government projects and developments

Target: To complete the implementation of management accounting systems across all Government departments (payroll, human resources and general accounting) by March 2005

Not achieved and on-going. Following a continuing review programme throughout the year and through feedback obtained regarding the management accounting systems that were being developed, various changes were proposed which have led to a delay in implementation. Work is continuing and a new target date of March 2006 has now been established.

Target: To continue appropriate preparations for the possible introduction of the euro, consistent with the policies adopted by the United Kingdom Government

Achieved and on-going. Primarily through the Customs and Excise Division, the Department has continued to monitor developments in Euro preparations. For example, a report on the Euro and its likely effects has recently been produced, and it is envisaged that

71 this will be a fluid, working document which will be used to plan for a possible future entry to the single currency.

The Department is currently awaiting the publication of a new managed transition plan from the UK Treasury’s Euro Preparation Unit which has recently been issued in draft form inviting comments from interested parties.

Target: To implement any necessary legislative changes needed to ensure that the legislation for which Treasury is responsible is consistent with its objectives

Achieved.

Target: To have a Government wide Electronic Software Distribution framework in place by 30th June 2004

Achieved. The framework is in place and is proven and fully effective where Magic XP has been rolled-out. The user response is positive.

Target: To complete the defined elements within phase 2 of the Jupiter programme e.g. technology infrastructure and environment, common services (payment engine authentication, record management) and pilot projects (FSC public view, electronic rollout of Customs & Excise services etc.)

Achieved. Technology infrastructure and environment defined and being implemented. Work continues on common services with GIS systems being a recent candidate. The Financial Supervision Commission public view system is now live. BS7799 accreditation received in early 2005. Current focus is on enrolment, authentication and delegation as common services within the One Mann project.

Target: To have enhanced Information Technology business continuity facilities by 31st December 2004

Partly achieved and on-going. On schedule for commissioning of 2nd data centre site in 2005. Priority will be on implementation of key services for resilience such as the central Government offices’ communications network.

Target: To have Information Technology desktop & server upgrades complete by 31st July 2004

Partly achieved and on-going. The Magic XP roll-out across the Government estate continues to progress with around 2700 machines successfully upgraded by the end of March 2005. This has been a challenging process as it tries to cope with varying Departmental file structures as well as the proliferation of local applications (around 1000) which must be catered for. The project is expected to be wound down by the end of June 2005.

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4.10 CHIEF SECRETARY’S OFFICE

Target 1: to provide high quality advice and guidance to the Chief Minister and Council of Ministers.

On-going. In the last year the office has improved the administrative arrangements in support of the effective functioning of the Council of Ministers through production of revised Council Procedure Notes to ensure business is transacted as effectively as possible, that Council is given full and appropriate briefings and all necessary approvals have been secured in advance.

The office has also continued to lead and deliver the Government’s Corporate Planning and Performance Management Initiative and in doing so has had regard to the views expressed by Members and others to ensure that the process is focussed on outcomes and avoids unnecessary bureaucracy.

Target 2: to promote professionalism and public service values within the Isle of Man Civil Service and lead the Chief Officer Group.

On-going. The office has continued to hold annual conferences for senior managers within Government to inform them of future developments and stimulate a culture of corporate working. The conference held in 2004/05 concentrated on the proposed introduction of the Government’s Code of Conduct on Corporate Governance.

The Chief Secretary has also established a Performance Management System for Chief Officers which concluded its first full year of operation during 2004/05. In addition, during the year, the role and functions of the Chief Officer Group were reviewed to determine how best the Group could support the Council of Ministers in the delivery of corporate objectives. The outcome of this review will be reported in the next Annual Report.

Target 3: to ensure the Chief Secretary’s Office operates efficiently and effectively and delivers its Annual Business Plan

Achieved. An organisational review of the office was concluded during 2004/05 which lead to the re-organisation of the office to include two directorates (External Relations and Policy) each headed up by a senior manager reporting to the Chief Secretary. In addition, a new strategy unit has been established within the Policy Directorate which aim is to co- ordinate corporate strategies including Branding, Drugs and Alcohol, Children and Young People and to support the new Council of Ministers committee structure.

The office has also worked hard to ensure implementation of the revised Civil Service Appraisal Scheme to ensure that all posts are working effectively and that staff are given appropriate opportunities for personal and career development.

Target 4: to ensure the effective functioning of the Passports Immigration and Nationality Section in the Crown and External Relations Directorate.

Achieved. This section has continued to meet its target times for processing Passport Immigration and Nationality applications despite additional security requirements having been introduced for these procedures. During the year the office also introduced Citizenship Ceremonies for foreign nationals applying for British Nationality. The first ceremony took place on the 28 June 2004.

In Immigration, the contract enforcement officer has undertaken a number of educational visits to employers to remind them of the requirements of the Immigration Acts and successfully removed ten immigration offenders in 2004/05.

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Target 5: to ensure the effective functioning of Crown functions within the office including planning appeals, elections, Crown appointments, independent committees/tribunals

Achieved. The office has continued to process planning applications efficiently ensuring that all hearing were conducted within 12 weeks of appeals being received. It is the office’s aim for those performance levels to be maintained, although the revisions to the new planning system with effect from November 2005, involving the abolition of the review stage, will see a significant increase in appeals which will clearly impose additional pressure on the office to continue to meet those targets.

In respect of election processes, the office contributed during the year to the development of proposals for an amendment bill to the Representation of the People Act.

Target 6: develop effective and harmonious relationships with the United Kingdom Government, the European Union and others, in the interests of continuing the evolution of the Island’s Constitutional relationships

On-going. External Relations Directorate has continued to monitor EU and other legislation and consult with appropriate departments and bodies. The Constitutional and External Relations Committee has met frequently to discuss important issues surrounding the EU Savings Directive, and the development of our constitutional relationship with the UK. In addition, during the year the office introduced quarterly briefing for Members of Tynwald on EU matters which have proved very useful.

The Isle of Man has also continued to actively contribute to the British Irish Council and ensured representation at the Summit held in Guernsey in November 2004 as well as for hosting the event on the Island in May 2005.

Target 7: promote the interests of the Isle of Man to external Governments and organisations

On-going. The office published several editions of the “Isle of Man in Focus” Newsletter which is circulated to a wide external audience in the business and political community.

The office has also taken a lead role in developing cultural and business links with Norway.

Target 8: to provide effective and high quality administrative and household support to the Lieutenant Governor to enable him to fulfil his statutory responsibilities and constitutional role

On-going. A review of the future role, official title and contractual status of the Lieutenant Governor was concluded by 30 June 2004. The official title is being progressed and is awaiting a Motion on the Tynwald Order Paper from the Tynwald Constitutional Affairs Committee in respect of the nomination for a new title. If approved by Tynwald the nomination will be forwarded to the Department of Constitutional Affairs and onto Her Majesty for approval.

In respect of the new appointment in September 2005 a detailed induction guide has been prepared setting out the requirements of the role and the contractual status.

Target 9: to support the Council of Ministers in the development of corporate projects and the implementation of Tynwald resolutions

On-going. During the year the office commenced work on the development of a web based disability access guide which will identify provision for disabled access to buildings and

74 sites open to the public across the Island. The research work on the project will begin on 1200 hundred sites across the Island in September 2005.

During the year the office co-ordinated the working group examining the operating basis for Manx Radio in accordance with a resolution of Tynwald in December 2002. The Report from the Working Group was approved by Tynwald during the 2004/05 Parliamentary Session.

During the year the office also ensured all the outstanding recommendations arising from the Commission of Inquiry into Mount Murray were considered and fully reported to Tynwald.

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4.11 DRUG & ALCOHOL STRATEGY

2004-05 is the last year of reporting on the original 5 year Drug and Alcohol strategies (1999- 2004). Throughout the year much preparation and consultation both on and off the Island took place before the production of one joint Drug and Alcohol Strategy document for 2005 onwards. Besides consolidating efforts in different areas of the strategy other challenging issues arose such as the results of the European Schools Survey Project on Drugs and Alcohol (ESPAD) relating to 15 -16 year olds which illustrated similar drug and alcohol problems as their counterparts in the United Kingdom and Ireland. The culture underlying drug and alcohol misuse is deeply embedded in sections of society throughout the British Isles. The Island is not insulated from these cultural and social influences. The focus of the Strategies has always stressed harm reduction and an acknowledgement that external factors such as increased opium production in Afghanistan has had significant effects on the availability of heroin in the European markets, and by extension, in the Isle of Man. Increasingly departments and agencies strive to implement programmes and measures to reduce the problems arising from drug and alcohol misuse. Most of the tasks outlined in the original drug and alcohol strategy documents (1999 – 2004) have been achieved. However the struggle to prevent and reduce drug and alcohol related harm continues apace on the Island as in all European jurisdictions. An external validation report in 2003 commended the work of the Island strategies and recommended that the strategies be updated once the time period had expired.

Much of the work of the strategies involves coordinated efforts across government departments, together with the statutory and non-statutory sectors. It is clear that there is improved collaboration and coordination among participating agencies. Examples of this include health promotion campaigns, the drug arrest referral scheme, and forums for practitioners both for criminal justice agencies and treatment and education sectors.

The media in the Island have continued to play a valuable role in helping to communicate consistent messages and stimulate debate on issues of interest and relevance to the Island community. In addition to monthly radio interviews from those working with drug and alcohol issues the Co-ordinator’s office also contributes a monthly column to the newspapers outlining the challenges and progress of work under different sections of the Strategies.

The Chief Minister and his committee met on a quarterly basis throughout the year to ensure the implementation of tasks outlined in the strategies.

The injection of both human and financial resources at the outset of the strategies has been an important factor in ensuring the high level of commitment by both statutory and non- statutory agencies. It is vital that this continues as more challenges are faced in managing the problems of drug and alcohol misuse. Funding was given for 2005-06 for the introduction of the alcohol arrest referral scheme. Planning and staff recruitment is under way for this project to progress and is another example of corporate government in action with Departments of Home Affairs, Health and Social Security, Chief Secretary’s Office and the non-statutory agencies working together.

The issue of valid data collection has always been a difficulty since the outset as this task has been facilitated by the services of a researcher for a limited number of hours. Without valid data and information to support our policies and activities it is impossible to evaluate effectively and accurately. In spite of this shortcoming the database system is now in operation with 13 agencies participating. A 3 year rolling average of baseline figures will be available by the end of the year, reflecting the routinely collected data by these agencies over the period. All of years 8 + 10 (15/16 year olds) in secondary schools participated in the European School Survey on Drugs and Alcohol (ESPAD), the results of which have been referred to above. The Health and Lifestyle Survey of Children (HLSC) was also carried out during 2003-04 and this first survey of 10/11 year olds gives us further information and

76 valuable insight into their attitudes and behaviour relating to drugs and alcohol. All of these projects require much preparatory work and cross-departmental cooperation.

During 2004-05 education and prevention work particularly with young people both in schools and in the community continued to develop and progress through updated curriculum materials, group interactive sessions, drama and theatre projects, dedicated local websites and targeted campaigns. A new Drug/Alcohol Education Liaison Officer was appointed in January 2004 with a remit to coordinate all aspects of education and ensure that the programmes and training developed are all in accordance with the evidence based updated strategy. A new parents support and training programme has started up on the Island by a Charity since November 2004. How to Drug Proof your Kids is an education, prevention and intervention programme developed by Care for the Family in association with Hope UK. Training courses are to be run from May 2005. This organisation will work closely with the Department of Education’s coordinator.

Since the strategies' inception the provision of a range of appropriate treatment and support services has been a major development with both statutory and non-statutory agencies contributing extensively to the breadth and depth of information, advice, help and support available.

The criminal justice agencies have played a valuable role during the year in helping to safeguard the community, carrying out intelligence-led operations to seize large quantities of drugs otherwise destined for the Island and in assisting with further criminal justice/treatment schemes. Engaging the criminal justice system in measures to encourage offenders to present for treatment represents a major shift in this aspect of the strategies, and is a move mirrored in other European jurisdictions. The Drug Arrest Referral Scheme has been reassessed in the past year and new data requirements allow for more detailed evaluation of the scheme.

The Central Alcohol Unit has continued its work with licensees and nightclubs in addition to contributing to a training course in the Isle of Man College for all those working in licensed premises.

The alcohol and drug policy in the workplace training sessions for the public service continued throughout the year. Six sessions were held and 171 staff attended. The CD-ROM developed by a multi-agency group has also been available for all staff. This is being further updated and made available as an educational tool for the community.

With the implementation of the reclassification of cannabis in early 2004 a multi-agency cannabis awareness campaign was launched to enable the public to understand and be aware of the changes and also emphasising cannabis remains an illegal drug.

The Island continued to play an active role in the British Irish Council group on drugs contributing to presentations on topics relating to the drug strategy. This forum has proved to be valuable for exchanging and sharing best practice initiatives across jurisdictions and updating and monitoring developments elsewhere. The Island also continues to be represented at the Advisory Council on the Misuse of Drugs twice yearly in the United Kingdom.

The consultation programme for the updated Strategy commenced in May 2004 and involved 300 survey forms distributed throughout the community supported by over 100 personal interviews conducted by the Strategy Coordinator’s office. A public notice requesting responses from the public was placed in all newspapers in June 2004 and interviews held with Manx Radio invited members of the public to submit their views to the Strategy Coordinators Office. The Updated Strategy was passed by Tynwald in April 2005. This signals the changing framework for delivery of the Strategy and establishes new action plans under the revised strategy aims.

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Key Performance Indicators

Target: Reduction according to trends data by December 2006

The Drug-Related Working Group was set up to identify and implement a range of actions to reduce the number of drug-related deaths. This project was initially set up by the Drug and Alcohol Coordinator’s Office but since 2002 has been led by the Public Health Directorate in partnership with other relevant agencies. One of the main objectives of the project is to establish the data needs and information requirements on drug-related deaths and to improve public awareness of the nature and seriousness of drug misuse as a life threatening condition. During 2004 the Senior Health Promotion Officer in partnership with the Drug and Alcohol Team and other relevant agencies delivered a public information and support campaign targeting specific groups in the community. In addition first aid assistance training was extended to specific groups. Figures were examined for 2003 to ascertain the difficulties in providing accurate figures relating to drug-related deaths.

The Drug Related Deaths project which meets on a quarterly basis is looking at data quality improvement in the forthcoming years. 75% of medical certification of cause of death (MCCD) is recorded by GPs. The information completed is not accurate and main cause of death appears in over 90% of recordings under 1a and 1b of the certificate, raising confusion over the main cause of death which needs coding and should be recorded under 1c section of the medical certificate cause of death (MCCD). The certification of cause of death will be addressed separately via Public Health under special arrangements. It is possible to involve the Office of National Statistics (ONS), England who train GPs in England and Wales for this difficult but very important task. Work took place during the year through examination of files on deceased persons and some indicators were noted which have been shared with relevant agencies. This group plans during 2005-06 to improve the quality of data, continue to work on public awareness and information and collaborate with other jurisdictions who are also working on a similar project. The Consultant Psychiatrist who leads the Drug and Alcohol Team will be taking over as Chair of the Group in May 2005.

Aim: Identify trends in drug and alcohol misuse Target: Establish baseline figures by March 2006

From the outset the drug and alcohol strategies have sought to obtain valid evidence relating to drug and alcohol issues on the Island to enable better targeting of efforts and resources. In 2001 a schools survey programme was initiated to collect valid, reliable and comparable data; to assess trends in lifestyle factors in relation to behaviour and attitudes (10-16 year olds) and to assist in policy making. This has included the Health and Lifestyle Study in children (HLSC) and the European School Survey Project for Alcohol and other Drugs (ESPAD). HLSC reported in December 2001 and December 2003. The ESPAD survey was completed by April 2003; a national report was available in November 2003 and the International Report in December 2004. This gave an indication of drug and alcohol attitudes and use relating to drugs and alcohol of 15/16 year olds who live in the Isle of Man. Preliminary comparisons could be made with results from ESPAD 1995 and 1999 from the United Kingdom and Ireland. The 2003 findings were not surprising; a previous Island survey, using a different questionnaire (designed for teenagers up to 15 years of age), showed results in line with the ESPAD findings, mainly because the 14/15 year olds who took part in this 2001 (December) survey were the same cohort of students who participated in ESPAD 2003 (March), who were now only 14 months older. Significant findings were found in all three areas, mainly in the alcohol and illegal drugs; the significance is of a twofold importance a) the Island’s results ‘blend in’ with the surrounding countries results from ESPAD and other similar surveys; this has put to the test the cultural factor of the findings; b) this is a first baseline, comparable at European level, for 15/16 year

78 olds; although a highly representative sample of this age group participated, their results cannot be extrapolated to other age groups or the entire 15+ year old population; in fact it is a dangerous extrapolation to do so; hence the many surveys carried out in the Island’s school population, each of them specific for a particular age group. It is hoped to continue this survey programme (HLSC 2005 primary and secondary schools and ESPAD 2007 15-16 year olds) as well as the core database which is continually being improved to measure those individuals who present to treatment agencies for drug and alcohol-related problems. Baseline estimates will also be available by March 2006 on the Drug Arrest Referral Scheme.

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4.12 COMMUNCIATIONS COMMISSION

KPI: New telecoms and broadcasting operators Target: Increased choice of providers

On-going. One new radio station, 3FM, started to broadcast across the Island in the autumn of 2004, following the grant of its licence in March 2004. After debate in Tynwald on broadcasting policy, the Commission agreed to suspend the licensing of further radio stations pending revisions to broadcasting legislation.

KPI: Wireless delivery of telecoms services Target: Increased choice of providers

On-going. A new wireless broadband telecoms operator has been authorised to provide services but is still to launch. The existing broadband wireless operator has expanded both its range of services and its operating footprint, providing further competition to the fixed infrastructure incumbent.

KPI: Fixed telecoms infrastructure upgrade Target: Complete ADSL rollout; bypass perceived ‘single point of failure’

Achieved. All telephone exchanges on the Island are now ADSL enabled. Installation of “mini-DSLAMs” in remote areas extends coverage. Together these measures provide over 98% availability of ADSL across the Island. The North Douglas exchange and disaster recovery facility is becoming operational, removing the perceived ‘single point of failure’ issue with respect to the Dalton Street exchange.

KPI: Satellite orbital slot filings Target: Sustain and increase registrations

Achieved. The Commission contracted ManSat Limited to act on its behalf in respect of satellite orbital slot registrations. A dispute over orbital slot filing procedure and precedence involving the Isle of Man, Bermuda and the UK administration (Ofcom, the Office of Communications, which is responsible for liaison with the International Telecommunications Union on behalf of both jurisdictions) was resolved satisfactorily. Subsequently, ManSat has lodged with Ofcom further orbital slot registrations on behalf of the Isle of Man.

KPI: The creation of an Island TV station Target: Process applications

On-going. No applications or approaches were made to the Commission during the year under report. The Commission is therefore considering undertaking a further feasibility study.

KPI: Programme and Advertising & Sponsorship Codes compliance Target: Monitor >150 hours of broadcasting output

Achieved. All Island broadcasters must comply with the Codes. Commission staff monitored over 500 hours broadcast output. The Commission’s staff acknowledges within 2 working days and subsequently investigates complaints. The full Commission considered three alleged Code breaches. In no case did the Commission formally find a breach of the Codes but, in two cases, the broadcaster was reminded that strict Code compliance is a licence requirement.

80 KPI: Increased mast sharing Target: No increase in the number of antenna sites

Achieved. The number of antennae across the Island has been reduced with the successful activation by the Department of Home Affairs of the TETRA digital trunked radio system for government communications, allowing the removal of obsolescent analogue aerials. Full switchover to digital terrestrial television, now provisionally planned for 2008, will use the existing transmission site infrastructure.

KPI: Modernising Manx Radio’s governance Target: Establish Manx Radio as the national public service broadcaster

On-going. The Commission has re-licensed Manx Radio as the nation’s public service broadcaster for a further period of ten years. Tynwald has accepted the key recommendations of a working party report on updating the arrangements for Manx Radio’s ownership, control and principal public service objectives.

KPI: Improved BBC services Target: Better value from the licence fee

On-going. The BBC is now routinely deploying digital video transmission equipment to the Island, enabling enhanced same-day reporting of events. This technology was first developed for use here and is now being deployed across the BBC. An announcement is expected confirming that the Isle of Man will switchover to digital terrestrial television in 2008, bringing the full range of BBC digital services. The Manx Gaelic language now features on the bbc.co.uk/voices website as one of the indigenous languages of the British Isles. Talks on improving value continue.

KPI: Gaelic language broadcasting Target: Increased support for the Gaelic Broadcasting Committee

Achieved. The budget for the Gaelic Broadcasting Committee has increased in real terms for the fourth successive year. With the support of the Commission, two new members have been appointed to the GBC. Everyday Manx Gaelic expressions now regularly feature on Manx Radio’s broadcasts. The station has also launched new Manx Gaelic programming. First discussions on including Manx Gaelic as a strand of a possible Scots Gaelic digital channel have taken place.

KPI: Autonomy Target: Increase the number of occasions the Isle of Man represents itself on International Organisations

On-going. The Communications Commission is now a full member of the European Platform of Regulatory Authorities (EPRA), representing the Island at two international meetings annually. The EPRA, a forum for European broadcasting regulators, has a membership from 39 countries across Europe. It is not an EU body, although both the EU and the Council of Europe send observers.

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4.13 FINANCIAL SUPERVISION COMMISSION

Financial Supervision Commission Department Progress Report

Key Objective: To protect depositors, investors and other constituency clients (including those of fiduciary service providers), through carrying out effective on and off-site supervision of licensed entities in accordance with international principles.

On-going. The Commission has conducted 113 on-site supervisory visits and has moved forward important “safety and soundness” issues covering the supervision of banks.

Key Objective: To consider applications for licences to undertake regulated business, and to develop and implement an ongoing supervisory regime for trust service providers.

On-going. The Commission approved 26 licence applications during the period 14 for Corporate Service Providers, 10 for investment businesses and 2 for banks. A total of 11 new licences were for start-up operations, demonstrating that the Island continues to be an attractive location from which to undertake new business.

As planned, legislation for licensing and supervising trust service providers was developed during the period and has been given Royal Assent.

Key Objective: To provide a high quality, efficient service for Companies Registry users and to enhance good corporate governance in the Island

On-going. The Commission published service standards for Companies Registry which sets out the time taken to undertake company incorporations, document processing and the other customer services performed. During the period the Commission met its published targets almost all of the time.

Key Objective: Proactively develop effective enforcement strategies to protect investors interests and the reputation of the Isle of Man.

To take effective prosecution action against people or entities which abuse Isle of Man legislation that the Commission is responsible for

On-going. The Commission successfully petitioned the High Court under Section 26 the Companies Act 1992 for the disqualification of five individuals.

The Commission issued 52 public warnings which are automatically circulated to over 100 law enforcement and regulatory agencies around the world.

Key Objective: With the necessary support to develop proposals which takes account of international standards established by the IMF, OECD, EU, IOSCO, OGBS and FATF and at the same time supports the economic development of financial services business for the benefit of the Island.

On-going. The Commission introduced a new impact assessment framework which underpins informed appraisal by the Commission of impacts and opportunities arising from

82 regulatory proposals and forms the basis of discussions of regulatory proposals submitted to the Council of Ministers and Tynwald.

Other policy initiatives pursued include:- • Changes to the Banking (General Requirements) Code 1999. Consultation with the industry is currently under way and a new banking code will be put before Tynwald in the next legislative session. • Amendments to the Investment Business Order. This revised Order updates and modernises the definition of “investments” and “investment business”, and determines which activities and instruments under these definitions are subject to the regulatory regime. • Protected Cell Companies. In conjunction with the Fund Managers Association and IOM Finance changes were made to extend the legal corporate structure of Protected Cell companies to international collective investment schemes. • At Treasury’s request, a proposal was submitted on how a regulatory regime for e- money business might be implemented on the Island.

Key Objective: Enhance our synergistic partnership with the industry and Government discussing proposed regulatory developments, market environment and other issues.

On-going. The Commission has had regular briefing sessions for the industry on regulatory developments and proposals (outside of the normal process of consultation). A customer satisfaction survey was conducted of Company Registry users who reported a high level of satisfaction. Briefings have also taken place with the press, politicians, Treasury and through other informal gatherings of the Board with the industry. A full industry briefing took place with 190 delegates attending.

Key Objective: Continue to support and assist the industry through providing training to improve awareness of the regulatory requirements and the effectiveness of their compliance functions.

On-going. The Commission provided training on Money Laundering and Financial Fraud, an update on Company Law, a TSP briefing – a combined total of 450 delegates attended these events.

Key Objective: To further strengthen relationships, communicate, co-operate and assist international supervisors, governments and agencies.

On-going. The Commission has signed various Memoranda of Understanding with regulatory authorities in a number of jurisdictions, as a basis for ongoing co-operation. The Commission participated in discussion with the Committee of European Securities Regulators with a view to increasing dialogue with EU securities regulators. A visit was made by HM Treasury from the UK to the Island to meet with the Commission. The Chief Executive attended the Annual meeting of IOSCO and also the International Conference of Banking Supervisors. He also attended a Roundtable meeting at the Bank for International Settlements. The Commission participated in the annual meeting of the Enlarged Contact Group established to discuss developments in the collective investment scheme industry.

Key Objective: Manage the Commission’s operational matters to maximise the effectiveness and efficiency.

On-going. The Commission implemented the Public View Internet system providing the ability for the public to purchase company documents via the internet. It also upgraded the infrastructure supporting the On-line Reporting System used for banks and investment businesses to submit financial data. Much work has also been undertaken during the period to develop user requirements for a database for use within the Supervision Division.

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4.14 GENERAL REGISTRY

Overview

2004/05 has been a challenging year for the General Registry with the resignation of Angela Lloyd-Humphreys as Chief Registrar, the secondment of Mike Ball into the post, and finally the appointment of Peter Corkhill who officially took up the reins on 1st May 2005.

Whilst in some respects this has meant that the General Registry has of necessity tended to focus on its key day to day service delivery issues, it has also provided an opportunity for a fundamental review of the longer term vision incorporating an external perspective of the organisation.

