IoM Economic Report Highlights Clean Tech Potential

by Jason Gorringe, Tax-News.com, London

06 September 2011

The Isle of Man’s thriving clean tech sector looks set for further expansion, according to projections outlined in the latest Quarterly Economic Report to the Isle of Man Council of Ministers.

It is envisaged that opportunities in areas such as renewable energy and low-carbon technology will encourage more business to the island and create new job openings over the next three years.

The Economic Report, which covers the second quarter of 2011 from April 1 to June 30, refers to a recent independent survey conducted by PricewaterhouseCoopers. Its findings show that the island’s clean tech cluster is currently home to more than 100 companies, with an estimated annual turnover of GBP4.6m. These businesses forecast that they will grow to a turnover of GBP10.6m (130% increase), a GBP1.2m tax contribution (50% increase to government) and a workforce of 125 employees (47% increase) by 2014.

In addition to the existing sector, a number of other clean tech companies have expressed an interest in relocating to the Isle of Man, citing the opportunities to trial new technologies as one of the main attractions. It also points to the potential benefits to be derived from the ‘All Islands Approach’ to renewable energy generation agreed at the British-Irish Council Summit in London in June.

The Report says: "This joint approach could allow renewable energy projects in Isle of Man territorial waters to supply electricity to the UK market which would generate a significant long-term revenue stream for the island from leasing the seabed for offshore development. Furthermore, significant opportunities exist for the island as a central hub for interconnectors linking wind farms in the Irish Sea to the UK electricity grid."

Elsewhere in the Manx economy, there are positive indicators in the high-tech manufacturing sector, with Isle of Man companies winning some large contracts and witnessing a substantial increase in sales over the first half of 2011.

Interest in the Isle of Man Ship Registry continues to grow as the "clear message of quality and service at a reasonable cost" becomes known to the new market of the Far East, as well as the traditional European client base, the government said.

Importantly, confidence in the fiduciary sector is said to be "anecdotally higher" as a result of greater certainty over future of the Isle of Man’s zero/ten business tax system.

Corporate and trust service providers are continuing to diversify their business models and remain ‘an important part of the engine room of the economy,’ while entry into the QROPS (Qualifying Recognised Overseas Pension Schemes) market will help to raise the profile of Isle of Man pension providers and add strength to the Island’s retirement solutions proposition, the report further notes.

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