City MP Backs Isle Of Man

by Jason Gorringe, Tax-News.com, London

09 February 2011

The value of the Isle of Man's contribution to the British economy was recognized by UK Minister of Parliament for the Cities of London and Westminster, Mark Field, in his delivery of the Chief Minister's International Lecture, in Douglas, the Isle of Man, on February 3, 2011.

Field urged the island to continue its promotional efforts to inform the international community of its positive role as a successful, well-regulated, small International Financial Centre (IFC), which drives global business into the City of London.

Field said: “The Isle of Man adds enormous value to Britain’s international offering.”

He also praised the way the island had diversified its economy into sectors such as shipping, aircraft registration, film and space: “They have meant that the Isle of Man brings into a British sphere of influence some very important strategic global business. And this is business that would otherwise have gone to Singapore, Hong Kong or the USA.”

Field, whose lecture was entitled ‘Rebalancing the Debate Around International Financial Centres,’ argued that small IFCs had been caught up in public and political hostility to the financial services industry following the global banking crisis; but the debate about such centres was ‘totally one-eyed’ with no understanding of their benefits to the UK and global economy.

He said: “Small IFCs such as the Isle of Man have repeatedly had to put up with unfair political attacks and misguided criticism.”

Field went on to rebut what he called the “five myths” about small IFCs: that they had a negative impact on global economic growth; that they had contributed to the global financial crisis; that they engaged in harmful tax practices; that they had a negative impact on transparency, regulation and information exchange; and that they do not benefit developing countries.

He concluded by stating that global competition was an opportunity for the island. “The reputation, expertise and sheer energy of the Isle of Man give you a tremendous competitive advantage, and now is the time to use it," he said. "The Isle of Man has a great story, so let’s get out there and tell it.”

Recommended