The Department of Infrastructure is set to introduce a package of measures aimed at securing the additional income necessary to meet its challenging budget target.
The changes are being progressed to ensure the Isle of Man Government achieves its national priority of rebalancing public finances by 2016. The Department is responsible for delivering revenue savings of £5 million in the current financial year, which is half of Government’s overall target for 2014-15.
To date, a reduction of more than 120 full-time posts since 2011-12, the merging of divisions, streamlining of management structures and efficiencies generated through new shared services for fleet and estate management have contributed to savings of £4 million.
In order to meet its budget reduction commitment, the Department is preparing to revise its charging schemes for certain services, including car parking and aspects of public transport. These measures will, if supported, raise additional income of approximately £500,000 over the remainder of the current financial year.
Infrastructure Minister Phil Gawne MHK said:
‘The introduction of new and amended charges has always been a key element of the Department’s response to its current budget responsibilities. No politician wishes to increase charges unless they absolutely have to and I accept that such an approach is not a long-term solution to our financial challenge. That said, some charges currently in place are not sustainable and in all cases where increases are to be introduced, people have a choice as to whether or not they use the service.
‘The Department has not focused on charges in isolation when looking to meet its budget. Job cuts and the streamlining of services have been by far the biggest part of this process to ensure the Department is running as efficiently as possible before extending the user pays principle to additional services.’
He added:
‘Overall, this package of measures is intended to be as fair as possible in extremely difficult circumstances. We have been mindful of the potential impact on the public, our staff and the economy. There is a need to strike the right balance to ensure we continue to safeguard essential public services and deliver a high quality infrastructure that allows the Isle of Man to attract new investment.’
The measures being introduced by the Department of Infrastructure include:
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Charging for parking spaces used by Tynwald Members and Government staff in central Douglas
Further discussions and detailed work will take place in order to progress this proposal. It is intended to introduce a parking charge for Tynwald Members and senior members of staff earning above a certain threshold. An initial charge of £275, which is likely to rise in future years, will apply to dedicated Government parking spaces in central Douglas. A consultation on this issue showed a willingness of staff to contribute towards their parking.
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Increasing the charges at Chester Street, Drumgold Street and Parade Street East and West car parks
A review of charges has been carried out and increases of 50p will be applied in most tariff bands. This will bring the Department’s charges more into line with Douglas Borough Council car parks. This represents the first general review and increase of pay-and-display parking charges for more than four years.
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Introducing pay-and-display parking on Douglas Promenade Walkway and reducing the maximum stay for parking in the disc zone between Granville Street and the Sea Terminal to one hour
The Walkway between the War Memorial and Sea Terminal will be opened to parking over the winter months, with charges in line with Chester Street car park. This will assist retailers by increasing town centre parking capacity during the Christmas period. Reducing the maximum stay for parking in the disc zone will increase the turnover of users and benefit short-stay shoppers.
The Minister is meeting representatives of the retail sector this week to agree some concessions in the run up to Christmas.
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Introducing a £25 administration charge for residential permits, exempting holders from time restrictions at disc parking zones where they live
This is aimed at offsetting the cost of administering the residential permit system. A review is being coordinated by Douglas West MHK and Department of Infrastructure Member Chris Thomas to identify any changes needed in how permits are used and what could be done to provide greater benefit to permit holders.
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Increasing revenue generated by vehicle excise duty by 10% overall
The Department is proposing to revise the charging structure for vehicle excise duty to correct existing disparities between fees based on engine capacity and those based on carbon emissions. Further details will be provided when the relevant Order is moved in Tynwald. The aim is to secure the funding needed to maintain the highways. Currently, the total income from vehicle duty is £12.5 million and the estimated cost of maintaining the road network in the Isle of Man in 2015-16 is more than £16 million.
- Introducing a charge of 50p per journey for children travelling to school by bus
This measure will see children using a pre-paid smartcard for school bus journeys. Pupils in receipt of free school meals will be exempt from the charge. The Department’s recent consultation on public transport and car parking demonstrated strong support for the reintroduction of school bus fares to help offset the £1.25 million a year cost of operating the 32 daily school service routes. Kate Beecroft MHK, the Member responsible for Public Transport, will provide further information about the school fares in November.
- Changing the age of eligibility for free bus travel for senior citizens
The age of eligibility will increase from 60 to the state pension age. Passes will not be withdrawn from existing holders who will retain ‘grandfather rights’ to their passes.
- Revising charges for the collection and processing of fallen stock at the Animal Waste Processing Plant
A revised charging scheme is being introduced to help secure the longer-term sustainability of the facility. The Department recognises that current low charges need to increase to a more realistic figure, while seeking to minimise the impact on farmers and meat prices paid by consumers. The new charges have been discussed with representatives of the farming community.
- Removing 30-minute free parking period and disc zone at the Isle of Man Airport
Fees for the short-stay and long-stay car parks will be: 0 to 60 minutes - £1; 61 to 120 minutes (ie second hour) - £2; First day rate charges to increase by 50p. Arrangements for dropping off passengers via the outer lane in front of the terminal building will continue.
- Introduction of new arrangements for ply-for-hire and private hire taxi operators at the Isle of Man Airport
New arrangements will be discussed with private hire (pre-booked) and ply-for-hire taxis licensed to pick up at the airport. Taxis currently charge a £1 per trip airport levy, but for many years this has not been passed on to the Department.
Implementation dates for the Department’s new budget measures will be confirmed in the near future.
Minister Gawne said:
‘I appreciate that charging for services that have previously been free or heavily subsidised, is never going to be popular. It is my intention that new and increased charges on this scale will not be contemplated in the years ahead. The Department is putting in place measures to build on the progress that has been achieved in recent years. Substantial savings will continue to be delivered through new working arrangements for staff, further efficiencies in shared services and better use of technology. By tackling our budget challenge now we can continue to focus on delivering a high-quality infrastructure to support future social and economic growth.’
