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Brenda Cannell Strength, Honesty and Experience

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Brenda Cannell Strength, Honesty and Experience Manifesto-BJC-2011_BJC-Manif.06 12/09/2011 11:08 Page 1 Representation of the Peoples Act 1995 HOUSE OF KEYS GENERAL ELECTION - EAST DOUGLAS THURSDAY 29th SEPTEMBER 2011 OTE V BRENDA CANNELL STRENGTH, HONESTY AND EXPERIENCE Dear Constituents, On 29th September your vote will help to elect the We have had weak political leadership for the last next Government of the Isle of Man. five years. The majority of the last Government was The first task for the newly elected Members of the far too ready to accept the threatened scrapping of House of Keys will be to select a Chief Minister to the Reciprocal Health Agreement, when it should lead the new Government. We will need someone have fought hard for its retention in accordance who demonstrates the skill and leadership necessary with the wishes of the people. to navigate a safe course for the Islands future Instead, the Government sought to impose private success and prosperity. The next Chief Minister medical/health insurance on us. should have the strength and courage to stand up to In the end, it was through the united voice of the the hostility of our UK neighbours and others, a electorate, together with the persistence of a good negotiator who will recognise the pitfalls handful of MHKs led by The Speaker, Steve Rodan while seeking the advantages as we set about the (who enlisted the support of an MP from the UK to difficult task of promoting and advancing the lobby on our behalf) that we managed to save this Island’s status in the global economy. vital Agreement for the benefit of the Island. We need Members of the House of Keys with Place your confidence in me and I will make experience, commitment and determination, people your vote count in the next 5 years. Together we who will support policies which are for the good will strive to ensure that the Isle of Man has a but question or reject those which are not in the safe and prosperous future. long-term interests of the Island and its people. Brenda Cannell THE VAT AGREEMENT The imposition of the increase in Valued Added Tax money to them which is rightfully ours by not (VAT) and ready acceptance of a further shortfall charging Manx income tax to several major UK displays the poor negotiation skills of the last companies who trade here in the retail business. Government. There are no contingency plans other than to continue to dip into the Islands reserves to This must be reversed as it is unfair on our make up for the loss which will amount to £189 local retailers who pay VAT on goods and million a year. In addition, there is no guarantee that services in addition to Manx income tax. the UK will not come back in another two years and It is vital that a study is undertaken to identify demand more from the Island - as it did in 2007, 2009 the positives and negatives of the Isle of Man and 2011! setting and collecting its own VAT. This study While the UK digs deeper into our economy for more must be published to better inform the public VAT receipts, the Isle of Man Government is gifting about the best way forward for the Island. Manifesto-BJC-2011_BJC-Manif.06 12/09/2011 11:08 Page 2 THREATS TO OUR The next Government must: l Seek deferral on the abolition of the ARI - by INCOME TAX BASE explaining the Islands situation to the European Tax Code Group (ECG) and requesting that we are FROM EUROPE given time to develop a new National Taxation We’ve been under pressure for many years from Strategy. countries who are envious of our low taxation policies l Appoint a high-powered Commission - to and want us to harmonise our taxation systems. review our Tax situation and recommend the best options available to us for a new National Tax The Island has been under sustained pressure from Strategy. The membership of this Commission Europe since 1999, when the European Code Group must include an expert on the various sources of (ECG) decided that six local taxation measures did tax revenues available, and someone who not meet their standards and were regarded as understands the working and culture of the ECG. 'harmful'. Most importantly, the Commissions report must be In 2006, the Government introduced a new tax available to the public in the spirit of openness and initiative called the 'Zero/Ten' to attract more business transparency. to the Island. This encouraged high net worth individuals to settle in the Island and open Manx registered companies, transferring all of their assets e.g. property, land, stocks & shares etc, which may THE ECONOMY also include a company which is trading. Focus on the economy is of primary importance However, if such an individual has no need to draw over the next five to ten years, this will be a testing off the profits of the trading company for living time in terms of stabilising the economy with expenses, then they are free from the requirement to sustainable growth. pay Manx income tax. In recognising this, the Government policy is to continue to diversify and to Government introduced the Attribution Rates for an extent this has been achieved in terms of the new Individuals (ARI), a balancing mechanism designed to Shipping Register and the Space Industry. recover some of the 'lost' income tax receipts from Manufacturing is still a very important contributor in individual resident shareholders in zero rated terms of employment opportunities along with other companies, as provided for in the Zero/Ten initiative. established sectors. All these industries should have The European Code Group are of the view that the input into a study of the Isle of Man setting and ARI is not compliant with the European Code and collecting its own VAT. This would enable have instructed its removal in April next year. Government to identify, at the outset, the likely impact of such a major change on these important If the ARI is abolished it is likely that many of the contributors to our economy - A partnering wealthier members of our community will be able to approach is essential. avoid paying Manx income tax altogether. Unfairly, Whilst we need to maintain these new and established those who operate small businesses and provide vital industries we must not lose sight of what we are jobs will be less well off as they are forced to draw off the profits from their trading business to cover historically good at providing - Hospitality. There are living expenses, staff wages etc, and as a new opportunities for our Tourism Industry, the main- consequence, will be subject to 20% income tax on stay for our economy in times past. Travelling habits their earnings. are changing as a result of social and civil unrest, together with adverse environmental and climatic The Government has no plan to replace the ARI, but it changes in other parts of the world. Many people are can no longer afford to go on reducing its tax base or preferring to holiday closer to home and the Isle of the money to operate vital public services such as Man seems well placed for a Tourism Revival. Health, Education and Social Services will quickly We need to actively pursue Package Deals with run out. Neither can Government ignore the unfairness sea and air travel operators to bring visitors which will result when locally owned and operated here for specialist holidays such as: businesses, who have to use the profits to pay their workers, are subject to greater income tax. l Music Festivals - we currently have three local events which have proven to be very successful, It is imperative that we develop a new and with increased popularity year on year, we need to coherent national tax strategy. expand upon this. Manifesto-BJC-2011_BJC-Manif.06 12/09/2011 11:08 Page 3 l Beer Festivals - the Campaign for Real Ale SUSTAINABLE (CAMRA) would love the opportunity to stage events here. POPULATION l Sports Festivals - we must take advantage of the GROWTH world Olympics coming to the United Kingdom in 2012. I supported the Residency Act, yet the Council of The focus must be on what we know we are Ministers have so far refused to bring in the good at, by staging events all year round to Regulations which will give affect to this new Law. sustain our Hotels, Restaurants, Bars etc. Over the last decade the Island has witnessed an influx of new residents averaging 850 persons a year. It is ironic that the last public census results have not SAVINGS MUST been published, and will not be until after the General BE MADE Election. While it is important to continue to welcome highly The Scope and Structure of Government Report skilled individuals to supplement our home-grown was considered and partially implemented during this talent, we need to protect the employment last term. Tynwald gave support to an overhaul of opportunities of our own people, particularly Government Departments and as a result many gained graduates seeking to employ their hard won additional responsibilities whilst others had their qualifications at home. We also need to ensure that responsibilities reduced. Time will tell if this was the population growth does not continue to outpace our correct move. ability to provide affordable housing, education, health, sewerage and drinking water infrastructures. However, the Government has failed to address the scope and size of Government. Government needs to publish targets for sustainable population growth and be bold and imaginative in Greater focus is required in identifying the core public applying the Regulations for Residency control.
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