MEA won't trade its way out of difficulties

Thu, 21 Mar 2013

The Chief Minister has admitted there is no conceivable way that the Manx Electricity Authority can trade its way out of current difficulties.

Michael MHK Alf Cannan raised the subject of the authority's £400 million debt in Tynwald earlier this week, saying he believed government needs to wipe the slate clean or sell the company.

Figures released by the Treasury Minister show the interest payments on the MEA’s loans this year will top £15 million.

£35 million from government reserves is being transferred to offset one of the bonds due for repayment in July – a move which will save £2 million a year in interest charges.

Allan Bell says the government is trying to protect the consumer while the debt is worked off:

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