The extent and implications of that review is probably best illustrated by a comparison of the Business Plans published in 2004 and 2005. Inevitably this means that over the year whilst many of the targets set in the 2004 Plan have been achieved others have been modified or even abandoned.

Key areas within the 2004 Plan included:

Courts

Objective : To enhance the effectiveness of relationships with users of the criminal justice system

st Target : By 31 March 2006

On-going. Improved relationships mainly, but not exclusively, have been fostered through the Justice Working Group. Stronger bonds continue to be forged with the Isle of Man Law Society and other Departments of Government.

Registries

Objective : To ensure the recordal and protection of documents in the Registries Target : Develop a document scanning system for new deeds by 31/10/05

On target. The testing phase for this system is progressing well with “roll out” expected on target.

Objective : Update Legislation regarding Civil Registration and Marriage

Target : Commence a review of Civil Registration and Marriage Acts by September 2004

Behind schedule. The review of existing legislation has been concluded which will lead to a public consultation exercise regarding the proposed changes.

84 Public Records Office

Objective : Assist holders of public records, safeguard records and implant effective record selection for permanent preservation

Target : Complete 12 surveys per quarter

Achieved. Achieved through conducting surveys in person with the various Departments of Government to ascertain the type, breadth and relationships of records held.

Target : 2 guidelines issued by 31st March 2005

Not achieved. Due to staffing and ongoing departmental records management issues this item is deferred to 2005/06.

Management Information Systems Unit

Objective : Consolidate land registration technology solutions

Target : Upgrade Land Registry operating hardware and software

On-going. Significant hardware and software upgrades have been completed on schedule. A fundamental value for money review of business objectives is being undertaken prior to the consideration of a more substantive upgrade programme.

Objective : To use technology to support key areas of the General Registry business and improve service quality to users

Target : Introduce video conferencing as means for witnesses to give evidence from remote or less vulnerable locations, by 31st March 2005

Behind schedule. This is a joint project with DHA which has been delayed due to the revised timetable for the New Prison project.

Finance

Objective : Ensure fiduciary care where monies are held in Court on trust

Target : External audit and unqualified audit certificate by 31st December 2004

Achieved. Audit carried out on schedule leading to the issue of an unqualified certificate and publication of accounts.

Legal Aid

Objective : To ensure an effective Legal Aid service

Target : Review of Legal Aid Regulations by 31st December 2006

Not achieved. This review cannot be undertaken until the progression of the Legal Services Commission report into Legal Aid services, which is currently in the political arena.

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Corporate Services

Objective : To provide a safe environment for due legal process

st Targets : Consultation and prioritisation of requirements by 31 December 2004 : Introduce pre-trial security assessment for major trials

Achieved. A comprehensive review of security was undertaken with phased implementation agreed, the initial phases of which, including the provision of courthouse security searches, have been concluded.

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4.15 INSURANCE & PENSIONS AUTHORITY

KPI: Performance of on-site regulatory visits to each of the self-managed insurers, insurance managers and general insurance business intermediaries. Target: Once every three years.

On target. The Authority remains on target to achieve its objective of performing one on-site regulatory visit for each affected entity every three years.

KPI: Insurance (Amendment) Regulations. Target: Introduction and implementation by the end of financial year 2004-05

On-going. Following the introduction of the Insurance (Amendment) Act during the year, the Authority effected a number of changes to its insurance regulations. Further changes to the regulations are under discussion.

KPI: PCC legislation and guidance Target: Further development to enhance the existing legislation and allow the sector to grow

On-going. During the year, the Authority introduced a new class of business for insurance PCCs, hence increasing the range of uses to which insurance PCCs can be put. The Authority continues to monitor activities in relation to PCCs to ensure that its legislation remains up to date with market developments.

KPI: Regulations in respect of domestic pensions business. Target: Introduction and implementation by the end of financial year 2004-05

Achieved. The regulations were introduced with effect from 1st November 2004.

KPI: Legislation and/or guidance to allow its regulated entities to adopt IFRS. Target: Introduction and implementation, where appropriate, by the end of financial year 2004-05

On-going. During the year the Authority formed a working party, made up of members of the local accountancy body and the industry, to consider the potential impact of IFRS. As a result of the working party’s discussions, no amendment to current legislation is yet considered necessary. Meetings of the working party will continue, in order to determine any future requirements in this regard.

KPI: Electronic submission of annual returns. Target: Time scale dependent on the progress of the JUPITER project

Not Achieved. This aim has, in line with the JUPITER project, been put on hold.

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4.16 IOM POST OFFICE

As part of the Governmental plan for 2004-07, Isle of Man Post is committed to completing a number of actions designed to support the overall Governmental objectives, progress towards completing these actions is detailed below.

Action: Identify and reduce non value adding activities, including the continuation of our initiatives to examine and improve internal processes

Achieved. New processes have been introduced as planned.

Action: Improve our volume scheduling and forecasting. This will be achieved by the introduction of a new system to forecast mailing volumes

Achieved. Introduced and currently developing accuracy.

Action: Introduce a rolling forecast system of performance management to facilitate forward planning

Achieved. Introduced and in operation.

Action: Undertake a full review of our product and service offering

Achieved. Completed, with business development service initiatives implemented during 2004/5.

Action: Conduct a skills audit and training needs analysis of all staff

Achieved. Completed in 2004. Training needs also form part of the discussions with staff during the annual appraisal process.

Action: Conduct an internal grading review

Not achieved. Not yet completed.

Action: Conduct a staff survey, and put action plans in place following the feedback obtained

Not achieved. Not yet completed.

Action: Review our systems for customer feedback and develop them where appropriate

On-going. We have introduced systems for improved complaint monitoring and are in the process of designing new systems to track and monitor enquiries and complaints.

Action: Introduce a new IT solution for our retail network

Achieved. Completed in November 2004.

Action: Review our current product offering to see how it matches current market developments and customer needs

On-going. Our product offering remains subject to continual review. Resource has been dedicated to developing products which meet future market needs.

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Action: Work with Government to agree a postal charter to define social obligations

On-going. This action is ongoing and subject to review by the Council of Ministers and Tynwald.

Action: Promote the importance of correct addressing standards and continue to provide a postcode finder service for Isle of Man residents on our web site

Achieved. Isle of Man Post’s postcode provider service continues to be popular. Approximately 4000 views of the postcode finder page are made every month.

Action: Establish a single point of contact for customer related enquires into Isle of Man Post

Achieved. A customer helpline (664664) and email address ([email protected]) have been established and are widely promoted to our customers.

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4.17 IOM WATER AUTHORITY

The Authority’s Key Performance Indicators (KPIs) continuously monitor its contribution to the Government’s six key objectives. The objectives which were identified in the Authority’s submission to the Government’s last business plan related largely to the provision of a high quality water service to the population of the Island and in particular to the development of a Quality Environment, Sound Infrastructure and Good Government.

When assessing the performance of the Water Authority it is essential to refer to a benchmark developed within the UK Water Industry. The Water Companies in England and Wales are regulated by the Office for Water Services (OFWAT) and the Drinking Water Inspectorate (DWI) amongst others. The Authority uses the targets set by those organisations to set the standards it wishes to achieve and to measure its performance relative to other parts of the UK Water Industry.

Quality Environment

KPI - To maintain the current Water Treatment Works performance to achieve an average Overall Quality Index score of 97%.

Achieved. Performance - 2004/5 Actual - The Overall Quality Index achieved was 98.54%.

KPI – To maintain the current Water Treatment Works performance to achieve an average Operational Index Score of 95%

Achieved. Performance - 2004/5 Actual - The Operational Index achieved was 96.51%.

KPI - reduce the number of coliform failures and achieve an average of at least 99.5% compliance

Achieved. Performance - 2004/5 Actual – Coliform compliance achieved was 99.52% on statutory samples taken from the distribution system.

Sound Infrastructure

KPI – To limit the number of properties at risk of receiving low pressure to less than 0.5% of connected properties within the compulsory area of supply

Achieved. Performance – 2004/5 Actual – Properties at risk of receiving low pressure (below 15 metres head in the main) 0.0%.

KPI – To limit the number of properties suffering unplanned interruptions to supply of greater than 12 hours to less than 0.125% of all connected properties within the compulsory area of supply

Achieved. Performance – 2004/5 Actual – No properties were without water for longer than 12 hours in the year.

KPI – To reduce leakage and achieve the economic level of leakage at 6.4 litres per property per hour

Achieved. Performance - 2004/5 Actual – The level of leakage achieved was 6.4 litres per property per hour.

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Good Government

KPI – To acknowledge 99% of customer correspondence within 48 hours of receipt

Achieved. Performance - 2004/05 Actual 99%.

KPI – To provide substantive responses to 99% of all customer correspondence within 10 working days

Not achieved. Performance - 2004/05 Actual 95%.

KPI - To maintain the levels of public satisfaction with initial contact at 97% for “manner” and “disturbance”. To maintain the levels of public satisfaction at 92% for “response” and “outcome”

Achieved. Performance - 2004/05 Actual – The Authority achieved levels of public satisfaction with initial contact at 100% for “manner” and “disturbance” and levels of public satisfaction at 99% for “response” and 96% for “outcome”.

Commentary

Again this year the Authority continues in a period of transition which requires the existing system to be operated and maintained to achieve challenging targets whilst putting in place the major infrastructure renewal schemes that will make even higher standards of service possible in the coming years.

The existing assets have been operated to achieve the very highest standards of which they are currently capable and the Authority continues to invest in improvements which will allow the existing boundaries of performance to be pushed back. Improvements to process controls and chemical dosing facilities at Sulby, Ballure and Glencrutchery Water Treatment Works have been completed. The introduction of a catalytic filter media at these three works has demonstrated that the levels of manganese in the water leaving the works has been considerably reduced. As a result the impact on the quality of water received by our customers has been significantly improved.

The Authority set itself challenging targets with respect to Quality Environment and Sound Infrastructure in 2004/05. The actual performance achieved in Water Treatment shows that the works exceeded the targets set. This has been achieved by the dedication of the staff and the innovative solutions that they introduced during in the last two years. The water quality leaving these works is unlikely to be improved upon in coming years and the step change that is being sought will only be delivered when the new Sulby and Douglas Water Treatment Works come into operation.

The Authority continues to manage the mains system to deliver a reliable service. Whilst no customer suffered an unplanned interruption to supplies of greater than six hours it should be noted that nearly 200 burst mains were repaired by the Authority and inevitably this led to real inconvenience to our customers. The Authority has continued with its programme to replace those mains which have proved unreliable. These schemes will result in improved supplies to customers in terms of quality, pressure and constancy and form a major part of the rehabilitation strategy included within the asset management plan.

The targets set by the Authority under the broad heading of Good Government have been focussed on how we deal with those events which impact directly on customers. When customers write to us we are committed to responding promptly and at the end of 2004/05 the Authority has achieved very good progress against the challenging targets that were set.

91 Similarly when a customer is affected by our operational works it is important that they are given good information all through the process to minimise any disruption to them. It is pleasing to report that the Customer Services Section are, through the Operational Coordination Centre and the out of hours standby service, delivering the service that we believe our customers expect. The “after contact” surveys indicate an exceptionally good result in our dealings with customers.

The Authority’s main purpose is to consistently provide a wholesome supply of drinking water to the Island’s population. The serviceability of a large proportion of the existing assets that are employed to carry out this function has been doubtful for many years and their replacement or refurbishment forms the core of the Strategic Business Plan.

In this context the Authority is pleased to be able to report that work on the new Sulby Water Treatment Works is due to be completed in September 2005. The raw water main, which will supply this new Water Treatment Works, has also been completed. The Authority will be undertaking a significant number of mains laying schemes which, when completed, will allow the old water treatment works to be decommissioned and the transfer of the whole Island onto the higher quality water supplies which the new works will produce.

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4.18 MEA

This report focuses on the businesses of the Manx Electricity Authority (MEA) throughout the financial year 2004/05. It describes the progress and achievements made. This report will not dwell on the financial issues relating to capital investment, as these are already well documented.

In 2003, the Isle of Man Government published an action plan for the period 2003 to 2007, “setting the way ahead for the Isle of Man Government”. It said that, “Government’s core purpose is identified as supporting the island’s quality of life”.

The plan set objectives and targets under six headings or aims and MEA progress in these areas is explained:

ECONOMIC PROGRESS

Through strategic investment and effective management, the MEA has supplied enough electricity to meet the growing demands of the island businesses. The strong financial/commercial sector is underpinned by the security of the electricity supply and it is one of the keys to the economic success of the Isle of Man.

The MEA has retained and developed skilled jobs both inside the organisation and amongst its contractors.

By developing the connection to natural gas, the MEA has given island businesses and others access to another secure source of energy.

In the future, the fibre optic capabilities of the UK-IOM Interconnector will provide additional capability for high speed data transfer to and from the island and perhaps facilitate an improved quality of broadband services to all users on the island, again providing incentives to the finance sector to remain within the economy.

SOCIAL WELL-BEING

The MEA has ensured that a reliable supply of electricity is available to all customers. In fact, 2005 January storms notwithstanding, this year has seen one of the best performances ever regarding the continuity of electricity supplies, with just 21 minutes of lost supply per customer on average.

GOOD GOVERNMENT

The strengthening of MEA’s infrastructure and the skills of its workforce ensure that statutory obligations are met; this year has been no exception.

The Government requires MEA to provide a continuously available supply of electricity. The diversity of generating plant which is able to use alternative fuel sources, the security of the network and the continued usage of the UK-IOM Interconnector enables the MEA to comply with this requirement fully.

QUALITY ENVIRONMENT

Through its investment in natural gas and the UK-IOM Interconnector, as well as in “lighter” fuel oils, the MEA has dramatically reduced emissions of carbon dioxide, sulphur dioxide and other pollutants.

93 Changes in the MEA’s power station plant cooling methods have reduced their impact on the Island’s water habitats, and has removed potential risks from bacteria such as legionella.

SOUND INFRASTRUCTURE

The MEA has invested in a high quality energy system, which focuses on; diversity in sources of fuel; plant reliability and network security. The transmission and distribution system is designed to industry best practice.

POSITIVE NATIONAL IDENTITY

MEA has developed a substantial skill base in the operating of sophisticated and modern engineering equipment. Our expertise in certain areas such as: sub-sea cable management and generation plant handling is well respected in the industry.

MEA’s portfolio of assets providing operational flexibility, diversity and security is vital to a stable economy and further enhances the Isle of Man’s reputation as a national model worth emulating.

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4.19 MANX NATIONAL HERITAGE

KPI: National Identity Target: To provide a national cultural and natural heritage service

On-going. Manx National Heritage has provided throughout the year an integrated, national cultural and natural heritage service for the Island’s education, marketing, retailing and tourist community.

KPI: Operation of site museums Target: To continue to provide public access to the 12 formal sites within the Story of Mann and to lands and monuments under MNH ownership

Achieved. Manx National Heritage operated 12 sites during the summer of 2004 and the Manx Museum and House of Manannan remained open throughout the remainder of the year. For the 2004 calendar year MNH sites achieved a total of 419,620 visits which was 1.14 % up on 2003

KPI: International profile Target: To continue to develop contacts and joint projects with European, EU and international partners through the consolidation of the Cultural Agreement with the county of Rogaland, Norway. To develop a co-operative agreement with National Museums Liverpool by March 2005

On-going. Manx National Heritage has worked with international partners in the EU- funded Sagalands project and the EU-funded KNOT project, both concerned with the presentation, promotion and marketing of cultural heritage. The Cultural Agreement with the County of Rogaland has been the focus of Government-wide preparations to celebrate the centenary of Norwegian independence in May 2005. An agreement with National Museums Liverpool was signed in June 2004 and opportunities for developing areas of collaboration are being explored.

KPI: Education provision Target: To increase the number of references to Manx cultural and natural heritage in the Manx Curriculum guidance, and develop resources to support these.

On-going. The Department of Education published Curriculum Guidance on KS1 and KS2 History, the first of a series of new curriculum guidance documents taking into account Manx aspects of the curriculum. This guidance and the supporting resource materials makes increased and explicit reference to opportunities provided by Manx cultural and natural heritage sites and the resources which have been developed to support it.

KPI: Marketing Target: To produce new publicity material for promoting the Story of Mann and the work of MNH locally, educationally and internationally

Achieved. Manx National Heritage produced during the year a wide range of promotional material including general site information, event publicity and news releases and editorial coverage of the work of Manx National Heritage.

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KPI: Heritage conservation Target: To continue a programme of building conservation within the financial parameters. To undertake building conservation work at Laxey Wheel in advance of the 150th anniversary in 2004

Achieved. The building work in advance of the 150th anniversary celebrations was completed and the various celebrations which were jointly organised with a number of local organisations were successfully undertaken

KPI: Temporary exhibitions Target: To undertake three temporary exhibitions during the year to end March 2005

Achieved. Manx National Heritage undertook six temporary exhibitions at the Manx Museum and House of Manannan during 2004/05

KPI: Series of specialist events Target: To hold 10 events at MNH sites during 2004-05

Achieved. Manx National Heritage undertook 12 events at MNH sites during 2004/05

KPI: Public Access to collections Target: By March 2005 provide via www.storyofmann.com elements of the National Collections of Art and Social History

On-going. Manx National Heritage completed the provision of elements of the social history collection onto the web site. The implementation of the Art collection was deferred pending changes to the Art Gallery which will be undertaken at the end of 2005

KPI: Continuing Professional Development. Target: To complete the first phase of the training programme for Heritage Site Officers

Achieved. Manx National Heritage has completed the first phase of training during the year and is developing on going training for staff.

KPI: Natural History Gallery (Subject to Capital Programme and Target: funding) To redisplay the Natural History Gallery at the Manx Museum in order to open to the public during summer 2005

Achieved. Work on the gallery redisplay was undertaken during the year towards a target of opening the gallery for the 2005 summer.

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4.20 OFFICE OF FAIR TRADING

KPI : Number of compliance audits of high risk businesses undertaken annually. Target : Carry out compliance audit of 90% of wholesale and retail businesses identified as high risk.

Achieved. 90.6% of ‘high risk’ businesses being inspected, contributing to the Government aims of Economic Progress, Social Well-being & Quality Environment.

‘High risk’ businesses are generally those supplying high value commodities or with high sales volumes of lower value commodities and those licensed by the OFT to store ‘dangerous goods’.

Each petrol filling station and each shop storing fireworks in the Island was inspected. There were no recorded instances of petroleum spirit or fireworks being stored in an unsafe manner or illegal fireworks being sold.

Pumps at all commercial petrol filling stations and meters on road tankers measuring central heating oil were tested for accuracy to protect consumers and suppliers from financial loss.

Each weighbridge in use for trade was tested for accuracy. The tests underpin transactions amounting to millions of pounds and reduces the risk of overloaded vehicles travelling on the roads.

Weighing equipment was tested for accuracy and price checks were carried out at supermarkets and large convenience stores, butchers and fishmongers.

‘Packers’ of products as varied as foodstuffs and LPG and suppliers of solid fuel were inspected.

KPI: Number of compliance audits of medium risk businesses undertaken annually. Target: Carry out compliance audit of 30% of all wholesale and retail businesses identified as medium risk annually.

Achieved. 34.5% of ‘medium risk’ businesses being inspected (some more than once to ensure compliance), contributing further to the Government aims of Economic Progress, Social Well-being & Quality Environment.

‘Medium risk’ businesses are generally those supplying lower value commodities or commodities for which there are implications in terms of safety or age-restriction controls.

Each licensed petrol can store was inspected and there were no recorded instances of petroleum spirit being stored in an unsafe manner. Second-hand and charity shops were inspected to promote a safe marketplace.

Despite 183 businesses being inspected with the aim of reducing illegal sales of cigarettes to under 18s, the results of a test purchase exercise using under-age volunteers were disappointing. Different approaches, including positive enforcement action, will now be employed.

With the aim of minimising illegal supplies of videos, DVDs and computer games, (e.g. supplies of R18 videos) 83 of the 108 registered outlets were inspected.

97 New weighing equipment installed in post offices was tested for accuracy and “Medium” risk “‘packers” of products, as varied as seafood and hay fever cures, were inspected.

Island-based businesses advertising and/or selling on the Internet were monitored and to promote legitimate trading activity in the Island, 22 non-resident traders were licensed and inspected.

KPI: Number of promotional activities undertaken annually. Target: Organise or attend at least three major public events annually to promote the work of the Office.

Achieved. OFT organised or attended five events during the year to promote the work of the Office.

The annual free electric blanket testing service was provided at four venues around the Island.

The 18+ (proof of age) card was promoted heavily during the summer and consumers are now better informed of the services the OFT provide and are more aware of consumer safety issues and the dangers of fire or electrocution to blanket users is greatly reduced, contributing to Social Well-being.

KPI: Number of media announcements and responses issued annually. Target: Regularly produce public information and respond to media enquiries in a timely manner that explains the policy and work of the office.

On-going. In 2003/04 the OFT issued 25 press releases and took part in a substantial number of radio interviews and communications with local newspapers to inform and advise consumers of issues which affect them.

The quarterly newsletter, which the OFT began in 2003 and only had a circulation of 3000 has now been replaced by a monthly column in the Courier newspaper which has a circulation of almost 36,000.

OFT has retained an excellent relationship with the local media, to inform consumers of important issues which arise. OFT has also continued to regularly review the range of information that we provide and have developed new media campaigns and leaflets to anticipate or respond to consumers’ concerns. New information and leaflets have been regularly included on our website thereby increasing consumer access without the necessity for them to contact the OFT within office hours.

Consumers continue to be well informed of current issues which effect them, contributing to the overall Government aim of Social Well-being.

KPI: Number of consumer enquiries and complaints received annually. Target: Conclude all enquiries and complaints within three months in 85% of all cases.

Achieved. Of the 2940 complaints received this year, OFT concluded 97% within 90 days (three months).

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KPI: Number of Financial Services complaints received annually. Target. Complete mediation stage of scheme within six months in 90% of all cases.

Not achieved. OFT failed to meet this target, as only 68% of cases completed the mediation stage within six months, this is an improvement of 8% on the previous year and needs to be viewed against the increased number of cases being received.

During the year the Office received 562 enquiries of which 442 became formal complaints, which represents a 14.5% increase over the number of complaints received in 2003/2004. The Office concluded 415 complaints during the year compared with 350 in the previous, an increase of 19%.

The Financial Services Ombudsman Scheme is a free, independent dispute resolution service for individuals with an unresolved complaint against an Isle of Man financial institution such as a bank or insurance company. It demonstrates to the world the integrity of our financial industry and the systems that support it.

KPI: Develop performance framework to enable benchmarking against similar authorities in UK Target: Report to Board by July 2004 with proposed model framework and suitable benchmarking partners

Behind schedule. The KPI’s and targets mentioned above in relation to our enforcement and licensing work were taken directly from the draft performance framework currently being developed in the England and Wales. Work in this area is still ongoing in both jurisdictions but it has been reported to the Board that alignment with UK targets and UK benchmarking partners may not suit the priorities and direction required in the Isle of Man and that comparison with the Channel Islands may be more appropriate.

KPI: Achievement of the Offices’ legislative proposals Target: Introduction of primary legislation in accordance with Legislative programme

Not achieved. This target has not been met due. A draft Estate Agents Bill which will transfer responsibility for the regulation of estate agents from the DLGE to the OFT had been produced by the end of the year and is likely to be circulated to interested parties during the summer of 2005. A draft Consumer Protection Bill has been produced to bring the Island into line with international safety standards but has had to be delayed due to delays in finalising the implementation of EU secondary legislation in the UK. This has meant the OFT has been unable to finalise their equivalent provisions that are necessary to provide comparable safety standards for consumers and industry. UK credit legislation is currently being overhauled and as a result the OFT have delayed the development of proposals for a new Consumer Credit Bill until the full extent of the UK legislation is known as it will have significant implications for both consumers and businesses.

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4.21 PERSONNEL OFFICE

KPI: Business and Corporate Planning

Target: To Deliver organisational reviews in accordance with the terms of reference agreed with departments in 100% of cases.

Achieved.

Target: To Comply with the service level agreement for Management Advisory Service all written requests for re-gradings, reviews and establishment changes for Civil Service posts will be acknowledged and scheduled within five days.

Achieved. However form the 1 January 2005 the Management Advisory Service has been subsumed into the Employment Advisory and Support Service and a new service level agreement will be developed.

KPI: Personal Support

Target: To maintain an increase of at least 2% each year in the proportion of staff presenting with welfare problems who remain at work.

Not achieved. This target has not been met. However, this is largely due to the increase in the number of clients already on sick leave during 2004/05. However, those who remained sick made up just 4% of cases closed.

Target: To maintain an 80% ‘good’ or ‘very good’ rating for satisfaction with the welfare support service.

Achieved. This target has been exceeded, and achieved a 97% good or very good rating of satisfaction. While the response rate for return of evaluations has increased by 2% over 2003/04 it remains disappointingly low at 46%.

KPI: Personnel Policy

Target: To establish a set of benchmark statistics for equal opportunities recruitment and selection and consider the establishment of targets by March 2005.

Not achieved. Progress towards this target has been slower than expected, with finalisation not expected until later in 2005.

KPI: Health and Safety:

Target: To introduce a corporate performance measure relating to accidents for use from 2005/06.

100 On-going. The development of the recording mechanism and database that will enable this to be monitored has been consulted upon, and the final stages of its implementation across government are being completed, which will enable its introduction in 2005/06.

Target: To carry out 4 agreed inspections per annum between April 2004 and March 2007.

Achieved. The target of four inspections for the year has been exceeded. Consideration is being given to developing an inspection programme to supplement requested inspections.

KPI: Personnel Services

Target: To have no increase in the percentage of resignations from the Civil Service over the period to March 2007.

On-going. Progress is being maintained towards this target with the percentage of resignations being lower than last year.

Target: To increase annually the percentage of graduate appointments to administrative and executive/specialist posts within the Civil Service.

Achieved. There has been an increase of over 60% in the number of graduates recruited this year, compared to last year.

