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Concerns Raised Over Work Permit Plan

The Economic Policy Review Committee took the unusual step of issuing a press release after receiving evidence from the DfE Minister and CO last week. 

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Axing work permits could lead to an imbalance in the job market and put more strain on public services, a Tynwald committee has said.

The Economic Policy Review Committee took the unusual step of issuing a press release after receiving evidence from the DfE Minister and CO last week.

The proposal to drop the current system has been welcomed by the Chamber of Commerce, but criticised by some MHKs. It had been proposed for this to go to Tynwald in October, but was kicked back to November with the department blaming ‘timing issues over the summer recess and the deadline for uploading to the Register of Business’.

Hearing from Tim Johnston and Mark Lewin, the EPR Committee challenged the decision to propose a temporary suspension of work permits in response to the current economic landscape, which includes record low employment and high job vacancy rates.

Chair Claire Christian (Douglas South) said: ‘“The proposal by the DfE to temporarily suspend work permits raises some concerns with the Economic Policy Review Committee regarding the potential impact on the labour market, and the long-term implications for the Isle of Man.

‘While the DfE claims that the proposal is in response to the current economic situation, and the feedback received during the consultation process may indicate support for the idea of simplifying the work permit process, it is crucial to consider the potential consequences. A suspension of work permits could lead to an influx of non- local workers, potentially leading to an imbalance in the job market, and more importantly, put unnecessary strain on already overwhelmed public services.

‘Furthermore, while the DfE mentions a focus on education and outreach rather than enforcement, there is a concern about the potential for businesses to inadvertently misunderstand the system, or fail to comply with reporting requirements. This could result in unfair competition for local workers and undermine efforts to protect the interests of Isle of Man residents.’

The decision to publish this press release has been criticised by one time Enterprise Minister Lawrie Hooper (during a short holiday from his time as health minister).

Mr Hooper said on Twitter (X) that the committee has published ‘zero evidence’ for the comments made and criticised the publication of a press release instead of a report going to Tynwald.