- Chief Minister dismisses claims offshore wind could transform public finances as ‘fantasy’
- But his former Treasury boss warns the Island is heading towards ‘managed decline’
- Proposed Mooir Vannin scheme could bring £2bn in tax and rent over 35 years
- Row exposes deep divisions over how government will reverse falling output and depleted reserves
By Expose.News
CHIEF Minister Alfred Cannan has launched an extraordinary attack on claims that offshore wind farms could rescue the Isle of Man’s struggling economy, branding the idea a “fantasy.”
His intervention came after his former Treasury Minister spoke up publicly in favour of a new coastal green scheme, which some supporters believe could be a money-spinning tax booster.
Dr Alex Allinson urged planners to recognise the potential financial benefits of the multi-billion-pound Mooir Vannin development — and suggested the sea-bed installation could pave the way for more turbines around the Manx coast.
But Mr Cannan poured cold water on the proposal, according to IoM Today, insisting the Island could not simply surround itself with wind farms and expect hundreds of millions of pounds to flow into government coffers.
“This is not helpful and it’s not happening,” he said in a blunt public rebuke.
His main argument seemed to be that the facilities sounded good in theory but may not deliver in practice, because excess energy would be hard to sell to the UK and Ireland.
The clash has exposed a major split at the top of Manx politics over how the Island should confront a worsening overall economic picture.
Dr Allinson told the final hearing of the independent public examination into Mooir Vannin that inflation-adjusted GDP had fallen by five per cent in 2022-23 and a further 2.5 per cent in 2023-24.
He also warned that government reserves had declined in real terms.
The former minister argued that offshore wind offered a credible route towards the government’s stated ambition of generating an additional £200million for investment in public services.
Mooir Vannin, proposed by Danish energy giant Ørsted, would involve 87 turbines positioned between six and 12 miles off the Island’s east coast.
The company says the 1.4GW project could generate about £2billion in taxation and seabed rent for the Manx exchequer during its planned 35-year life.
The eco-energy construction giant also claimed the scheme could reduce local electricity bills by between ten and 15 per cent.
Dr Allinson said the Island had a wider technical potential of up to nine gigawatts of offshore energy and warned that failure to innovate and diversify would leave it on a path of “managed decline.”
Ørsted has also proposed a £1.5million-a-year community fund for the first 15 years of operation, while most of the electricity would be exported through a connection to Britain.
Mr Cannan rejected that vision, arguing neighbouring countries were developing their own renewable supplies and questioning why they would buy electricity generated in Manx waters.
He also cited difficulties securing grid access, competing on price and navigating trade, aviation and defence restrictions.
The Chief Minister said the government should concentrate on the single project currently before examiners rather than speculate about a ring of future developments.
However, his decision to intervene is striking because Tynwald members have reportedly received legal advice not to comment on Ørsted’s application while the planning process is under way.
Mr Cannan sought to play down the GDP figures, saying gross national income, employment and earnings provided a more accurate picture of Manx economic performance.
Yet the argument will do little to reassure taxpayers facing pressure on health spending, public services and long-term government reserves.
The independent examining body will now consider the evidence before making a recommendation to the Council of Ministers, which will decide whether the project can proceed.
Whatever the outcome, the row has revealed a government without a settled answer to the Island’s central economic question: where will the next generation of growth, income and public revenue come from in the future?
