MHKs have clashed over financial provisions for decommissioning the proposed Earystane wind farm, with members calling for guarantees about future costs.
Manx Utilities Chairman John Wannenburgh was asked by Jason Moorhouse about decommissioning and the need for a sink fund.
Mr Wannenburgh told the chamber: “At this time, it is not possible to confirm whether a sinking fund will be necessary, or indeed appropriate for the proposed wind farm project to cover decommissioning costs, as the honourable member will be well aware, we are currently preparing a planning application for the proposed wind farm, and survey work remains ongoing.”
Jason Moorhouse MHK challenged this position asking: “Who exactly knows? Who actually knows? And that is key, and that’s why we need to actually have a provision from the onset to deal with any eventuality, whether it turns in 10 years, 30 years or 50 years, we need to have some form of sinking fund.”
Transparency
Chris Thomas (Douglas Central) pressed for transparency on long-term planning asking Mr Wannenburgh to advise what decommissioning plans are in place for all the redundant infrastructure such as the power station, gas pipelines.
Treasury Minister Dr Alex Allinson also spoke to highlight existing financial mechanisms that allowed the authority to decommission redundant infrasturcutr.
He told members: “Manx utilities has done considerable investment in the infrastructure of this island, considerable refurbishment and considerable decommissioning of a range of facilities, and that those costs are born through the consolidated loan fund, as set out in the budget.”
Mr Wannenburgh said that Manx Utilities will “certainly will be providing decommissioning information at the appropriate time,” but offered no commitment to establish a dedicated sink fund.
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