KPI: Employee Development

Target: To deliver at least two Management Development Programmes in 2004/05 and three in 2005/06.

On-going. Two Management Development programmes have been delivered this year, and three are scheduled for 2005/06.

Target: To promote employee development by meeting with newly appointed Chief Officers and Heads of Divisions within six months of appointment.

Achieved..

Target: To deliver the training programme through provision of internal trainer for 75% of trainer days by 2005/06.

Not achieved. Progress towards this target continues, with 67% of trainer days being delivered internally during 2004/05.

KPI: Internal Management

Target: To deliver services 100% in accordance with the service level agreement.

Achieved. Delivery in relation to this target has been maintained at 100%.

101 Target: To deliver employee development activity for our staff in accordance with the agreed plan from 2005/06.

On-going. Development activity has continued throughout this year and has been in line with agreed personal development plans. However, this target will be fully reported upon at the end of the 2005/06 period.

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APPENDIX 4

ISLE OF MAN GOVERNMENT PLAN 2004 ACTIONS REPORT

Symbol Code: √ Achieved

● On Target/Ongoing

X Behind Schedule/Not Achieved

ECONOMIC PROGRESS: “To pursue manageable and sustainable growth based on a diverse economy”

Diversification: To facilitate a diverse economy

Action: 1. Implement the Taxation Strategy by 31st March 2006 including the introduction of a zero rate of corporate tax

● On target.

Action: 2. Develop an economic strategy for approval by Tynwald by July 2004, which will facilitate thriving financial service and other business through the provision of the right economic and demographic environment

√ Achieved: The strategy was laid before Tynwald in October 2004. Work programmes have since been established and are ongoing.

Action: 3. Continue support for the attraction of inward investment, and the development of existing industrial undertakings through the utilisation of the Industrial Financial Assistance Scheme and the Media Development Fund

● 45 offers of financial assistance have been made during the year by the Department of Trade and Industry (45 in 2003/04) under the IFAS for amounts totalling £5,568,915. 9 of the offers are to new start up businesses. There continues to be a predominance of interest from IT/e-business as opposed to the more traditional manufacturing companies. Significant plant and machinery investment is being undertaken by all the principal manufacturers with particularly strong growth being experienced by those businesses involved in aerospace and defence related work. Swagelok is continuing with its plans to expand on the Island. Strix has decided to move some of its lower value injection moulding to the Far East but is continuing with investment in the R & D centre at Ronaldsway and the Ramsey press facility. The loss of Ronaldsway Shoe Company Ltd has resulted in some 120 job losses in the South of the Island. For film and media see Action 6.

Action: 4. Develop a new Tourism strategy to provide for the future sustainability of the industry during 2004

√ Approved by Tynwald in April 2004

Action: 5. Commission and complete a detailed feasibility study for an Isle of Man Aircraft Register by 31st December 2004

√ The DTI submission for additional funding for 2005/06 was approved and included in the 2005 Budget. A presentation was given to the Council of Ministers on 3rd March, 2005 on progress towards an aircraft register in the Island. Discussions are close to completion with the Personnel Office in relation to the terms and conditions to be applied to a Director of Civil Aviation post.

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Action: 6. Generate a local spend of at least £10 million per annum and 18,000 bed nights from the film production industry

√ The DTI is continuing to be successful in attracting film producers to make feature films on the Island. So far this year 12 films have been completed generating a local spend in the economy estimated at some £11.4 million + and generating 18,051 bed nights. The first significant animation project has been established on the Island and three local employment opportunities have been created directly on this project alone.

Action: 7. Maintain the viability of the Island's agricultural sector through, in particular, the extension of the EU meat derogation by June 2005 and the introduction of new derogations in respect of other products as soon as practicable

● A further visit by Department of Agriculture Fisheries and Forestry officials to Brussels to meet with the Commission took place in March 2005. A visit to the Island by the Commission along with DEFRA officials to deal with the Island's request for a derogation on milk and a renewal of the derogation on meat took place during the week commencing 25 April 2005.

Action: 8. Maintain Class 1 status of the IOM Shipping Register

√ Participation at the 2004 Red Ensign Conference confirms and all action points from the conference met.

Action: 9. Retain inclusion on the European "White List" of quality flags

√ The Marine Administration is now ranked second in the world on the Paris MOU “White List”.

Modernisation - To promote the progressive modernisation of all parts of the economy, including the use of e-business

Action: 10. Continue to give effect to the e-business strategy in relation to the attraction of new business

● Local IT services and e-business companies continue to obtain new business from smaller Island businesses. The DTI has seen an increase in the number of new approaches from off- Island e-businesses. Representatives of DTI and Treasury have attended 2 PC games events, in the United States and London. Successful contact has been made with the main influencers of the PC game developers scene in Europe and DTI & Treasury are scaling up efforts to build on growing awareness of the IOM as an influential player in this sector. The DTI attended 2 expos earlier in the year, plus the International Casino Exhibition in London and applications for licenses and enquiries continue to be received.

Ongoing research by the DTI has identified 2 further potential areas of activity for the IOM, namely Bet Exchanges and Skills Based Gaming. Good progress is being made regarding e- casinos/poker rooms. Since Treasury agreed to a new on-line gaming licence fee of £35,000, attractive to the smaller businesses in this field and Council of Ministers agreed to accept non-sporting bets from the USA, the Island has attracted more interest from companies wishing to operate Poker Rooms. E-sportsbetting has been successful in terms of new businesses with 3 new businesses locating in the Isle of Man, and a further 3 seeking licenses.

Action: 11. Produce a strategy and associated initiatives by 30th June 2004, aimed at stimulating further e-enablement across all key sectors of the economy

104 ● There has been an ongoing supply of awareness raising articles in the local press and radio. E-business workshops have been organised for local businesses. A major security awareness campaign is being developed in conjunction with the Information Systems Division of Treasury aimed at both individual computer users and businesses.

Action: 12. Develop the e-business initiative to facilitate flexibility and home working, including the continued support for broadband internet access

● DTI funds ADSL and ISDN connections for businesses and homes including schemes for wires-only ADSL, wireless and satellite. The number of broadband connections facilitated is approx. 4,600 (2003/04 approx. 1790).

Action: 13. Pursue high growth niches within the Information and Communications Technology Sector

● The DTI's capital project to convert the former Laxey Pipes Ltd factory into a business incubator to support and foster new and expanding businesses is proceeding.

Full Employment - To maintain full and properly rewarded employment

Action: 14. Continue to create the conditions for economic and social prosperity, to ensure low unemployment and diversity of opportunities

● Following the announcement of a number of redundancies at Strix and Ronaldsway Shoe Co. DTI Employment Services has offered a number of its services to the people affected. The Job Centre provision of Job Search Workshops in order to help candidates to develop the skills to find and secure employment has been made available, with dedicated workshops tailored to the needs of these groups. A third engineering induction course took place in March 2005.

Action: 15. Ensure implementation of agreed legislative and regulatory changes during 2004

● The Minimum Wage Committee has consulted fully on any changes to wage rates for 2005 and is currently considering its recommendation to the Department of Trade and Industry (DTI). Drafting instructions are currently being prepared for the Legislative Draftsman in connection with changes to the Control of Employment Act agreed by Council of Ministers.

Action: 16. Undertake a detailed review of Government's Personnel Control Mechanism for completion by July 2004

● The review of this policy was completed on target and the said review found that the stated aims of the mechanism are as relevant now as they were when the system was developed in 1991. However, it has been recognised that the mechanism as employed to achieve those aims is not ideal. The Council of Ministers therefore intends to devise a new mechanism for implementation in the future. A sub group of Chief Officers has been established to take the work forward, with a view to completion by September 2005.

Training & Education - To maximise the skills of the workforce through training, education and retraining

Action: 17. Develop a lifelong learning strategy which incorporates objectives to facilitate the development and education of the population to be able to contribute to the economy of the Island ● Work continues on this 2 year project which aims to develop a coherent strategy for further, higher and continuing education opportunities. basic skills courses continue to recruit course members, & the Department's ICT team is developing a strategy to enable the wider

105 community access ICT resources based in schools to develop their skills and application of ICT.

Action: 18. Increase the number of organisations achieving IIP accreditation

● Fourteen businesses are currently working towards the Standard. Efforts currently in hand to recruit a new IIP practitioner to help promote and increase interest in the Standard amongst local businesses. A number of Government Departments are also working towards gaining IIP accreditation.

Action: 19. Facilitate Modern Apprenticeships in trades where there are skills shortages

● The future expansion of modern apprenticeships into various sectors of the economy has been examined in the recently circulated consultative document on a Vocational Training Strategy. Indications are that there is increasing interest in this model which employers feel might improve staff retention and motivation.

Action: 20. Complete the development of a Vocational Training Strategy which includes a training needs assessment of key sectors of the economy

● The consultative document on a Vocational Training Strategy has been completed and was circulated for comment in early April. No additional pilot training initiatives have been commissioned in this quarter, and all existing initiatives are producing positive outcomes.

Action: 21. Develop a new training centre by the end of March 2006

● Negotiations between DTI and Department of Education regarding the rationalisation of direct training provision have indicated that the transfer of the capital allocation and the project to the control of the DoE is to be recommended. Discussions between the two Departments and the Treasury have continued and operational management of the project has passed to Department of Education.

Effective Regulation - To promote the reputation of the Island as a competitive and well-regulated economy

Action: 22. Continue to regulate to International standards in all areas of the economy, where appropriate

√ The objective of the FSC is to use international standards as a benchmark for its regulation and supervision. In its report undertaken in 2003 the IMF made a number of suggestions and recommendations against such standards. The FSC is progressing its plan of action and is currently working with the industry on market and credit risk issues, and in changes to the Banking Code. The Fiduciary Services Bill has been approved by the legislature and has received Royal Assent. It is envisaged that licence applications will be invited in the summer 2005.

The IMF report provided a benchmark against which the Authority could assess its compliance with international standards. The Insurance (Amendment) Act 2004, which addressed a number of recommendations contained in the report, received Royal Assent in February 2004 and the majority of its provisions are now in force. The Authority continually monitors developments in international regulatory standards to ensure that the Island's regulatory framework adequately takes them into account. It is a member of the Association of Insurance Supervisors, the Offshore Group of Insurance Supervisors and the International Organisation of Pensions Supervisors, and is an active participant in the proceedings of these organisations.

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Action: 23. Review and enact new companies legislation during 2004

● Previous amendments to existing companies legislation have now been implemented. The Treasury Steering Committee established to review company law, has participated in discussions of this Committee including with the industry on the form which a new corporate vehicle for the Island might take. Draft new company law proposals have been prepared and these are currently under consideration.

Action: 24. Review the Anti Money Laundering Code to take account of emerging business and trends, whilst reflecting the findings of the IMF Report and FAFT's revised 40 recommendations by 31st December 2004

● At present the second draft of the proposed Anti Money Laundering Code has returned from consultation and we will shortly be reviewing any final comments and suggestions". Early indications from the last JAMLAG meeting suggest that the industry is very concerned about removal of the caveat allowing for non application of the Code to client relationships formed pre 1/12/98. However it should be noted that this clause was intended to be transitional and perhaps after 6 years it is right that it is removed.

Action: 25. Develop proposals to introduce a new Customer Credit Bill

● Awaiting development and recommendations of UK review.

Action: 26. Undertake a series of surveys of the external perception of the Island to include sectoral analysis within the financial area

● A survey of the nature and extent of offshore work, undertaken by professional and financial intermediaries, was conducted during August yielding contacts for potential business development. No further surveys were scheduled within the final quarters of this report.

Action: 27. Have regard to the cost of compliance when implementing financial regulation and employment legislation

● Work is under way to improve planning, co-ordination and prioritisation of legislation to include a review of enforcement (cost/benefit analysis particularly regarding financial regulation and employment) and in providing adequate Members briefings in this respect. However, this has not yet reached conclusion and will need to be given a higher priority in 2005/6

Financial Management - By good management, to moderate as far as possible the more extreme fluctuations in the economy's performance

Action: 28. Improve capital projects management delivery through a more robust business case appraisal system

● This is ongoing through the development of the role of the Capital Projects Unit (CPU), strengthening of the financial regulations and education and training to produce a more robust business case appraisal system. Significant numbers of new Business Cases are being produced in respect of Capital developments.

Action: 29. Maintain the Island's AAA Rating from both Standard & Poor's and Moody's

√ Government was awarded AAA Rating from both Standard and Poors’ and Moody’s in July 2005.

107 Action: 30. Vigorously pursue persons and companies who fail to meet their taxation liabilities

√ Tax Gap new revenue of @ £11.5m has been brought to account as at 31st March 2005. Customs and Excise confirm the amount due to the Island from HM Customs & Excise with regard to UK traders operating in the IOM during 2003/04 is approximately £8m. Of this some £1.6m is from newly identified traders and will thus be attributable to Tax Gap new revenue. Income Tax Division will be implementing a Revised Penalty and Interest Regime from 6 April 2005 with guidance notes for practitioners on detailed enquiries and disclosure reporting to be available for the professions.

Action: 31. Review the structure of the Financial Crime Unit by June 2004 in light of the IMF report and its recommendations

X This target has not been achieved. A Committee comprising representatives of the Chief Secretary’s Office, Attorney General’s Chambers and the Department of Home Affairs is considering the recommendations of the IMF Report and will bring forward proposals for a way forward To the Council of Ministers by October 2005.

SOCIAL WELL-BEING “ To progress the social well-being of the people of the Island”

Health Promotion - To promote the benefits of a healthy lifestyle

Action: 32. Develop during 2004 a Health Promotion Action Plan in support of the Strategy for Health

X A Health Promotion action plan will be completed by the end of May 2005.

Action: 33. Seek the prevention of illness through education recognising the importance of the Department of Education's Life Education Programme on nutrition, hygiene, sexual health and anti substance abuse programmes

● A representative group will meet in April 2005 to progress the introduction of a Healthy Schools Programme. Generally, work towards this aim continues to be limited by lack of adequate resources, despite refocusing of existing available resources. Collaborative work with local cancer charities will commence in 2005 to promote healthier eating in schools, and increased physical activity.

Action: 34. Target health promotion activity to underpin the continued implementation of the strategies on Coronary Heart Disease, Stroke, Diabetes, Mental Health and the Elderly

X Health Promotion activity encompasses, where possible, activity to contribute to reducing CHD, Stroke and diabetes, such as stroke awareness week, smoking cessation, healthy eating promotion via Fruity Friday, and 5 a day awareness campaigns. Work with the elderly is currently focused around improving social inclusion and physical activity.

Action: 35. Continue food safety promotion to prevent avoidable illness

√ The Department of Local Government & the Environment has continued to provide food safety courses and has run campaigns throughout the year.

Action: 36. Secure the use of hospital and specialist services outside the Island, as necessary, in order to render the health service comprehensive

108 ● New arrangements for the treatment of patients in the UK came into effect on 1st April 2004. Ongoing monitoring of the performance of these new arrangements has taken place over the next 12 months A working group to look at air transfer of patients has been set up and the group has presented an initial report to the Health Service Policy Group, which endorsed the recommendations and authorised it to carry out more detailed work.

Action: 37. Develop an e-health (tele-medicine) strategy

● Updated document completed and awaiting Health Services Policy Group concurrence before submission to the Dept for approval

Action: 38. Advance the cancer services strategy

● An Information and Support Officer has now been appointed, and there are good prospects for appointing Lead Cancer Clinician and Lead GP. Further information is awaited from UK re bowel cancer screening before a business case can be compiled.

Action: 39. Develop a Tobacco Strategy

● The Strategy has been developed and been approved by Chief Ministers Drug and Alcohol Committee. Funding for implementation of smoking cessation service is secured. Tobacco legislation consultation is currently underway.

Health Provision - To promote high quality programmes of health and social care

Action: 40. Monitor hospital "waiting times" and implement initiatives to achieve reductions in waiting lists

● Waiting Lists are monitored on a monthly basis. Targeted initiatives commenced 1st September 2004 in Trauma & Orthopaedics and Minor Oral Surgery. Orthodontics commenced 1st January 2005.

Action: 41. Allocate additional resources to support community healthcare facilities such as Ramsey District Cottage Hospital and the new Southern Community Care Facility

● A programme has been embarked upon to identify and seek the additional resources required to support community healthcare facilities. In relation to Ramsey District Cottage Hospital specifically, account has been taken of the recommendations contained within the report of the Independent Review of services at the hospital in terms of providing the framework for the future development of services. In relation to the new Southern Community Care Facility, this development has now secured the necessary approvals and the unit is due to open at the end of 2005.

Action: 42. Improve ambulance response times

X Difficulties are being encountered in improving response times beyond the existing level with the resources available. A bid for additional resources for 2005/2006 was successful which, it is envisaged, will result in improved response times.

Action: 43. Re-negotiate and implement a new GP contract, to be phased in from 1st April 2004

● A multi-disciplinary implementation group meet on a regular basis to monitor service provision under the new contractual arrangements which came into effect from 1st April 2004, and to identify the viability and appropriateness of new enhanced services in the interests of patient care.

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Action: 44. Ensure the continued provision of an NHS Dental Service, and negotiate a new GDP contract with a target implementation date of 1st April 2005

● The continued provision of an NHS Dental Service has been secured through the development of a Primary Care Salaried Dental Service. Discussions are ongoing with the profession on revised contractual arrangements involving the introduction of Personal Dental service schemes with immediate effect and the agreement of a new Dental Service contract to be introduced from 1st April 2006.

Action: 45. Progress the integration of the regulatory inspection teams for nursing and residential homes

√ Achieved. There is now one integrated Inspection Team established within the Social Services Division reporting directly to the Director of Social Services. The Team is currently developing systems to formally monitor the Nursing & Residential Division that is provided by the Department.

Education - To create opportunities for self-development through lifelong education and training

Action: 46. Ensure high levels of educational achievement within schools ● Training is now active with regard to the Department of Education’s school leadership and management modular course. The seconded headteacher who is project managing this is actively seeking external validation of the Department's course with an ITT institution. The Manx teacher qualification for post graduates wishing to train as secondary teachers on Island hopes to recruit its first cohort to start in September 2005 Action: 47. Widen the range of high quality academic and vocational learning opportunities for pupils from the ages of 14 upwards ● Network groups across the Secondary Schools, the College, Government Departments and other Agencies continue to meet with the consultant to further build upon existing provision. The groups are also considering the implication for the 14-19 curriculum & accreditation as proposed in the Tomlinson Report. Action: 48. Support the development of the International Business School

● Strategies to continue to develop the IBS & its potential in providing educational opportunities continue. The Director & officers are working with the IBS to explore a range of opportunities to develop the centre.

Action: 49. Develop a strategy for school improvement through monitoring, challenge, intervention and support to teachers, school managers, and school governors by September 2004

√ The first term of operation of the strategy has proved to be very positive, with schools recognising the benefits of a clearer agenda for school improvement being provided by the service. The Deputy Director has led joint service meetings across the Department to review schools standards & quality, along with development days for the services to develop and secure a more co-ordinated approach to information sharing and resource deployment. Two schools have been reviewed by the Department this term along with an aspect of the service evaluating quality, standards & impact.

Action: 50. Progress the adult education programme of the Isle of Man College

√ As previous comment and that recorded in action 17 plus. All full time and part time students have access to skills development in literacy, numeracy & ICT at the appropriate level. Additional part time evening provision for adults who require literacy and numeracy skill

110 development for the workplace will be made available from February 2005. 70 students (an increase of 6 on 2004) have enrolled on the Improve your basic skills.

Leisure - To encourage the development of recreational, leisure and cultural opportunities

Action: 51. Progress the approved Sports and Recreation Strategies through the development of a Sporting Schools Partnership, the expansion and development of programmes at the NSC and the provision of low cost "Play the Game" schemes

√ The strategy is being progressed by the Department of Tourism & Leisure through the following initiatives:

● the continuing partnership with the Department of Education ● the appointment of an Activities Officer at NSC which has already made a positive impact, particularly in respect of swimming lessons ● the appointments of Sports Development Manager and School Sports Co-ordinator ● ongoing provision of accessible youth sports development schemes and, ● progressing the appointment of a disability sports development officer

Action: 52. Develop plans to enhance the sustainable amenity use of glens, plantations and hill land

● The newly acquired major extension to Molly Quirks Glen is now open to the public following the construction of a footpath network. A comprehensive public consultation exercise has been undertaken following the preparation of a draft Access and Recreation Policy document, currently being reviewed in the light of the responses received. The major storm of 8th January 2005 caused extensive damage to many of the Island's National Glens and work continues to enable all to be re-opened before the summer.

Action: 53. Restore the Natural History Gallery at the Manx Museum

● Project continues with the opening of the redesigned gallery during 2005

Action: 54. Commission the Villa Marina by Spring 2004

√ This action was achieved, the Villa Marina Complex is now fully operational.

Action: 55. Develop harbours and ports for marine leisure facilities and enhance opportunities for aquatic leisure pursuits

● Douglas Inner Harbour New access road from Bridge Road to the Tongue is substantially completed. The work on Bridge Road is progressing satisfactorily now that delays, caused by the need to replace and realign services, have been overcome.

Action: 56. Continue support for Isle of Man Arts ● The Department continues to allocate funding for IOM Sports Council and IOM Arts Council to enable support in pursuit of their aims. Housing - To ensure the provision of adequate housing for all income levels in the population

Action: 57. Ensure an average of 120 public sector houses and 120 first time buyer houses are constructed each year over the life of the plan

√ a) The public sector programme (new build and redevelopment) is on schedule to complete 600 dwellings in the five years.

111 X (b) The Department has completed 179 First-Time Buyer dwellings; a further 142 are on site and 14 have received planning permission. The programme is one year behind schedule because of the water supply issues in the East of the Island. There will be a shortfall of over 100 dwellings because one of the proposed developments on unzoned land in Douglas did not receive planning permission.

Action: 58. Ensure that suitable provision is made for those in need of assistance to remain in their home and that homes are designed for independent living well into old age or infirmity

● The DLGE is continuing to address this need in relation to the public sector housing stock but has no responsibility for housing in the private sector.

Action: 59. Manage the redevelopment of the Douglas Urban Regeneration Area

√ 18 first-time buyer units completed on programme. Contract awarded for work on 22 public sector dwellings and work expected to begin on site before the end of April 2005.

Social Inclusion - To promote as integrated and inclusive a society as possible

Action: 60. Progress an Employment (Amendment) Bill during 2004/05 and an Employment Discrimination Bill in 2005/06 to modernise employment law provision

√ Bill submitted to Treasury for concurrence April 05, and Bill introduced into the Branches.

Action: 61. Increase the proportion of the bus fleet which is accessible by disabled and less agile persons

√ As at 31 March 2005 71.7% of the operational bus fleet are low floor, disabled accessible buses. In terms of the core timetable well over 90% of journeys are now serviced by low floor, disabled accessible buses. An additional 6 new buses have been ordered which will improve the ratio further and were delivered in the spring of 2005.

Action: 62. Enhance disabled access to government buildings wherever feasible

● This is a long-term aim and work will be undertaken as and when the opportunities present themselves.

Action: 63. Develop a guide identifying the provision for disabled access to buildings across the Island by 31 December 2004 X Contract let to DisabledGo in April 2005for Web site and training. Compilation of the Guide commenced in May 05 and completion in Jan 2006. Action: 64. Continue to provide a free debt counselling service

● Ongoing

Social Inclusion - To provide a comprehensive programme of benefits which is effective in meeting genuine need, encourages independence and provides incentives to work

Action: 65. Continue to provide a full range of contributory and non-contributory schemes for pensions, benefits and allowances

● The Social Security Division currently administers some 20 different benefits, comprising contributory, non-contributory and income-related benefits, as well as lump sum payments,

112 to cover old age, bereavement, incapacity, unemployment, maternity, paternity, adoption, disability, the costs of bringing up children and those on low incomes. The Division contributes to the current scrutiny of long term strategic issues such as pension prevision and support for those on low incomes.

Action: 66. Undertake research into the extent to which private provision is being made for income in retirement

● Treasury focus is on new provisions for pensions and an overhaul of the regime for the taxation of investment products. The overall implications of this area however, suggest a wider remit across Government.

Action: 67. Manage changes to the current programme which may be indicated by the reciprocal agreement with the UK, by the reports of the Government Actuary, or otherwise

√ The Department of Health and Social Security has received the UK Government Actuary's report on the review of the operation of the Social Security Acts on the Isle of Man for the 5- year period ending 31st. March 2002. The report was laid before Tynwald at its May 2005 sitting. The Department continuously monitors changes in the UK's benefits programme and seeks approval from Tynwald to apply to the Island such changes which are deemed appropriate.

Action: 68. Publish a report on addressing the digital divide in the Isle of Man by 30th April 2004

√ A full programme of recommendations is now being implemented. Monitoring measures are in place and a performance review was undertaken in April 2005.

Community Safety - To reduce the incidence of crime

Action: 69. Ensure security at ports and airports complies with international standards

√ Airport: Confirmed by the adoption of UK Security Programmes, and formal regular audits by Transport Security Inspectors, the most recent being in April 2005.

Harbours: In March 2005 agreement was reached with DTI's Marine Administration to provide an on-going audit of the Port Facilities Security Plan. Such an audit is required to ensure compliance with international legislation.

Action: 70. Further develop the joint policy between the Probation Service and the prison to manage the supervision of offenders to ensure they are exposed to rehabilitative opportunities

● This continues to be progressed. The two services are currently looking at how to enhance support and focus work with drug misusing offenders as these offenders represent a significant part of the current Prison population. Further, significant progress has been made, with the establishment of a multi-disciplinary resettlement team in the prison enabled by the provision of a full-time probation officer seconded to the prison. Through care arrangements have been improved, with the involvement of through care probation officers in regular prison reviews during the sentence and with an added emphasis of prisoner development to prepare for release. All prisoners serving 12 months and over are to be involved in this scheme. The Prison service are developing a programme for the introduction of a Victim Awareness Course to be offered to all prisoners that are identified at the review process. Mandatory Drug Test prisoners who have tested clear are presented with a certificate which is placed on the prisoners re-settlement record.

