Isle of Man - Post Office chairman sacked

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CoMin accuses Cregeen of undermining policy

The Council of Ministers has sacked Post Office chairman Graham Cregeen with immediate effect.

In a statement, CoMin says it made the decision at its meeting last Thursday.

Treasury Minister Eddie Teare MHK says the issue is about corporate governance and the chairman trying to overrule a majority decision of the board.

He says instead of “doing the honourable thing and resigning, he has continued to work to undermine that policy, making his position untenable.”

Tynwald will be asked to appoint Peel MHK Ray Harmer to the role during this month’s sitting.

Mr Teare says there are clear rules surrounding the operation of the Post Office board - but Mr Cregeen has ignored them.

Mr Cregeen says he is 'surprised and disappointed' at being ousted.

He says disagreement over corporatisation of the Post Office has caused a major rift with board members.

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The sacking of Post Office chairman Graham Cregeen means drink drive MLC Tony Wild, as vice chairman, will chair today’s Post Office board meeting.

It was announced yesterday that Mr Cregeen had been removed as chairman and member of the Post Office board with immediate effect.

His position had been made ‘untenable’ because of his ‘fundamental conflict’ with board policy on corporatisation, Treasury Minister Eddie Teare said.

Plans to run the Post Office as a limited company, wholly-owned by government, will go before the April Tynwald when the court will also be asked to approve the appointment of Peel MHK Ray Harmer as the new chairman.

In the meantime, Tony Wild MLC as vice chairman will be in charge.

In March he ‘unreservedly apologised’ to Tynwald following his conviction for drink driving. He was sentenced to 180 hours community service, as a direct alternative to eight weeks’ custody, and banned from driving for five years.

He said it was his ‘heartfelt desire’ to carry on his LegCo role but had asked to step down immediately from his political membership of the DHSC. Until last year he was also member for the departments of Economic Development and Education and Children. As well as Post Office vice chairman, he is an employer’s representative on the Public Sector Pensions Authority.

Mr Wild was arrested for drink-driving in December after being stopped in Laxey and failing a breathalyser test. He was more than three times the legal limit.

In Tynwald this month he said that at his court hearing mention was made of ‘certain medical conditions’. He told members he would not elaborate on this other than ‘these are personal, under control and I have the necessary support’.

Plans to corporatise the Post Office were first mooted in the 2006 Scope of Government report and aim to give it more commercial freedom.

The proposal for it to be run as a company, 100 per cent owned by the government with Treasury as sole shareholder, followed a review by an independent consultant and has been approved by the Post Office board and CoMin.

Mr Cregeen told iomtoday he had sought assurances with the Chief Minister over jobs and the future of the Post Office local network.

He said: ‘He advised me to speak to Treasury officers and they would give me all the assurances I required. I was called on Tuesday to see the Treasury Minister to be told I was being removed with immediate effect. If you stand up for what you think is right you are shown the door.’

He said he believed any benefit to government from running the Post Office as a limited company rather than a statutory board would be ‘marginal’ and jobs could potentially be lost as a result.