What the MHKS Said

Today we’ve heard from what three of our readers have said in response to the gov’s cost of living support, but what do the MHKs think?

Daphne Caine: 
Daphne Caine, MHK for Garff, explained that freezing the electricity price is ‘welcome news’ and she supports the cap on bus fares, incentivising people to switch from commuting by car to public transport. 
She said: ‘It has many benefits not only to the individual but also in reducing pollution and traffic congestion. I look forward to seeing the result of the trial. 

‘As chair of the Climate Change Transformation Board, I will be working with Treasury and Comin to modify the Green Living Grant and consider new schemes to encourage people to make home improvements to reduce energy use. This really is fundamental to having better homes for everyone as well as meeting our emissions reductions targets. 

‘My worry is what the announcement makes no mention of, specifically more support for businesses and people who are on fixed incomes but just above benefits level.’ 

Mrs Caine added: ‘The elephant in the room is the escalating gas price and how many more households will face the heating or eating dilemma.  Capping electricity will benefit everyone but without other targeted support how many businesses will shut up shop rather than face the toughest winter in 40 years in terms of inflation as well as recruitment problems. 

‘Overall my feeling is this package is a good start but the government needs to be ready to be more responsive in the coming months, with more targeted support. We must listen to businesses and individuals who are facing hardship to ensure we keep our economy and community afloat.’ 

Claire Christian: 
Douglas South MHK Claire Christian felt the government should be challenged on its decision-making, questioning why it’s only capping electricity prices. 

She said: ‘Were options to subsidise gas bills also reviewed, and why were they not introduced? 
‘A third round of targeted support payments in December for those in receipt of child benefit and those on low incomes will be welcomed by those families in receipt of child benefit and those on low incomes, but without the support on gas and oil bills the impact of rising costs is far broader than these groups, and this drives a further divide between low and medium income earners.’ 

She added that other than the electricity cap, there’s ‘no support for businesses’. 
‘Take the hospitality sector for example, will our hotels be open this winter with these rising costs?,’ Mrs Christian asked. ‘If they close, they will lose staff and our visitor economy will be affected.’ 
Mrs Christian said that free bus journeys for children should have been implemented or capping bus fares should have been introduced earlier to help students returning to school. 
She added: ‘Our bus service is already strained, what is the strategy behind this to provide a reliable frequent service?’ 

The MHK was also concerned as to how the cost of the proposed winter packages will be recovered and how families will manage. 
Mrs Christian said: ‘If prices continue to rise well above the increase in wages, no doubt the families needing assistance from food banks will also dramatically increase. 
‘We need to hear more from the government on how they are going to support the third sector through the winter months. 

‘Also, why are we not introducing a meal delivery service to help with senior hunger and isolation? This controversial ending of the government contract with Age Concern in November 2017 has been sorely missed, a move which the DHSC hailed as a £150,000-a-year saving.’ 

Joney Faragher: 

Douglas East MHK Joney Faragher was in agreement that the package was a ‘good first step’ but criticised the bus fares strategy. 

She said: ‘The bus fares are slightly less positive – it’s good that this has started to be looked at, but I would have liked to have seen this go a lot further than a price cap that won’t impact many people. 
‘For my constituents, I’d like to have seen a Douglas zone pass that gives unlimited travel for a month, for example, for a low price such as £5. 

‘I would like to see a move towards fare-free travels – such a Fare Free Fridays as a starter. Whilst this cap is a small step in the right direction, I hope things go a lot further in future in this regard.’ 

The MHK welcomed the expansion of the Green Living Grant, adding: ‘This really should be a big focus for the government now. It should be in tandem with a big push forrenewable energy projects, to actually get to the root of the problem, which is global volatile fossil fuel markets. 
‘We really do need to try to de-couple ourselves from this precarious sector.’ 

Rob Callister (from MUA press release): 
Onchan MHK Rob Callister commented in his capacity as Manx Utilities chair, saying: ‘I believe we all need to think about how we use energy more efficiently whether athome or at work to help bring down our costs and help the environment. 

‘We also need to consider protecting the island’s power network from being overwhelmed this winter, when capped tariffs could potentially mean electricity is the fuel ofchoice. 

‘Looking to the future, Manx Utilities is working closely with the Climate Change Board to deliver on the government’s plan of implementing renewable generation solutions for our island as we transition away from a dependency on fossil fuels. I look forward to sharing more as plans progress.’ 

Michelle Haywood: 

Michelle Haywood, MHK for Rushen, called the freezing of electricity prices a ‘bold move’ and said it was a decision that would benefit everyone. 
‘However, what is clear now is that we need to move away from the carbon based energy markets, and at speed,’ she said. ‘I don’t expect that energy prices will ever drop back down. 

