Government monitoring Middle East conflict with “great concern”, says chief minister

Economic Strategy Board continues to meet weekly as ministers assess energy prices, travel disruption and potential economic impacts

The chief minister has told Tynwald the government is closely monitoring the escalating conflict in the Middle East, with a focus on its potential impact on the Island’s economy, energy costs and supply chains.

Speaking in response to questions from Arbory, Castletown and Malew MHKs Tim Glover and Jason Moorhouse, Alfred Cannan said he had been following developments with 'great concern', adding many Islanders would be worried about both loved ones abroad and possible effects closer to home.

He stresses the government is committed to 'prudent forward planning' and has tasked the Economic Strategy Board with coordinating and monitoring the situation.

The board will now meet weekly as events continue to evolve.

Areas under review include energy supply, the cost of fuel, and wider economic implications. Mr Cannan also sought to reassure the public that there is currently 'no threat' to the Island’s supply chains, with goods continuing to arrive as normal.

However, he warned that pricing pressures remain the main uncertainty.

Addressing concerns about rising fuel costs, Mr Cannan said local suppliers had 'remained calm' and had not engaged in profiteering, unlike in some other jurisdictions.

He added that the government would continue working with fuel companies to better understand pricing.

On whether measures such as price controls could be introduced - as seen following Russia’s invasion of Ukraine - the chief minister said the current situation differs, particularly in relation to gas.

Forward purchasing by Manx Utilities and energy providers is expected to limit significant increases in gas and electricity, although oil prices are likely to be more affected.

He reiterated the government would keep the situation under close review, with particular attention on protecting vulnerable people, and confirmed that mechanisms are in place should intervention be required.

Questions were also raised about the Island’s financial resilience whereby Mr Cannan said the government holds 'significant reserves' and is in a position to provide support if needed, but stressed the importance of avoiding 'kneejerk reactions' until there is a clearer understanding of the situation.

On travel disruption, he urged Islanders to follow the latest advice from the UK’s Foreign, Commonwealth and Development Office and remain in contact with airlines.

It’s understood Manx and UK passport holders would be eligible for UK government repatriation flights if required.

Mr Cannan also confirmed that departments across government have been asked to feed information into the Economic Strategy Board, which includes the chief minister, treasury and enterprise ministers, and the deputy chief minister.

Responding to questions about the timing of the board’s first meeting, Mr Cannan claims preparations began shortly after the conflict escalated, but that arranging the necessary information and schedules took several days.

He concluded by reassuring the public that the government is actively considering the implications of the conflict and will act 'in the best interests of the people of the Isle of Man' as the situation develops.