p001front.qxd (Page 1) - Isle of Man Today

Businessupdate 

Isle of Man Examiner March 2006 

Dawn 

of zero 

tax 

MARCH focus 

TAX 

In association with 

Delivering specialist solutions offshore 

Corporate Banking 

Richard Corrigan 

+44 (0)1624 646556 

richardcorrigan@rbsint.com 

RBSI Financial Markets 

Simon Hayward 

+44 (0)1624 646641 

simonhayward@rbsint.com 

www.rbsint.com 

The Royal Bank of Scotland International Limited (“RBSI”). Registered Office: Royal Bank House, 2 Victoria Street, Douglas, Isle of Man IM99 1NJ. Licensed by the Isle of Man Financial Supervision Commission for banking and investment business and registered 

with the Insurance and Pensions Authority in respect of general business. Internet e-mails are not necessarily secure as information might be intercepted, lost or destroyed. Please do not e-mail any account or other confidential information. Calls may be recorded.

2 


Isle of Man Examiner, March 2006 

INDEX 

COMMENT 

NICK YATES 

nick.yates@newsiom.co.im 

FORUM 

ISSUES AND 

OPPORTUNITIES 

A step ahead of the 

Channel Islands PAGES 3-6 

SPECIAL 

FEATURE 

Young Enterprise 

expanding 

PAGE 7 

CENTRESPREAD 

Island needs to 

embrace science 

PAGES 10-11 

REGULARS 

Business & 

Pleasure 

Picture special PAGE 15 

Your Portfolio 

Equities and property PAGE 17 

Books 

She’s an 

entrepreneur, 

not an 

apprentice 

PAGE 19 

Turning the tables 

on a tax handicap 

Congratulations should 

go to Allan Bell and his 

team for listening to 

the needs of the business community 

and taking the bold step of 

implementing some serious tax 

reforms. 

The zero-tax strategy and income 

tax cap have been criticised by some 

as being more for public relations 

gain than concern for the Island 

population. Others have said that 

none of this will benefit the average 

man in the street. These arguments 

are flawed. 

It is true that the Budget 

announcements did receive publicity 

across the British Isles and beyond. 

It’s also true that the changes are 

designed to be attractive to high 

earners and the super-rich. 

The flip side is that when new 

businesses and people move here 

(attracted by the tax changes) they 

will be injecting an awful lot of 

wealth into the Manx economy as 

well. 

In my experience most millionaires 

WELL DONE: Allan Bell’s tax initiatives have put 

politicians in the Channel Islands under pressure 

or business owners like to spend 

money as well as make it. If they 

move to the Island they will bring 

their families. They will spend money 

in shops and restaurants, buy flash 

cars and even flashier houses, they 

will need investment advice, bank 

accounts and advocates — they may 

even buy a newspaper every now and 

again. 

If they set up a business they will 

create employment and even though 

they don’t pay corporation tax, there 

are other ways in which they will 

contribute to the government’s tax 

coffers, be it VAT, income tax or 

withholding tax. 

Some people complain that the 

Island’s rising population has meant 

a shortage of dentists, a rise in crime 

and a loss of the Island way of life. 

These are just narrow-minded and 

blinkered viewpoints. 

Bigger and better public services 

must be funded by the government 

and these initiatives will allow 

Treasury to raise the required money 

without hitting the present Island 

population where it hurts most — the 

pocket. 

A bigger population will also mean 

more bars, restaurants, culture and a 

more cosmopolitan society, to the 

benefit of every person — be they 

Manx, comeover, stayover, or visitors. 

The vicious circle of not enough 

people to support more facilities and 

not enough facilities to attract more 

people will finally be broken. 

The Channel Islands have always 

claimed a position as our more 

sophisticated offshore neighbours, 

but it may not be long before we have 

a better nightlife as well as a better 

tax system than our friends down 

south. Is that a bead of sweat I see on 

the furrowed brows of Messrs Morgan 

and Walker — my word I believe it is! 

Island Online 

New Windows opening PAGE 16 

CONTACTS 

Editorial 

Nick Yates 695689 

nick.yates@newsiom.co.im 

Penny Kay 

pennykay@manx.net 

Advertising 

Sonya Watterson 695668 

sonya@newsiom.co.im 

Layout & design 

John Sherrocks 695602 

john.sherrocks@newsiom.co.im 

PHOTOS 

Cover shot by Mike Wade and 

artwork by Ray Lister. 

Debate photos by John Maddrell 

BROUGHT TO YOU IN 

ASSOCIATION WITH 

SIX OF 

THE 

BEST 

AIRCRAFT 

Simon Hull is managing director of Alliance & Leicester 

International. He got his private pilot’s licence (PPL) while 

training at Biggin Hill airfield in Kent. He has clocked up 148 

hours’ flying time including nine hours of solo flying. 

1Grumman AA5-A Cheetah: 

There is no better aircraft in 

which to learn to fly. It has low 

wings, is very stable and has been 

described as having the 

responsiveness of a fighter! 

2Cessna C150: A two-seater 

aircraft found at many UK and 

US flight schools. It is 

sometimes difficult to convince nonflyers 

it will fly, but it does. 

3Cessna C172: This is a Skyhawk 

four-seater tourer with a useful 

load, excellent low-speed 

handling and unsurprising stall 

characteristics. It feels like a real 

aeroplane even though the wings are 

in the wrong place. You do however 

get great views of the ground. 

4GF 109: The German-built Grob 

is a pleasure to fly if you are 

lucky enough to find one. The 

TOP FLIGHT: The Grumman AA5-A Cheetah 

RAF bought a few as elementary 

trainers. I got lost in one of these 

near Cambridge in 1996. 

5B737: Is a large mid-range 

commercial aircraft, 

comfortable and fast but not for 

the inexperienced. I have never flown 

one but would like a go. 

6Diamond Katana DA20-A1: A 

very quiet and easy to fly trainer. 

This is the first aircraft I have 

flown with GPS! A 41 knot stall speed 

makes this a real pleasure to fly with 

the engine off.

Isle of Man Examiner, March 2006 Businessupdate 

3 

ISSUE 

MARCH focus 

TAX 

THE BUSINESS UPDATE FORUM 

A step ahead of the 

Channel Islands 

The Island’s innovative new 

tax strategy should help the 

Isle of Man pull ahead of 

rival jurisdictions, as Penny 

Kay discovers at this 

month’s Business Update 

Forum. 

Next month, two important 

initiatives — a zero 

corporate tax regime and a 

cap on personal income tax — will come 

into effect, which should assist in attracting 

more business and investment in the 

Island. 

These initiatives, coupled with proposals 

for a new Manx corporate vehicle, 

generated much debate among the Island’s 

financial community at this month’s 

Business Update Forum. 

High levels of interest 

KPMG’s GREG JONES: There are many 

inquiries coming through at the moment 

and the zero tax strategy has attracted a lot 

of interest. Whether the new business 

created will completely cover the potential 

leakage (loss of revenue), whatever that 

amount may be, it is difficult to say. We also 

need to try and get a handle on how 

economically we will benefit from the new 

business, which replaces the old tax 

revenue. 

If people set up businesses in the Island to 

take advantage of the zero tax strategy, we 

are looking principally at revenue raised by 

VAT. There is probably a significant amount 

of advisory fees generated as well and these 

advisers will also pay large amounts of tax. 

Treasury’s COLIN GOODWIN: We also need 

to bear in mind the origins of this. The zero 

rate has been introduced to deliver the 

Island’s commitments in the international 

forum. While there is a cost, and whether it 

achieves it or not, we have to recognise that 

this was the Isle of Man’s solution to our 

international obligations. 

It will be difficult to work out over time 

the extent to which we cover the gap or 

otherwise. In order to do that, we would 

have to look across all forms of taxation and 

other government receipts. But we must not 

lose sight of the fact that this puts us on an 

international platform, which is acceptable 

from all aspects. 

PKF’s PHILLIP DEARDEN: We are 

wondering if the revenue generated by the 

new tax regime will be the same as before 

TO PAGE 4 

KEITH WOODS

4 



ISSUE 

MARCH focus 

TAX 


SIMON NUTTALL 

FROM PAGE 3 

but perhaps what we should really be 

thinking about is what would the tax 

revenues have been if we hadn’t done it We 

had to do something, because of external 

pressures. 

Forging ahead 

Fedelta’s MIKE SHIMMIN: Last year, I 

visited 27 major law firms in London to 

‘sell’ the zero corporate tax strategy. It was 

very positively received in the City. The 

perception there is that we are now forging 

ahead in terms of the competition. 

DESCONTEMPORARY 

An office isn’t just for work, it’s a space you live in. At 

Descon, we design and create beautifully simple 

(and simply beautiful) interiors. 