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Action: 71. Continue to support the Isle of Man Constabulary's Policing Plan and Strategic Plan and associated performance targets

√ The Department of Home Affairs continues to work closely with the Constabulary to ensure that resources are prioritised to allow the delivery of the forces aims and objectives as set out in the current policing plan. Furthermore, the Department in conjunction with the Constabulary, the Police Advisory Group and other organisations and entities have completed the production of the 2005-06 Policing Plan.

Community Safety - To ensure the provision of a safe environment

Action: 72. Promote compliance with health and safety legislation and provide an efficient and effective service based on the principles of consultation, fairness and openness

● DLGE has given evidence to the Select Committee and is awaiting its findings. It is also continuing to monitor the implementation of the CDM and Management Regulations. DLGE is working this year with the DTL Events Group and others on special events to mark the Year of the Sea.

Action: 73. Determine a new policy on speed limits by December 2004

√ The Department of Transport did not receive public support for the phased introduction of maximum speed limits. The proposals will be revisited and republished by December 2005

Action: 74. Identify and prioritise measures to be taken at accident locations to reduce the number of road traffic accidents

√ There was an 8.3% reduction in road traffic collisions on the same quarter last year. Over the whole of the year from 1st April 2004 to 31st March 2005 there was a 11.4% reduction in collisions. This represents 120 fewer collisions than last year. Fatal or serious collisions also fell by 22.5%, equating to 20 fewer serious collisions.

The "Route Alert” measures including new and improved signage on the A.5 Douglas to Ballasalla and Castletown to Shore Hotel road has been implemented and the accident record has already improved. The "Route Alert will now be directed at the A.1 Douglas to Peel. Additional signs and markings are being installed on the Mountain Road

Community Safety - To prepare for and respond to emergency situations

Action: 75. Keep under review the contingency plan to deal with increases in levels of radiation

√ The procedures for responding to a RIMNET alert have recently been tested and revised. Liaison continues between BNFL Sellafield and the Government Analyst.

Action: 76. Continually update and refine the All Island Emergency Plan

● A table top exercise took place in July 2005 to validate and test the plan.

Action: 77. Develop a robust response mechanism to the possibility of a major Chemical Biological, Radiological or Nuclear (CBRN) incident by 31st March 2005

114 ● Public warning sirens have been installed and commissioned. The system will be tested periodically to ensure serviceability. Training is ongoing and further deliveries of equipment is imminent.

Action: 78. Validate by 31 July 2004, the Marine Pollution and Salvage Contingency Plan

√ The Marine Pollution & Salvage Contingency Plan was successfully tested in a joint tabletop exercise with the UK and Ireland on 17th February 2005.

Action: 79. Produce a strategy for the development of the Emergency Services Joint Response Control Room to become Government's emergency response centre, by 31st March 2005.

X Discussions continue to be ongoing with the relevant Department and Authorities. The revised target date for this action is now 30th June 2005

Community Spirit - To encourage self-reliance and a sense of community and responsibility

Action: 80. Work with vulnerable young people to develop self-reliance and a sense of responsibility

● Work continues on these projects with the Youth service providing support for identified pupils which is highly valued by the secondary schools. The secondary behavioural support unit will be operational from January and staff at the unit will work closely with the secondary schools and the SEN Service to support those pupils referred to the unit. Meetings with working groups of headteachers & officers continue to define criteria and operational matters. The draft strategic plan for supporting positive behaviour will be consulted upon in January following discussions with the Member holding delegated responsibility for SEN.

Action: 81. Provide advice and support to local authorities

● The DLGE provides advice on a daily basis covering functions of the Local Authorities, including housing, accounts, etc, and is consulting Local Authorities on proposed new legislation to come into effect in April 2008. The Department has also continued to provide briefings to all newly elected members of local authorities and their staff throughout the year

Action: 82. Support Neighbourhood Watch Schemes

√ The implementation of Community Safety Officers in each Division, with their first hand knowledge of the area, has helped to create new schemes. All these officers recently attended a Crime Reduction Course and are now in a better position to give crime prevention advice. The Neighbourhood Watch Annual General Meeting was held on 21st September 2004 and was well attended.

Action: 83. Investigate and develop by July 2004 a new operating basis for Manx Radio

√ The Council of Ministers' Report on the Corporate Structure of Manx Radio was considered at the April sitting of Tynwald, and 7 of the 9 recommendations were approved.

Community Spirit - To value and encourage voluntary involvement in the community

Action: 84. Continue to underpin, through support funding, a whole range of voluntary organisations in care provision

115

● DHSS continues to expend 30% of its budget on services provided in partnership with the Voluntary and Independent sector. In the last year a new respite care bed with the Independent sector has been established.

Action: 85. Progressively implement the Carers Strategy to improve support to carers

● Implementation of the Carers Strategy is ongoing; during the last year the following initiatives have been achieved: establishment of a Live at Home Scheme in the South of the Island; provision of an Emotional Support Scheme within the Carers Centre; expansion of existing Live at Home Schemes in Onchan and St Johns with Foxdale.

Action: 86. Recognise the essential work of all voluntary organisations and welcome the views of those bodies in our policy-making

● This is a developing aspect of services. DHSS, Mental Health Division are working with the Service User Network, a voluntary body, representing users of Mental Health Services. They are consulted in all aspects of Service operation and planning and in some staff appointments. Also DHSS are continuing to meet with Voluntary Organisations involved with people with Learning Disabilities including Manx Mencap, Project 21, Church, Autism in Mann and the Prince’s Trust.

QUALITY ENVIRONMENT “ To protect and improve the quality of the environment”

Waste Management - To dispose of the Island's wastes in a safe, effective and efficient manner

Action: 87. Commence operation of the Energy From Waste Facility by May 2004

X External factors contrived to prevent achievement of this Action. Primary stream completed and handed over to SITA on the 17th August 2004. It is now fully operational. Secondary stream commissioning has suffered teething problems that have caused a delay but it is "operational".

Action: 88. Commission the Sewage Treatment Works at Meary Veg by June 2004

√ The Meary Veg sewage treatment works is operational and treating sewage flows from Douglas, Onchan, Union Mill, Ballasalla, Balthane and the Airport / Ronaldsway Industrial Estates. The treatment processes are stable and robust and are producing a good quality treated effluent that is being discharged to sea through the new outfall pipe. The sludge treatment facility is only partially commissioned and has started to produce dried sludge pellets for disposal to land. The Meary Veg sewage treatment works is still in the reliability period and has not yet been handed over to the Department. The pumps in the White Hoe pumping station are causing noise and vibration problems within the adjacent properties. As a result, the station is switched off between 10pm and 8am daily, until the Contactor has resolved the noise and vibration problems.

Action: 89. Complete an engineered landfill site during 2005

X Following the receipt of comments from interested parties in connection with the scheduled Public Inquiry, the Department decided to withdraw its planning application in order to re- assess the way forward. A revised planning application incorporating further mitigation measures is being considered

Action: 90. Develop a strategy for the management of waste collection services

116 X The Department has delayed its consideration of the report from the Waste Collection Services Group pending a decision on the content of new Local Government legislation in 2005. Any change now unlikely before April 2008.

Action: 91. Increase the quantities of materials recovered, re-used and recycled each year

√ Work is in progress on the new Eastern Civic Amenity Site which should be operational from about September 2005. This will assist in seeking to increase reuse and recycling.

Action: 92. Ensure that all hazardous wastes are removed from the waste stream and processed in line with EU Standards by 30 April 2004

√ The new Duly Motivated Request is in place and arrangements for the exportation of hazardous waste continue without problem.

Air & Water Quality - Set appropriate environmental standards for air and water quality and ensure that they are met

Action: 93. Constantly monitor air and water quality and adopt recognised standards

√ Ongoing

Action: 94. Implement initiatives to enable all drinking water to meet EU environmental standards

√ The Water Authority continued to meets its targets in respect of Water Quality during 2004/05.

Action: 95. Review the results of the Sulby River project

● The review has been completed by the MSc student, part-sponsored by the DLGE, and the thesis is currently being finalised for submission.

Action: 96. Develop a Water Treatment Works to serve the East of the Island by March 2007

● The construction of the new works at Douglas will commence in the summer 2005 with completion expected in 2008.

Air & Water Quality - To develop strategies which prevent or minimise environmental pollution

Action: 97. Seek the closure of Sellafield

● There was a Ministerial visit to Sellafield in January 2005 to meet BNFL, NDA and UKAEA. Sellafield Lifecycle Baseline sub-committee meeting held on 25th February 2005; responses sent in January 2005 on CORWM Phase 1 consultation on nuclear waste disposal; HSE Nuclear Safety Directorate on Decommissioning of Chapelcross Power Station; and letter to Minister on dredging of West Cumbrian Harbours; Nuclear Decommissioning Authority met with the DLGE Minister and Chief Minister in March 2005; and the IOM Government/Ireland Joint Paper for the British-Irish Council has been updated.

Action: 98. Seek to prevent environmental pollution by effective planning and regulation

117 ● Work has continued to prepare for the introduction of the remaining Parts of the 1999 Town & Country Planning Act during 2005. Consultation period completed on secondary legislation in preparation for submission to Tynwald.

Action: 99. Introduce the remaining provisions of Part I of the Water Pollution Act 1993 by October 2004

√ The DLGE brought into effect the remaining provisions of the 1993 Act in February 2005, as soon as the necessary resources were in place

Wildlife & Countryside - To promote the conservation of the countryside and its wildlife

Action: 100. Manage and improve the Island glens for the benefit and enjoyment of all

● The new extension to Molly Quirk's Glen is open to the public following the installation of a footpath network. The major storm of 8th January 2005 caused extensive damage to many of the Island's National Glens, Glen Helen. Glen Maye, Bishopscourt and Tholt-y-Will being particularly affected. Glen Helen and Glen Maye remain closed whilst tree removal and repairs are undertaken. Bishopscourt and Tholt-y-Will have been re-opened to the public but further work will be undertaken through the year to fully restore these areas.

Action: 101. Ensure the adoption of Island agricultural support schemes to take into account 2003 reform of the CAP and have a Countryside Stewardship Scheme out to consultation by December 2004

● The Countryside Stewardship Scheme consultation is now expected to take place in February 2005. Adaptation of support schemes is receiving on-going consideration.

Action: 102. Develop proposals for the improvement and management of the hill lands, to balance the interests of recreation, biodiversity and agriculture

● The Department has carried out a comprehensive public consultation exercise to guide policy formulation in this area. A formal Access and Recreation policy document is in preparation which will underpin future proposals for site management. Close liaison is maintained with the Department of Transport to develop long term sustainable usage of the upland Rights of Way over the Department's landholding.

Action: 103. Continue the implementation of the Wildlife Act 1990

√ Further designation of Areas of Special Scientific Interest Jurby Airfield (63 ha) confirmed January 2005 2 further ASSIs designated in February and March 2005 including 214 ha of Ballaugh Curragh. 4 Schedules (birds, plants and animals) have been revised. Marine conservation specialist now employed. Ayres National Nature Reserve bylaws brought into force.

Action: 104. Designate the first National Heritage Area by 31st October 2004, following public consultation

√ Though the preparatory work for designation was delayed for reasons of resources, the DLGE began a process of public consultation on two proposed national heritage areas in February 2005, namely the Meayll Peninsula and Sulby Glen. Open house meetings were also held in Rushen and Lezayre during March. The DLGE hopes, following consideration of the representations received, to be able to bring both Orders to Tynwald in the Autumn of 2005

118 The Built Environment - Through effective Town and Country Planning, seek to raise the quality of the built environment

Action: 105. Seek Tynwald approval of the All Island Strategic Plan by October 2004 and a comprehensive range of Area Plans by 2007

● Modified draft Strategic Plan published in November 2004. Public Inquiry was held in March 2005. Report of the independent inspector is now awaited. Further work on Area Plans deferred until Strategic Plan has been progressed.

Action: 106. Implement the Building Regulations 2003 and develop performance standards for building control authorities

√ Building Regulations 2003 have been implemented. Consultation has been undertaken on draft performance standards.

Action: 107. Provide grant assistance in respect of buildings of architectural or historic significance

√ Grant assistance continues to be offered by DLGE.

Action: 108. Introduce parts 2 to 5 of the Town and Country Planning Act 1999 during 2004

X Progress delayed on this Action by issues relating to Mount Murray Commission of Inquiry. Consultation on secondary legislation started in December 2004. Secondary legislation will be presented to Tynwald by October 2005.

Sustainable Development - To pursue sustainable development and environment- friendly technology

Action: 109. Set standards that incorporate sustainability principles for all public sector housing and buildings

√ This is an ongoing process.

Action: 110. Undertake public awareness and education programmes on sustainable development

√ New Sustainable Development Working Group has met and organised training for May 2005.

Action: 111. Promote energy efficiency

● DLGE Minister now taking this forward through the Energy Committee of the Council of Ministers, which he chairs. Tynwald approved the Committees recommendations for an Energy Policy in July 2005.

Government is committed to reducing energy consumption by Government Departments. The new Housing Improvement Energy Conservation Scheme will provide incentives for energy conservation.

In an endeavour to promote energy efficiency the DTI engaged a student on the Shell Technology Enterprise Programme (STEP) in the summer to undertake an energy audit to evaluate the effort being made to improve the efficiency with which energy is used on the IOM in relation to elsewhere, in particular the UK. The report has been circulated within Government and to interested parties receiving a positive response. A paper is now being

119 prepared to seek agreement of Council of Ministers to implement the recommendations of the report in particular, the appointment of an independent energy adviser.

Action: 112. Encourage the use of alternative and environmentally-friendly technology such as dual fuel vehicles

● The DLGE is continuing to work on general environmental policies which should support the objective and the DTI is undertaking a review of renewable energy policies.

Population Management - Manage the population to have regard to constraints imposed by infrastructure, environment and social and economic factors

Action: 113. Continue to consider the appropriate point at which the implement the Residence Act 2001

● The Council of Ministers continues to consider this issue. Information has been sought from a number of Departments to assist this process, including information on the impact on Control of Employment legislation, from the DTI.

Action: 114. Use demographic data to assess requirements for service provision and infrastructure

√ This is a key function of the Economic Affairs Division of Treasury which produces annual central planning assumptions which inform policy making.

SOUND INFRASTRUCTURE “ To provide a sound and sufficient infrastructure for the Island”

Transport - To maintain and develop the Island's ports to ensure that they are able to meet the needs of the travelling public and air and sea carriers

Action: 115. Maintain ports facilities to a high standard

√ The Department of Transport continues to maintain its Port Facilities to a high standard. For example the refurbishment of the Sea Terminal Departure Lounge has been completed. In Feb 2005 the Department concurred to the major maintenance programme for harbours. This programme will be used to schedule forthcoming work.

Action: 116. Maintain an "open skies" policy to encourage new services and air routes

√ This policy maintained with record 2004 air passenger throughput of 773,743, up 3.4%, and 10 scheduled airlines now operating.

Action: 117. Develop improved customer and service provider facilities at the airport by August 2004

√ The landside Bar and area has been redesigned and improved. The old kitchen accommodation has been redeveloped to provide additional Office accommodation for a based Airline.

Action: 118. Introduce a 10 year strategic plan for harbour development, prioritising activities for the next 5 years by 31st July 2004

120 √ In Feb 2005 the Department of Transport concurred with the proposed harbour development programme. This programme will now be used to schedule forthcoming works and to make bids for inclusion in Government's capital programme.

Action: 119. Draw up and implement a prioritised and budgeted planned maintenance programme for the harbour by September 2004

√ In Feb 2005 the Department of Transport concurred with the harbours major maintenance programme. This programme supplements the existing planned maintenance schedule.

Transport - To construct and maintain an appropriate highways infrastructure

Action: 120. Initiate during 2004, regular safety inspections of the Island's highway network

√ The priority for inspections has been for Category 1 (high usage) footways to address the problem of pedestrians tripping resulting in potential insurance claims to Government. All Category 1 footways are now regularly inspected the procedures for the inspections of the highway generally (including footways outside towns) have been determined based on the Code of Practice for Highway Maintenance but are not yet implemented.

Action: 121. Implement an Integrated Street Works Information System for the co-ordination of road works by April 2005

√ Detailed study to define and document the technical design for a comprehensive web- based street works information system commenced in July 2005

Action: 122. Continue the rolling plan for improvements to the highways infrastructure

√ Works at Vicarage Road continue, the new roundabouts at the junction of Ballanard Road and Johnny Wattersons Lane and at Ballafletcher were completed ahead of programme .New schemes on the North Quay/Bridge Road and St Ninian’s, Douglas commenced early in the year. Reconstruction of 2 lengths of road in the Preventative Maintenance Programme Clannagh Road , Sulby and Waterloo Road Ramsey were completed along with 3 further lengths Handleys Corner, Brown Cow Santon and Balladoole.

Transport - To promote an integrated transport strategy to meet needs of the local community and visitors

Action: 123. Develop new policies during 2004/05 in response to the 2003 Parking Survey

√ Properties Division continues to progress the development of detailed policy initiatives covering Off Street Parking. These policy initiatives have resulted recently in improvements to car parks in Peel and the provision of additional contract parking off Lake Road in Douglas. The Division has also completed a detailed assessment of the Departments own car parks and will now be progressing improvements and developments resulting from this assessment Highways Division A further public consultation is prepared to explain the new parking policies. The extension of disc parking in Douglas and the other towns is continuing to be reviewed, and as appropriate progressed towards implementation,

Action: 124. Continue the rail infrastructure renewal programme

● No new track replacement was undertaken during 2004/05 and the funding for the Rail Infrastructure Renewal Programme was carried forward to 2005/06. A new enhanced scheme has been proposed for year end 2005/06 and approval for this proposal will be sought at the

121 October 2005 Tynwald sitting. During the year overhead cable equipment has been purchased to address concerns raised by the Health & Safety Inspectorate. Routine maintenance work has been undertaken on the Steam Railway, Snaefell Mountain Railway and Manx Electric Railway the later of which was severely affected by storm damage in January 2005.

Action: 125. Introduce an annual survey to measure customer satisfaction on all transport services by 31st March 2006

√ A customer satisfaction survey was completed in March 2004 on the bus services. Where practicable the recommendations made within the report have already been implemented. Other improvements will be considered as part of future budget and planning processes. A Customer Satisfaction survey will be undertaken by independent consultants during Summer 2005 and a Customer Satisfaction / Feedback form has been included within the Bus/Rail timetable circulated in March 2005.

Drainage - To ensure effective and environmentally sound treatment and disposal of foul and surface water

Action: 126. Further implement the IRIS programme and phase the decommissioning of the inland treatment works and sea outlets

● The flow from the Newtown sewage treatment work was transferred to Meary Veg in May and the old works will be decommissioned. The transfer of sewage flows from the Ronaldsway and Ballasalla catchments to the Meary Veg sewage treatment works is complete. The Silverburn sewage treatment works has been decommissioned. The transfer of sewage flows from Castletown, Ballabeg, Colby, Port St Mary and Port Erin catchments to the Meary Veg sewage treatment works is scheduled for May 2005. The Rushen sewage treatment works will then be decommissioned. The sea outfalls at Douglas and Onchan have been abandoned and are retained as overflows. The sea outfalls at Port Erin, Port St Mary, Derbyhaven and Castletown will also be abandoned in May 2005 and again retained as overflows. Work is progressing on the detailed designs for the Union Mills to Peel Contract, the Quarterbridge to White Hoe Contract and the Mount Murray to Newtown Contract. Work is scheduled to start on site in 3rd quarter 2005. Once complete this will facilitate the decommissioning of the treatment works at Glen Vine, Ballagarey, Marown, Crosby, Mount Murray and St Johns and the abandonment of the Peel outfall.

Action: 127. Continue the programme of rehabilitation of the drainage infrastructure

√ The All Island Infrastructure Rehabilitation Contracts for 2004-05 are progressing to programme based on the Framework Contact currently in place with Insituform Technologies Ltd. The budget for the 2004-05 Contract is £1.877m and expenditure to date is £1.535m. Work is complete in Douglas, Onchan, Ramsey, Castletown, Port St Mary and is substantially complete in Peel. Work in Andreas remains outstanding

Action: 128. Determine maintenance requirements for all main rivers in conjunction with other Departments

√ A programme of main river maintenance work has been established for 2004-05 and 2005- 06, based on the available budget. Work is progressing in accordance with this programme. There has been significant consultation with representatives of the Department of Agriculture, Fisheries and Forestry to minimise the impact that the river maintenance programme might have on the fisheries, bird life and the environment in general.

Action: 129. Commence a three year flood alleviation scheme for the Sulby River in 2004/05

122 ● Following a lengthy process of consultation and advertising, the main river designation at Sulby has been extended to include the area upstream of Carrick Park which will form the Flood Storage Area. Negotiations with landowners has delayed the implementation of the scheme which is now scheduled for a start on site in May 2005. This will not however affect the work to be completed in 2005/06. Treasury have included £1.329m within the Capital Programme to fund the works over a 3-year period.

Public Utilities - To ensure the public utilities provide services that meet the Island's needs

Action: 130. Continue the programme of infrastructure renewal of the water supply

● The Water Authority reports that work on the new Sulby Water Treatment Works is due to be completed in September 2005. The raw water main, which will supply this new Water Treatment Works, has also been completed. The construction of the new works at Douglas will commence in the summer 2005 with completion expected in 2008.

Action: 131. Implement the report on the strategic direction of Isle of Man Post

● The Post Office has continued to explore the opportunities presented by the possible diversification of its operations although as requested by Tynwald in March 2005, the future legal structure and strategic direction of the Post Office is under review by the Council of Ministers which aims to report to Tynwald on the matter in November 2005.

Action: 132. Set and achieve standards in respect of domestic and commercial electricity supply requests

√ MEA have set standards to respond to new supply requests. For modifications to LV services MEA endeavour to respond within 10 days and for schemes which require major network modifications, 22 days or less are targeted. For both standards MEA aim to achieve an 80% or better success rate. This year, for the 10 day standard MEA’s performance was 88.35% and for the 22 day standard 81% was achieved.

Action: 133. Ensure the continuity of electricity supplies

√ With regard to the continuity of electricity supplies MEA’s standard is the average number of customer minutes lost per year and less than 30 minutes per year per customer is targeted. For this year, 21 minutes have been achieved. This figure does not include data from the January storms as this is considered to be an extraordinary event beyond the scope of the statistic.

Public Utilities - To further develop economical and environmentally-friendly energy sources

Action: 134. Explore the options for renewable energy through the Council of Ministers

X The work on this project is behind schedule. However, the DTI has recently undertaken a review of renewable energy policies.

Telecommunications - To support the development of high quality telecommunications and digital communications technology for the use of Island businesses and residents

Action: 135. Continue to meet connection charges for ISDN and ADSL technology

123 √ The DTI funds ADSL and ISDN connections for businesses and homes including schemes for wires-only ADSL, wireless and satellite. The number of broadband connections facilitated is approx. 4,600 (2003/04 approx. 1790).

Action: 136. Continue to lobby the BBC to introduce its digital terrestrial radio and television services to the Island

● The BBC is now routinely deploying digital video transmission equipment to the Island, enabling enhanced same-day reporting of events. This technology was first developed for use here and is now being deployed across the BBC. An announcement confirming that the Isle of Man will be part of a full switchover to digital terrestrial television across the Border Television Region, bringing the full range of BBC digital services in 2008 is expected this year. An article about the Manx Gaelic language now features on the bbc.co.uk/voices website as one of the indigenous languages of the British Isles. First discussions on including Manx Gaelic as a strand of a possible Scots Gaelic digital channel have taken place.

Action: 137. Encourage increased mast sharing by broadcasters

● Full switchover to digital terrestrial television, now provisionally planned for 2008 will use the existing transmission site infrastructure.

Public Buildings - To ensure sufficient investment in the Government's physical assets to support public services

Action: 138. Develop plans for a new secondary school in the East of the Island

X The programme has been deferred for 2 years.

Action: 139. Develop plans for a new prison at Jurby

● Tenders have been received for the construction of the new Prison and at the time of writing were being evaluated by the Design Team. Tynwald approval for financial aspects was achieved in June 2005 sitting.

Action: 140. Construct a water retention scheme in Peel by 30th November 2004

X Difficulties were experienced in making the West Quay cofferdam watertight. This was achieved by mid-February but due to the confined nature of this part of the site it has not been possible to recover the lost time. Work to complete the West Quay jetty is progressing well. The footbridge was lifted into place on 20 April and secured in the "open" position. Completion of the scheme is now scheduled for 30 June 2005.

Action: 141. Prepare a business case for the construction of a marina at Port St Mary by 31st December 2005

● This development is currently subject to an appeal within the planning system

GOOD GOVERNMENT “ To provide demographic Government which is effective and accountable”

Quality Public Services - To provide a dedicated workforce, committed to the delivery of quality public services

Action: 142. Ensure 100% implementation of the revised performance appraisal scheme for Civil Servants

124 ● 69% of Performance Appraisals were completed for the year ended March 2005, within the required timescale. This was a significant improvement in comparison to the previous year.

Action: 143. Pursue policies for revised pay and grading arrangements within the Civil Service

● Proposals for new pay and grading structure with the potential to link personal contribution to pay, have been developed to meet the CSC policy aims.

Action: 144. Recognise and work closely with Staff Associations and Trade Unions

● The Civil Service Commission and Departments continue to work with registered Staff Associations and Trade Unions recognised under established mechanisms i.e. Joint Negotiating Committees. The Whitley Council for the Isle of Man Public Service (Manual Workers) remains active.

Action: 145. Develop our staff to perform at the highest standards in their own fields through employee development

● The planned programme of courses in the training prospectus was exceeded by 16 due to responding to demand at both individual and departmental levels. In addition 9 one-off events were provided on more specialist topics.

Action: 146. Develop a strategy for succession planning

● Progress is ongoing and being linked into the Commission's aims for improved performance and reward.

Quality Service - To utilise information, knowledge and communications technology in the provisions of services

Action: 147. Launch an online companies registry search facility

√ Launched August 2004.

