Press Release
22 June 2014 An Investigation is Needed
Chief Minister, Allan Bell, told Manx Radio that he feels that “…Mr Shimmin was unfairly hounded over the issue, with constant questioning in the House of Keys and Tynwald about the deal.” Kate Beecroft, LibVan Leader, says that she cannot speak for the other backbenchers but, as far as the Party is concerned, this was never simply about Mr Shimmin. “It was always about establishing whether or not legislation and regulations had been abided by. It was always about good governance. Processes and procedures are designed to put the checks and balances in place so that public money is protected as far as possible. These clearly failed in this instance and we need to find out why so that it can be changed to ensure that there is a more robust system in future.”
The Chief Minister has always defended the decision to assist the Sefton Group with the rationale being that of protecting jobs and the economy. Despite this Mark Wilson, managing director of Sleepwell Hotels Group, said at the time “The government’s actions will undoubtedly have a detrimental effect upon the large number of local businesses that are engaged in competition with the Sefton Group across various sectors. At a time that many companies and individuals toil to succeed in a difficult economic climate, the government has rendered that struggle all the greater by favouring one enterprise over many.” He also stated that “Sleepwell could have guaranteed the jobs of the 300 employed by the Sefton Group, without government becoming involved - but they weren't approached despite having previously stated their interest.” Sefton Group’s bankers were not prepared to assist further and Liberal Vannin believe that the Government should not act as a bank of last resort. In addition, the majority shareholders of the Sefton Group are extremely wealthy individuals and if they were not prepared to bail out their own failing company then Government had no right to do so.
These arguments, and more, were debated and lost last year but we now find that, apart from it being unlawful, this has happened before. Last Tuesday (17th June) Mr Shimmin told Tynwald “We had done this type of activity previously, and therefore the officers quite rightly felt that we had the legal vires.” Despite calling for Mr Shimmin’s resignation, LibVan has a certain sympathy with Ministers who take financial proposals to the Council of Ministers. It is understandable that Ministers take comfort from the fact that Treasury have checked things first. Government’s own Chief
Financial Adviser, Malcom Couch, has stated that not all Chief Executives understand all of the Financial Regulations and Minister Robertshaw is due to report back to Tynwald on this very matter. But surely Treasury must be fully conversant with financial regulations as the Chief Executive of that department is Malcom Couch. If he does not have a comprehensive understanding of every piece of legislation and regulation what is the point of having Treasury check these things? Or when Treasury have checked them, and the Minister has given his concurrence, is he equally responsible for any failure?
“ENDS� Kate Beecroft MHK for Douglas South Leader Liberal Vannin Party
Word Count: 512 Editors notes: There are still a number of questions that need to be answered. Regarding the 2012 loan: Was legal advice sought? Did any officer raise concerns about the vires? Who authorised the loan? Did it have Treasury concurrence? Was it agreed by the Council of Ministers?
Regarding the 2013 loan: Did any officer raise concerns about the vires? We know that this loan did not have Treasury concurrence but did Treasury raise concerns about the vires?
These questions and more need to be answered.