Where imagination and flexibility combine. 

And where space is maximised for flexiblity and growth. 

For a descontemporary idea of how we can improve the 

way you live your work, call us on: 

851939, or visit www.desconltd.com 

We have moved... Design House • Tromode • IM4 4RG 

INTERIORS WE WORK IN SPACE STORAGE 

This is seen as being innovative and 

bringing in new products, which the other 

jurisdictions are now chasing to catch up 

on. 

It is the first time that I have perceived 

that the Island is actually ahead and that 

there are reasons why people should think 

about switching business to the Isle of Man 

from other jurisdictions. 

DEARDEN: The zero tax regime seems to be 

very positive and has been well received in 

all quarters. We seem to have stolen a march 

on the Channel Islands. We had to do it and 

now we have to make the most of it. 

Jersey and Guernsey are a bit undecided. 

To that extent, we have a few years of a 

significant advantage, which we should 

make the most of. They aren’t 

implementing their new regimes until the 

end of 2007, which gives us two years where 

we have got clarity and certainty. 

GOODWIN: If you look at some of the press 

in Jersey and Guernsey, the one issue which 

keeps reappearing is the continued 

uncertainty which they have while we have 

delivered. 

RBS’s RICHARD CORRIGAN: There is now 

clear blue water between us and our 

counterparts in the Channel Islands. Rather 

than looking endlessly at the Channel 

Islands, which we have done in the past, we 

should now look forward and see them in 

the rear view mirror rather than ahead of us 

as an obstacle. 

MEET THE PANEL 

Richard Corrigan, regional director of 

corporate banking, RBS International 

Phillip Dearden, Director, PKF (IoM) Ltd 

Colin Freeman, international corporate 

manager, Barclays Private Clients 

International 

Colin Goodwin, deputy assessor 

international and policy, Treasury 

Greg Jones, Tax Partner, KPMG 

Simon Nuttall, director, compliance and 

risk, Alliance & Leicester International 

Mark Shimmin, chief financial officer, 

Treasury 

Michael Shimmin, chairman of the 

Fedelta Group and chairman of the ACSP 

Darren Whyman, senior manager, 

Contact Centre, Lloyds TSB 

Keith Woods, director of Keith Woods & 

Co and past president, ACCA Isle of Man 

JM060227-56 

The tax strategy is just one of a number of 

strategies employed by government to 

diversify the economy into a number of 

other areas. Those should also provide fuel 

for further economic growth. 

Infrastructure issues 

Lloyds TSB’s DARREN WHYMAN: There are 

opportunities for new business to come 

here but one concern is the infrastructure 

of the Island — some of the quality of the 

restaurants, hotels, and service, is not high 

enough. Our counterparts in the Channel 

Islands have higher standards generally. 

The recreation facilities here are quite 

limited too. 

If we are trying to attract directors to the 

Island with their families, we can’t look at 

certain aspects in isolation. We are very 

fortunate that we have an innovative tax 

strategy to help us grow but there are other 

components as well. 

JONES: That is absolutely right. I am 

personally pleased we are raising these 

issues publicly and we know what we have 

to do. It is an issue, which has got to be 

addressed as an Island. 

Barclays’ COLIN FREEMAN: I agree. Tax is 

only one element of the sweetener to bring 

new business to the Island. Geographically, 

we can’t move the Isle of Man to another 

part of the world or time zone so there will 

always be certain limitations and we have 

to focus on business, which will be 

attracted to this Island. 

Attracting entrepreneurs 

Alliance & Leicester’s Simon Nuttall: 

Regarding the £100,000 cap on personal tax, 

it does appear to be a very positive 

measure. The idea is to attract people of an 

entrepreneurial nature to the Island who 

may well create businesses here. This will 

add to VAT receipts and create employment 

on the Island. It has positive potential. 

MIKE SHIMMIN: When it was announced 

last year, I thought it was a very good idea. 

If nobody moved to the Island at all, the 

potential loss would be 0.2 per cent of the 

GDP income and that is not significant. The 

Treasury Minister needs 12 people to move 

here and the tax position would be neutral. 

People will spend money on the Island and 

therefore, it is a net gain to us. It is not a big 

gamble to take. It is moving us in the right 

direction. 

GOODWIN: It is not simply that 12 

individuals would recover that part, it is the 

overall revenue movement which we have 

to try and balance. From Treasury’s 

TO PAGE 5


5 

PHILIP DEARDEN JM060227-35 COLIN FREEMAN JM060227-44 DARREN WHYMAN: JM060227-64 COLIN GOODWIN JM060227-42 

FROM PAGE 4 

perspective we will continue to look at taxation. We are 

not going to sit on our laurels and wait for business to 

come to the Isle of Man. 

WHYMAN: This year will be a benchmark to see what 

impact it has. In terms of creating a tax strategy, it is 

taking an important lead. 

MIKE SHIMMIN: To some extent, I was hoping that 

rather than having extremely wealthy individuals move 

here who have made their money and want to retire, it 

is the entrepreneurial people I would like to see here 

setting up businesses. 

DEARDEN: Unfortunately, these individuals are 

probably less likely to use the cap. If their businesses 

are elsewhere, they are probably paying tax elsewhere. 

We certainly have a lot of clients whose businesses are 

across the world and the cap doesn’t mean that much 

to them. 

But there are others who have sold their businesses 

and have a lot of cash in the bank and for them, the 

cap is fantastic and it has generated a lot of interest. 

The big taxes for very wealthy people are inheritance 

tax and capital gains tax, and ours are nil. The tax cap is 

icing on the cake for them. 

MIKE SHIMMIN: For those people, when they do move 

somewhere with the intention of not doing any more 

work, they actually can’t resist it. They are 

entrepreneurial by nature and they just get involved. 

Plans for new company vehicle 

DEARDEN: Our existing company law is extremely 

ancient. It is based on UK acts which are pre-First 

World War and it is designed for a different era. 

Everybody in the CSP industry is agreed that we need 

something new. 

There are probably different views on what exactly is 

needed but the proposals for the new corporate vehicle 

are certainly administratively a lot easier to operate. 

There is innovative thinking in there. It would have 

been good to have brought it in with the tax legislation 

on one day. We can’t now do that now so we are going to 

have to have two separate events, which can’t be all bad. 

CORRIGAN: It is not critical to have everything rolled 

into one announcement. We need reasons to be talking 

to the professional communities in London and other 

financial centres. We don’t want an excessive delay on 

this but we do want to have reasons to talk about the 

strengths of doing business on the Island. We need to 

spread the message. 

ACCA’s KEITH WOODS: Having new pieces of 

legislation coming through like this on a timely basis is 

critical for the success of the Island. 

MIKE SHIMMIN: Certainly if it doesn’t go through in 

this Tynwald, it will cause at least another year’s delay 

and it will have lost all of the impact which has been 

built up. This has been out for extensive consultation. 

By and large, there is consensus that it is a good thing 

and we should have it. 

Treasury’s MARK SHIMMIN: It is a parliamentary issue 

now. The intent on Treasury’s part is to get the bill in 

front of the Keys at the earliest opportunity. 

MIKE SHIMMIN: There have been meetings and 

lunches with a number of MHKs to explain why we 

need this vehicle and what is all about, and try to make 

sure they understand the urgency for it. I haven’t heard 

from anybody from government saying they don’t like it. 

Generating bank business 

MARK SHIMMIN: What the Island has been reasonably 

good at in the past is the public and private sectors 

working together. We, as government, through 

marketing and IoM Finance, need to be targeting the 

people within banking groups who are key decision 

makers and helping to ensure they are aware not just of 

the tax package but the range of benefits in terms of 

the Island. 

That could be reinforced and strengthened by the 

work which is done by local executives employed here 

making that point within that group. 

DEARDEN: The strategy is very positive. What the 

Treasury has done here is to give banks an incentive to 

retain profits on the Isle of Man. It has created a good 

environment and I hope the banks respond, which will 

be really positive for the Isle of Man. 

MIKE SHIMMIN: The perception is that IoM 

Government and the regulators communicate much 

better with industry than they do in the Channel 

Islands. 

GOODWIN: We do, if you look at what we have 

delivered in relation to the banks. As a result of a lot of 

consultation with the Association of Licensed Banks 

and speaking to the group MDs, tax directors and so 

on, we have been doing that continually for some time. 

One of the big pluses for the Island is that government 

is open and accessible and will see people at any time. 

I spend a lot of time meeting potential new businesses 

and talking to them directly. 

We have said to any of the members of ALB that, if they 

have a board meeting and want us to come and talk to 

the board, we will do that. We will help sell this as a 

package. 