‘This leaves the Isle of Man continually at the mercy of these markets. We can’t impose windfall taxes on the energy firms like the UK has suggested, we don’t have that relationship with them. Instead, it’s time to invest in our own renewable generation and limit our exposure to the oil and gas markets.  The support for insulating homes and reducing energy demand is very welcome indeed.  The Isle of Man has some of the poorest energy efficient buildings and now more than ever we need to address these problems.’ 

Dr Haywood explained she was waiting for more details on the winter support payments. 
She added: ‘We know what is due in October, but the scope of the winter support isn’t yet finalised. 
‘I’m pushing the Treasury Minister to recognise that disabled people (especially with medical equipment to run), pensioners on fixed incomes and those just above benefits thresholds are all vulnerable in this crisis. I’m hoping to see some support for these groups. 

‘I have also requested additional support for the university students who are experiencing massive increases in accommodation, utility bills and living costs, so I am hoping this is something that gets some attention from Treasury too. We are all in the same storm, but we are not all in the same boat. Some of us will weather the storm more easily than others. Those of us who can withstand the tempest or who control the resources to help others, need to support those who are less able to get through it.’ 

Jason Moorhouse: 
Arbory, Castletown and Malew MHK Jason Moorhouse explained the most important part of the package to him was the mention that the government will provide a third round of £2.6 million in support payments will be provided to those in receipt of child benefits and certain income-related benefits. 

He questioned if this support would ‘benefit those most in need fast enough’. 
Mr Moorhouse said that at its ‘most positive’ no one would see their electricity bills rising 70% in the coming days, adding: ‘There has to be genuine relief here.’ 

He said: ‘This announcement will prevent the MUA from having to announce a 70% price increase from October 1. How realistic is the cost of this initiative? The government has said the total loan may be up to £26 million. That looks either incredibly conservative or possibly wrong. 
‘This concern can only be answered if Tynwald Members have access to the MUA Annual Report for the year ending March 31, 2022 before we meet to discuss this inTynwald on September 13.’ 
Mr Moorhouse added: ‘The cost to holding down electricity prices and having just two rises of 15% could potentially be double this amount already. 

‘On March 22, the Treasury Minister could not deny, that if the MUA continued to absorb the price increase could cost in excess of £50 million this year. When I asked the question it was racing towards £20 million. 

‘It is important to remember, that despite those challenges in March 2022, almost all the gas we required had been forward bought. Currently, only half our gas requirement appears to have been forward bought. 
‘It is crucially important, that Minister Allinson gives us an update on the total amount allocated so far in keeping electricity bills down and how the additional amount has been calculated. Without the supporting data the figures look questionable. 

‘It will also be interesting to know about who will be the biggest beneficiaries of this policy. I would suggest big businesses and large home owners; those with average homes will see a benefit but, it will only represent a small proportion of the total cost to the government.’ 

He felt that the package being offered is ‘very blunt’ and ‘concerning’ which is ‘fundamentally flawed’. 
Capping bus fares is a positive for people commuting from far away to Douglas, as they will save about £1 per day, but Mr Moorhouse worries they are the only ones who will feel the benefit. 
‘That can only be avoided by introducing difficult changes to the current services and it’s unlikely there will be the resources to achieve this,’ said the MHK. 

‘My lucky neighbours in the constituency of Rushen will be smiling this morning. From tNovember 1 they will get to work for £20 a week – all inclusive. ‘However, when the bus arrives in Arbory, Castletown and Malew it will probably be full, as will the next bus and so on. 
‘Suddenly, loyal Bus Vannin customers in my constituency who have bought their annual passes etc will be left standing at the bus stop. The buses will almost certainly be full and have no need to stop – but how will the people left at the bus stops get to work? 

‘There is no reference to increased capacity or resources being made available for this pilot.’ 
Mr Moorhouse says it should start on October 22 during the school holidays ‘when extra provision can be made available’. 

In relation to the Green Living Grant, he was concerned that despite 1,966 applications being approved for the Manx Home Energy Audit, only 13 grant applications have been successful and a total of £16,571 has been paid to householders from a fund of £8 million. 

He said: ‘Hopefully, inroads can be made in this area very quickly.’ 

Mr Moorhouse said the people who are the ‘biggest winners’ from these measures are those who live in areas far from Douglas, have a large electricity bill, are eager to install energy saving equipment and are ready to travel to work by bus. Unfortunately these are not the typical people you would expect the government’s cost of living support package to be targeted at,’ he added.