The Chief Minister has outlined seven key principles to guide government’s response to soaring oil prices, as pressure mounts for immediate action to support vulnerable residents.
Alf Cannan told Keys that the Economic and National Strategy Board is now meeting at least weekly to monitor energy prices and the supply chain, with a full economic statement due from the Treasury minister in April.
But opposition members warned that struggling households cannot wait weeks for help, as home heating oil prices have effectively doubled and deliveries to the island are now arriving at significantly higher costs.
Mr Cannan said the government’s priority is to understand the situation while being prepared to protect the most vulnerable.
“Our response will be precise and targeted,” he said. “Our response will be evidence based. The government must prepare for the long term effects, including considerations of potential impacts into next autumn and winter on our society.”
Monitoring
He confirmed an industry monitoring body will be established, involving the Enterprise and Treasury Ministers, to ensure effective understanding of private sector actions and impacts. Contingency plans to protect fuel supplies are also being readied.
Lawrie Hooper pressed for more tangible action, saying vulnerable people could not wait until April.
“I’m not entirely convinced that vulnerable people can wait until April, Tynwald, to find out what it is that government is proposing to do,” Mr Hooper said.
In response, Mr Cannan said those on home heating oil were currently most exposed, but noted that gas and electricity prices remain stable and controlled.
“If we take action, fundamentally it’s working out if we’re going to target it, how you target successfully,” he said.
Heating Oil
Dr Michelle Haywood questioned how government is defining vulnerable customers using home heating oil, and what discussions have taken place with supply companies to understand the scale of the problem.
Mr Cannan said discussions with fuel companies are ongoing, if not daily, and urged members to pass on evidence of constituents facing difficulties.
“The companies have assured us that they will treat those cases respectfully,” he said.
The Chief Minister also announced that letters will be sent to the third sector this week, inviting organisations to contact government with information about issues they are identifying.
Asked about support for local authority tenants who use heating oil, Mr Cannan confirmed a proper line of communication with local authorities would be established.