Challenges ahead 

NUTTALL: The challenge for us as managers in our 

business is to go to our groups and explain the rules to 

them and get them to commit to bringing new centres 

of excellence over here. It is a fair challenge from the 

government. But if our group feels it does not want to 

commit any more funds offshore, there doesn’t seem to 

be a route by which we, as the local managers by being 

more creative, can reduce our tax charge. 

GOODWIN: We are continuing to look at this. If, in due 

TO PAGE 6 

The Pro-Am 

tee off time! 

Sponsored by 

June 21-24 2006 · Castletown Golf Links 

in association with the 

Wednesday 21st - Saturday 24th June 2006 · Castletown Golf Links Isle of Man 

Prizefund 

PROFESSIONAL - PROVISIONAL £20,000 · AMATEUR PRIZES - £3,000 

Call Debbie on 01624 822220 or email: 1sttee@manx.net

6 



ISSUE 

MARCH focus 

TAX 


GREG JONES JM060227-37 MICHAEL SHIMMIN JM060227-40 RICHARD CORRIGAN JM060227-49 MARK SHIMMIN JM060227-59 

F u r n i t u r e D i r e c t 

If you didn’t buy direct - you’ve probably paid too much 

CADIZ Full Leather 3 + 2 Group £699 

Maldini Full Leather reclining sets 

Reclining Armchair £499 

Reclining Two-Seater £599 

Reclining Three Seater £699 

IMMEDIATE FREE DELIVERY 

and all year round low prices 

Leather Suites from 

£699 to £3,000 

OPEN 

Monday to Friday 9am - 6pm 

Saturday 10am - 5pm 

Sunday 2pm - 5pm 

The Upper Showroom, Demesne Road, Douglas. Tel: 616997 

FROM PAGE 5 

course, because of good revenue flows, we 

can end up with a zero rate of corporate tax 

across the board that would be wonderful. In 

the meantime, we need to have revenue flow 

and this is a starting point. We will continue 

to look at how we can evolve direct taxation 

in the Isle of Man. 

MARK SHIMMIN: I wouldn’t want people to 

think we have talked about the tax strategy 

for a number of years and it is put to bed. We 

have to continue. What we have built up is an 

expectation that we will be more clear and 

open on what we are trying to do in the 

future. It will be a developing issue regarding 

tax. 

JONES: Having said that, if it is always 

changing, it could be unstable. There needs to 

be continuity. People do like stability but they 

will put up with change if the change is good. 

What is the zero corporate tax strategy 

From April 6 2006, the general rate of 

corporate income tax in the Isle of Man will be 

zero per cent. The zero percent rate will apply 

to the profits of accounts that form the basis 

of a company’s 2006-07 income tax 

assessment. It will apply to most businesses, 

although banks are not included. 

In theory, this means that if businesses are 

paying less tax, the government will lose 

revenue. However, this revenue should be 

replaced by attracting new businesses to the 

Island as a result of an attractive zero tax 

strategy. 

The Island can also more easily afford a zero 

rate because most government revenue is 

generated by indirect sources, particularly 

VAT, which accounts for well over half of 

Government finances. The zero rate applies to 

businesses not individuals. 

What is tax spent on 

Tax is spent on delivering a huge number of 

public services including healthcare, social 

services, pensions and renewing public 

CORRIGAN: Internally, the banks are looking 

at our business and how we can most 

efficiently operate those businesses within 

the new tax environment, while bringing new 

business to the Island. The IoM Government 

has delivered on its commitment but the 

larger groups won’t chase a sort of short-term 

tax arbitrage position. They will be looking 

much more long term. Having a zero tax rate 

in certain aspects of banking business may 

not in itself be sufficient. 

There are many other advantages for banks 

doing European business operating out of 

Dublin, for example, and being happy with 

the tax position on that. We have looked at 

other parts of the business in the group and 

how we could best fit those into the Isle of 

Man. It is not only about the tax position. 

There has to be a longer-term reason to 

domicile businesses in a certain jurisdiction. 

JONES: In relation to the access to markets 

issue, there is not much we can do in the 

short term. We have to make the immediate 

environment as attractive as possible. 

‘ 

People do 

like stability 

but they 

will put up 

with 

change if it 

is for the 

good. 

— GREG JONES 

Taxing issues made simple 

infrastructure, for example, sewage 

improvements, new water treatment works 

and the incinerator. It would include spending 

on capital building projects, for example, the 

new prison at Jurby and improvements to 

schools. 

What is the £100,000 cap on personal tax 

A cap of £100,000 per annum on personal 

income tax will be introduced for the 2006- 

2007 year of assessment, commencing on 

April 6, 2006. This will be available for both 

current residents and new residents. 

This will help to attract wealthy individuals to 

move here, many of whom could be 

entrepreneurs who may bring new business to 

the Island. 

What is the new corporate vehicle 

A new Manx corporate vehicle is planned 

which should make the Island more attractive 

for forming new companies. This means it 

would be simpler to set up a business here 

than in other competing jurisdictions such as 

Jersey or Guernsey.


7 

TOPIC 

The ever-expanding Young 

Enterprise programme is 

looking to equip young 

people with the knowledge 

needed to balance their 

books. Angela Gregory 

reports 

Enterprising 

move 

to assist 

young 

people 

STRUGGLING with finances 

after leaving school, whether 

it’s in a new job or at university, 

is an art form. 

It’s usually a question of taking the hard 

route, which inevitably features plenty of 

shocks along the way. Often, the 

consequences of those first few years out 

on your own can leave a lasting debt 

which is hard to shake off. 

But if you had been learning how to 

control the purse strings from an early age, 

plus exploring your place in the world, 

perhaps life would have been that little bit 

easier 

The ever-expanding Young Enterprise 

programme is attempting to arm young 

people with that very kind of information. 

Ian Galloway, chief executive of Young 

Enterprise Isle of Man, explained: ‘There’s 

a tremendous amount happening in terms 

of the need for and the recognition of the 

need for enterprise education. 

‘In the UK, enterprise education has 

been given quite a boost. The Department 

for Education and Skills has said every 

student will receive five days of enterprise 

education a year. 

‘Research coming out of Europe has said 

we are only going to grow if we do develop 

entrepreneurs, if we do provide our 

students with the background and the 

skills and knowledge to start their own 

business or to be entrepreneurs. 

‘They need the knowledge and skill and 

also the willingness to take risks. 

‘Our society tends to be risk-averse. We 

are encouraging ourselves and our young 

people to avoid risk. 

‘The advantage of Young Enterprise is 

that it gives students a chance to take risks 

without the consequences they would 

have if they were in the business world so 

they don’t lose their homes or their 

families.’ 

He added: ‘There’s a lot happening with 

Young Enterprise. There’s been a lot of 

changes in the Island since 2003. 

‘We have slowly lost our connection with 

the UK and we have become an 

independent member nation of the overarching 

organisation which is Junior 

Achievement Worldwide. 

‘We became the 40th member of Junior 

Achievement Young Enterprise Europe at 

the beginning of 2005 and that’s when I 

was appointed chief executive. 

‘We have grown rapidly from running 

programmes for about 200 students in 

2003-2004 to last year having 985 students. 

This year we’ll have 2,000 students.’ 

Primary schools and secondary schools 

are involved. 

For the younger pupils, the programme 

involves a series of six units encouraging 

youngsters to look at themselves, their 

families, the community, cities, nations 

and the world. 

At the secondary stage, units become 

much more business orientated. 

‘What I’m trying to do is to bring up the 

emphasis on enterprise education and 

what we call the economics of life,’ said Mr 

Galloway. 

‘The primary programme is about a 

young child seeing him or herself in 

relation to the rest of the world, looking at 

how a child fits into a community, how a 

member of the family works to pay taxes, 

how a community works by having police 

and services. 

‘It’s not just about money, it’s about 

responsibilities, it’s about attitude, it’s 

about understanding how a person fits in 

and how what one does now will affect us 

in the future. 

‘I think this type of learning is important, 

there’s a growing need for it and I think 

there’s a growing realisation there’s a 

growing need for it.’ 

www.young-enterprise.org.uk 

CUBBIN & BREGAZZI 

OFFICE FURNITURE FOR 

BUSINESS & HOME 

Bespoke solutions to deal with all sizes 

all I.T equipment. Full interior design service available. 

Tromode Estate • Douglas • 617788

8 



TOPIC 

Island-based 

authors put 

pen to paper 

for a variety 

of reasons — 

but few are 

able to make 

it a full-time 

occupation, 

as Sahar 

Ibrahim 

discovered. 

