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Tynwald - Tuesday 10Th July 2012


Theodolite

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14:30 afternoon session starting with main order paper item 3

 

Treasury Update on the Recommendations made by the Select Committee of Tynwald on Kaupthing Singer and Friedlander (Isle of Man) Limited

 

Statement by the Minister for the Treasury

 

Pre-funding of Depositors compensation scheme (using some of Govt's reserves) - hasn't been forgotten will be bringing something forward later in the year when he Intends to have full debate on Treasury proposals.......

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14:39

Main Order paper item 4.

Revenue Accounts 2011-12 - Supplementary Vote

The Minister for Home Affairs to move –

That Tynwald authorises the Treasury in respect of the year ended 31st March

2012, to apply from general revenue –

(a) surplus receipts totalling £210,347 of the Department of Home Affairs in

payment of excess expenditure; and

(b) the sum of £430,000 in payment of excess expenditure of the Department

of Home Affairs.

 

has increased its income by 50%

lost 34 posts = 6% of headcount

now cutting front-line staffing

11 prisoners placed in UK but costs are at a daily rate

 

KB - says bulk of excess expenditure comes from pay awards - and asks why?

AC - asks how are costs going to be managed for coming year?

ZH - procurement savings target of £104k hasn't yet been delivered is it going to happen?

 

blames cost of pay increases on the timing

3/4 of spend is on salaries - have cut down on overtime - in future for every 1% in pay increases jobs will have to go

"centralised procurement was set by last Government so I'm not familiar with it"

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14:48 Main Order paper item 5.

Supplementary Vote

 

The Minister for Social Care to move –

That Tynwald authorises the Treasury to apply from general revenue during

the year ending 31st March 2012 a sum not exceeding £397,700 being the

additional amount required by the Department of Social Care in respect of

excess expenditure in relation to the cost of the Income Support Benefit

payments.

 

20% over budget

housing review - cost of deficit to double over next five years unless tackled

needs £6m+ inflation per year

 

(off the cuff remark on this from someone in DHSS - "we can't kill them off quick enough")

 

DQ - is on about local authority empty housing......

ZH - read the newspaper this week, 1/2 on income support are pensioners an increase of 4% in the last year - single parent claimants only increased by 17 last year

BC - wants to know what the options are.....reciprocal agreements?

DC MLC - £6m is very scary....

PK - is sick of listening about millionaires living in council houses.........kids are a financial liability......if we increase the rents we will have people coming into the social security system........we need to get off the fence...stop attacking easy meat....wants Manx pension supplement to be tapered for those with higher incomes....those who are on the upper income tax levels

RW - MLC - gives Minister his support...

 

CR - replies "at the core of thinking is fairness" "the whole of our society will be impacted by the changes"

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11:56

 

15. The Hon. Member of the Council (Mr Turner) to ask the Minister for the

Treasury –

How many people are affected by the change in policy regarding the tax

treatment of maintenance; and what impact assessment or consultation has

been carried out with those people and the legal profession to judge if the

change in policy will have a detrimental effect?

 

ET:- 974 claims in 2010-11 cost £650,000

 

I did not realise that the recipient of any maintenance was now not taxed on it but just changing the whole system last April will mean that a lot of negotiated settlements, that cost fortunes to agree between the party's because of lawyers fees, will now be different to how the judge wished it to be.

 

The Judges took the tax relief and tax payments into account when making their Court Orders. I also do not know how they reckon it was hard to administer, if for example you pay £100 per week that is £5,200 PA and was 5200 points added to your personal tax code, how hard is that?

 

Treasury did not think this through IMO

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12:42

has to go to lunch and is going to try to get back to catch:

Q28.

The Hon. Member of the Council (Mr Turner) to ask the Minister for

Infrastructure –

Whether all facilities at the Airport that aid aircraft approach and landing are

in full working order?

 

No they are not even the new (have to have radar or the sky will fall in) aint working hence the old one which (has to be retired not approved etc etc) is still working to provide cover for a lousy new one !

wonder what the real reply will be. LOL

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15:13 now on the Main Order paper item 6.

Steam Railway – Acquisition of Re-Engineered Diesel Locomotive

The Minister for Community, Culture and Leisure to move -

That Tynwald approves the Department of Community, Culture and Leisure

incurring expenditure not exceeding the sum of £350,000, in respect of the

acquisition of a re-engineered diesel locomotive for steam railway operational

purposes.