Action: 148. Establish by March 2006, as part of the JUPITER programme, a facility whereby citizens need only notify Government once, of any changes in their personal details

● Development of CRM (Citizen Relationship Management) as a bridge across legacy systems is a key element of this initiative. The project is underway and clearly aimed at the March 2006 date.

Accessibility - To ensure the greatest possible equality of access to Government services

Action: 149. Improve awareness of services through information campaigns

√ All Departments are encouraged, through the Corporate Governance Code of Conduct to engage effectively with people in the community, in order to involve them, through consultation, in policy development and make them aware of services available and how they can be accessed.

Action: 150. Ensure that information can be accessed by all

√ All Departments are expected to ensure proper accessibility of services.

125 Action: 151. Continue to integrate pupils with educational special needs into mainstream education ● A focused programme of training for school SEN co-ordinators is being run by officers to further develop teacher's skills in support staff in their own schools better met the full range of learning abilities in school. This training is providing support materials which will result in an SEN Manual to support school staff. The Department of Education continues to extent the number of Nurture groups in school to enable pupils to access focused support both in the unit, & when integrated back into school. Stability - To promote consistency and stability in the formulation of policy and administration

Action: 152. Ensure the continued provision of an independent and high quality public service to provide advice and guidance to Government

√ Staff turnover for the Civil Service remains constant. The Personnel Office continues to review the terms and conditions of service of Civil Servants providing ongoing support/coaching to Managers in regards to their consistent interpretation and application ensuring that the Isle of Man Government remains an employer of choice. The delegation of the management aspect of recruitment has been very successful with the formal signing of only 2 departments left to be achieved. The ongoing support and administration necessary is now in place and operating successfully. Key business partners have been identified in order to promote positive relationships and a wider understanding of issues contributing towards the delivery of a pro-active service across the whole of the Isle of Man Government.

Action: 153. Carry out the preliminary work to support an independent review into the scope and structure of the Isle of Man Government

√ The Council of Ministers has established a Sub-Committee comprising the Chief Minister, the Minister for Health and Social Security and the Minister for Transport. There are three main areas for the review namely:- • determining what the scope of public services on the Island should be, • identifying how those functions should then be delivered by the component parts of the Government, and what the structures should be and finally • considering the political structures that would be required to support the changed structures.

Action: 154. Introduce new Bills in accordance with the planned legislative programme

● 6 Bills were progressed during the 2004/05 parliamentary year. Government is keen to improve upon this figure in the next parliamentary session.

Value for Money - To manage public finances to ensure value for money and financial probity

Action: 155. Ensure understanding of and compliance with the Financial Regulations in Government business

√ This is an ongoing Internal Audit Division activity, which includes participation in Financial Regulation Workshops (the last course was run in March 2005), providing ad-hoc advice and guidance and undertaking investigations as required.

Action: 156. Give full consideration to the recommendations of the Tynwald Select Committee on the Scrutiny of Public Accounts

● At the time of publication of this report the Tynwald Committee had yet to report.

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Action: 157. Develop a system of corporate governance during 2004/05 including the use of Departmental Statements of Internal Control

√ Under the auspices of the Chief Secretary, a Corporate Governance Steering Group has been formed with the objective to develop a framework for the reporting structures and administrative procedures required to support successful implementation of the Corporate Government Code of Conduct within IOM Government to be phased in from September 2005

Action: 158. Deliver a planned programme of audit coverage to include capital projects and contracts

√ Delivery of the planned audit coverage progressed satisfactorily subject to available resources and requirement to develop further specialist IT audit skills in order to adequately discharge a level of assurance to the organisation. During the year, two members of the Internal Audit Division of Treasury passed the accreditation process for BS 7799 lead auditor status.

Action: 159. Provide a greater focus on performance delivery and value for money within Government

● Despite the appointment of a new Chairman, the programme of activity for the Value for Money Committee remained broadly the same during the year i.e. to encourage delivery in this area and focus on improvements to the procurement methods and structures within Government to achieve better value. This was partly affected by external developments i.e. the review of the structure of Government. The Committee has considered the issue of strengthening its role at its meetings during the year.

Equal Opportunities - To ensure the greatest possible equality of opportunity and fair treatment

Action: 160. Promote anti-discrimination legislation and ensure appropriate training programmes are available

√ The Department of Trade and Industry’s equality officer will continue to answer queries from individuals and employers and to provide presentations (7 have been delivered so far this year). The Department is working towards providing a conference for local employers in order to raise awareness of equality at work issues, including flexible working patterns. The officer has maintained a high profile, being interviewed for an IOM Newspapers Business Pages Update, and appearing on the panel of a CIPD Question Time-style review.

Action: 161. Enact new Employment legislation

● The Department of Trade and Industry is currently developing an Employment (Discrimination) Bill. A consultation document in relation to the Bill is being compiled. It will be for the Department to co-ordinate the commencement of the public consultation process with the progress of the Employment Bill. Following the consultation process, a paper will be prepared setting out the results of the consultation initially for consideration by the Department, and subject to agreement, shortly thereafter submitted to the Council of Ministers for approval.

Action: 162. Implement the Race Relations Act

● The establishment of an appointed day order for this legislation and associated publicity is being progressed by the Social Policy Committee of the Council of Ministers.

Justice - To protect human rights and fundamental freedoms

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Action: 163. Bring into force the Human Rights Act 2001, during 2004 X Awaiting the Tribunals Bill and Regulation of Surveillance Bill to be progressed before an appointed day Order can be made. Action: 164. Implement the Tribunals Act

● The Bill completed its passage through the legislature. Detailed work on establishing the Appointments Commission has now commenced.

Justice - To promote respect for authority, the rule of law property and each other

Action: 165. Develop programmes for the education and rehabilitation of offenders

● As part of the Drug and Alcohol Strategy, the Probation Service, in partnership with the Drug and Alcohol team, are currently engaged in establishing an Alcohol Arrest referral scheme. Further, the Senior Catering Officer at the Prison has successfully gained a qualification to teach NVQ Catering and Food Hygiene Education programmes continue to be developed with Prisoner success rates remaining at a high level. Courses and classes continue to be developed, updated and reviewed. In liaison with the Mobile Library and with the help of a charitable donation, the Prison service are about to embark on the refurbishment of the Prison Library.

Action: 166. Develop punitive sentencing in the community as an alternative to custodial sentences

● A contract for the provision of an electronic monitoring of offenders service has been signed and progress on the introduction of the service is on track. Attendance Centre Orders are due to become available once the regulations have been approved by Tynwald and the Department is reviewing legislation needs in criminal justice through the Criminal Justice (Miscellaneous Provisions) Bill.

Justice - To ensure fair and equitable access to the judicial system

Action: 167. Review the findings of the 2003 Legal Aid Commission

X The matter is still under consideration by the Council of Ministers in conjunction with the Isle of Man Law Society.

Action: 168. Introduce simplified Legal Aid Regulations by 31st December 2006

X The review of the regulations will commence once the outcome of the Legal Aid Commission considerations are implemented.

Action: 169. Monitor, assess and evaluate the constitutional legal reforms in the United Kingdom and implement into Isle of Man Law where necessary and appropriate

√ An analysis of the proposed constitutional reforms in the UK identified no implications for changes in the law on the Isle of Man.

Action: 170. Produce updated and improved Rules of the High Court of Justice by 31st March 2006

● This matter is ongoing.

128 Citizenship - To encourage public participation in Government policy-making

Action: 171. Provide educational programmes emphasising social responsibility and citizenship to inform young people of their role in society

√ The appointment of the new Drugs education liaison officer will enable further developments in raising pupils' awareness of the impact of misuse on themselves and society. Aspects of the proposed Children & Young Persons strategy will also link into the work of officers and schools. The outcomes of the ESPAD Report are also being evaluated in order to respond to the findings both in terms of support programmes and resource deployment.

Accessibility - To promote a greater public understanding of Government and its work

Action: 172. Develop and improve access to Public Records

● This matter is on-going.

Action: 173. Encourage the role of the media in promoting the understanding of Government and its work

● Many agencies of Government are very pro-active in promoting awareness of Government through the media including health and lifestyle pages and radio interviews, information pages and general media releases.

Action: 174. Undertake a detailed review by September 2004 of the Council of Ministers Code of Conduct on Access to Government information

● This review has commenced, albeit behind schedule. The revised target date for completion is December 2005.

Autonomy - To promote and continue the evolution of our constitutional relationship towards more complete self-government whilst recognising our links with the Crown

Action: 175. Continue to co-ordinate the promotion of the Island's interests to the UK, the European Union and other jurisdictions through the work of the External Relations division of the Chief Secretary's Office

● The Constitutional & External Relations Committee of the Council of Ministers meets monthly to discuss ongoing constitutional and external relations issues of significant impact to the Island arising out of the UK, EU or other jurisdictions. Senior working group established by Constitutional & External Relations Committee of the Council of Ministers comprising Chief Secretary, Attorney General, Chief Financial Officer, Economic Advisor & Assessor of Income Tax meets regularly to co-ordinate Government's response to external or constitutional issues, in preparation for consideration by the Constitutional & External Relations Committee. The re-launch of the "In Focus" newsletter for the Isle of Man's international audience has been well received. Publications were produced in June and October and a third is currently being prepared

Action: 176. Seek to increase the number of occasions in which the Isle of Man Government represents itself on appropriate International Organisations

129 ● The Government has been represented at British Irish Council, Commonwealth meetings, OECD, CPMR, UN Committees as well as regular meetings with Channel Island counterparts and the UK Department of Constitutional Affairs during the last 12 months.

Action: 177. Seek further occasions where the Island, by Letters of Entrustment, signs international agreements on its own behalf

● The Crown Dependencies have had several high level meetings in conjunction with Department of Constitutional Affairs on this issue. The IOM delegation has been led by the Chief Secretary and HM Attorney General and is supported by senior officers from Treasury. The views of the IOM Government were submitted formally to the UK Government and a final Letter of Entrustment agreed with the Crown Dependencies. Bi-lateral tax agreements with all 25 EU Member States have now been signed.

Action: 178. Negotiate greater control over fisheries in the territorial waters between the 3 and 12 mile limits

● A consultation paper on extending the Island's jurisdiction has been agreed with DEFRA officials. However, delays are being experienced in obtaining UK Ministerial approval and DAFF is striving to expedite this.

Action: 179. Modernise and improve the mechanisms by which the Island communicates with the Department of Constitutional Affairs

√ Formal language has been abolished in all correspondence, unless writing to the Secretary of State, to bring the communication into a modern day style.

An updated system of communicating with the Department of Constitutional Affairs by email and also directly with the individual concerned has improved communications, reduced the time taken for the matter to be dealt with and removed confusion about where each issue rests. This has also improved working relationships with the DCA and kept issues more focussed. External Relations Division now maintains a job plan of issues outstanding with DCA as an easy reference to show which officer is dealing with which issue, and other administrative information.

Action: 180. During the next three years, report to or give independent evidence before the United Nations, on our obligations under the various international conventions

● The Chief Secretary represented the Isle of Man before the United Nations Committee against Torture in Geneva in November 2004

International Reputation - To protect and enhance the Island's external reputation

Action: 181. Assess the Island's external reputation through the monitoring of reporting and through surveys

● The monitoring of reporting is undertaken by specialists engaged by the Treasury. It provides reports on an annual basis.

Action: 182. Assist Manx businesses to gain access to international markets

● In general terms, the development of the Market Access Group and International Tax Unit concept is aimed at the achievement of this Action. The coming year will see further proposals presented for political endorsement. More specifically, the Financial Services

130 Division works to extend access to markets for Isle of Man financial and professional services e.g. working to gain recognition for IOM funds in Switzerland

Action: 183. Respond to external organisations which are reviewing the Island's good governance

● CSO continues to be involved in assisting in the consideration of amendments to the Anti Money Laundering Code, examining the recommendations of Financial Action Task Force in respect of the Financing of Terrorism.

In addition to the work already undertaken through the existing Treasury led working party, an external tax adviser team has been established, which together with the Market Access Group, will co-ordinates action in implementing appropriate policies and strategies e.g. regarding the Savings Tax Directive.

Action: 184. Promote business and cultural opportunities through international agreements

● The Government has continued to explore and develop links with Norway arising from the cultural agreement.

Action: 185. Seek to raise the Island's profile and reputation amongst business intermediaries and with the media

● The publication "in-Focus" has been re-launched this year and is circulated to a wide business and political audience.

Action: 186. Continue to submit reports to the International Labour Organisation to demonstrate our compliance with its Conventions

● European Social Charter Report submitted in February 2005.

International Reputation - To further develop working relations with the United Kingdom to ensure the Island's interests are effectively promoted internationally

Action: 187. Host a British Irish Council Summit during 2005

√ The British Irish Council Summit was held on the Island in May 2005.

Action: 188. Seek to raise the Island's profile and reputation amongst business intermediaries and with the media

● This work is being led by a number of Government Departments including CSO, DTI and Treasury. The development of the branding project during 2005 will give further impetus to this objective. External Relations - To develop, constructive relations with the EU and international organisations to promote the Island's interests and rights to trade

Action: 189. Meet regularly with UK Government and EU Representatives for briefings and liaison purposes, to clearly set down the Island's views and position on matters of significance

● Regular six monthly meetings are held between the Chief Minister and Lord Falconer which allow political discussion on areas of interest or concern to be raised. Communication is also maintained via letter or telephone.

131 Regular bi-monthly meetings have been established between the Chief Officers of the Crown Dependencies and the Head of the Crown Dependencies Division at the Department of Constitutional Affairs. This allows the opportunity for regular and direct communication on a variety of issues. Familiarisation and liaison visits have been progressed between the Department of Constitutional Affairs and External Relations Division.

Delegations from the Isle of Man Government have travelled frequently to Brussels to set out the Island’s views and position on agricultural and fisheries issues, on taxation and fiscal matters and as part of an initiative to raise the Island’s profile.

Action: 190. Make visits to and communicate with the institutions of the EU to ensure that our interests are represented e.g. CPMR

● The Government was represented at the Islands Meeting of the CPMR in Aland Islands in May 2004 and the Annual General Meeting of CPMR in Norway in Sept 2004. Regular liaison takes place with EU institutions with the assistance of White and Case in Brussels. Action: 191. Carefully monitor developments in the Inter-Governmental Conference addressing the draft EU Constitutional Treaty and ensure the Island's best interests are represented and defended

● The technical redrafting of Protocol 3 for inclusion in the EU Constitutional Treaty was completed to the satisfaction of the Isle of Man Government. Protocol 3 to the UK’s Act of Accession became Section 3 (Articles 8 to 13) of Protocol 8 to the EU Constitutional Treaty, which was signed by the leaders of the EU Member States on 29 October 2004. The redrafted version of Protocol 3 froze the Island’s limited relationship with the EU at the extent set out in the original version. The new Treaty had to be ratified by all 25 EU Member States to come into force and with the rejection of the Treaty by both France and the Netherlands in referenda it appears that the Treaty, at least in its present form, will not be approved. The original version of Protocol 3 will therefore continue in force for the foreseeable future.

Action: 192. Challenge where appropriate the interpretation of EU/UK law and policy as applied to the Isle of Man

● There is regular communication between IOM Government and UK Department of Constitutional Affairs on legislative matters, the effects of EU legislation under Protocol 3, Conventions and various UK measures is ongoing. Recent issues include Special Recommendation Vll relating to Wire Transfers, the EU Cash Control Regulation, bi-lateral tax agreements, e-borders initiatives, milk and bread derogations and the application of EU State Aid measures.

An ongoing function of the Chief Secretary's Office is to analyse EU legislation, determine the applicability to Isle of Man under Protocol 3, and distribute all applicable legislation to relevant Departments

Action: 193. Improve awareness of EU issues both within Government and the Island community

● Quarterly EU briefing sessions for Members of Tynwald on EU matters and to highlight current EU issues and developments has proved very useful in informing and keeping Members up to date with EU and external developments and has been well attended.

Euroclub meetings at which there has been a wide range of interesting speakers have been held quarterly. Invitations to attend Euroclub have been widened to encourage sixth form

132 students from Island secondary schools to attend presentations.

Culture & Heritage - To protect, present and promote the unique cultural heritage of the Island

Action: 194. Support Manx Studies and the publication of the New History of the Isle of Man ● 18 Key Stage 1 & 2 history units have now been completed. Work continues to produce units in other curriculum areas. This is an ongoing project. The Department of Education and MNH continues to support the work of the Centre for Manx Studies

Action: 195. Undertake building conservation work at the Laxey Wheel in advance of the 150th anniversary in 2004

√ The building work in advance of the 150th anniversary celebrations was completed and the various celebrations which were jointly organised with a number of local organisations were successfully undertaken

Action: 196. Support sporting and cultural activities which contribute to a positive external perception

● MNH continues to contribute towards a positive external perception with various cultural projects including the agreements with Rogaland and National Museums Liverpool

Action: 197. Extend the provision of Manx language teaching in schools

● A replacement Manx language officer has been recruited following the retirement of the post holder, with further recruitment planned to appoint another Manx language teacher.

Action: 198. Support the work of the Gaelic Broadcasting Committee

● An article about the Manx Gaelic language now features on the bbc.co.uk/voices website as one of the indigenous languages of the British Isles. First discussions on including Manx Gaelic as a strand of a possible Scots Gaelic digital channel have taken place. The budget for the Gaelic Broadcasting Committee has increased in real terms for the fourth successive year. With the support of the Commission, two new members have been appointed to the GBC.

Action: 199. Maintain the history and importance of the Tynwald Ceremony and develop the Associated National Week activities

● This work is led by the Tynwald Ceremony Arrangements Committee and fully supported by the Government.

Action: 200. Continue to work towards Tynwald Hill being designated a World Heritage Site

● Pressure is continuing to be applied to the United Kingdom Government on this issue.

Action: 201. Continue to provide a public access to the 12 formal sites within the Story of Mann and to lands and monuments under MNH ownership

● MNH provided access to the 12 Story of Mann sites during the 2004 summer season and provided access to the Manx Museum, House of Manannan and the Sound during the winter period

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External Marketing - To market the Island's positive image

Action: 202. Identify and market new business opportunities including improved international understanding

● Treasury contributions around Financial Services / E-business. For example a strategy is in place to attract new financial institutions (Dublin Fund Administrators / London based Fund Managers and Administrators) through a targeted inward investment programme. Opportunities in the expansion of the fund industry globally (especially hedge funds) have also been researched and pursued as have opportunities in Islamic finance and private banking for the medium term. The E-business Division continues to work with KPMG to target niche companies in niche sections to the Island.

Action: 203. Encourage the media to market the Island's positive image

● Despite a series of potentially damaging reports in UK national media during the last 12 months, efforts have continued to ensure the reporting is as fair and accurate as possible, although that has not been possible to achieve on all occasions. The Treasury, through the work of the PR Firm, Weber Shandwick, ensure that editorials and articles appear in relevant trade journals and international media to increase the positive image of the Island.

Action: 204. Present an Isle of Man exhibition stand at the European Parliament in Brussels by March 2005

● Originally intended to be held earlier, this initiative was deferred to allow time for the new European Parliament to settle in. Sponsorship for the Isle of Man to hold the exhibition in December 2005 has been approved and relevant agencies of IOM Government who will be participating have been kept informed. Preparations are being progressed.

Action: 205. Complete an annual review and updating of the Financial Services Marketing Plan

● The Financial Services Marketing Strategy continues to be a subject of discussion with the new Marketing Steering Group. This has only recently come into effect following publication of the Economic Strategy. In addition to any published Marketing plan, the Financial Services Division of Treasury has its own internal business plan.

134 APPENDIX 5

TYNWALD DECISIONS REPORT 2004/05

PART I – OUTSTANDING ISSUES CARRIED FORWARD FROM 2004 ANNUAL REPORT

1.1 April 2003: Transparency and Integrity of Government

Motion : That Tynwald is of the opinion that in the interests of transparency and integrity of Government, all purchases of real estate, costing in excess of £250,000, by Government Departments and Statutory Boards should be identified in a Report from the Council of Ministers and said Report should be laid before Tynwald as soon as practicable after the financial year end.

Action : The Council of Ministers is going to respond positively to this motion by introducing an annual report.

1.2 May 2003 Reorganisation of the Department of Health and Social Security–

Motion: “That Tynwald is of the opinion that the Council of Ministers should report back to the October sitting:

(a) whether the DHSS should be divided into two separate Government Departments, and review the existing Departments for amalgamation in order to keep the status quo of the number of Departments in government;

(b) to investigate the services of the DHSS having more input from lay members of the public; and

(c) to investigate the creation of a Health Authority or a Hospital Administration Committee and a Social Services Committee, and to review and recommend changes to the structure of the DHSS.”

Action: Council submitted its Report to Tynwald which was received 22 October 2003.

As a consequence of a Report to Tynwald, the Council of Ministers has appointed a Steering Group to undertake a Review into the Scope and Structure of the Isle of Man Government. In its Report to Tynwald, Council concluded that any review of that Department could not be undertaken in isolation and would need to have regard to all other elements of Government, including the other Departments, Statutory Boards and Offices of Government. It was concluded that such a major exercise should not be undertaken at that time, in view of the existing commitments facing Government.

Since the debate in October 2003, the question of reviewing the scope and structure of Government has gained a higher profile and is an issue which Council has now identified as a high priority strategic aim. Therefore, the Steering Group is seeking a Review Team, to consider whether the current structure needs to be changed to meet current and future needs, and make recommendations to Council of Ministers. It is anticipated that the Team will submit a report regarding its findings, to the Council of Ministers, in October 2006.

1.3 July 2003: Mount Murray Report

Motion: Council to assess the recommendations of the Mount Murray Report & convey to the October Sitting as to how those recommendations can as far as practical be implemented.

Action: The Council of Ministers submitted its Report by on the Commission of Inquiry into Mount Murray Part One Report to the October 2003 sitting of Tynwald.

135 1.4 July 2003 : Local Authority and Government Housing Eviction Consultative Body-

Motion – (1) Tynwald is of the opinion that, as all funding for Local Authority and Government housing comes from Government, the Department of Local Government and the Environment should investigate, in consultation with local Authorities, the need for a consultative body consisting of-

(a) Local Government and the Environment Officer- Housing; (b) Department of Health and Social Security Social Worker; and (2) that the Department should similarly investigate the need for a Housing Welfare Officer, who if appointed, would also sit on this body to deal with cases of eviction, and report further to the November sitting Tynwald on such investigations.

Action: The Minister for Local Government and the Environment made a statement at the November 2003 sitting of Tynwald and Report by the Department of Local Government and the Environment was submitted to and received at the February 2004 sitting of Tynwald.

1.5 October 2003 : Development of a Long Term Strategy for the Provision of Natural Gas to serve the North, South and West of the Island –

Motion: That Tynwald-

(i) receives the Report of the Council of Ministers on Research conducted into the Development of a Long Term Strategy for the Provision of Natural Gas to serve the North, South and West of the Island and the possible introduction of a Gas Regulatory Body; and

(ii) and requests the Council of Ministers to introduce a Bill into the Keys during the 2004-2005 session for the implementation of an energy regulatory body.

Action: a Bill has been included in the Legislative Programme, and work is continuing on drafting (see item 3.6 below).

1.6 October 2003: Standing Committee of Tynwald on Constitutional Matters.

Motion: That the First Report of the Standing Committee of Tynwald on Constitutional Matters for the Session 2003-2004 be received, recommendations 37.1 and 37.3 be approved and, in respect of recommendation 37.2, that Tynwald recognises the need for change in the title of the Lieutenant Governor on the Island and authorises the Government to open discussion with the Crown and the Department for Constitutional Affairs in order to seek an appropriate alternative.

Action: Discussions between the Chief Secretary and the DCA are on-going

1.7 November 2003: Report on the Jurby Study

Motion: That the Report dated October 2003 entitled “Jurby Village – a discussion document” on the proposed development in Jurby Village be received and requires the Department of Local Government and the Environment to consider the recommendations of the Francis Report entitled “Airfield Archaeology RAF Jurby and Associated Sited”, a Report commissioned by the Manx Heritage Foundation, and to take the recommendations within the Report at pages 56 and 57 into account and to consider the implications of any future development proposals when determining the future strategy for the development of Jurby, with a view to

136 safeguarding the important historical and unique buildings and defence structures located in the area. Action: Consideration of this matter is on-going. In July 2005, Tynwald approved funding for 3 new elderly persons’ bungalows and the refurbishment of 62 houses at the Bretney Estate, and work will commence during 2005/06.

1.8 November 2003 : Petition for Redress of Grievance of David Arthur Newton

Motion: That Tynwald appoint a Select Committee of three Members to investigate the petition for Redress of Grievance of David Arthur Newton presented at Tynwald Hill on 7th July 2003, with powers to take written and oral evidence pursuant to sections 3 and 4 of the Tynwald Proceedings Act 1876 and report to the Tynwald sitting in March 2004 at the latest.

Action: The Committee reported to Tynwald in October 2004. (Refer to paragraph 3.18).

1.9 December 2003: Tynwald Hill – World Heritage Site

Motion: That Tynwald, recognising that Tynwald Hill is the oldest continuous parliamentary site in the world, seeks that it should accordingly be declared a World Heritage Site, notes that it has been the policy of the Isle of Man Government to obtain such a designation, and now requests the Chief Minister to initiate any appropriate action to ensure that this objective is secured as soon as possible.

Action: An outline statement was prepared by MNH for consideration during the visit by Mr David Lammy MP. Consideration of this matter is on-going.

1.10 December 2003: Design Study of East Quay, Peel.

Motion: That Tynwald, in recognising the importance of the built environment of the conservation area in Peel, also recognises the need for a design study of East Quay, Peel and requests that the Department of Local Government and the Environment, under section 12(4) and (5) of the Town and Country Planning Act 1981, carry out such a study in consultation with landowners, neighbours, local authority and the Centre for Manx Studies, and report by July 2004.

Action: Council endorsed the proposal from the Minister for Local Government and the Environment to make a statement to the July sitting of Tynwald advising that the study has now been completed and that there is to be a period of formal consultation on the draft study report, following consideration of which the Department intends to publish Supplementary Planning Guidance.