For the 

love of 

words 

ISLE OF MAN 

TO LONDON 

CITY CENTRE 

Via London City: 1 hour 30 mins 

Via Gatwick: 2 hours 30 mins 

EuroManx offer flights to London City 

Leaving the Isle of Man at 0800, 1335 and 1720 

Returning 0945, 1520 and 1905 

Isaw some trailers recently 

for films about writers. One 

was for The Tenants, a story 

of two men who live alone in 

different flats in the same building 

both deeply immersed in their 

unfinished novels. Ask the Dust 

was about a writer who dreams of 

wooing the world with his words. 

Lady In The Water, subtitled A 

Bedtime Story, tells the tale of a 

man who is a janitor by day and an 

author at night. 

These trailers sum up what most 

expect writers to be; individuals 

hunched over their desks, tapping 

away at typewriters. 

But the reality couldn’t be more 

different for most writers. 

The published Isle of Man 

authors featured in this article 

write for diverse reasons, but they 

are all passionate about putting 

pen to paper. 

Robert Kelly, author of Tales of 

the Tailless, TT Pioneers, Sir 

William Hillary and The Manx 

Lifeboats and part author of 

Chronicles of the 20th Century 

says that for him ‘writing has 

always been a compulsion. I 

always felt a need to write, it could 

be something in the genes.’ 

Though he has worked as a 

writer all his life, becoming a 

junior reporter at the age of 16, he 

has never viewed it as a job for 

him — but rather a way of life, a 

necessity. 

Mr Kelly enjoys writing and 

rarely a day goes by when he 

doesn’t turn to his keyboard. 

Presently he is undertaking the 

monumental task of writing a 

Manx history through a journalist’s 

eyes, as opposed to those of an 

academic. 

He firmly believes that 

technological advances have 

allowed him to write more. 

‘Technology is opening up a huge 

future; I wish I was younger as one 

PHILLIP DEARDEN: ‘Manx 

tax has changed a lot, 

and the act of writing 

makes us understand it in 

detailed knowledge and 

this can only help us to 

deal with our clients 

especially those with 

more difficult problems.’ 

only has so much time. What I’m 

doing is important to me and 

getting it out and printed on to 

something even more so. 

‘If you can open your mind, be 

receptive to ideas and think of 

things that people haven’t done 

then do it. Whether it gets 

published or not is immaterial, it 

makes me feel like I’m doing 

something worthwhile with my 

life.’ 

Not everyone plans to be an 

author. When Dennis Turner 

moved to the Island 14 years ago 

he became fascinated by it. 

He spent many hours in the 

Manx Museum library studying the 

Island, the people and its folklore. 

For his own amusement he has 

always written in rhyming verse 

creating tall stories for his 

grandchildren. Living in the Island 

inspired him to combine his hobby 

of writing in verse and fascination 

with all things Manx. 

His daughter suggested he get 

them published — results are 

Manx Myths & More and More 

Manx Myths. 

For the moment Mr Turner is 

quite happy writing for himself 

and is sure he won’t publish 

anything else in the near future. 

He has now turned his creative 

enery to watercolour painting. 

Mike Twist, a financial adviser 

and director of Island Financial 

Solutions had always wanted to 

write. 

Although his own business takes 

up a lot of his time, Mr Twist is 

apublished author. His novel 

Connections is the first in a trilogy. 

Writing in the genre of horror 

and thrillers he draws his ideas 

from ‘what-if scenarios’ that revel 

in chaos of the ordinary world. 

‘I do have a big imagination, the 

other day while I was shaving I 

looked in the mirror and thought 

what if the reflection wasn’t doing 

what I was doing What would that 

be like’ 

A big Steven King fan, he grew up 

writing short stories and 

submitting them to e-magazines. 

The States, he says, has a huge 

appetite for horror. In the 90s, Mr 

Twist decided to develop his ideas 

into a book. 

He was an employee back then, 

which meant he didn’t have the 

pressures that come with being 

involved with running a business. 

Mr Twist wishes he could afford 

TO PAGE 9


9 

‘‘When I 

finished my 

manuscript, 

I was quite 

naive. I sent 

it off to the 

publishers 

and thought 

that was it, 

they would 

do all the 

rest — well 

unless you 

are a big 

author they 

don’t! 

— MIKE TWIST 

FROM PAGE 8 

more time to writing. He writes as much 

as he can, keeping paper and a pen by his 

bed — his biggest fear being he will lose 

his flow in the story so he keeps on top of 

it painstakingly. 

Mr Twist agrees that it is not always 

effortless. For him one of the hardest jobs 

is the proof reading. 

‘When I finished my manuscript, I was 

quite naive. I sent it off to the publishers 

and thought that was it, they would do all 

the rest — well unless you are a big 

author they don’t! 

‘As a new author I found it very difficult 

to able to scrap things that don’t work.’ 

Mr Twist’s audience is not restricted to 

the Island. 

His book Connections is sold on 

Amazon and an online review boosted 

sales of his novel in other parts of the 

world. 

With the second part of the trilogy due 

out later this year, Mr Twist is happy to 

continue to write ‘No one can work 24/7; 

time is passed well when I write and I 

love losing myself in the story.’ 

However, not everyone writes for its 

escapism quality. 

Phillip Dearden of PKF, a tax consultant 

and co-author of Tottel’s Taxation in the 

Channel Islands and Isle of Man, says: 

‘I’m sure lots of different types of people 

write different types of books, I haven’t 

got a hope in hell of writing a story.’ 

That said, he is a keen reader, favouring 

biographies and history over fiction. 

‘I breathe tax — it’s what I do and that’s 

what I write about.’ 

Breathing isn’t the word for it, as he 

tells me: ‘Everyone here [at the company] 

does a 10-hour day in tax books, 

legislation and company law. 

‘I enjoy meeting clients and the 

intellectual challenge of working through 

their problems. 

‘It requires discipline and focus and the 

writing that I do helps promote what we 

do here as a company, promoting not 

only ourselves but also the Isle of Man. 

‘Manx tax has changed a lot, and the act 

of writing makes us understand it in 

detailed knowledge and this can only 

help us to deal with our clients, 

especially those with more difficult 

problems.’ 

With a job that demands so much, he 

admits it isn’t easy and there can never 

be enough hours in the day, but 

publishing does help raise the company’s 

profile. 

The next edition of the book is well 

under way. 

‘In the beginning I feel excitement and 

then it changes,’ as he opens up the book 

and shows me all the chapters that have 

yet to be considered and he makes his 

point ‘it starts to get a little harder. When 

it’s all over I feel relief.’ 

For him, online resource facilities have 

are a big plus. 

‘Online resources affect tax and 

accountants, both of which have a great 

interest in the law.’ Opening a software 

program, he points out how easy it is to 

get references that he might need. 

‘Not only is it quick and easy to use, but 

the digital revolution means our 

information is up to date and doesn’t 

take up as much room.’ 

Mr Dearden is adamant books will not 

disappear for a long time to come. 

‘When I’m in a meeting, it’s easier just 

to open up the book — I prefer to read 

[as opposed to looking at a computer 

screen], but sometimes I need something 

a little faster and that’s where the 

program fits in.’ 

Mr. Dearden, together with the other 

authors, raises important points about 

how advances in technology have had an 

influence on their work. 

The e-revolution is having an 

increasingly bigger influence on writers 

and publishers. 

Colin Brown, director of The Manx 

Experience, a company that has 

specialised in publishing books based on 

the Isle of Man, agrees that the changes 

taking place since the mid-1950s have 

been great. 

‘I was privileged to be involved in the 

switch from rotary newspaper printing to 

web-offset in the Island and to have 

been part of the introduction of 

phototypesetting which, in turn, has now 

been replaced with computerised 

origination,’ says Mr Brown. 

However, he does not believe that the 

transition will result in the demise of 

books. 

In fact, the move might even encourage 

people to write. 

‘Now, with computerisation, it’s 

perfectly possible to produce books and 

magazines without approaching a 

printer — mind you, it’s easy to spot the 

“home-made” efforts!’ 

The advantages of the internet through 

e-books, blogging and e-magazines have 

undoubtedly made a change but for 

most writers and book lovers across the 

globe, the gratification can never be 

quite the same as reading a book for the 

first time.

TOPIC 

Island need 

embrace sc 

10 



It’s widely 

accepted that the 

Island’s economy 

would benefit 

from 

schoolchildren 

studying science. 

But is enough 

being done to 

generate 

excitement in the 

subject and is it 

feasible to expect 

more to be done 

Jenna Caldwell 

reports 

You decide the agenda and 

we’ll provide the setting 

Corporate Events • Training • Conference 

Facilities • Syndicate Rooms • Boardrooms 

Private Dining • Special Day Delegate Rates 

Centrally located in the heart of Douglas, just moments 

away from the Island’s business and retail centres, our three 

hotels offer excellent conference facilities. The Claremont, 

The Chesterhouse and The Rutland have all been lavishly 

updated and offer flexible room configurations. All locations 

provide international standards of facilities and service that 

will exceed your expectations! 

