PP 2020/0107(2) STANDING COMMITTEE OF TYNWALD ON PUBLIC ACCOUNTS EMERGENCY SCRUTINY THIRD REPORT FOR THE SESSION 2019-20 MACRO ECONOMIC EFFECT OF THE EMERGENCY AND FINANCIAL SUPPORT SCHEMES Volume 2 of 2 STANDING COMMITTEE OF TYNWALD ON PUBLIC ACCOUNTS EMERGENCY SCRUTINY THIRD REPORT FOR THE SESSION 2019-20 MACRO ECONOMIC EFFECT OF THE EMERGENCY AND FINANCIAL SUPPORT SCHEMES 3.1 There shall be a Standing Committee of the Court on Public Accounts. 3.2 Subject to paragraph 3.6, the Committee shall have – (a) a Chairman elected by Tynwald, (b) a Vice-Chairman elected by Tynwald, (c) four other Members, who shall be Chairman of each of the Policy Review Committees (ex officio) and the Chairman of the Committee on Constitutional and Legal Affairs and Justice; and a quorum of three. 3.3 Members of Tynwald shall not be eligible for membership of the Committee, if, for the time being, they hold any of the following offices: President of Tynwald, member of the Council of Ministers, member of the Treasury Department referred to in section 1(2)(b) of the Government Departments Act 1987. 3.4 The Committee shall – (a) (i) consider any papers on public expenditure and estimates presented to Tynwald as may seem fit to the Committee; (ii) examine the form of any papers on public expenditure and estimates presented to Tynwald as may seem fit to the Committee; (iii) consider any financial matter relating to a Government Department or statutory body as may seem fit to the Committee; (iv) consider such matters as the Committee may think fit in order to scrutinise the efficiency and effectiveness of the implementation of Government policy; and (v) lay an Annual Report before Tynwald at each October sitting and any other reports as the Committee may think fit. (b) be authorised to require the attendance of Ministers for the purpose of assisting the Committee in the consideration of its terms of reference. (c) be empowered to issue directions under Standing Order 5.6(3), provided that any direction so issued shall be reported to Tynwald within a year. (d) be the Accounts Committee referred to in section 3 of the Tynwald Auditor General Act 2011, with the relevant powers and responsibilities in relation to the Tynwald Auditor General; and (e) be the Tynwald Public Accounts Committee referred to in section 3 of the Tynwald Commissioner for Administration Act 2011, with the relevant powers and responsibilities in relation to the Tynwald Commissioner for Administration. 3.5 The Chairman, Vice-Chairman and any member of the Committee shall not sit when the accounts of any body of which that person is a member are being considered. 3.6 Should the need arise in relation to a particular matter, such as a conflict of interest, Tynwald may elect an alternate member for the purpose and duration of the Committee’s consideration of that matter. Subject to paragraph 3.5, a conflicted member so replaced shall continue to serve as a member of the Committee for all other purposes. The powers, privileges and immunities relating to the work of a committee of Tynwald include those conferred by the Tynwald Proceedings Act 1876, the Privileges of Tynwald (Publications) Act 1973, the Tynwald Proceedings Act 1984 and by the Standing Orders of Tynwald Court. Committee Membership The Hon J P Watterson SHK (Rushen) (Chairman) Mr L L Hooper MHK (Ramsey) (Vice-Chairman) Mr R E Callister (Onchan) Ms J M Edge MHK (Onchan) Mrs J P Poole-Wilson MLC Mr C R Robertshaw MHK (Douglas East) Copies of this Report may be obtained from the Tynwald Library, Legislative Buildings, Finch Road, Douglas, IM1 3PW (Tel: 01624 685520) or may be consulted at www.tynwald.org.im All correspondence with regard to this Report should be addressed to the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas, Isle of Man, IM1 3PW. Table of Contents Volume 2 ORAL EVIDENCE .................................................................................................... 1 15TH MAY 2020 EVIDENCE OF HON. ALFRED CANNAN MHK, TREASURY MINISTER; AND CALDRIC RANDALL, CHIEF FINANCIAL OFFICER, TREASURY 3 WRITTEN EVIDENCE .............................................................................................23 APPENDIX 1: 15TH APRIL 2020 - EMAIL FROM MR ALF CANNAN MHK, TREASURY MINISTER TO MEMBERS OF TYNWALD 25 APPENDIX 2: 4TH MAY 2020 - EMAIL SUBMISSION 29 APPENDIX 3: 4TH MAY 2020 - EMAIL FROM JOANNA MAYLIN 33 APPENDIX 4: 5TH MAY 2020 - EMAIL FROM NICKY CRAIG 37 APPENDIX 5: 5TH MAY 2020 - EMAIL FROM CHARLES MILLER 41 APPENDIX 6: 5TH MAY 2020 - EMAIL FROM DAVID MIDGHALL 45 APPENDIX 7: 5TH MAY 2020 - EMAIL FROM JASON NEWMAN 49 APPENDIX 8: 5TH MAY 2020 - EMAIL FROM TIMOTHY JOHN SWIFT, PRESIDENT, ISLE OF MAN LAW SOCIETY 53 APPENDIX 9: 5TH MAY 2020- EMAIL FROM NIKOLAUS MEIER 67 APPENDIX 10: 5TH MAY 2020 – EMAIL FROM STEVEN MCKENZIE 71 APPENDIX 11: 14TH MAY 2020 – EMAIL FROM SYLVIA CONSTANTINE 75 SUBMISSIONS RECEIVED AFTER REPORT LAID BEFORE