Department of Economic Development to face challenges with optimism

John Shimmin, MHK, Minister for the Department of Economic Development, is optimistic about many of the challenges facing the Isle of Man outlined in the Treasury Minister’s budget announcements.

Whilst the overall salary budget for DED (which draws together the various revenue generating strands of Government) has decreased, the savings required have been made by the reorganisation that has taken place since DED was formed and it is anticipated that there should be no effect on the public nor reduction in services necessary to deliver the further dynamic growth and economic diversity to help secure the future prosperity of the Island.

The Minister highlighted the Department of Economic Development’s four main priorities:

• To promote the Isle of Man as a location for international business and finance
• To seek out and encourage new businesses to establish in the Isle of Man
• To identify and pursue the development of new business sectors, sub-sectors and markets
• To support existing businesses in the Island to ensure their continued presence and development

These priorities are critical to the success of achieving the DED vision of establishing the Isle of Man as the world’s leading small international business centre and must not be compromised in these challenging times.

The Department has worked hard to build effective partnerships with the private sector to try where possible to leverage funds available to gain the maximum effectiveness and return on investment. It will continue to work in close partnership with the private sector to develop the Island’s business base, create new employment opportunities, and boost Government income to assist the rebalancing of public finances.

The Department has also worked to maximise its income generating opportunities from the Shipping, Aviation and Companies Registries whilst maintaining recognised high standards of customer service and operation.

The Financial Assistance Scheme budget has been prioritised by DED to be retained at £3,500,000, with a Departmental policy of providing support to key target areas. There is a new trial initiative which will be undertaken for six months support of up to £20,000 per annum for marketing initiatives being undertaken by financial sector businesses meeting the required criteria – this is with a view to stimulating access to new markets.

The Department has worked closely with the Treasury’s procurement team to drive savings from its expenditure by working with other Departments to transfer services and staff where centralisation will result in efficiencies such as integrated services, property maintenance, etc. For example, the Welcome Centre was moved some six months ago to Customer First (DCCL).

Minister Shimmin said:

‘We must continue to provide a nimble, responsive and business-focused environment to create the foundations for a prosperous and caring society. This may mean changes in the way we work and certainly reinforces the need for us to deliver our can-do approach.’

He described the diversity of the Island’s economy as its ‘overriding strength’ which provides great resilience against a backdrop of ongoing uncertainty in international markets and crisis in the Euro Zone.

Work will not only focus on attracting inward investment from these international markets to the Isle of Man but will also focus on helping existing industries to flourish and on identifying new opportunities in order to strengthen the Island’s economic offering and build on the success of the past 25 years. In tandem with these efforts, is a drive to equip the local workforce with the skills and training necessary to meet the employment demands of emerging sectors.

The Department of Economic Development is working collaboratively with the Department of Education and Children and a broad range of industries to ensure future generations can fill jobs in sectors such as hi-tech manufacturing and aerospace engineering.

Minister Shimmin added that his Department was continuing to target overseas markets, with a co-ordinated strategy in place to capitalise on opportunities in countries including China, the Middle East, India, Japan and Korea, in addition to the United Kingdom.

While sounding a warning against the dangers of complacency, the Minister said the Island could draw strength and encouragement from its recent economic successes, including:

• Economic performance: growth in Gross Domestic Product (GDP) of 2%
• E-Gaming: providing nearly 10% of GDP and employing approximately 700 people
• TT Festival: 2011 visitor numbers up 21% on 2010; sponsorship income up 34%; global TV coverage secures; strong demand for 2012
• Ship Registry: second fastest growing yacht register in Europe
• Aircraft Registry: seventh largest business jet register in the world (by volume)
• Entrepreneurship: 47 new businesses established since April 2011 through Small Business Start-Up Scheme

Minister Shimmin concluded:

‘There is no doubt that there are significant challenges ahead, but I am confident that through close private-public sector collaboration, the Isle of Man can embrace the changes required to survive, and indeed, prosper. We will be working very hard to deliver the can-do culture that will underpin our nation’s future success help us achieve our ambition of being seen as the best small international business centre.’