Call our Conference Manager on 

01624 698800 for further details. 

Why does the Manx cat 

have no tail It’s a 

question that’s spawned 

many colourful theories. Some say it’s the 

result of Noah accidentally severing the tails 

of two cats when he slammed the gate on 

them in his haste to secure the ark. Others 

maintain that the Irish invaders cut off the 

Island cats’ tails and used them for helmet 

decoration. 

Science demands the absence of the 

appendage to be the result of an evolutionary 

change, the mutation of the gene responsible 

for the development of the spinal column. 

This factual explanation behind the ‘cat 

with no tail’ is indeed much less fanciful than 

the magnificent Manx myths and fairy tales. 

The question is, does this reflect the Island’s 

perception of science in general, where 

scientific understanding ‘takes away the 

beauty of the rainbow’ 

With the growing mistrust evident in an 

unforgiving and frequently sceptical Britain, 

some representations of science have become 

weak and flawed — science responsible for 

worldwide disasters such as the atomic bomb, 

pollution and the thinning of the ozone layer. 

The Isle of Man does not stand separate in 

such negative visions of science. However, is 

the Island keeping up to date with attempts 

to change the perception of science into one 

of promise Are we adequately educating the 

public on beneficial scientific advances and 

explorations, reinforcing the potentials of 

science in our everyday lives and more 

importantly our future 

An important question, ‘what is science’ A 

question faultlessly answered by a school 

child aged 12 from QEII High School: ‘science 

is all about how the world works’. 

Science cannot simply be defined as the 

periodic table of classroom chemistry, the 

mind-boggling mitosis of biology, or the 

equation, worthy forces of gravity defined in 

the physics laboratory. Science is all around 

us. Our modern world depends on 

telephones, electricity, cars and countless 

other scientific advances and discoveries. 

Science explores the universe, searching for 

the ‘who, what, why, where and when’ of the 

world and how we can make use of its 

resources to improve the quality of life. 

Chris Corlett, chief executive of the 

Department of Trade and Industry, says that 

science is the engine for economic success, 

underlining the importance of building a 

knowledge-based economy in a science and 

technology-dependent world. 

He believes that increased public 

engagement in science in the Isle of Man will 

serve to enhance and harness the talents of 

Manx citizens, inevitably improving 

economic ability. 

Building on this position is an organisation 

called ManSat that provides tailored business 

services to meet the needs of the 

international space industry. The company is 

a strong supporter of space and science 

education in the Isle of Man and is working in 

co-operation with the Department of 

Education. 

ManSat jointly sponsors an annual 

scholarship programme for Manx students to 

attend NASA’s International Space School in 

Houston, Texas. It also offers undergraduate 

scholarship opportunities through the 

ManSat Foundation and offers an annual 

graduate scholarship for Manx students to the 

International Space University (ISU) in 

Strasbourg, France. 

Ian Jarritt, finance director for ManSat, 

believes the company schemes are a 

brilliant way to spark interest in the vast 

world of science and technology. 

He believes that an additional 

scholarship offered to teachers in the 

Island would be of great benefit for the 

promotion of science. 

ManSat, with headquarters in London 

and Houston, is certainly succeeding in 

maintaining the Island’s connections with 

worldwide advances in scientific 

exploration. However, apart from the few 

that are fortunate enough to be selected 

for the space venture, how is the Island 

engaging its public in science 

The Manx National Heritage (MNH) 

museums do feature many aspects of 

science — from engineering feats such as 

the Laxey wheel to the geology, 

archaeology and zoology of ‘Mann’. 

However, is this enough to engage the 

Manx society in the realms of science — 

sufficient to inspire and excite The heart 

of scientific exploration seems to be in the 

shadows of Manx natural and cultural 

history, arts and crafts. 

Education Minister David Anderson 

believes that the appreciation and 

reawakening of science must begin in 

education, ‘the source of lifelong learning’. 

Stephen Lillie, MNH’s education services 

assistant and qualified scientist, takes 

great pleasure in helping in science-based 

learning in Manx schools. 

Mr Lillie runs hands-on curriculumbased 

workshops for school classes of 

varying ages on topics such as geology 

and botany. He encourages a ‘see, think, 

do’ style of teaching. 

However, such interactive learning 

sessions are restricted to one seminar

s to 

MARCHspecialreport 

EDUCATION 

ience 

are we making the most of the resources 

At the 112-year-old research Marine 

Biological Station in Port Erin (funded by the 

University of Liverpool) marine biology 

students work on a daily basis on projects 

involving the rich biodiversity on Manx 

shores. However, the station has only one 

open day a year — only one chance for the 

public to witness the life of a marine 

biologist and learn about the creatures in 

our surrounding oceans. 

Unfortunately the station is set to close at 

the end of September 2006. Laboratory 

director Professor Trevor Norton said: ‘The 

decision was purely financial. I’m very sad 

and disappointed. If the place was a 

complete failure I could understand it, but 

it’s been a great success. 

‘Hundreds of students from around the 

world have studied at the lab and 200 

scientists from 32 countries backed the 

campaign to save the lab.’ 

The Wildlife Park in Ramsey is another 

example of an opportunity. On-request talks 

at the park are available for a range of groups 

young and old. 

Could such talks/ presentations become 

incorporated into a science educational 

programme, introducing and stimulating 

interest in subjects such as zoology 

Publicity and availability is also a crucial 

factor that must be considered. If sciencerelated 

events, talks, field trips and so on are 

being held in the Island, schools and the 

public must be well informed. Opportunities 

for public engagement in science and 

technology must be enthusiastically 

advertised. It is also important not to exclude 

those who are not part of a society. 

For example, in 2005 only members of the 

Natural History and Antiquarian Society could 

attend the lecture 

‘The Ecology on the Manx Salt Marshes’ held 

by a PhD research assistant from Liverpool 

university. 

In January 2006, Howard Parkin, chairman 

of the Isle of Man Astronomical Society and 

leading teacher in the field of astronomy, held 

an evening of stargazing at the Isle of Man 

Observatory for the society members. 

If membership is vital for the funding of 

such events, can the membership be 

reasonably priced and well advertised to 

those not yet aware of such exciting fields in 

science 

Let the Isle of Man bring science out of the 

shade and into the light of our Island life. On 

awakening the beauty of science, the Isle of 

Man will not be left behind in a worldwide 

era of scientific exploration. 

0% . Competitive rates all year 

0% 

commission on 

foreign currency and 

travellers cheques 

room of classroom size at the Manx 

Museum. 

Mr Lillie believes that more can be done to 

improve public engagement in science but 

reinforces that starting ‘small and useful is 

the key to success’. 

Could MNH increase science-based 

resources and education For example, by 

scheduling lectures, debates, weekend 

workshops and summer courses for 

schoolchildren and the general public 

Alternatively, could the Island support an 

individual science centre/museum 

In recognition of the small population of 

the Island and low influx of visitors, the 

centre could incorporate educational 

programmes for primary and secondary 

schools, as well as for the public. 

It could hold stimulating workshops, 

changing interactive exhibits, thematic 

special events, field trips and up-to-date 

programmes that cover many curriculum 

areas not just in science, but also in 

technology, art and design, geography, 

mathematics, and ICT. Live and exciting 

science demonstrations, presentations on 

topical issues and dialogue-provoking 

debates could be hosted at the centre for all 

age groups — teachers, biologists, chemists, 

physicists, engineers, oceanographers, 

geneticists, doctors, astronomers, 

archaeologists and environmentalists 

bringing to life the work that they do and its 

relevance in our society. 

Mr Anderson adds: ‘Anything that 

broadens educational knowledge places the 

Island in great stead for an ever-changing 

environment, an environment dominated 

by scientific processes and progress.’ 

From boat building, hair-raising electrics, 

illuminating light shows, electron 

microscopy, multimedia experiences, 

hands-on human anatomy, computer 

animation and space ventures, to exercise 

rooms, where heart, respiration and reaction 

rates are calculated, the centre would 

encourage different styles of learning. For 

example, spatial and physical learning, styles 

not always appropriate or viable in the 

confines of the classroom. 

With fewer schoolchildren in the Island 

opting to study core science subjects, the 

centre would encourage greater 

understanding of scientific concepts, 

inevitably highlighting the interesting 

prospects of a career in the vast fields of 

science. 

