Ministers warn Bill may delay plan to run Isle of Man Post Office as private company

[TrueBlueTerrier]

http://www.iomtoday.co.im/news/isle-of- ... -1-7855701" onclick="window.open(this.href);return false;?

A backbench MHK was given leave to introduce a private members’ Bill on regulating areas of government if they are corporatised.

But one Minister questioned the motives of Douglas West MHK Chris Thomas – suggesting his Bill might make ‘null and void’ next week’s Tynwald debate on proposals to run the Post Office as a private company.

Mr Thomas insisted: ‘This is not about the Post Office, it’s not even about the merits of corporatisation or privatisation. What this Bill is about are the preparations to govern the process and for regulation of corporate entities.’

He suggested services could not be privatised or corporatised in the absence of competition without proper regulation.

Mr Thomas said there were areas that might need ‘legislative attention’ such as transfer of employment terms, engaging with staff and the role of government.

He said this was the ‘necessary surrounding context’ for corporatisation to be considered not only in the Post Office but the Manx Utilities Authority, the harbours, airport and potentially other areas too.

Seconding Mr Thomas, former Post Office chairman Graham Cregeen, who was sacked because of his opposition to the corporatisation policy, said the private member’s Bill provided a ‘road map’ setting out how government would go about corporatisation.

But Michael MHK Alfred Cannan said that while the Bill was ‘necessary and right’ its effect would be to make null and void the motion on the Post Office before Tynwald next week. ‘We are going to get ourselves slightly conflicted,’ he said.

Mr Cannan said the different processes might be required for different entities. ‘The needs of the Post Office may well be different from the MUA,’ he said.

Policy and Reform Minister John Shimmin said he was not sure of Mr Thomas’s motives. He said it was well-intentioned but the timing was ‘wilfully unfortunate’.

He said he was originally going to the support the Bill but agreed with Mr Cannan’s sentiments that it could result in next week’s Post Office motion being kicked into the ‘long grass’. ‘The principle is sound, the timing is wrong,’ he said.

Economic Development Minister Lawrence Skelly said he too could not support the Bill if it meant next week’s motion becoming null and void.

Douglas North MHK Ralph Peake said the Bill should be taken at face value.

The House of Keys supported the move to give Mr Thomas leave to introduce his Bill by 16 votes to six.

Proposals to make the Post Office more commercially driven by running it as a state-owned company rather than a statutory board have been recommended in a report to the Council of Ministers by an independent consultant.

Under the plan the company will be wholly-owned by government with Treasury as the sole shareholder.