Chief Minister Alf Cannan has announced significant reversals to three contentious policies, conceding that public and business confidence has been “drifting” and that “continuing without adjustment would be the wrong course”.
In an urgent statement to Tynwald, Mr Cannan said the government would change direction on the minimum wage trajectory, the island-wide 20mph programme, and the local government amendment bill.
The announcements follow a dramatic ministerial reshuffle on Monday, which saw the Treasury Minister and Infrastructure Minister replaced.
U-Turning
On the minimum wage, Mr Cannan said the government would now adopt the recommendation of its own advisory committee.
April’s planned increase will be reduced to 5%, down from the proposed £13.46 hourly rate, subject to Tynwald approval.
“The letter from the Minimum Wage Committee… was clear in that the committee did not support the proposed rise… most notably in that letter, the quote, ‘few businesses would be able to afford a rise in excess of 5%,’” Mr Cannan said.
To compensate lower-paid workers, he pledged to “significantly increase personal allowances” at the Budget, arguing this would put more money in people’s pockets “through the tax system” and help move towards a living wage “in a way that is productive and will boost the economy”.
Regarding the 20mph rollout, the Chief Minister confirmed the new Infrastructure Minister had “immediately paused this programme upon his appointment yesterday.”
The DoI will now “revisit all the plans” to focus protection on areas like schools and care settings “without imposing blanket or overly prescriptive controls across large areas of the island”.
Similarly, the minister will write to local authorities offering to “pause and revisit” the Local Government Amendment Bill, specifically Clause 5, which has caused significant concern.
Look Back in Anger
The policy shifts were overshadowed by anger over the handling of the reshuffle.
Tim Glover challenged the Chief Minister’s conduct, revealing he received a call at 7:46am on Monday, while the ministers being removed, Dr Alex Allinson and Dr Michelle Haywood, had not yet been contacted.
“They were basically sacked via a phone call,” said Mr Glover. “Does the chief minister say that was an act of leadership or the act of a coward?”
Mr Cannan defended his actions, stating the timing was “complex”. He added: “I am sorry they have to happen quickly, and I am sorry that they are immediate. But there are very good reasons for that.”
The Chief Minister framed the decisions as necessary to listen to a business community warning of severe damage.
“You have to make a decision… particularly when Tynwald and government are considering actions which your business community are highly highlighting is severely damaging to their to the economy, severely damaging to their businesses, and will lead potentially to business closures and job losses.”
He cited a recent visit to a local cafe where an owner was “nearly in tears as she told me how much this was going to cost her business”.
He said that staff members were “haranguing me for putting the business under so much pressure and threatening their jobs”.
Several members questioned the timing, with Jason Moorhouse asking if yesterday was “simply a day that was too late”.
Rob Callister also queried why the Minister for Enterprise remained in post when he “fully supported this scheme.”
Unity
Support did come for Mr Cannan from Julie Edge, who said the Chief Minister was “trying to actually stabilise in here today for our island”.
Ms Edge argued that “a change of direction and course to get us to the end goal is the right thing”.
However, others questioned the legitimacy of reversing court-mandated policy.
Manx Labour Party leader Joney Faragher asked how it was “appropriate for newly appointed ministers via media release to signal the reversal of policy that’s already been agreed and debated by this Court.”
Dr Michelle Haywood delivered a stinging critique, asking the Chief Minister if “he just didn’t understand the implications” of the living wage commitment in his own Island Plan “or if he’d always planned to cop out at the final hurdle and failed to deliver”.