Mr Corlett is in favour of establishing a 

science centre. However, he stresses the 

difficult reality in terms of funding. He noted 

that while government spending is on the 

increase, a science centre would have to 

compete with the demand of areas such as 

health and education. With no universities 

and a population of under 80,000 the Island 

faces the problem of a low critical mass of 

expertise, research and development. 

Therefore, public and private investment 

would prove difficult. 

SLS Optics Ltd in Tromode is a sciencebased 

company, which designs, manufactures 

and tests optical components for a worldwide 

customer base. But only two of its 20 staff are 

science graduates. Lionel Skillicorn, director 

of SLS, says: ‘Science companies in the Isle of 

Man are basically not large enough to drive 

scientific research and development that will 

absorb the Island’s science graduates. With 

limited opportunities for Manx science 

graduates, is this why the Island's movement 

with science is being delayed’ 

If a science centre is not a feasible option, 

the Island certainly has the potential to 

embrace science in effective ways. However 

Order online at 

www.iompost.com 

for next day delivery to your home, 

work or local Post Office 

. Order online for next day 

delivery to an Isle of Man 

address of your choice 

. Full Bureau de Change 

service at Douglas Regent 

Street and Ramsey Court 

Row Post Offices 

. Euros available at all 

Post Offices 

Terms and Conditions apply 

People to People 

T:698444 E: customer.services@iompost.com www.iompost.com

12 


Isle of Man Examiner, March D;2006 

FINANCE 

Where to put 

Everyone wants to 

invest their money 

profitably but some are 

more risk-averse than 

others. BUSINESS 

UPDATE takes advice 

from the professionals 

on how to get the best 

from your capital 

without losing the shirt 

off your back. 

Investing directly into the 

stock market can be a 

difficult proposition for 

most of us. Unless we are happy 

to invest in blue-chip stocks with 

a fairly low volatility, keeping 

track of the day-to-day, even 

hour-to-hour movements is 

almost impossible. 

The best way to take advantage 

of equity markets is to invest in a 

fund, with knowledgeable 

managers whose job it is to track 

the market and buy and sell 

shares to maximise value. 

There are many and varied 

funds out there ranging from 

basic FTSE trackers to more 

exotic-focused funds investing 

specifically in Japanese equities, 

or Eastern European property. 

The levels of risk tend to 

fluctuate, with the general rule 

being, the greater the chance of 

gain, the greater the chance of 

loss. 

Some of the best opportunities 

to make a quick buck in the UK 

exist in the Alternative 

Investment Market (AIM). This 

secondary London market lists 

smaller, fledgling companies 

with less of a proven track 

record. 

Peter Robertson, of 

stockbrokers Capital 

International, says the choice of 

investment depends largely on 

attitude to risk. 

He says: ‘For clients with 

relatively small amounts of 

money to invest, it is not 

possible to spread risk across a 

wide range of individual 

holdings, so it would be better to 

use collective investments such 

as unit trusts and invesment 

trusts. 

‘These vehicles provide a much 

more efficient means for clients 

with smaller amounts of money 

available to gain access to stock 

market investments. They now 

cover a wide range of different 

asset classes and provide access 

to international markets and 

sectors which would be 

expensive or difficult to access 

directly.’ 

A balanced portfolio of 

investments is usually the way 

forward for people who don’t 

have large amounts of money to 

throw at opportunist 

investments. 

Mr Robertson adds: ‘The 

majority of people do not have 

the luxury of having a significant 

lump sum available to invest but 

can still make provisions for the 

future through regular savings 

schemes and pension 

contributions. For people who do 

have lump sums to invest for the 

long term, they probably have 

the ability to accept more risk 

when they are younger, because 

it is unlikely that they will need 

to call on that money for some 

time. 

‘As people approach 

retirement, it is generally more 

sensible to lock into gains made 

in previous years and to tilt their 

portfolio into lower-risk assets.’ 

It’s all very well to talk about 

investment strategies, but what 

investments are performing at 

the moment and where should 

you be putting that hard-earned 

cash to get maximum returns 

Andy Finch, director of Collins 

Stewart, says some of the UK 

blue chip companies represent 

solid investment potential. 

He says: ‘UK large caps do look 

the best value and we are buyers 

of Barratt Developments, Glaxo, 

BAE Systems, G4 Securicor, BHP 

Billiton and Vodafone to name a 

few. 

‘We like the oil / gas as well as 

drugs and some telephone 

companies such as Vodafone. We 

also like the house builders and 

the banks with HSBC, RBS and 

Barclays being our top picks. 

Investors need to be overweight 

to these areas.’ 

If it’s a star you want, looking 

towards the Alternative 

Investment Market (AIM) could 

be the way forward, but it also 

comes with high risk. 

Mr Finch adds: ‘Because the 

stocks here are smaller stocks 

they are under-researched and 

hence there is a greater chance 

of making higher returns. 

However, also due to the lack of 

research and also liquidity prices 

are a lot more volatile than larger 

companies ... tread carefully!’ 

What about further afield 

There has been much talk about 

booming economies in the East, 

with big returns, but are we 

missing out 

Mr Robertson gives this advice: 

‘The China/India long-term 

growth story does look 

compelling, although investors 

should be wary that these are 

still essentially emerging markets 

and that their stock markets will 

remain prone to short-term 

volatility. 

‘One of the latest fashions in 

the funds industry is the launch 

of so-called “BRIC” funds, 

offering investors access to the 

markets of Brazil, Russia, India 

and China. High risk but 

potentially good returns for longterm 

investors.’ 

It seems clear that investors 

should not risk the emerging 

markets by going it alone and 

should access them through an 

approved fund. 

Mr Finch adds: ‘There is 

fantastic long-term potential, but 

it has risen far enough now, so 

we’d probably discount too much 

good news. Prices need to come 

back a little. For a very long term 

investor both areas are very 

attractive but only use a fund to 

invest in these areas. 

‘We are still bullish on Japan 

and would be big buyers on any 

further consolidation. The other 

emerging markets have done 

well as US rates have fallen but 

with US rates now rising and 

values having risen significantly 

it will pay to be cautious to 

emerging markets short term.’ 

In times of uncertainty most 

investors pull out of equities and 

put their money into the relative 

security offered by bonds and 

property, but is this the best 

cause of action at present 

‘Bonds are not cheap, interest 

rates are rising and equities look 

much more attractive now. 

Property is fully valued but is 

unlikely to fall significantly. 

Given fund flows Eastern 

European property will continue 

to perform well but again the 

best way to access this is via a 

fund. We have recently launched 

such a fund’, says Mr Finch. 

His views are largely echoed by 

Capital International, which 

says: ‘Demand for long dated 

bonds by institutional investors 

has pushed the yields on these 

investments down below 4 per 

cent, and the real [net of 

inflation] yield to below 1 per 

cent. There will always be a 

home for bonds in any balanced 

portfolio because of their low 

risk attributes but at current 

levels, they do not look fantastic 

value. 

‘So far the majority of 

commercial property funds have 

been concentrated in the 

developed economies of the UK, 

USA and Continential Europe, 

but there are some new funds 

coming to the market which offer 

exposure to these emerging 

economies. As with investing in 

the equity markets of these 

regions, they are higher risk and 

therefore it is best to approach 

them with a degree of caution.’

Isle of Man Examiner, March 2006 Businessupdate 13 

your money 

Business Update approached 

an independent financial 

adviser (IFA) with three 

different lifestyle scenarios, in 

search of advice. STEVE 

BURDETT of Douglas-based 

MBL provided the following. 

SCENARIO ONE 

Young single professional without a 

mortgage or children — who has 

£5,000 to invest, is willing to add to 

that on a monthly basis and is happy 

to be fairly high risk, with hopes of 

making substantial growth. 

THE ADVICE: Skandia Multifund for 

the lump sum and monthly savings. 

This is a unitised investment plan with 

no fixed term, it offers access to a very 

wide range of funds and has a very 

competitive charging structure. 

Monthly savings can start from £100 

a month, can be increased, stopped 

and started again or cashed in at any 

time without penalty. 

Both the lump sum and monthly 

contributions can be invested 50 per 

cent in the Threadneedle Latin 

America Fund, which returned over 

300 per cent more than three years, 

SCENARIO TWO 

A married couple in their 30s with 

two small children and a mortgage. 

They want to invest £20,000 plus 

monthly contributions — they want 

some growth, but are more riskaverse. 

77.52 per cent over last year and in the 

last six months has grown by 51.09 per 

cent. 

This is a high-risk fund, which suits 

the clients’ attitude to risk. 

The remaining 50 per cent could be 

invested in Merrill Lynch UK Special 

Situations Fund, which has returned 

116.19 per cent over three years, 32.93 

per cent over the last year and 18.37 

per cent over the past six months. 