1.11 January 2004 : Select Committee on Castletown and Ballasalla Sub Post Offices

Motion: That the Report of the Select Committee on Castletown and Ballasalla Sub Post Offices be received and its recommendations contained in paragraphs 9.2, 9.3, 9.4 and 9.5 of the Report be approved, and that the Report be referred to the Board of the Isle of Man Post for their consideration whether any action should be taken by them to set up an independent inquiry into the conduct of the Chief Executive and other senior officers of the Isle of Man Post Office implicated in the matters covered by the Report

Action: Recommendation at paragraph 9.4 of the Report carried. This recommendation states “In view of the evident confusion on the subject which exists, the Isle of Man Post should, moreover, make the position about premiums which may be paid by incoming sub postmasters to outgoing sub postmasters crystal clear in writing, and should avoid giving any advice on the subject, however informal, to existing or prospective postmasters.”

137 1.12 February 2004: Mount Murray Residual Issues Committee-

Motion : That the Report of the Mount Murray Residual Issues Committee be received but that the Council of Ministers report further to the June 2004 sitting of the Court with regard to compensation for the four residents of the Mount Murray estate injuriously affected by planning irregularities.

Action: The Report by the Council of Ministers on the Compensation Claim – Mount Murray Residents was submitted to the June 2004 sitting of Tynwald. A Tynwald Committee was appointed and reported to Tynwald in July 2005 (refer paragraph 3.56)

1.13 February 2004: Select Committee on Playground Facilities for Children

Motion: That the Report of the Select Committee on playground Facilities for Children be received and the following be approved -

(a) The recommendations concerning existing play facilities -(paragraphs 6.1(a) to (e)of the Report); (b) The recommendations concerning the provision of play areas in new developments - (paragraphs 6.2(a) to (d)of the Report); (c) The recommendations regarding the financial implications for local authorities of providing playgrounds (paragraphs 6.3 (a) to (d) of the Report); (d) The recommendations regarding health and safety implications (paragraphs 6.4(a) and (b) of the Report); (e) The recommendations regarding law and order implications (paragraphs 6.5(a) to (e) of the Report); (f) The recommendation regarding the use of Section 18 of the Town and County Planning Act 1991 (paragraph 6.6(a) of the Report). (g) That the Department of Local Government and the Environment shall include the provision of skate board facilities and equipment in its criteria of play area facilities which are eligible for grant assistance to local authorities.

Action: The majority of the recommendations have been achieved and consideration of outstanding issues is on-going.

1.14 March 2004 : Motion on a matter of urgent public importance under Standing Order 2.8

Motion:

(1) That Tynwald requests the Council of Ministers to introduce at an early stage a Bill to amend the Broadcasting Act 1993 to restrict the number of licences that can be issued in relation to local commercial radio and television stations and also to provide clear separation of the licensing and regulation of local broadcasting from both the Government and the Legislature; and

(2) that the Communications Commissions be advised that it is the opinion of Tynwald that in the interim no additional licence(s) should be issued in relation to any prospective local radio broadcaster beyond any which the Commission is already legally obliged to issue.

Action: (1) A Broadcasting (Amendment) Bill has been drafted (Refer Para. 3.44)

138 (2) The Communications Commission issued a statement that it is suspending further licensing under the Island's Broadcasting Act pending revised legislation. Tynwald agreed that in future the licensing and regulation of broadcasting should be clearly separated from both Government and the Legislature. The number of new broadcasting licences would be restricted, taking into account the economic impact on existing operators.

1.15 March 2004 Independent Review of the Services at Ramsey and District Cottage Hospital

Motion : That Tynwald is of the opinion that the recommendations contained in the Report of the Independent Review of Services at Ramsey and District Cottage Hospital be adopted by the Department of Health and Social Security as the framework for the future development of services at Ramsey and District Cottage Hospital, subject to clinical considerations and the availability of resources.

Action: This was adjourned to the July 2004 sitting of Tynwald. Report was considered at the March 2005 sitting of Tynwald (Refer to paragraph 3.36).

1.16 March 2004 Supervisory Powers of the Department of Local Government and the Environment -

Motion: That Tynwald requests the Department of Local Government and the Environment to report with recommendations to the October 2004 sitting of Tynwald on:

(a) the effectiveness and efficiency of the present local government structure and whether, in the public interest, Local Government should be restructured to ensure it provides a more meaningful and cost- effective service to local communities, and

(b) reports on the supervisory powers of the Department in respect of any powers vested in the Department to supervise and oversee local authorities and, if inadequate, suggest any changes that would give adequate powers.

Action: Minister for Local Government and the Environment made a statement to the October 2004 Tynwald. The Department reported to the January 2005 sitting of Tynwald (see paragraph 3.28).

139

PART 2 – NEW ISSUES – ACTIONS COMPLETED

For the sake of completeness the report includes decisions up to and including July 2005.

2.1. April 2004 : War Pensions Committee

Motion: That the Right Reverend Graeme Paul Knowles, Lord Bishop of Sodor and Man, be appointed to the Isle of Man War Pensions Committee for the period ending 15th July 2007.

Action: appointment confirmed.

2.2 April 2004: Income Tax Personal Allowance Credit

Motion: That in accordance with section 119 of the Income Tax Act 1970, it is hereby resolved -

(1) That in respect of the personal allowance credit under Section 7 of the Income Tax Act 2003 -

(a) the maximum credit in sub section (2) (a) of that section shall be £222.50; (b) the maximum credit in section (2) (b) of that section shall be £445.00.

(2) That this resolution shall apply in respect of the personal allowance credit payable after the date on which this motion is approved in respect of the incoming tax year commencing 6+ April 2003 and subsequent years.

Action: Actioned by Treasury Income Tax Division.

2.3 May 2004 : European Union Savings Directive -Isle of Man Response - Model Agreements -

Motion: That Tynwald, noting the conditionality set out in Article 17 of the proposed bilateral agreements and the European Union Savings Directive, agrees that the proposed bilateral agreements be adopted as the means by which the Isle of Man implements the decision of Tynwald, made at the October 2003 sitting, that the Isle of Man shall use all best endeavours to comply with the terms of the EU Savings Directive from 1st January 2005

Action: The EUSD came into force on 1 July 2005. Its main purpose is to allow tax authorities to share information about savings income payments made to individuals. It will help to ensure that savers and investors pay the correct tax on their savings income in their country of residence.

The Isle of Man agreed to introduce measures equivalent to the EUSD. This was on the condition that all 25 EU Member States, European third countries and associated territories also adopted either the EUSD or equivalent measures. The Isle of Man Government entered into bilateral agreements with each of the EU Member States and introduced the Income Tax (Retention of Tax and Exchange of Information) Order 2005.

The aim of the EUSD is to have automatic exchange of tax information between countries; however, during a transitional period, it allows either for the exchange of information or for a withholding tax to be deducted from the savings income. Most of the countries within the EU,

140 including the United Kingdom, have introduced the exchange of information regime. The Isle of Man, three EU Member States (Austria, Belgium and Luxembourg), and many of the non- EU countries involved have introduced the transitional withholding tax system (referred to in the Isle of Man as retention tax). Even within the withholding tax system, people can elect for exchange of information if they wish.

The Isle of Man has agreements with the EU Member States only. Information or retention tax can only pass between countries and jurisdictions having agreements with each other.

2.4 June 2004: Funding for the Department of Health and Social Security

Motion: that Tynwald notes the concerns over National Health Service waiting lists and supports the intention of the Minister for Health and Social Security, acting in conjunction with the Treasury, to come forward to this Sitting of Tynwald with a Resolution seeking approval to supplementary funding subsequent to previously initiated discussions with the Treasury to address long waiting times for NHS treatment.

Motion : That Tynwald authorises Treasury to apply from General Revenue during the year ending 31st March 2005, a sum not exceeding £1,000,000 to allow the Department of Health and Social Security to undertake Waiting List Initiatives.

Action: Funding provided to the DHSS. Waiting lists are monitored on a monthly basis. Targeted initiatives commenced 1st September 2004 in Trauma and Orthopaedics and minor oral surgery. Orthodontics commenced 1st January 2005.

2.5 July 2004: Executive Government - Supplementary Vote 2003-04

Motion: That Tynwald authorises the Treasury to apply from General Revenue, in respect of the year ended 31st March 2004 –

(1) surplus receipts totalling £686,921 of Executive Government in payment of excess expenditure; and (2) the sum of £480,079 in payment of excess expenditure of Executive Government.

Action: sums applied.

2.6 July 2004: The Legal Aid Act 1986 - Supplementary Vote

Motion: - (a) the Criminal Legal Aid Order 2004 be approved [SD No 484/04]; and (b) that Tynwald authorises Treasury to apply from General Revenue during the year ending 31st March 2005, a sum not exceeding £450,000 to meet the additional cost of the provision of Criminal Legal Aid.

Action: (a) Criminal Legal Aid Order 2004 is now in operation; (b) Sum applied to meet cost of Criminal Legal Aid.

2.7 July 2004: Revenue Accounts 2003-04 - Supplementary Vote

Motion: that Tynwald authorises the Treasury to apply from General Revenue, in respect of the year ended 31st March 2004 –

(1) surplus receipts totalling £293,675 of the Department of Transport in

141 payment of excess expenditure; and (2) the sum of £832,805 in payment of excess expenditure of the Department of Transport.

Action: sums applied to meet excess expenditure.

2.8 July 2004: Properties (Capital): Animal Waste Processing Plant (Pre-Contract Design Fees to Planning Approval Stage)

Motion: that Tynwald approves of the Department of Transport incurring expenditure not exceeding the sum of £350,000 in respect of Pre-Contract Design Fees to Planning Approval Stage for the new Animal Waste Processing Plant.

[Reference: item no. 7 "Animal Waste Processing Plant" under the heading "Local Government and the Environment" on page 9 of the Isle of Man Budget 2004-2005, referred to in the Capital Estimates 2004-05 to 2007-08 on page 61 of the Isle of Man Budget 2004- 2005, responsibility for which expenditure is being taken by the Department of Transport in lieu of the Department of Local Government and the Environment].

Action: Pre-contract design progressing.

2.9 July 2004: Commission of Inquiry into Mount Murray

Motion: That Tynwald - (a) receives the Part Two Report of the Commission of Inquiry into Mount Murray and refers it to the Council of Ministers to assess its recommendations and report to the October sitting of Tynwald as to how those recommendations can as far as practical be implemented; and (b) approves the expenditure of a further sum not exceeding £50,000, from General Revenue for the year ended 31st March 2005 in addition to the £1,050,000 previously voted, to meet the final costs of the Commission

Action: The Council of Ministers Reported to Tynwald in October 2004. (Refer paragraph 3.17).

2.10 July 2004 : Financial Services (Inward Investment) Assistance Scheme 2004

Motion: - (1) the Financial Services (Inward Investment) Assistance Scheme 2004 be approved [GC No 22/04]; and (2) Treasury is approved to make a sum of £300,000 available from the Tax Strategy Requirement Fund in the year ending 31 March 2005 to fund the Financial Services (Inward Investment) Assistance Scheme 2004.

Action: Sum applied.

2.11 July 2004: Revenue Accounts 2003-04

Motion: that Tynwald authorises the Treasury to apply from the General Revenue in respect of the year ended 31st March 2004

(a) surplus receipts totalling £113,628 of the Department of Education in

142 payment of excess expenditure; and (b) the sum of £361,349 in payment of excess expenditure of the Department of Education.

Action: Sums made available to the Department.

2.12 Revenue Accounts 2003-04

Motion: That Tynwald approves of the Department of Education incurring expenditure not exceeding £1,503,400 on the extension to Scoill Vallajeelt.

[Reference: Item No. 9 under the heading "Education" on page 7 of the Isle of Man budget 2004-2005 and as detailed in the Estimate of Capital Payments 2004-2005 to 2008-09 (new schemes - Classroom Scheme Phase 1 - Scoill Vallajeelt) on page 58 of the Isle of Man Budget 2004-2005]

Action. : Expenditure approved

2.13 July 2004: Chronically Sick and Disabled Persons Committee

Motion: That Tynwald approves the appointment of the following person as a member of the Chronically Sick and Disabled Persons Committee -

Miss Rhiannon Gardner

Action: Appointment conformed.

2.14 July 2004 : Membership of the Employers' Side of the Whitley Council for the Isle of Man Public Service (Manual Workers) -

Motion: That Tynwald approves the appointment of the following persons as members of the Employers' Side of the Whitley Council for the Isle of Man Public Service (Manual Workers) -

Mr J R. Houghton MHK (Chairman) Hon R P Braidwood MHK Mr A J Earnshaw MHK

Action: appointments confirmed.

2.15 July 2004: Membership of the Office of Fair Trading

Motion: That Tynwald approves the appointment of the following persons as members of the Office of Fair Trading -

Mr Q B Gill MHK (Chairman) Mrs B J Cannell MHK Mr A C Duggan MHK

Action: appointments confirmed.

2.16 July 2004: Chairmanship of the Isle of Man Post Office-

Motion: that Tynwald approves the appointment of Mrs P M Crowe MLC as the Chairman of the Isle of Man Post Office.

Action: appointment confirmed.

143 2.17 July 2004: Chairmanship of the Isle of Man Water Authority-

Motion: that Tynwald approves the appointment of Mr G M Quayle MHK as the Chairman of the Isle of Man Water Authority.

Action: appointment confirmed.

2.18 October 2004 - Chief Constable's Annual Report

Motion: That the Chief Constable's Annual Report 2003/2004 be received.

Action: The Report was received by Tynwald.

2.19 October 2004 – Summerland Complex Motion: that Tynwald approves of the Department of Tourism and Leisure incurring expenditure not exceeding £899,290 on the removal of asbestos at the Summerland Complex and related works prior to the demolition of the building.

[Reference – These works are included in item 8 under the heading “Tourism and Leisure” on page 9 of the Isle of Man Budget 2004-05 and as detailed in the Estimated Capital Payments 2004/05 to 2008/2009 under the heading “New Schemes” on page 62 of the Isle of Man Budget 2004/05.]

Action: asbestos removed and preliminary works completed.

2.20 October 2004 – Ramsey Grammar School

Motion: that Tynwald –

(1) approves the Department of Education incurring expenditure not exceeding £120,000 on pre-contract design fees in respect of the proposed Ramsey Grammar School Post 16 and Medway Block replacement scheme;

(2) authorises the Treasury to spend out of the Capital Transactions Account during the financial year 31st March 2005 a sum not exceeding £120,000 to meet the cost of (1) above;

(3) approves of and sanctions borrowings not exceeding £120,000 being made by Government, such borrowings to be repaid in a period of 30 years.”

[Reference: Item No. 24 under the heading “Education” on page 7 of the Isle of Man Budget 2004-2005 and as detailed in the Estimate of Capital Payments 2004-2005 to 2008-09 (new schemes – Ramsey Grammar Medway Block) on page 58 of the Isle of Man Budget 2004- 2005]

Action: : Expenditure approved.

2.21 October 2004 – Niarbyl Café

Motion: that Tynwald –

(a) approves Manx National Heritage incurring expenditure not exceeding £470,000 towards the purchase and possible fitting out of the former Niarbyl Café and adjoining buildings and land, Dalby; (b) authorises the Treasury to expend during the year ending 31st. March 2005 from the Capital Transactions Account a sum not exceeding £470,000; (c) approves of and sanctions total borrowings not exceeding £470,000 being made by Government, such borrowings to be repaid within a period of 30 years.

144

Action: Purchase of the former café and buildings completed. New Manx Heritage site at Niarbyl was officially opened in September 2005.

2.22 October 2004 – Membership of the Isle of Man Water Authority

Motion: That Tynwald approves the appointment of Mr Hugh McCall ion as a member of the Isle of Man Water Authority.

Action: appointment confirmed

2.23 October 2004 – Membership of the Insurance and Pensions Authority-

Motion: That Tynwald approves the Treasury’s appointment of Mr D J Gelling MLC as member and chairman of the Insurance and Passions Authority.

Action: appointment confirmed

2.24 October 2004 – Membership of the Financial Supervision Commission

Motion: That Tynwald approves the Treasury’s appointment of Mrs R. V. Penn, JP as Chairman and Mr J. H. Webster as deputy Chairman of the Financial Supervision Commission

Action: appointments confirmed

2.25 March 2005: Ecclesiastical Committee

Motion: that (1) the Report of the Ecclesiastical Committee of Tynwald on the draft Clergy Discipline Measure (Isle of Man) be received; and (2) the draft Clergy Discipline Measure (Isle of Man) in the form laid before Tynwald is presented to Her Majesty for Her Royal Assent, as required by Schedule 1 to the Church Legislation Procedure Act 1993.

Action: The Clergy Discipline Measure received the Royal Assent on 13th July 2005.

2.26 April 2005: Isle of Man War Pensions Committee

Motion: That Mr John R Moore be appointed to the Isle of Man War Pensions Committee for the period ending 15th July 2007.

Action: Appointment made.

2.27 June 2005: Appointment of Manx Electricity Authority

Motion: That Tynwald approves: (a) the appointment of Mr W E Teare MHK as Chairman of the Manx Electricity Authority, and (b) the appointment of: Mr E G Lowey MLC Mr J J Reid Mr S Christian Mr K F Tomlinson as Members of the Manx Electricity Authority.

Action: Appointments confirmed.

145

2.28 June 2005 : Refurbishment of Eight Properties as Decant/Transit Accommodation at Janet’s Corner, Castletown

Motion: That Tynwald approves expenditure of a sum not exceeding £129,000 for the refurbishment of eight properties as decant/transit accommodation at Janet’s Corner, Castletown.

[Ref: Item 4 under the heading “Local Government & the Environment” on page 9 of the Isle of Man Budget 2005-06, and as detailed in the Estimates of Capital Payments 2005-06 to 2009-10 [New Schemes – Janet’s Corner – Replacement/Refurbishment (182 units) on page 62 of the Isle of Man Budget 2005-06]

Action: Expenditure approved.

2.29 July 2005 - Janet's Corner Refurbishment/Redevelopment, Castletown

Motion : that Tynwald approves expenditure of a sum not exceeding £2,333,000 for the refurbishment of 58 No. properties, the demolition of 26 No. properties, and pre-tender costs for the development of new housing units at Janet's Corner, Castletown.

[Ref: Item 4 under the heading "Local Government & the Environment" on page 9 of the Isle of Man Budget 2005-06 and as detailed in the Estimates of Capital Payments 2005-06 to 2009-10 [New Schemes - Janet's Corner - Replacement / Refurbishment (182 units) - Construction] on page 62 of the Isle of Man Budget 2005-06]

Action: Expenditure approved.

2.30 July 2005 - Elderly Persons' Bungalows - The Bretney, Jurby

Motion: that Tynwald approves expenditure of a sum not exceeding £307,710 for the construction of 3 No. Elderly Persons' Bungalows, The Bretney, Jurby.

[Ref: Item 16 under the heading "Local Government & the Environment" on page 9 of the Isle of Man Budget 2005-06 and as detailed in the Estimates of Capital Payments 2005-06 to 2009-10 [New Schemes - Elderly Persons' Housing] on page 62 of the Isle of Man Budget 2005-06]

Action: Expenditure approved...

2.31 July 2005 - Jurby Housing Refurbishment Phase II - Central Heating Installation

Motion: that Tynwald approves the expenditure of a sum not exceeding £363,000 for the installation of central heating and ancillary works in 62 properties at The Bretney, Jurby.

[Ref: Item 6 under the heading "Local Government & the Environment" on page 9 of the Isle of Man Budget 2005-06 and as detailed in the Estimates of Capital Payments 2005-06 to 2009-10 under the heading "Committed Schemes: Jurby [64 units] - Construction" on page 62 of the Isle of Man Budget 2005-06]

Action: Expenditure approved.

146

2.32 July 2005 - Demolition of Summerland

Motion: that Tynwald -

(1) approves of the Department of Tourism and Leisure incurring expenditure not exceeding £1,876,000 on Phase 2 of the demolition of the Summerland Complex (including the Aquadrome);

(2) authorises the Treasury to spend out of the Capital Transactions Account during the financial year ended 31st March 2006 a sum not exceeding £573,000 in respect of the additional expenditure; and

(3) approves of and sanctions borrowings not exceeding £573,000 being made by Government, such borrowings to be repaid within a period of 20 years.

[Reference item 11 under the heading “Tourism and Leisure” on page 9 of the Isle of Man Budget 2005/6 and as detailed in the Estimate of Capital Payments 2005/6 to 2009/10 under the heading "New Schemes" on page 63 of the Isle of Man Budget 2005.]

Action: Expenditure and borrowings approved and sanctioned by Tynwald.

3.33 July 2005 - Ramsey Grammar School Post 16/Medway Block replacement Scheme

Motion: that Tynwald -

(1) approves of the Department of Education incurring expenditure not exceeding £59,137 on advance demolition works in respect of the proposed Ramsey Grammar School Post 16/Medway Block replacement scheme;

(2) authorises the Treasury to spend out of the Capital Transactions Account during the financial year ending 31st March 2006 a sum not exceeding £59,137 being made by Government to meet the cost of (1) above; and

(3) approves of and sanctions borrowings not exceeding £59,137 being made by Government, such borrowings to be repaid in a period of 30 years.

[Reference: Item No. 22 under the heading “Education” on page 7 of the Isle of Man Budget 2005-2006, and as detailed in the Estimate of Capital Payments 2005-2006 to 2009-2010 (new schemes- Ramsey Grammar Post 16/Medway) on page 59 of the Isle of Man Budget 2006-2006.]

Action: Expenditure and borrowings approved and sanctioned by Tynwald.

2.34 July 2005 - Supplementary Vote - Tourism and Leisure

Motion: that Tynwald authorises the Treasury in respect of the year ended 31st March 2005, to apply from general revenue surplus receipts totalling £426,346 of the Department of Tourism and Leisure, the sum of £267,577 in payment of excess expenditure.

Action: Supplementary Vote approved by Tynwald.

147

2.35 July 2005 - Supplementary Vote - Trade and Industry

Motion: that Tynwald authorises the Treasury in respect of the year ended 31st March 2005, to apply from the General Revenue surplus receipts totalling £115,411 of the Department of Trade and Industry the sum of £50,474 in payment of excess expenditure.

Action: Supplementary Vote approved by Tynwald.

2.36 July 2005 - Supplementary Vote - Transport

Motion: that Tynwald authorises the Treasury in respect of the year ended 31st March 2005, to apply from General Revenue the sum of £432,506 in payment of excess expenditure in respect of the Department of Transport of £405,787 and shortfall of receipts of £26,719.

Action: Supplementary Vote approved by Tynwald.

2.37 July 2005 - Supplementary Vote - Health and Social Security

Motion: that Tynwald authorises the Treasury to apply from General Revenue in respect of the year ended 31 March 2005 - (a) surplus receipts totalling £2,272,898 of the Department of Health and Social Security; and (b) the sum of £4,790,770 in payment of excess expenditure by the Department of Health and Social Security.

Action: Supplementary Vote approved by Tynwald.

148 PART 3 – NEW ISSUES – ON-GOING MATTERS

3.1 April 2004: Commission of Inquiry into Mount Murray

Motion: That Tynwald - (a) approves the expenditure of a further sum not exceeding addition to the £1,000,000 previously voted, to meet the costs of the Commission of Inquiry into Mount Murray; and (b) approves the expenditure of a total sum not exceeding £50,000 from General Revenue for the year ending 31st March 2005.

Action: Commission reported to Tynwald

3.2 April 2004: Animal Waste Processing Plant Richmond Hill

Motion: that Tynwald approves expenditure not exceeding £183,500 for pre- contract costs for the construction of an Animal Waste Processing plant at Richmond Hill.

The Debate was adjourned to the May 2004 sitting of Tynwald. The Minister for Local Government and the Environment made a Statement at May Tynwald that as the Department of Transport were to be the lead Department the expenditure would come out of the Department of Transport’s budget. At the July 2004 sitting of Tynwald the following motion was carried –

That Tynwald approves of the Department of Transport incurring expenditure not exceeding the sum of £350,000 in respect of Pre-Contract Design Fees to Planning Approval Stage for the new Animal Waste Processing Plant.

3.3 April 2004: Constituency Boundaries

Motion : That pursuant to section 11(5) of the Representation of the People Act 1995, the Governor in Council do appoint a committee to review the number and boundaries of the constituencies for elections to the House of Keys and to report thereon to Tynwald as soon as may be.

A further motion was made at the July 2004 sitting.

Motion : that Tynwald directs that, save for the requirement to appoint a committee the Governor in Council defer their implementation of the resolution of Tynwald dated 21 April 2004, for that committee to review the number and boundaries of the constituencies for elections to the House of Keys, until such time as the Constitution (Legislative Council) Bill 2004 either –

(a) receives Royal Assent (in which case a further resolution of Tynwald will be required), or, (b) fails, (in which case the resolution of Tynwald of 21 April 2004 can be fully implemented).

This motion was rescinded at the July 2005 sitting of Tynwald.

Action: The following were appointed to the Committee – Mr. R. B. M. Quayle, Mr. J. Gallacher, Mr. W. A. Gilbey and Mr John Wright. The Committee has met formally and its work is on-going.

149

3.4. April 2004: Manx Natural Heritage

Motion : that Tynwald is of the opinion that the Manx natural heritage is a jewel in the Island's crown and should be better recognised in the 2004 – 2007 Government Plan and in the Department of Agriculture, Fisheries and Forestry Business Plan 2004-05-2006-07, and that the importance of the Island's natural heritage should be considered by the Department of Local Government and the Environment and that the Department should undertake appropriate consultation with all interested parties as to the appropriateness of including recognition within the forthcoming All-Island Strategic Plan which will inform Government's future land use planning.

Action: The modified draft strategic plan was published in November 2004. Public Inquiry was held in March 2005. Report of the independent inspector is now awaited. Further work on Area Plans deferred until the Strategic Plan has been progressed.

