Sunday, September 15, 2019
You are here: Isle of Man > Isle of Man News
Isle of Man News
General News
Government acts to protect local economy and jobs 19 April 2013

GOVERNMENT is backing the financial restructuring of a prominent Island business group to help protect the local economy, Chief Minister Allan Bell MHK announced today (Friday April 19, 2013).

The aim is to assist the recovery of the Sefton Group, which employs 300 people in the tourism, leisure and construction sectors, and spends £7.3 million a year in the Island’s economy on wages and suppliers. The Group includes the Sefton and Palace hotels, and the building firm Parkinson’s.

Government's support has enabled the Group to complete a comprehensive programme of debt reduction totalling £72 million, which has been underway since new management took over in 2010. The Department of Economic Development has legal powers to assist companies under the Enterprise Act and is providing the Sefton Group with a loan of £1.3 million repayable after five years.

Government is also extending its control of strategic sites in lower Douglas by using £3.2 million from the Treasury’s Land Acquisition Reserve to purchase the Middlemarch site from the Group, to which it will be leased back over the next five years. The Middlemarch site is located between Walpole Avenue and Fort Street in Douglas.

The Chief Minister explained:

‘The Sefton Group is extensively involved in the economic life of the Island. The completion of its recovery programme protects a significant number of jobs, and has knock-on benefits to local suppliers and business confidence generally. Government had a clear choice – to sit back and allow the Sefton recovery programme to falter at a time when the domestic economy is already vulnerable, or play a small but decisive part in bringing it to fruition. We have a duty to support the economy, and that includes assisting business recovery when a favourable outcome can be demonstrated. This intervention by Government is justified by the extent and scale of the Sefton Group’s role in the wider local economy. There will be questions about the deal, naturally, but I believe it is the right and responsible thing to do in the circumstances.’

More stories >>>  

Related News Articles
DCCL continues efforts to meet budget targets 19 February 2013
SummaryA total of 12 managerial and admin posts have been removed saving £350,000 a year. [More]
Budget lays ‘Firm Foundations’ for the future 19 February 2013
GOVERNMENT is on course to rebalance its finances while working to develop the Island’s economy and protect the vulnerable. [More]
Further economic growth forecast for the Island in 2013 11 January 2013
Department is building on successes of 2012 and forecasting even better 2013 through its extensive programme of support for the economy Minisiter for Economic Development John Shimmin MHK has spoken of his optimism for 2013: [More]
A call for a national debate on Social Policy 18 June 2012
The Chief Minister recently stated that tackling the Island’s social policy was one of the major challenges for this administration. [More]
Wide reforms to Social Care announced in the Budget to reduce spending while protecting the vulnerable 21 February 2012
Minister for Social Care Hon Chris Robertshaw MHK said: [More]

Other Guides by Maxima Systems Ltd: Disney World