TYNWALD .........................83 APPENDIX 12: 18TH MAY 2020 – EMAIL FROM HON ALF CANNAN MHK, TREASURY MINISTER 85 GOVERNMENT RESPONSE TO REPORT..................................................................89 APPENDIX 13: 24TH JULY 2020 – LETTER FROM HON ALF CANNAN MHK, MINISTER FOR TREASURY 89 ORAL EVIDENCE 1 2 15th May 2020 Evidence of Hon. Alfred Cannan MHK, Treasury Minister; and Caldric Randall, Chief Financial Officer, Treasury 3 4 S T A N D I N G C O M M I T T E E O F T Y N W A L D C O U R T O F F I C I A L R E P O R T R E C O R T Y S O I K O I L B I N G V E A Y N T I N V A A L P R O C E E D I N G S D A A L T Y N PUBLIC ACCOUNTS COMMITTEE EMERGENCY SCRUTINY HANSARD Douglas, Friday, 15th May 2020 PP2020/0105 PAC-ES, No. 3/2020 All published Official Reports can be found on the Tynwald website: www.tynwald.org.im/business/hansard Published by the Office of the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas, Isle of Man, IM1 3PW. © High Court of Tynwald, 2020 5 STANDING COMMITTEE, FRIDAY, 15th MAY 2020 Members Present: Chairman: Hon. J P Watterson SHK Mr C R Robertshaw Ms J M Edge Mrs J P Poole-Wilson Clerk: Mrs J Corkish Assistant Clerks: Miss F Gale Mr S Wright Contents Procedural ................................................................................................................................. 43 EVIDENCE OF Hon. Alfred Cannan MHK, Minister; and Mr Caldric Randall, Chief Financial Officer; Treasury .................................................................................................................................... 44 The Committee sat in private at 12 noon. .................................................................................. 57 __________________________________________________________________ 42 PAC-ES/2020 6 STANDING COMMITTEE, FRIDAY, 15th MAY 2020 Standing Committee of Tynwald on Public Accounts Emergency Scrutiny (Financial support schemes) The Court met virtually at 11 a.m. Proceedings were conducted and broadcast live from the Legislative Council Chamber. [MR SPEAKER in the Chair] Procedural The Chairman (Mr Speaker): Well, good morning everyone and welcome to this public meeting of the Public Accounts Committee. As you know, this is one of a series of meetings in which the aspects of the response to the state of emergency first declared on 16th March 2020 are being examined. My name is Juan Watterson, I am the Speaker of the House of Keys and I 5 chair this Committee. With me are Mr Chris Robertshaw MHK, Mrs Jayne Poole-Wilson MLC and Ms Julie Edge MHK. The topic today is the macroeconomic effect of the emergency and the Treasury financial support schemes. Before we go on, I would like to declare that as a director of Southern Befrienders, we are in receipt of the Salary Support Scheme. 10 Mr Robertshaw. Mr Robertshaw: Thank you, Chairman. Yes, I am … my business has been in receipt of the original £3,000 grant and is currently in receipt of the Wage Support Scheme. 15 Thank you. The Chairman: Thank you. Mrs Poole-Wilson. 20 Mrs Poole-Wilson: No interest to declare, Chairman. The Chairman: Thank you. And Ms Edge. 25 Ms Edge: Thank you, Chairman. I can declare that some family members have received the grant and have applied for the Salary Support Scheme. Thank you. __________________________________________________________________ 43 PAC-ES/2020 7 STANDING COMMITTEE, FRIDAY, 15th MAY 2020 EVIDENCE OF Hon. Alfred Cannan MHK, Minister; and Mr Caldric Randall, Chief Financial Officer; Treasury Q83. The Chairman: Well, welcome, Treasury Minister and Mr Randall, Chief Financial 30 Officer. Treasury Minister, if would care to make your opening statement. Thank you. The Minister for the Treasury (Mr Cannan): Good morning, Mr Speaker. It is now 10 weeks since the enormity of the challenges posed by coronavirus became fully 35 apparent. Every single day of the last 10 weeks has put extraordinary pressure on the divisions of Treasury and of course across Government. I would like to take this opportunity today to pay tribute to all those officers for what they did during those weeks and for what they continue to do now. It is worth, I think, Mr Speaker, reflecting on some key dates and words. On Tuesday, 10th 40 March, I wrote to Tynwald as follows: I am conscious that concern continues to grow about the spread of Covid-19 and that Honourable Members may be experiencing a heightened level of contact from constituents and businesses regarding local and international economic impacts. I want to reassure you that these matters are being given the highest priority. There is a significant amount of information, action and reaction that is happening at rapid speed, all of which needs to be digested, considered and if necessary acted upon. Our first and foremost consideration is the health and security of our people, closely followed by a need to act appropriately to help and support our economy.