Re: Tynwald Sitting October 2015 - Oral Question 20 Manx Gas Agreement
I am writing to you following the commitment given in my response to your question during the October 2015 sitting of Tynwald regarding the agreement between Manx Gas, the Office of Fair Trading, the Department of Economic Development and the Treasury.
Statutory basis for the agreement There are four parties to the Agreement: The Office of Fair Trading The Treasury The Department of Economic Development Manx Gas Limited
The statutory basis for which the representatives of the Isle of Man Government noted above have entered into the agreement are identified as below:-
Office of Fair Trading Section 57 of the Consumer Protection Act 1991 the OFT has a statutory role to protect inform/ advise/ support and represent generally the interests of consumers. It entered into the agreement on the basis that it protects consumers from the potential effects of the monopoly enjoyed by Manx Gas Ltd in the gas supply market.
Treasury Section 4(1)(a) of the Financial Provisions and Currency Act 2011 gives the Treasury powers in relation to promote or improve the Island’s economy and the social wellbeing of the Island. In this case, energy provision is vital to the economy and social wellbeing of the Island.
Department of Economic Development Under Schedule section 1Part 2 to the Enterprise Act 2008, the Department has powers to:
To take such other steps, or do such other things, as the Department may consider necessary for the proper discharge of the functions specified in Part 1.
In Schedule section 1Part 1of the Enterprise Act 2008, the Department has functions including:
1. To further economic development 2. To provide, maintain and safeguard employment in the economy 3. To promote economic efficiency and competitiveness
As the availability and pricing of energy is integral to economic development and growth, the Department has powers to enter into this agreement.
In addition, the Department acts as 'sponsor' for the Office of Fair Trading.
Why was the agreement not brought before Tynwald?
There was no requirement for the agreement to be brought before Tynwald. I hope you will find these answers helpful. Yours sincerely