This is a medium-risk fund. 

Both funds combined would make 

up a medium to high-risk investment. 

It is possible to invest in additional 

funds and to switch into other funds, 

which will be important as the client 

gets older and wants to reduce the 

exposure to risk or if market 

conditions change and the client 

wants to protect the investment from 

any slumps in the equity market. 

SCENARIO THREE 

An older retired couple, no dependants, 

who own their own home — they want 

to invest their money (possibly from 

equity release) to enjoy life a little better 

(say £50,000) — looking for income and 

relatively risk-averse. 

THE ADVICE: Norwich Union Portfolio 

investment bond, with monthly income 

option. 

This bond could be used to provide 

£312.50 per month (max 7.5 per cent a 

year). As mentioned earlier this bond 

has a low charging structure and offers 

great flexibility with the choice of 

investment funds. 

Choice of funds is important when 

taking an income from a bond, as the 

income withdrawals will reduce the 

capital value of the bond, so maximum 

growth is key, not forgetting the clients’ 

attitude to risk. 

I would suggest for a low risk investor 

a mix of the Norwich Property 70 per 

cent, Defensive Managed 15 per cent 

and Cautious Managed 15 per cent. This 

combination would have returned 

around 11 per cent per annum over the 

past few years, meaning that the effect 

of the income on their bond would be 

minimal. 

This is becoming a more attractive 

option than purchasing an annuity as 

the clients can still have access to their 

capital (after the initial five-year period), 

unlike an annuity where the lump sum 

is exchanged for income, also annuity 

rates are only around 5 per cent at the 

moment, whereas the income from a 

bond can be up to 7.5 per cent. 

THE ADVICE: Norwich Union 

Portfolio Investment Bond — £20,000. 

This is a single premium investment 

bond that offers tax efficient growth 

and access to a wide range of funds. 

The minimum investment period is 

five years, but, the plan has no fixed 

maturity date, so it can be kept for as 

long as the clients want it. 

Norwich Union offers some very 

good Guaranteed Funds and other 

low-risk funds. 

This bond has a very simple, 

competitive charging structure of 1.5 

per cent a year for the first five years, 

reducing to 1 per cent a year 

thereafter (charges for investments 

into non-Norwich Union funds will 

vary, typically 0.5 per cent pa more). 

For this client, I would suggest 60 

per cent into the Norwich UK 

Property fund, this fund invests in 

commercial property in the UK and 

benefits from rental income and 

capital appreciation of the properties 

that it buys and sells. 

This fund has averaged around 11 

per cent growth over the past 10 

years, which, in my opinion, is very 

good. Definitely a more attractive 

option than low-performing With 

Profits. 

The remaining 40 per cent could be 

invested into one of Norwich Union’s 

Guaranteed funds, offering a capital 

guarantee after five years, less any 

withdrawals taken from the bond. 

This fund returned 10 per cent last 

year. Access to capital is permitted 

throughout the term of the bond, up 

to 7.5 per cent, or £1500 a year in this 

case. Regular withdrawals could be 

liable for Manx income tax. 

This bond currently has a special 

offer of an additional 1 per cent of the 

amount invested, this will be applied to 

the bond when invested, but removed 

if the client surrenders the bond during 

the initial five-year period. 

Friends Provident Premier savings 

plan — £100 a month. 

This is a regular savings plan that 

offers both tax-efficient growth and 

flexibility. 

They could also benefit from tax 

relief on the monthly contributions, 

up to 50 per cent of the total annual 

contribution. 

The couple could invest £100 per 

month initially and increase in the 

future if they wish. They can also take 

withdrawals, freeze contributions and 

add lump sums into the plan at a 

later date. 

This plan also offers access to a 

range of funds, I would advise 

investing the total contribution into 

the Investec Cautious Managed fund. 

Contributions can be switched to 

alternative funds throughout the term 

of the plan and the client can invest 

in several funds at the same time. 

They could also consider saving for 

their children, plans can be taken for 

as little as £25 per month a child.

14 



MONEY 

Have 

fraudsters 

had their 

Chips 

AWorld Apart... 

ABOUT BOSTON 

Boston Limited is an independent, privately owned company, which provides a range of bespoke services and business solutions 

to high net worth individuals and their families. Boston was founded in 2002 as the family office for a wealthy family who 

wished to coordinate and enhance the management of their affairs. While Boston continues to look after the founders’ interests; 

it also offers its services to other individuals who may be able to benefit from Boston's unique skills and experience. 

A DISTINCTIVE APPROACH 

In a world where high net worth individuals have many choices when it comes to arranging their financial affairs, Boston offers 

several distinct advantages: 

• Our origins and heritage as a successful family office gives us a profound understanding of the needs of high net worth 

individuals. 

• As an independent private company, we are not constrained or compromised by the pressure to offer any particular product 

or service. This enables us to seek impartial advice across a wide range of financial services. The best interests of the client 

are our principal consideration at all times, and in all circumstances. 

• Our service is delivered by a team of talented professionals, each with a sharp focus on the needs of our clients. 

Every individual client’s affairs are personally overseen by a senior member of our team, who acts as a prime point 

of contact and takes full responsibility for ensuring that the client receives a swift, efficient, and personalised service. 

• Boston’s service is custom made. We don't offer standard answers, or rigid formulas – instead, we make every effort 

to understand each client’s particular objectives and to tailor our service to help them achieve those objectives. 

We believe that Boston’s approach to working with clients and their advisors is distinctive and highly effective, and – importantly 

– we understand the value of working closely with clients and their advisors at an early stage, actively seeking to do so. We value 

the skills of other specialists, and recognise that many clients have existing relationships with advisors. We openly embrace the 

opportunity to work as part of a wider team, bringing our own skills and expertise to the table in an open and cohesive manner. 

Due to the expansion of our operations, 

we wish to make the following key 

appointments, and are looking for motivated 

individuals, to join our highly regarded team. 

COMPLIANCE OFFICER (Ref: CO0306) 

Reporting to the Board of Directors. 

SENIOR COMPANY & TRUST 

ADMINISTRATORS (Ref: SCTA0306) 

Working either solely with one major client or dealing 

with the affairs of a small group of select clients. 

COMPANY & TRUST 

ADMINISTRATORS (Ref: CTA0306) 

Handling the affairs of a small group of select clients. 

SENIOR COMPANY & TRUST 

ACCOUNTANT (Ref: SCTA0306) 

SENIOR BOOK-KEEPER (Ref:SBK0306) 

Liaising directly with clients. 

FUND ACCOUNTANT (Ref: FACC0306) 

FUND ADMINISTRATOR (Ref:FADM0306) 

OUR PEOPLE 

• Consistently deliver exceptional levels of service 

• Achieve a high degree of accuracy in all areas of work 

• Have first-class organisational abilities 

• Possess excellent communication skills (written and oral) 

• Have a desire to excel personally & within the 

business 

• Are team players committed to helping others achieve 

their objectives. 

The positions are full-time, but candidates looking 

for part-time hours will be considered. 

The successful candidates will receive a competitive 

salary and excellent remuneration package 

commensurate with their experience and 

qualifications. 

Please reply with Curriculum Vitae and salary 

expectations – quoting appropriate reference 

number to: 

The Managing Director 

Boston Limited, 

Belgravia House, 

34-44 Circular Road, 

Douglas, 

Isle of Man IM1 1AE. 

BOSTON 

FAMILY OFFICE 

CORPORATE 

SERVICE PROVIDER 

Boston Limited is licensed by the Isle of Man Financial 

Supervision Commission as a Corporate Service Provider 

For 42 million adults in 

Britain with more than 

130 million credit and 

debt cards in their 

wallets and handbags, 

it is tempting to believe 

that Chip and PIN will 

eradicate fraudsters. 

Jeremy Gates reports. 

Today retailers can refuse to 

serve card-carrying customers 

who are unable to recall their 

PIN (personal identification 

number). 

Indeed, if they allow a 

transaction to go ahead without 

it which subsequently proves 

fraudulent, retailers will have to 

foot the bill. 

With one card fraud occurring 

every eight seconds on UKissued 

cards under the old 

system, major banks picking up 

most of the losses had to make 

life tougher for fraudsters. 

According to research from 

Alliance & Leicester Current 

Accounts, consumers are 

warming to Chip and PIN: 86 

per cent of shoppers are 

comfortable with it, four 

shoppers in five reckon it’s a 

good idea. 

The Association for Payment 

Clearing Services (Apacs), the 

banking industry’s voice on 

fraud and other issues, claims 

card losses could have topped 

£800 million in 2005 if nothing 

had been done. 

