On Air Greatest Hits Ruth Shimmin | 6:30pm - 9:00pm

Split reaction to Sefton bail-out

The Treasury Minister says the decision to inject £4.5 million of taxpayers' money into the Sefton Group is a practical measure to ensure a key player in the Manx economy survives.

A recovery programme underway at the group has seen Sefton's debts fall from £96m to £24 million in three years.

Mr Teare says a £1.3 million loan to the group will ensure that recovery does not falter.

In addition, the Manx government's to buy a prime site owned by the group on Lord Street in Douglas and lease it back to them.

Mr Teare says government is playing 'a small but decisive role' in helping the group, whose value to the Manx economy is put at more than £7 million, remain viable.

He admits it's a controversial step, but says it did not need Tywnald approval:

The decision to bail-out the Sefton group's been criticised by leader of the Liberal Vannin Party Peter Karran.

The Onchan MHK says had the group failed, a receiver could have found new owners prepared to take the business on.

And he claims other local firms facing hard times won't be given the same helping hand:

Clip 1

More from Isle of Man News