[Reference G16-028 item no 13 under the heading Department of Community, Culture

and Leisure on page 25 of the Isle of Man Budget 2012-13 and as detailed in the

Capital Estimates 2012-13 to 2016-17 under the heading “New Schemes” on page 66

of the Isle of Man Budget 2012-13]

 

revenue has increased by 23% over the last two years

 

the loco they have identified is 30 years old

 

it will be paid for in 13 years

 

it will be here in 18 months time

 

HQ - a staff member at the presentation was unhappy at compromise solution.....HQ would like a Buggatti but is happy with his Ford Mondeo

LS - echo remarks of last speaker regarding offensive off the cuff remarks by an officer at the presentation.........

Houghton - what are transportation costs to Island?

RR - will be supporting

AD - "its a good old Manx compromise"..."it'll have a new Catapillar engine in it so it can be easily serviced" "its a long long pull" supports the resolution

KB - won't be supporting....its big boys toys.....if we say no today is there a cheaper alternative?

JT - believes the case is made....will defend the original scheme......we believe it is a good and viable option.. "its not toys for the boys down in the yard"

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11:56

 

15. The Hon. Member of the Council (Mr Turner) to ask the Minister for the

Treasury –

How many people are affected by the change in policy regarding the tax

treatment of maintenance; and what impact assessment or consultation has

been carried out with those people and the legal profession to judge if the

change in policy will have a detrimental effect?

 

ET:- 974 claims in 2010-11 cost £650,000

 

I did not realise that the recipient of any maintenance was now not taxed on it but just changing the whole system last April will mean that a lot of negotiated settlements, that cost fortunes to agree between the party's because of lawyers fees, will now be different to how the judge wished it to be.

 

The Judges took the tax relief and tax payments into account when making their Court Orders. I also do not know how they reckon it was hard to administer, if for example you pay £100 per week that is £5,200 PA and was 5200 points added to your personal tax code, how hard is that?

 

Treasury did not think this through IMO

 

Not quite Blade. In practice, lawyers word the agreements (in the bulk of cases) so that the payments are made to the child. That way the payer gets tax relief and the child only pays tax if the level of the payments is greater than their tax free allowance.

 

Judges would surely base the orders on the legitimate requirements of the children balanced against the income of the paying parent. Whether or not there is tax relief is surely irrelevant. If little Johnny needs £100pw and Mummy/Daddy can afford £100 pw why should the rest of the taxpaying public chip in £20 towards the bill?

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coming up item 7.

Further Minor Capital Works Funding

The Minister for Community, Culture and Leisure to move -

That Tynwald -

(a) approves the Department of Community, Culture and Leisure incurring

further expenditure not exceeding £375,000 in respect of its Minor Capital

Works Programme;

(b) authorises the Treasury to spend out of the Capital Transactions Account

during the financial year ending 31st March 2013, a sum not exceeding

£375,000; and

© approves of and sanctions borrowings not exceeding £375,000 being

made by Government, such borrowings to be repaid within a period of

20 years.

[supplementary Vote for reference G16-901 item no 12 under the heading Community,

Culture and Leisure on page 25 of the Isle of Man Budget 2012-13 and as detailed in

the Capital Estimates 2012-13 to 2016-17 under the heading “Continuing Schemes”

on page 66 of the Isle of Man Budget 2012-13]

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Item 8.will be

Report into Building Industry Apprenticeships

The Minister for Economic Development to move –

That the Report of the Department of Economic Development into Building

Industry Apprenticeships [GD No 0032/12] be received and the following

recommendations approved -

Recommendation 1

That the idea of making the employment of apprentices a criterion in the

tendering process for Government capital projects not be pursued;5

TCA 4228

Recommendation 2

That Tynwald endorse the Department’s proposed review of apprenticeships

within the Construction Industry, to be completed by January 2013.

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hopes to be back for item 9

9. Douglas Quayside Development

The Minister for Infrastructure to move –

That Tynwald notes progress in relation to the completion of the development

agreement and approves a variation in the agreed terms between the

Department of Infrastructure and Askett Hawk Developments (Isle of Man)

Limited to the effect that the amount of retail and leisure space may be reduced

to read as follows -

‘a minimum of 40,000 sq ft of retail and leisure space with an appropriate mix

of class 1, 2 and 3 space (subject to a maximum of 72,000 square feet)’.

 

17:24 - just dialled back in

DQ speaking:- is it a ploy to carry the scheme on and on?

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