Monetising the island’s territorial waters holds significant potential to diversify government revenue, with initial estimates for future seabed leases valued in the hundreds of millions of pounds.
Dr Alex Allinson took questions on the issue from MHK Chris Thomas.
He cited a 2014 Council of Ministers report which projected that leasing seabed for large offshore wind projects could provide revenues “worth around £5m per year”
In his response, Dr Allinson confirmed that offshore wind was a “key focus area for diversification of government revenues” as set out in the Economic Strategy.
Outdated
However, he indicated the 2014 figure was now outdated, with value being dependent on “viable routes to market” for the generated electricity.
He pointed to updated analysis, saying: “When we go forward to the phase three report issued by KPMG in terms of the economic strategy page 83 says the if the island was to utilise even two gigawatts of seabed for leasing at similar pricing this would be worth circa £230m to government per year in auction fees.”
While market conditions have since fluctuated, the Minister affirmed the ongoing opportunity.
“The principles still remain that in terms of monetising our territorial waters, there is, there are significant financial gains to be had, which broaden the tax base, and could help in terms of balancing the budget with extra investment in terms of public services,” he said.