3.5 April 2004: Residential Care

Motion: that Tynwald re-affirms its support for the stated intention of the Department of Health and Social Security in its recently approved Business Plan that, over the period of the Business Plan, it is proposed in conjunction with Treasury and in the light of developments in the United Kingdom, to give further consideration as to how public awareness may be raised as to the need for retirement planning.

Action: Consideration of this matter by the Department is on-going.

3.6 April 2004: Manx Gas

Motion: that Tynwald i) reaffirms its support for the resolution at its October 2003 sitting that the Council of Ministers introduces a Bill into the Keys during the 2004-2005 Session for the implementation of an energy regulatory body; and ii) supports the introduction of a Bill that establishes the Office of Fair Trading as an energy regulatory body by enabling it to require, by statute, such information from the Island's energy suppliers as is considered appropriate with further powers to examine the level of energy costs to the consumer and powers to cap the price at which energy is supplied to the public, should this be deemed appropriate.

Action: Proposed Bill included in the legislative programme. The Department of Trade and Industry is working on the drafting of the Bill.

3.7 April 2004: Orthopaedic Surgery

Motion: that Tynwald requests the Department of Health and Social Security as a matter of urgency to take such action as necessary to significantly reduce the waiting lists for orthopaedic surgery, and further requests the Minister for Health and Social Security to investigate the matters raised in the e-mail to the Hon Member for Michael, Mr Cannan, dated 16th April 2004 at 18.37 hours and to report to Tynwald no later than the sitting in June 2004.

At the June 2004 sitting of Tynwald the following motions and action was agreed -

Motion: that Tynwald notes the concerns over National Health Service waiting lists and supports the intention of the minister for Health and Social Security, acting in conjunction with the Treasury, to come forward to this sitting of Tynwald with a Resolution seeking approval to supplementary funding subsequent to previously initiated discussions with the Treasury to address long waiting times for NHS treatment.

150 Motion: that Tynwald authorises Treasury to apply from General Revenue during the year ending 31st. March 2005, a sum not exceeding £1,000,000 to allow the Department of Health and Social Security to undertake Waiting List Initiatives.

3.8 June 2004 : Airport (Capital): Runway End Safety Area/Runway Extension (Pre-Contract Design)

Motion : that Tynwald approves the Department of Transport incurring expenditure not exceeding the sum of £1,500,000 in respect of pre-Contract Site and Marine Investigation, Environmental Impact Assessment and Design Fees, for carrying out an evaluation of the options for adoption and implementation of the new Runway End Safety Area requirements for Runway 08/26.

(Reference: item No. 2 “Runway End Safety Area/Runway Extension” under the heading “Transport” on page 10 of the Isle of Man Budget 2004-2005, and as detailed in the Capital Estimates 2004-05 to 2005-06 on page 65 of the Isle of Man Budget 2004-2005)

Action: the work on the evaluation exercise is on-going.

3.9 Port Erin Marine Laboratory

Motion: that Tynwald directs the Council of Ministers to establish a subcommittee to fully examine the options available to maintain in operation the Port Erin Marine Laboratory beyond the summer of 2006: (1) in its current form as a university research and educational facility, or (2) in some other form encompassing a marine research and policy development centre, a public aquarium and other marine related facilities, or (3) in any other form appropriate for the site, and to report with full details of the costs involved to Tynwald by October 2004.

Action – Council established a Sub-committee consisting of the Chief Minister, the Minister for Agriculture, Fisheries and Forestry and the Minister for Local Government and the Environment to look at the future of Port Erin Marine Lab. Chief Minister made a statement to the October 2004 sitting of Tynwald that the work of the Committee is on-going. The Council of Ministers reported to Tynwald in July 2005 (see paragraph 3.54 below)

3.10 July 2004 : Commission of Inquiry into the Care of Young People

Motion: that Tynwald approves the expenditure of a sum not exceeding £450,000 from General Revenue for the year ending 31st March 2005, to meet the costs of an Inquiry into the Care of Young People, and that the powers conferred by the Inquiries (Evidence) Act 2003 shall be exercisable in relation to the Inquiry.

Action: Work of the commission of inquiry is on-going.

3.11 July 2004 : Marketing and Branding the Isle of Man

Motion: that Tynwald – (a) endorses the report entitled “Marketing and Branding the Isle of Man Phase 1, Economic and Social Development through Country Marketing; (b) approves the establishment of a Government led public-private Steering Committee to progress Phase 2, as defined in the Report; and (c) authorises the Treasury to apply from General Revenue in respect of the year ending 31st March 2005 a sum not exceeding £500,000, to implement Phase 2, as defined in the Report; (d) and that the Council of Ministers lay a Report annually at the October sitting of Tynwald on the work of the Committee.

151

Action: Project officer appointed with effect from October 2004 to lead the Marketing and Branding the Isle of Man Project, through the joint public/private steering committee, with Phase Two of the project being completed during 2005.

3.12 July 2004 : Review of Complaints Procedure to Ombudsman

Motion: That the Review by the Council of Ministers of the Standardised Complaints Procedure and Case for the Establishment of an Ombudsman be received and its recommendations approved.

Action: the Report made the following recommendations which were approved by Tynwald -

Recommendation 1 There is merit in establishing an Ombudsman Scheme to provide a fair and impartial assessment of complaints which is divorced from either political or administrative involvement. The Ombudsman would be empowered - • to investigate maladministration in Departments, Statutory Boards and Local Government, as well as complaints regarding the Code of Practice Regarding Access to Government Information; • to make binding recommendations as to how the complaint can be remedied; • to make suggestions as to improvements in Administration.

Recommendation 2 Primary Legislation analogous to the UK Parliamentary Commissioner Act 1967 should be introduced.

Recommendation 3 There should be a “one stop shop” dealing with queries and complaints from members of the public. In order to reflect the status of the Ombudsman as being fully independent (see paragraph 8.1) the Ombudsman’s office would need to be seen to be outside of the Government structure.

Recommendation 4 Members of the public should have the right of direct access to the Ombudsman rather than by reference from a member of Tynwald.

Recommendation 5 The Ombudsman would be appointed by the Appointments Commission full time on a fixed contract.

Recommendation 6 The existing standardised complaints procedure within Government would be retained as the first stage in resolving grievances at line manager or chief officer level without recourse to other more complex formal procedures.

Recommendation 7 Clarification should be issued to Departments regarding the types of complaints to be recorded under the standardised complaints procedure, so that in future it will more accurately reflect cases of administrative deficiency or maladministration.

Recommendation 8 A workshop or seminar for all “complaints officers” should be held every 2 to 3 years to ensure knowledge is maintained within Departments when personnel change.

Recommendation 9 The Chief Secretary’s Annual Report to Tynwald should be replaced by a more comprehensive anecdotal report system, which would form part of the remit of an Ombudsman.

152 Work is on-going in preparing drafting instructions to the Attorney General on draft primary legislation.

3.13 July 2004 : Designation of Departmental Sustainable Development and Environmental Awareness Officers-

Motion : That the Council of Ministers should consider whether each Department of Government and each Statutory Board should designate a senior member of staff as its Sustainable Development and Environmental Awareness Officer, with responsibility for examining the activities of the Department or Board as they take place or are proposed in the light of contemporary environmental concerns and issues related to sustainable development, in particular those identified in Agenda 21 at the 1992 Rio Earth Summit, and ensuring that such issues are taken into account in administrative practice, and in the formulation of policy and legislation and report to Tynwald by no later than the December 2004 sitting.

Action – A working group consisting of representatives from the Departments and Statutory Boards was established and report to the Chief Officers Group. In turn that Group reported to Council in November 2004. Chief Officers Group recommended that each Chief Executive of each Department and Statutory Board be designed as sustainable development officer. Council of Ministers submitted its report to the December 2004 Tynwald at which sitting the report was received and its recommendations approved.

All Departments, Offices and Statutory Boards have nominated a Sustainable Development and Environmental Awareness Officer. A Sustainable Development Steering Group has been established with terms of Reference and has met twice. Initial training/raising awareness has been undertaken by the officers. The inter-Departmental Group is now established to undertake public awareness and education programmes and training is being planned.

3.14 July 2004 : Lieutenant Governor of the Isle of Man

Motion: That the Council of Ministers seeks the approval of Tynwald before any decision is made with regard to the style and title of the Lieutenant Governor of the Isle of Man.

Action: The External Relations Committee of Council of Ministers agreed to recommend to the Clerk of Tynwald the Title “Crown Commissioner”. This will be referred to Tynwald for approval in the 2005/06 parliamentary session

3.15 July 2004 : Noble's Hospital Costs

Motion: Whereas - (a) Tynwald approved of the Department of Health and Social Security incurring expenditure of £111,687,000 for the provision of a new acute and general hospital and (b) the projected total cost for the completion of this scheme, based upon a negotiated Final Account reduction with Bovis Lend Lease of £3,128,644, and the utilisation of unexpended Inflation / Market Forces Allowances of £1,744,075, is estimated to exceed the above approved expenditure by £6,594,019.

Now, therefore, the Department of Health and Social Security seeks that Tynwald - (1) approves the acceptance of the negotiated Final Account agreed with Bovis, and (2) approves the utilisation of the following financial resources to mitigate the estimated overspend - (i) unexpended funds from the commissioning costs in the sum of £1,305,494; (ii) the balance of monies held in the Capital Equipment and Accommodation Fund, standing at £4,638,525; (3) (a) approves additional expenditure of a sum not exceeding £650,000 for the provision of a new acute and general hospital;

153 (b) authorises the Treasury to expend during the year ending |31st March 2005 from the Capital Transactions Account a sum not exceeding £650,000; and (c) approves of and sanctions borrowing not exceeding £650,000 being made by Government, such borrowings to be repaid within a period of 50 years.

Action: Expenditure agreed.

3.16 October 2004 - Consultation on Waste Management Functions

Motion: That the Report of the Council of Ministers on the Outcome of the Consultation on Waste Management Functions is received and its recommendation approved.

Action: Council’s report recommended that any changes in the structure be deferred pending the review of the Government structure. This was regarded as the most practical option on the prevailing circumstances. Council considered that the creation of a separate Waste Management Board at this time could involve unnecessary expenditure whilst weakening the political accountability for the waste management function at a critical point in its evolution.

3.17 October 2004 – Mount Murray

Motion: that the Report by the Council of Ministers into the Recommendations of the Commission of Inquiry into Mount Murray Part Two Report be approved.

Action. The recommendations of the Report have been fully implemented.

3.18. October 2004 - Select Committee on the Petitions for Redress of Grievance of David Arthur Newton -

Motion: That the Report of the Select Committee appointed to investigate the Petitions for Redress of Grievance of David Arthur Newton be received and its recommendations approved.

Action: The recommendation of the Committee was that: “(i) the Council of Ministers request Treasury to take the steps necessary, including bringing a financial motion to Tynwald to progress payment to Mr Newton of the amount of £172,198 which has been independently assessed as his outstanding loss subject to any appropriate deductions on account of payments received by Mr. Newton or his family in connection with the loss of his livelihood and having regard to any steps which he could reasonably be expected to have taken to mitigate his loss; and

(ii) in the light of the difficulties which your Committee has encountered in establishing the correct facts of this case, DAFF take steps to ensure the keeping of written records of events and actions by the Department in all circumstances.”

The Treasury appointed an assessor from Aon Claims Consulting of Edinburgh to assess the appropriate deductions. The assessor’s reported that no other payments were received by Mr Newton and no loss mitigation measures were identified.

The Treasury approved the proposed expenditure of £172,198 out of the General Revenue account in respect of the year 2004/5 in respect of Mr Newton's claim as no grounds for reducing the independently assessed loss have been found. At the request of the Council of Ministers the Treasury to brought the following motion to the February 2005 sitting of Tynwald

“That Tynwald authorises the Treasury 'to apply from General Revenue during the year ending 31st March 2005 the sum of £172,198 to enable the Treasury to pay to Mr David

154 Arthur Newton ("Mr Newton"), in accordance with the recommendation of the Select Committee on the Petitions for the Redress of Grievance of Mr Newton ("the Select Committee"), the amount of production income lost by Mr Newton as referred to in paragraph 34 of the Select Committee's Report, the Treasury having determined that there are no appropriate deductions which should be made on account of payments received by Mr Newton or his family in connection with the loss of his livelihood and that there are and were no steps which Mr Newton could reasonably be expected to have taken to mitigate his loss.”

The Department of Agriculture will bring a paper to Council regarding paragraph (ii) in the Report.

3.19 October 2004 – National Arts Development Strategy

Motion: That Tynwald approves the National Arts Development Strategy Isle of Man 2005- 2014 conditional upon the resources necessary for its implementation being subject to normal budgetary and business planning processes.

Action: The Plan is being actioned by the Department of Tourism and Leisure commensurate with the Department’s available resources.

3.20 October 2004 - Isle of Man Economic Strategy

Motion: That the document entitled “Isle of Man Economic Strategy” be approved and adopted as the foundation for economic policy, and as a framework for the evaluation of Corporate and Departmental economic initiatives.

Action: The Strategy has been adopted as a framework for evaluation of initiatives

3.21 November 2004 - Select Committee on GP Out of Hours Services

Motion: That the Report of the Select Committee on GP Out of Hours Services be received and (i) that recommendations 4.1, 4.2, 4.3, 4.5, 4.6, 4.8 and 4.9 be approved; (ii) that recommendations 4.4 and 4.7 be referred to the Department of Health and Social Security for detailed consideration and for a Report to be made to the sitting of Tynwald in May 2005 outlining the various options available, the cost implications and the Department's own assessment as to whether or not any further action is required.

Action. Minister for DHSS made a statement to the May sitting of Tynwald. The Department submitted its Report to the June sitting of the Court. (see paragraph 3.49 below)

3.22 December 2004 - Isle of Man Steam Packet Company Limited

Motion: that Tynwald approves of the Department of Transport entering into an agreement with the Isle of Man Steam Packet Company Limited to extend the term of the Licence Agreement in respect of the use of the Department's link bridge in Douglas Harbour, such extension agreement to be in the material form of the draft agreement proposed.

Action: Extension agreement in place.

3.23 December 2004 : Standing Committee on Constitutional Matters

Motion: That the First Report of the Standing Committee on Constitutional Matters for the Session 2004-05 be received and the following recommendations approved -

155 (i) That the Department for Home Affairs should bring forward legislation at an early date to amend the Police Act 1993 to place the Chief Constable's oath on a statutory, footing.

(ii) That the appointment of the Attorney General be referred to the Council of Ministers, to consider and consult with appropriate bodies, including the Department of Constitutional Affairs in the United Kingdom, as to whether the appointment should now become a matter for the Council of Ministers in the Isle of Man, and that the Council of Ministers should report to Tynwald by June 2005.

(iii) That when an international agreement is to be included on the Council of Ministers' agenda, it should be circulated to Members of Tynwald for information, wherever practicable, or if that is not practicable then deposited in the Tynwald Library and Members so informed at once.

(iv) That the Chief Minister should report to the Court on the outcome of the Government's review of the Lt-Governor's powers by April 2005.

Action: (i) Department of Home Affairs giving consideration to new legislation. (ii) Council submitted its report on the Appointment of the Attorney General to the June 2005 sitting of Tynwald. (see paragraph 3.48) (iii) This part of the motion has been implemented by administrative action. (iv) The Council of Ministers Reported on its Review of the Lt-Governor's powers to Tynwald in July 2005 (see paragraph 3.54).

3.24 December 2004 : Smoking and Passive Smoking

Motion : That Tynwald, recognising the effects of smoking and passive smoking, requests the Council of Ministers in conjunction with the DHSS, to undertake a public consultation exercise with a view to the introduction of a Bill in the 2005/6 Legislative session, to prohibit the advertising and promotion of tobacco and to ban smoking in enclosed public spaces and workplaces.

Action – A Tobacco Strategy has been developed and approved by the Chief Minister’s Drug and Alcohol Committee in February 2005. Funding to implement the strategy has been provided by the DHSS for 2005/2006 and 2006/2007 to the sum of £200 000 which was the amount put forward in the Business case by the Public Health Directorate.

The Tobacco Strategy has the following 3 main objectives: 1. To prevent non-smokers from starting the tobacco habit, especially young people; 2. To decrease the prevalence of smokers on the Isle of Man; and 3. To encourage the development of a smoke-free Isle of Man by enacting smoke-free legislation.

• Consultation exercise about smoke-free legislation and advertising of tobacco products has been planned and is being implemented in accordance with the Tynwald Resolution. The consultation will take the format of a questionnaire to every household and every registered business during the period 11th July to 23rd July 2005. There will also be an online consultation for those wishing to use this medium. Many formal representative groups and committees will also be asked for their written opinion and comment on the proposal to “go smoke-free”. • Preparation of a framework for the smoke-free legislation which will be introduced to COMIN and Tynwald in November/December 2005. This process will involve consultation with interest groups such as Licensed Victualler`s Association and other Government Departments.

156 • Tobacco strategy coordinator to be appointed to lead and direct the implementation of the Tobacco Strategy. Job Description has been prepared and the case has been put to the Civil Service Commission and accepted by them. Post to be advertised in second half of June and interviews to be held on 13th July. • Initial discussions have been held with community pharmacists and the GP-body to agree a framework for Nicotine prescribing in combination with counselling to strengthen the smoking cessation programme on the Island. • One of the priority groups within the Tobacco Strategy is pregnant mums and the Public Health Directorate and the Maternity unit is developing a business case for a smoking cessation service for this group of people.

3.25 December 2004: Overseas Aid

Motion: that Tynwald calls for there to be a significant increase in the amount donated by the Isle of Man Government to Overseas Aid, with a target to increase the amount given by stages to 0.7% of national income by the year 2013.

Action: The Council of Ministers appointed a subcommittee to consider this consisting of Lord Bishop, Mr Earnshaw MHK, Mr Gawne MHK, Mrs Hannan MHK. The work of the committee is continuing and the committee hopes to report to Council by the end of the Summer 2005.

3.26 December 2004 : Protection of Long-term Liability to Government

Motion : that Tynwald is of the opinion in recognition of the Government's commitment towards openness and transparency, the Select Committee of Tynwald on the Scrutiny of the Public Accounts Committee's functions be invited to consider whether that-

(i) licences or agreements by which the Government, a statutory board or publicly owned business enables a commercially owned firm to provide services to members of the public should only be granted or made subject to a condition in such licence or agreement that the annual accounts of the commercially owned firm are laid before Tynwald;

(ii) in the case of any lease or agreement for the occupation or use of premises by the Government, a statutory board or any publicly owned business for a period which does or may exceed five years, the amount of the rent and service charge payable thereunder and the identity of the beneficial owner of the lessor or grantor's interest in the premises should be clearly stated in the Isle of Man Government Accounts; and

(iii) all loans contracted, or guarantee for loans given, by the Government, a statutory board or any publicly owned business should be clearly stated in the Isle of Man Government Accounts.

Action: The Council of Ministers circulated a paper to members of Tynwald setting out Council’s position. The paper focused on tests with the Code of Practice on Access to Government Information in relation to third party commercial confidences, individual’s privacy and voluminous or vexatious requests. The Treasury Minister moved an amendment that the matter be referred to the Public Accounts Committee of Tynwald.

3.27. December 2004 : Manx Electricity Authority

Motion: That (a) The Treasury Minister discloses fully and unequivocally at this sitting of Tynwald all the details and financial arrangements of the new £120 million borrowing by the Manx Electricity Authority,

157 (b) Approves the Council of Ministers initiating an independent review of the Manx Electricity Authority group financial affairs and presenting that Report to Tynwald at the February 2005 sitting of Tynwald, or as soon as possible thereafter, and (c) Authorises the Treasury to apply from General Revenue during the year ending 31st March 2005, a sum not exceeding £100,000 being the additional amount required by the Council of Ministers to undertake the independent review.

Action: (b) The Treasury Minister made a statement to the March sitting of Tynwald regarding the need for a draw-down of £10 million and the need for the provision of £50 Million (c) The Independent Review by PKF was considered by Tynwald at its July sitting. The Report was referred to a Tynwald Select Committee for report.

3.28 January 2005: Effectiveness of Local Government Structure

Motion : That the Report of the Department of Local Government and the Environment on the Effectiveness of the present Local Government Structure on the Island and the Department's Supervisory Powers be received, and its recommendation that -

"The Department of Local Government and the Environment, after appropriate consultation, should introduce a new Local Government Bill to the House of Keys by January 2006.”

Action: Local Government Bill included in the Legislative programme and will shortly be going out for consultation.

3.29 January 2005 : Manx Radio

Motion: That Tynwald requests the Directors of Manx Radio to keep under review the number of Mannin Line programmes each week to ensure that the public need is appropriately met as part of the Radio commitment to public service broadcasting.

Action: Motion as amended by Mr Speaker carried.

3.30 January 2005: Tsunami - Support for Humanitarian Aid Effort

Motion: That Tynwald authorises the Treasury to apply from General Revenue during the year ending 31st March 2005, a sum not exceeding £100,000 for the purpose of supporting the humanitarian aid effort in areas affected by the recent tsunami in Asia.

Action: Money applied to Overseas Aid Committee’s Account.

3.31 January 2005: Emergency Financial Aid

Motion: -

(a) Where, after consulting with the Council of Ministers and the Overseas Aid Committee, the Chief Minister declares that a disaster occurring outside the Isle of Man is of such magnitude as to require an immediate response in terms of emergency financial aid, in excess of any payments to be made by the Overseas Aid Committee, Tynwald approves the Chief Minister committing emergency aid payments not exceeding £100,000 in relation to any one disaster and not exceeding £200,000 in aggregate in any one financial year;

158 (b) the Chief Minister will report rely financial aid made or committed under this delegated authority to the first available sitting of Tynwald after such financial aid is made or committed;

(c) Tynwald authorises the Treasury to apply from General Revenue the necessary funds in accordance with paragraph (a); and

(d) the Treasury will identify such emergency aid payments separately within the Government's accounts for the relevant financial year.

Action: For the financial year 2005/06 the Overseas Aid Committee received a budget of £1 million with £150,000 allocated for emergency aid.

In August 2005 the Overseas Aid Committee issued a Press Statement that it has responded to two appeals for emergency aid with donations of £25,000 to each. The first allocation was given to Oxfam in respect of Niger and the second was given to the British Red Cross to provide aid and shelter for the victims of slum clearance in Zimbabwe.

3.32 January 2005: Mighty Oak Appeal

Motion: Recognising the contribution of the people of the island to the Mighty Oak appeal, Council of Ministers will:

(a) engage with Hospice to identify a mutually agreeable site to be made available at no cost to Hospice in lieu of a cash donation

(b) provide to Members, in conjunction with Hospice, a presentation setting out Hospice's full development plans, including detailed financial provisions;

(c) move a resolution at the March 2005 sitting of Tynwald to approve the provision of such site.

Action: (a) Following discussions with Hospice, a part of the Ballamona Estate has been identified as a site for Hospice.

(b) the Chief Minister moved the following motion at the March sitting of Tynwald which was carried.

“Site for New Hospice-

Motion :That Tynwald approves the conveyance of land, free of charge, consisting of the mitigation planting site, forming part of the Ballamona Estate, from the Department of Health and Social Security to Hospice Care "Subject to Contract" and "Subject to Planning Approval" for the construction of a new Hospice.”

3.33. March 2005 : Commission of Inquiry into the Care of Young People

Motion: that Tynwald approves the expenditure of a sum not exceeding £1,300,000 from General Revenue for the year ending 31 March 2006, to meet the further costs of an Inquiry into the Care of Young People.

Action: Amount applied from General Revenue to meet the expenditure of the Inquiry. The work of the Commission of inquiry is on-going.

159 3.34 March 2005: Proposed Purchase of the Nunnery, Estate

Motion: that Tynwald- 1. approves of the Department of Education incurring expenditure not exceeding £5,500,000 in respect of the proposed purchase of the Nunnery Estate from the Isle of Man International Business School; 2. authorises the Treasury to spend out of the Capital Transactions Account during the financial year ending 31 March 2005 a sum not exceeding £5,500,000; and 3. approves of and sanctions borrowings not exceeding £5,500,000 being made by Government, such borrowings to be repaid in a period of 30 years. and 4. requires the Department to lay a detailed Report before Tynwald at the October 2006 sitting reporting on the operation, activities, student attendance and any other relevant matters, including costs, relating to the operation of the International Business School from the date when the School transferred into the ownership and control of the Department, along with future strategy for the continued operation of the School as an International Business School, identifying the benefits to the Island and its economy.

Action: Work on the Department’s Report to Tynwald is continuing.

3.35 March 2005 : Report of Working Party on damage to upland areas and the foreshore by vehicles

Motion : That the Report of the Working Party on damage to upland areas and the foreshores by vehicles be received, and referred back to the Department of Agriculture, Fisheries and Forestry to formulate recommendations and report on those recommendations by the June 2005 sitting.

Action: The Minister for Agriculture, Fisheries and Forestry made a Statement to the June sitting of Tynwald that there was need for further work to be done by Departments on the Report. It is hoped that the Report would be presented to the October 2005 sitting of Tynwald.

3.36 March 2005 : Independent Review of Services at Ramsey and District Cottage Hospital

Motion: That Tynwald notes the Report to the Department of Health and Social Security of the Independent Review of Services at Ramsey and District Cottage Hospital and endorses the Department’s response to the recommendations contained therein as a framework for the future development of services at the Hospital.

Action: The DHSS has embarked upon a programme which has been to identify and seek the additional resources required to support community healthcare facilities. Account has been taken of the recommendations contained within the report of the Independent Review of Services at Ramsey Cottage Hospital in terms of providing the framework for the future development of services.

3.37 March 2005: The Isle of Man Post Office

Motion: Tynwald is of the opinion that- (1) the implementation of the Tynwald resolution of November 2003 – “Strategic direction of the IOM Post Office” be deferred pending review by the Council of Ministers in conjunction with the Board of IOM Post Office and the outcome of such review will be reported back to Tynwald by July 2005;

160 (2) in the interim the IOM Post Office shall continue to be a Statutory Board of Government and should continue to pursue the policy of diversification as outlined in the report to Tynwald in November 2003.

