Treasury Minister to ask Tynwald for £400m of borrowing

The Steam Packet Company could be in line for a £160 million refinancing from government.

Treasury Minister Alf Cannan will ask Tynwald to approve £400 million of borrowing, partly to repay a £76 million loan issued to the ferry company when the government bought it for £48 million in 2018.

Another £178 million will be used by the Manx Utilities Authority to refinance its debt to the Treasury.

Mr Cannan says if the borrowing is given the green light, £20 million will go into a contingency fund to tackle the effects of the coronavirus pandemic.

Treasury Minister Alfred Cannan MHK said: ‘I must be clear that Isle of Man Government finances are in a healthy condition and while this is certainly not a case of borrowing to pay for the pandemic, nevertheless the cost of the pandemic may restrict plans for future investment.'

He added: 'With interest rates at a favourable level and in considering both the impact of COVID but also likely future commitments for infrastructure on our Island, it is an appropriate time to undertake this exercise.'

Treasury has appointed external professional advisors to assist with the process.

Mr Cannan stated: ‘The COVID impact on the contingency fund continues to be felt and it would be irresponsible not to give the Government some room for manoeuvre during the election period and while Tynwald is in recess.’