Action: Finalisation of the Review by the Council of Ministers in consultation with Isle of Man Post is on going. The Chief Minister made a statement to the July sitting of Tynwald.

3.38 March 2005 : Report by the Chief Secretary under the Code of Practice on Access to Government Information

Motion : That the Report by the Chief Secretary under the Code of Practice on Access to Government Information - Initial Refusals and Review Decisions in respect of Written Requests for Information under the Code for the year ended 31st August 2004 - be received and Tynwald calls on the Government: (i) to adopt a much more active approach to publicising the existence of the Code of Practice on Access to Government Information, and (ii) to report by the June 2005 sitting of the Court on the practicalities of introducing legislation to give the public greater rights to access Government Information

Action: A Working group has been established and the review commenced, albeit behind schedule. The revised target date for completion is December 2005.

3.39 March 2005: Government House Purchase Mortgage Scheme

Motion: that Tynwald is of the opinion that Government should introduce a House Purchase Mortgage Scheme, specifically aimed to provide assistance to persons who are first time buyers aged 45 years and over, and who have rented residential property within the Island for a period – whether continuous or not - of a minimum of 10 years, and requests the Council of Ministers to report on the basis of such a Scheme and its introduction, no later than the July 2005 sitting.

Action: The Council of Ministers submitted its Report to the July 2005 sitting of Tynwald. The report recommends that additional assistance could be given to the 45+. Age group by amending the current House Purchase Assistance Scheme 2004 (HPAS 2004). The main amendments would be:

• The top up loan percentage be increased to 50% of purchase price. • The maximum £25,000 grant could apply to all applicants of 45+ years of age and not be income related. • The open market maximum price of £190,000 for second time buyers could also apply to 45+ first time buyers. • Top up loans could apply to open market properties subject to the 45+ purchaser providing a minimum of 10% deposit. • The 10% deposit would not be required for "approved" properties.

The report arrived at the following conclusions:

• The proposal does not provide assistance for all age groups at all purchase prices. It does however extend the range of options for older people. • The proposal has a good fit with the existing Scheme. • The Government's investment in the dwellings would be reasonably secure. • The extra over cost of the grant and top up loans for “approved” dwellings would not be significant.

161 • The cost of the support package for purchasers on the open market is significant. Grant and top up loan could cost up to £98,000. However, it is anticipated that take up would be quite limited. • No additional funding would be required at the current time. If take up is relatively low the additional cost could be absorbed by the Housing Fund over the next three years.

The Report identified that there would be the following additional costs:

• 45+ first Time buyers, who purchase an "approved" dwelling would receive a moderately higher level of assistance; • Purchasing an open market property could result in a grant of £25,000 and a top up loan of £70,000.

The Report recommended that the existing Scheme be amended to provide greater assistance for people who are 45 years of age or older and that an appropriate amendment be brought forward to Tynwald before the end of 2005.

3.40 March 2005: Probation Service

Motion: that Tynwald views with concern the Report of HM Inspectors into the Isle of Man Probation Service and requests the Department of Home Affairs to take appropriate action to restore confidence in the Probation Service.

Action: An action plan is being developed by Probation Service and DHA. DHA will be monitoring the Service’s performance. HMI to return in 2006.

3.41 March 2005: Trafalgar Day

Motion: that Tynwald is of the opinion that the Council of Ministers should consider an appropriate way to mark the 200th Anniversary of the Battle of Trafalgar and in particular the prominent part played by the distinguished Manx Naval Officer, Captain John Quilliam.

Action: Council appointed the Trafalgar committee consisting of Minister S.C. Rodan MHK, Quintin Gill MHK and Capt A. C. Douglas MHK. Following a recommendation from the committee, Council agreed to the commissioning of a statue to commemorate Captain John Quilliam. The bronze statue will be created by the Manx sculptor Bryan Kneale. Subject to planning and other permissions, it will be placed in the Speaker’s Garden at Castle Rushen in time for the 200th anniversary of Trafalgar on October 21 this year.

3.42 April 2005 : Land Drainage - Sulby River Flood Alleviation (Construction)

Motion: that Tynwald -

(1) Approves the Department of Transport incurring expenditure not exceeding the sum of £1,329,000 in respect of works under the Land Drainage Acts 1934 to 1954 to the Sulby River "main river" for the alleviation of flooding at Sulby in the parish district of Lezayre;

[Reference Item No. 38 under the heading "Transport" on page 10 of the Isle of Man Budget 2005-06, and as detailed in the Estimates of Capital Payments 2005-06 to 2007-08 on page 65 of the Isle of Man Budget 2005-06.]

162 (2) Approves the Department of Transport incurring additional expenditure not exceeding £329,000 in the year ending 31 March 2006, such sum being included in the overall sum of £1,329,000;

(3) Authorizes the Treasury to spend out of the Capital Transactions Account during the financial year ending 31 March 2006, a sum not exceeding £329,000 in respect of the additional expenditure; and

(4) Approves of and sanctions borrowings not exceeding £329,000 being made by Government to be repaid within a period of 30 years.

Action: Work on the flood alleviation plans at Sulby is progressing.

3.43 April 2005 : Drug and Alcohol Strategies

Motion: That the Government's fifth progress report on the Isle of Man 5 Year Drug and Alcohol Strategy, together with the updated Drug and Alcohol Strategy 2005 onwards, be received.

Action: The updated Drug and Alcohol Strategy was completed and received by Tynwald in April 2005. The first meeting of the Chief Minister's Drug/Alcohol Strategic Group under the umbrella of the Social Policy Committee took place in June 2005. The three newly formed multi-agency working groups (Drugs; Alcohol; Crime and Treatment) all met in July 2005 and have formed action plans in conjunction with the Strategy. Each of these working groups will report back to the Chief Minister's Strategic Group on a quarterly basis. The next meeting of the Chief Minister's Strategic Group is in September 2005. The other multi agency and cross- departmental groups working on action plans within the overall strategy include the Drug Related Deaths Working Group; Home Affairs Strategy Group and the Joint Forum. These will all provide update reports to the Chief Minister's Strategic Group also.

3.44 April 2005 : Manx Radio

Motion: that the Report by the Council of Ministers on the Corporate Structure of Manx Radio and Licensing and Regulation under the Broadcasting Act 1993 be received and its recommendations approved.

Action: The Report made the following recommendations –

Recommendation 1 It is recommended that a new Purpose Trust be constituted under the Purpose Trusts Act 1996 to enforce the public service broadcast ethos of Manx Radio. The number of the Trustees should be reduced from 9 to 5 and the Trustees should act as Governors, (and indeed could be called such).

Recommendation 2 A suitable member of the community, such as a retired member of the Judiciary or the Executive should be appointed as the Enforcer of the Purpose Trust.

Recommendation 3 Radio Manx Ltd should be given a new company name or alternatively a business name.

Recommendation 4 The primary object of Radio Manx Limited should be: “to provide a public service broadcasting service for disseminating information, education and entertainment, which is responsive to the taste, interests and concerns of the whole community, where the programmes reflect the varied elements which make up the culture of

163 the people of the Island and has a special regard for the elements which distinguish that culture, where the programmes have a wide range in their subject matter having regard both to the programmes as a whole and also to the days of the week and the times of the day at which programmes are broadcast, and where a sufficient amount of time in the programmes is given to news programmes and to current affairs programmes which are of high quality.”

Recommendation 5 The Broadcasting Act 1993 should be amended to make provision for one public service broadcasting service from a place in the Island and to confirm the definition of public service broadcasting service using the same terminology as the primary object of Radio Manx Limited.

Recommendation 6 In recognition of Manx Radio’s proposed legal status as the Island’s Public Service Broadcaster, the Broadcasting Act 1993 should be amended to enable a 30 year licence to be granted to Manx Radio, to be subject to review at ten and twenty year intervals.

Recommendation 7 The Broadcasting Act 1993 should be amended to provide that, where a licence is granted for the purpose of providing the public service broadcasting service as mentioned in the new amended Act, the Treasury could, after consultation with the Council of Ministers and with the approval of Tynwald, make payments, by way of grants or otherwise, to the holder of the licence for the purpose of providing that public service broadcasting service.

Recommendation 8 The Broadcasting Act 1993 should be amended to make provision for licences to be granted only in circumstances where the Communications Commission has regard to:-

• the ability of the applicant to maintain the service they intend to provide • the extent to which the applicant’s service differs in content to that of existing licence holders • the impact the new service may have on existing licence holders, and • the extent to which any reasonable demand for programme service can be met by other means

Recommendation 9 There should no longer be Tynwald Membership of the Communications Commission.

All the Recommendations were approved with the exception of 3 and 9.

Recommendations 1, 2 and 4 are being progressed by the Treasury

Recommendations 5, 6, 7 and 8 proposing amendments to the 1993 have been incorporated in the draft the Broadcasting (Amendment) Bill which will be sponsored by the Department of Home Affairs. The Bill is in the Legislative Programme for introduction in the 2005/06 session.

3.45 April 2005: Manx Electricity Authority Charges

Motion: that Tynwald requests the joint Treasury and DHSS Low Income Group continue to monitor and address the issue of increasing energy costs on those on low incomes and report to Tynwald with any proposed measures considered appropriate, by the July sitting of Tynwald.

Action: Work is on-going. The Treasury Minister made a Statement at the July sitting of Tynwald.

164

3.46 April 2005: Penal Policy Review

Motion: That Tynwald is of the opinion that the Department of Home Affairs should bring forward their plans to conduct a full independent review of penal policy as a matter of urgency, including in particular the extent to which imprisonment continues to be the most effective option in relation to different classes of offenders, and to report to Tynwald in light of that review the likely impact this will have on future regimes for the new prison.

Action: The Department of Home Affairs made a presentation to Tynwald members regarding the Prison on 24th May. Penal Policy remains a priority issue for the Department.

3.47 June 2005: New Prison

Motion: The Tynwald approves the expenditure of a sum not exceeding £39,011,459 in respect of the construction of a New Prison on the preferred site at Jurby.

[Reference: Item No. 5 under the heading “Home Affairs” on page 8 of the Isle of Man Budget 2005-06 and as detailed in the Estimates of Capital Payments 2005-06 to 2009-10 [New Schemes Prison Redevelopment Programme] on page 61 of the Isle of Man Budget 2005-06]

Action: The Department of Home Affairs made a presentation to Tynwald members regarding the Prison on 24th May. Tenders have been received for the construction of the new prison and have been evaluated by the Design Team.

3.48 June 2005 : Report by Council of Ministers on the Appointment of HM Attorney General

Motion: That the Report of the Council of Ministers on the Appointment of HM Attorney General be received and its recommendation approved.

Action: The Report came to the following conclusions

• the responses to the consultation exercise showed very little support for the appointment of HM Attorney General being made by the Council of Ministers at this time. The large majority of the consultees, including Tynwald's Standing Committee on Constitutional Matters, found the appointment procedure in the Memorandum to be acceptable.

• In Guernsey and Jersey both HM Attorney General and the deputy position of HM Solicitor General were appointed by the Crown and were both advisors to the Crown and the Government and States of the Islands. The Committee also noted that the legal and legislative drafting resources available to the Governments in Guernsey and Jersey appeared to be significantly greater than those available in the Isle of Man.

• During the Committee's discussions HM Attorney General advised that he supported the view expressed in one of the responses to the consultation exercise that candidates for the post of Attorney General should be members of the Manx Bar of at least ten years' standing. The Committee concurred with this proposal and agreed that any advertisement should include this condition as a preference.

• The Committee also considered whether there was merit in separating the roles of HM Attorney General as advisor to the Crown and advisor to the Government. Whilst this could remove any perception of a conflict of interest in the performance of his duties, it was not felt that there had been a real problem in practice.

165

• The Committee noted that the Attorney General in the United Kingdom was also a political appointee and was advisor to both the Crown and the Government.

• As only one response to the consultation exercise advocated separating the roles of HM Attorney General as advisor to the Crown and advisor to the Government, the Committee's view was not that it should not be progressed at this time.

• The Committee therefore agreed to propose that HM Attorney General of the Isle of Man should be appointed with the existing duties and terms of appointment and by the procedure set out in the Memorandum, subject to the additional condition referred to in paragraph 7.3.

The Report recommended that the Attorney General of the Isle of Man should be appointed with the existing duties and terms of appointment, and by the procedure set out in the Memorandum finalised in 2002, with the additional preference for candidates to be members of the Manx Bar of at least ten years' standing.

3.49 June 2005: GP Out-of-Hours Services

Motion: That Tynwald notes the Report of the Department of Health and Social Security on Recommendations 4.4 and 4.7 of the Report of the Select Committee on GP Out-of-Hours Services, and approves the recommendations at paragraph 4 and the conclusions at paragraph 5 of the Department’s Report.

Action: The Report made the following recommendations - The Department's response to Recommendations 4.4 and 4.7 of the Report of the Select Committee on G.P. Out-of-Hours Services as follows:-

(A) To seek to introduce amended subsidiary legislation to provide appropriate financial support to patients requested to attend the MEDS Centre. Estimated cost £75,696. (B) To reject the proposal to establish additional MEDS Centres in the North and South of the Island. Instead, for the North, the Department is to seek to establish an out-of- hours Nurse provided telephone triage service, in support of MEDS, based at the M.I.U. at Ramsey Cottage Hospital and linked to the expansion of the Unit to provide a 24-hour Nurse-led Service. Estimated cost £395,000. The Department to monitor the performance and effectiveness of this Service in the interest of informing future Community provision in other parts of the Island.

In respect of both Recommendations, the Department's intention is to submit Business Cases for consideration as part of its 2006/2007 Budget proposals.

The Report concluded that the new G.P. Contract, which led to the change in out-of-hours care, is over two years old and is generally felt from a patient perspective to be operating satisfactorily. The Department recognises that the change in out-of-hours care which followed the introduction of the new Contract was not initially well received and there have been some problems with the new MEDS, particularly when it was first established. However, the out-of- hours element of the new Contract is now functioning well with relatively few problems on the Island, in contrast to parts of the United Kingdom where in some cases this has proven problematic, due in large part to the limited availability of doctors and associated staff to meet service needs. The Island experience has not just come about by chance, and tribute should be paid to all those involved in MEDS, including in particular the participating G.Ps, reception staff, drivers, and administrative staff, whose commitment has been critical in achieving the high standard of care to patients. As was the case when G.Ps had full 24-hour responsibility for their patients, problems will occasionally occur. Where this does happen,

166 then the circumstances are always fully investigated with patients having access to an Independent Inquiry in circumstances where this is considered appropriate.

Tynwald referred back to DHSS for further consideration the proposal to provide free transport for patients visiting MEDS and the proposal that the DHSS seek to establish additional MEDS centres in the north and south of the Island.

3.50 June 2005: Civil Service Commission

Motion: That this Court resolves that following the completion of the Review into the Scope and Structure of the Isle of Man Government that the Council of Ministers institutes an organisation and methods study into the operation of every Department to establish whether there are any positions which could be dispensed with, or changed for better effectiveness of service provision, to ensure that human resources are being used to maximum benefit and to report to Tynwald.

Action: The Review into the Scope and Structure of the Isle of Man Government is still continuing.

3.51 June 2005: Kyoto Agreement

Motion : That Tynwald is of the opinion that all Departments of Government should seek to reduce their carbon emissions by 20% of 2004-05 levels by 2010 and, pursuant to the same, the Council of Ministers through its Energy Policy Subcommittee, should report to Tynwald no later than the sitting in July 2006 on the methodologies to be employed or are likely to be employed.

Action: This matter is being progressed by the Energy subcommittee who will report in due course.

3.52 July 2005 - Manx Electricity Authority Review

Motion : that the Review on behalf of the Isle of Man Government into the recent affairs of the Manx Electricity Authority and “subsidiary” companies by Pannell Kerr Forster be received and its contents noted, and that a Committee of five Members be appointed with powers to take written and oral evidence pursuant to sections 3 and 4 of the Tynwald Proceedings Act 1876 to investigate the true and correct position with regard to the Manx Electricity Authority's affairs and, noting the PKF Report, to investigate the role of the Authority, the Treasury, the Department of Trade and Industry, and other parties deemed appropriate, to ascertain what went wrong and to report to Tynwald with findings and recommendations no later than 31st January 2006.

Action: Tynwald received and noted the Report by Pannell Kerr Forster. Mr Butt, Mrs Christian, Mrs Crowe, Mr Delaney, and Mr Speaker were elected to the Committee.

3.53 July 2005 - Manx Electricity Authority

Motion made -

(1)(a)(i) authorises the Government in terms of section 12 of the Isle of Man Loans Act 1974 to lend to the Manx Electricity Authority (“the Authority”) a sum not exceeding £50 million in respect of the year ending 31st March 2006 to enable the Authority to repay to Barclays Private Clients International Limited (“Barclays”) a loan taken out by the Manx Cable Company Limited on 25th March 2004 of £50 million and repayable on 25th September 2005;

167 (ii) approves the repayment to the Government by the Authority of the said sum of £50 million within a period of 30 years and upon such terms as may be agreed between the Treasury and the Authority;

(iii) recognises and directs that such proposed repayment by the Authority to Barclays is entirely without prejudice to any order which a court of competent jurisdiction may make under the Audit Act 1983 or otherwise and any consequential orders as to restitution or otherwise.

(1)(b) authorises the Treasury to expend out of the Capital Transactions Account in respect of the year ending 31st March 2006, a sum not exceeding £50 million in respect of the additional expenditure of the Authority; and

(1)(c) approves and sanctions borrowings not exceeding £50 million being made by Government to be repaid within a period of 30 years.

(2)(a) authorises the Treasury to expend a sum not exceeding £5 million in respect of the year ending 31st March 2006 from the Capital Transactions Account to be paid to the Authority for general ongoing capital expenditure; and

(b) approves and sanctions borrowings not exceeding £5 million being made by Government to be repaid within a period of 30 years.

(3) authorises the Treasury to apply from the General Revenue Account during the year ending 31st March 2006, a sum not exceeding £15 million being the amount necessary to be paid to the Authority to:-

(i) meet the interest payments due on 9th August 2005 to the Treasury in respect of the £185 million bond issued on 14th August 2001; and

(ii) provide necessary working capital for the year ending 31st March 2006.

(4) authorises the Treasury to transfer from the Tax Strategy Requirement Fund, during the year ending 31st March 2006, a sum not exceeding £10 million to establish a fund the purpose of which is to credit the Authority's annual standing charge.

Action: The above package of measures was agreed by Tynwald. The necessary action by Treasury is being progressed.

3.54 July 2005 – Port Erin Marine Laboratory

Motion: that Tynwald receives the Report from the Council of Ministers entitled “Port Erin Marine Laboratory: Future Proposals – Position Statement” and approves the “Next Steps” recommended at page 10 of the Report, but removing the words “and a Marine Life Centre” in recommendation No 1.

Action: Tynwald received the report and approved the recommendation. The “Next Steps” referred to in the Report are –

(a) A project officer be appointed to consider all aspects of the proposal for a marine and fisheries research institute [and a marine life centre] and to prepare a report identifying the way forward. Such a report would consider the practicalities of establishing these bodies and identify funding required as well as likely funding partners.

This position would be a short term contract funded jointly by DAFF, DoLGE and DTL.

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(b) The work of the officer/consultant appointed is supported by the establishment of a Project Team including officers and members from DAFF, DoLGE and DTL and led by DAFF.

The Project Team should consider how funds might be allocated to follow up the project officer’s recommendation.

3.55 July 2005 - Report by the Council of Ministers - Review of the Functions of the Lieutenant Governor under Acts of Tynwald

Motion : that the Report of the Council of Ministers on the Review of the Functions of the Lieutenant Governor under Acts of Tynwald be received and be referred for joint detailed consideration between the Council of Ministers Constitutional and External Relations Committee and the Standing Committee of Tynwald on Constitutional Matters and report to Tynwald.

Action: Consideration of this matter is on-going.

3.56 July 2005 - Select Committee on Mount Murray Residents Compensation Claim

Motion: That the Report of the Select Committee on Mount Murray Residents Compensation Claim be received and its recommendations be approved.

Action: The Report makes the following recommendations –

(a) that the Department of Local Government and the Environment should recognise its failings and issue an apology to the injured parties.

(b) that a notational ex gratia payment be awarded to each of the injured parties in the sum of £2500, such funds to be made available by the Treasury.

3.57 July 2005 - Select Committee on Port St Mary Commissioners

Motion: That the Report of the Select Committee on Port St Mary Commissioners be received and the Department of Local Government and the Environment and the Treasury report back to Tynwald before 31st December 2005 on the recommendations contained therein.

Action: The Report makes the following Recommendations –

10.1 DoLGE should submit a report to Tynwald by December 2005, with proposals for any required legislative changes, to decide its future role in relation to Local Authorities in respect of the following a) a clearly defined supervisory role b) a clearly defined statutory role c) having no role, recognising Local Authorities as being completely autonomous and not required to seek DoLGE approvals for any matters thus being accountable only to its ratepayers

10.2 Treasury should take the lead in formally re-establishing the Audit Committee, the Committee to comprise officers of the Treasury, DoLGE, and the Auditors, reporting to the Treasury. The Audit Committee should report at least once per year to Tynwald

10.3 The review of the Audit Act currently being addressed by Treasury should be progressed without delay.

169 10.4 Treasury in conjunction with the Audit Committee should undertake that review of the Audit Act and Audit Regulations with particular focus on • defining the role of the auditor • defining a statutory timescale for the audit process • the requirement for an auditor to report to the Audit Committee any perceived failures in accounting standards or failure by an Authority to present accounts within a statutory timescale • defining the role of Treasury • defining the role of DoLGE in relation to provision of financial training and guidance • identifying who is to be responsible for ensuring that Local Authority accounts and auditors reports are laid before Tynwald

10.5 Local Authorities should be required to satisfy DoLGE that the Authority has in place a robust financial management plan and has access to qualified financial advice either in house or externally.

10.6 Any concerns rose about the performance of a Local Authority and/or its staff by any member of the Audit Committee should be addressed directly to the Chairman of the Authority and if necessary a meeting held with the Local Authority concerned.

10.7 Local Authorities should be able to appoint their own auditor if the existing structures for supervising the auditing of local authorities is to be retained.

10.8 The DoLGE Induction Course needs to be overhauled with on going advice and training, particularly at the time of personnel changes.

10.9 An individual or Department should ensure that all information, documentation and evidence held on file is provided to any enquiry established by Tynwald unless that enquiry is specific in its request.

The work by DoLGE and the Treasury in formulating their joint report to Tynwald is progressing.

3.58 July 2005 – Standing Committee on Economic Initiatives

Motion: that the Report of the Committee for the Session 2004-05 be received and the following recommendations approved –

(i) that the Minister for the Treasury should make every endeavour to ensure that the first reading of the Bill to reform the companies legislation is moved in the Keys at the first sitting of the House in the Session 2005-06;

(ii) that the Council of Ministers report to Tynwald no later than the sitting in December 2005 on the steps being taken to support business in relation to the provision of additional public car parking facilities and the general improvement of standards in the Island’s hospitality industry;

(iii) that the Council of Ministers Report to Tynwald no later than the sitting in December 2005 with proposals to light the unused fibre optic cable linking the Isle of Man with Great Britain;

(iv) that the functions of the Director of E-Commerce be located within the Department of Trade and Industry.

Action: Para (i) – Motion carried. Treasury to progress. Para (ii) – Motion lost. Para (iii) – Motion carried. Council of Ministers to progress Report

170 Para (iv) – Motion lost.

3.59 July 2005 - Proposed Use of Development Orders to Secure the Provision of Development Land

Motion: that Tynwald is of the opinion that - (1) in advance of full Area Plan coverage of the Island or in response to specific circumstances, the Department of Local Government and the Environment should bring forward Development Orders in accordance with Section 8 of the Town & Country Planning Act 1999 to ensure adequate provision of development land for the needs of housing, business and community purposes as may arise from time to time; (2) any proposals for the release of un-zoned land, for whatever purpose, should be considered by the Department against the policies of the Strategic Plan and any other relevant social and economic factors; and (3) any such Order should be subject to full public consultation and public inquiry prior to the Order being made by the Department, subject to Tynwald approval.

Action: Council of Minister to consider this matter. The Department of Local Government and the Environment is considering its appropriate usage..

3.60 July 2005: Provision of Affordable Housing

Motion: That Tynwald, mindful of the difficulties facing first time buyers and conscious of the need to increase the supply of affordable housing, is of the opinion that, in granting planning permission on land zoned for residential development or in predominantly residential areas, the Department of Local Government and the Environment should normally require that 25% of provision should be made up of affordable housing in cases where the development proposals relate to 8 dwellings or more.

Action: Strategic Plan Public Inquiry held in March 2005. The Inspector's report is awaited. Tynwald endorsed the DLGE's proposal to require 25% of developments of 8 homes or more to be in the "affordable" category, where deemed appropriate. This will form a part of planning policy.

3.61 July 2005: Energy Policy

Motion: that Tynwald - (a) endorses the need to develop a long-term, sustainable energy policy for the Isle of Man; (b) supports the work being undertaken by the Energy Committee of the Council of Ministers; (c) agrees that any energy policy should reflect the requirements - (i) to understand and plan for the impacts on the Island of Climate Change; (ii) to promote measures for the reduction of greenhouse gas emissions; (iii) to ensure the security and sustainability of energy supplies; and (iv) to promote the development of a competitive energy market, increasing the fuel options available for consumer choice whilst ensuring the Island obtains best value for money; (d) agrees that the Council of Ministers, following further investigation and consultation by its Energy Committee, should develop an energy policy for the Island and bring the same to Tynwald for approval no later than July 2006.

Action: Proposed Energy Policy is under consideration by the Energy Committee.

171 Appendix 6

LEGISLATION ENACTED

Acts promulgated at the Tynwald Ceremony on 5th July 2005

1. Income Tax (Amendment) Act 2004;

2. Race Relations Act 2004;

3. Representation of the People (Amendment) Act 2004;

4. European Union (Accessions) Act 2004;

5. Fireworks Act 2004;

6. Veterinary Surgeons Act 2005

172