In the event, the national rollout 

of Chip and PIN began in 

October 2003 and credit and 

debit card fraud figures from 

Apacs in early March are likely 

to show annual losses cut to 

£400-450m. 

So, a project costing banks and 

retailers around £1.1bn to 

introduce is already cutting the 

fraudsters’ haul — with hopes in 

official circles that Chip and PIN 

will send the figure even lower 

when it is fully up and running. 

Some card transactions will 

remain outside the Chip and 

PIN regime. As many as 15 per 

cent of British retailers have yet 

to upgrade till payment systems. 

Says Mark Bowerman at Apacs: 

‘Currently more than 80 per cent 

of retailers have adopted Chip 

and PIN. 

‘They don’t have to have it, 

and their decision might be 

based on how much fraud they 

have suffered. 

‘It might be that these shops 

could find themselves 

increasingly targeted by the 

fraudsters.’ 

Some consumers will stay 

outside the new system too, 

including those yet to receive 

upgraded cards — about 10 per 

cent of the total number in 

circulation — and disabled 

people unable to work the new 

system. 

About 100,000 cards have been 

issued to remain on the old Chip 

and Signature system, although 

Mr Bowerman says some 

disabled people find the new 

system easier to operate. 

Visitors from countries yet to 

adopt Chip and PIN — 

including the US — will also 

continue to sign for purchases. 

For most of us falling within 

the new system, however, the 

new regime imposes obligations 

which it might be expensive to 

ignore. And it might well expose 

us to new ‘scams’, while old 

familiar ones are shut down. 

The Banking Code warns that 

cardholders acting ‘fraudulently 

or negligently’ won’t be 

refunded for any losses. 

So if consumers write down 

their number anywhere — even 

disguised as a telephone 

number in a contacts book — 

they won’t be compensated for 

losses. 

Revealing a PIN to a partner, 

son, daughter or friend is also 

likely to be ruled negligent, in 

the event of a claim. 

What about keeping the same 

number for all cards 

‘Not recommended,’ says Mr 

Bowerman. ‘But it is not as 

serious as writing down your 

number, and unlikely to be 

deemed negligent.’ 

There is a danger that frauds 

will increase in other sectors of 

the card business, notably on 

purchases by ‘cards not present’ 

— usually via the phone or 

internet. 

Customers might be tricked 

into revealing important data, 

like their date of birth, or the 

three-digit security code on the 

signature trip of their card, in 

phone calls which are made to 

sound official. 

Says David Porter, head of 

security and risk at Detica, an 

information intelligence 

specialist working with major 

firms to beat fraud: ‘Fraud is like 

a balloon. Squeeze it in one 

place and it bulges in another. 

‘People must realise they stand 

to lose a lot if their PIN is 

compromised, and they need to 

remember that fraudsters often 

strike effectively when people 

are still getting used to a new 

system. 

‘On that basis, you might 

expect some frauds in the next 

few months — partly, for 

instance, because people haven’t 

yet got a clear idea of what 

machines look like which take 

their PIN. 

‘In restaurants, always go with 

the waiter to pay at the terminal, 

rather than letting a card go out 

of your sight. 

‘The other night in the pub, I 

heard somebody bellow his PIN 

number across a crowded bar to 

the landlord. And I have seen 

retailers keeping a PIN machine 

behind the counter, and asking 

shoppers to speak their number 

so they can punch it in. You 

mustn't fall for that one.’ 

Mr Porter says it makes sense 

to rotate PIN numbers by 

changing them every couple of 

months or so. 

And consumers keying in a 

PIN at the till should always take 

great care to conceal it from 

shoppers behind them. 

Says Mr Porter: ‘If the 

downward trend in card fraud is 

to continue, the public must be 

more savvy about taking 

electronic fraud more seriously.’


SOCIALLY 

Business 

&pleasure 

They are the champions.... 

Take-off 

Andy Mathieson, Eastern Airway’s general manager, 

(left) and Philip Pain, airport director, are served 

champagne by Chrissie McCabe to celebrate the 

launch of the airline’s new Southampton-Isle of Man 

service 

JM060303-28 

Qualified 

More than 60 Barclays employees in the Isle of Man were hailed as champions 

at a recent awards evening held at the Sefton Hotel, with the five top 

performers from Barclays Private Clients International’s Isle of Man, Jersey, 

Guernsey and London offshore wealth management operations winning allexpenses 

paid trips to Cancun in Mexico. Of the five top performers heading for 

Mexico, two were from the Island, Gemma Bowman in banking sales and Brian 

Cowley from Barclays contact centre. Barclays Private Clients International’s 

managing director Tim Parkes, second row, fourth from left and head of 

banking sales Pieter van Rooyen, second row third from right, are pictured with 

the Isle of Man champions 

Shows some of the 20 Manx Telecom staff who 

received awards at the company’s recent awards 

evening for completing further education courses. 

From left are: Tony Lee (Cisco Certified Network 

Professional), Robin Cain (Cisco IDS Specialist), Mike 

Phillips (Cisco Certified Network Associate), Stephen 

Trimble (GIAC certified security incident handler), 

Susan Foster (Cisco Certified Network Professional 

and Cisco firewall specialist), John Cowell (HNC 

Computing), Gavin Quiggin (HNC Telecoms), Paul 

Atkinson (ACCA) and Steve Allan (HNC Computing) 

100 percenter 

Leading by example 

Eight students were presented with their certificates in team leading from the Institute of 

Leadership and Management recently by DTI Minister Alex Downie. Beverley Lane and 

Kerith Donnelly, both from Aston International; Susan Brown from Royal Bank of 

Scotland; Peter Knox from Ronaldsway Aircraft Company; Paul Bridson and Angela 

Barnett from the DTI; Jane Kelly from Manx National Heritage; and Chris Whittaker are 

pictured. Also successful, but unable to be present were Simon Kelly of the Airport Fire 

Service, Catherine Jackson of Aston International and Gemma Hawley. 

Mark Conway receives his Fund 

Management Association E-Learning 

certificate from Catherine Turner. Mr 

Conway, of MannBenham Limited, 

achieved an impressive 100 per cent in the 

exam — only the fourth person out of the 

50-odd who have signed up to the course 

to date to do so. The FMA e-learning 

Certificate in Fund Management is a webbased 

award for individuals within the 

fund administration sector MW060228-46

16 



ISLAND ONLINE 

Each month 

GORDON 

LLOYD-WEST 

answers 

questions on 

technology 

issues. 

Oh no, not 

another version 

of Windows! 

Q: I saw an article in the UK 

press saying Microsoft is 

releasing a new version of 

Windows — is this true 

A: I’m afraid it is and the bad 

new is that life is going to get 

even more complicated. 

Microsoft has been working for 

some years towards an 

operating system (OS) that 

moves away completely from 

the old MS-DOS system that 

made Bill Gates his original 

fortune. 

The new OS, Vista, due out 

later this year will put all 

Microsoft systems on the same 

footing as the Windows Server 

system, currently used mainly 

by businesses. A key reason for 

this is security with most PCs 

now being connected to some 

form of network, even if only via 

a broadband link. It will also do 

away with the different OS 

versions for specific devices 

such as the Tablet PC and have 

a more ‘Apple Mac’ style user 

interface. 

The problem for many people 

is that the new OS will require a 

clear decision over whether you 

are a ‘home’ or ‘business’ user 

as well as what multimedia 

facilities you need. There are 

versions for Home Basic, Home 

Premium, Business, Enterprise 

and an ‘Ultimate’ version with 

varying levels of software to 

manage networking, 

entertainment/gaming, security 

and data management. 

I suspect, however, that most 

business users who currently 

use Windows XP Professional 

will need the ‘Ultimate’ version 

to get all they need. A full 

description of the new OS can 

be found on the Microsoft 

website. 

Q: We hear a lot about using the 

internet to save money on 

telephone calls but is it really 

viable to use these systems in a 

small business in the Isle of 

Man 

A: It is true that systems such as 

‘Skype’, which I have discussed 

several times in this column, 

are not generally appropriate 

for businesses. VoIP systems do 

not use standard telephone 

numbers but an ‘IP address’ 

similar to an email address and 

most businesses don’t want to 

use one phone to call out on 

OUT WITH THE OLD: Microsoft has been working for some years towards 

an operating system (OS) that moves away completely from the old MS- 

DOS system that made Bill Gates his original fortune 

and another to receive calls. 

There is, however, a range of 

systems coming on to the 

market now that allow anyone 

with a broadband connection to 

the internet to use their existing 

telephone system to access VoIP. 

These are generally referred to 

as ‘Gateway’ systems because 

they ‘route’ certain outgoing 

calls over the internet but allow 

incoming calls to be passed 

straight through. 

The issue for most businesses 

is, of course, whether the cost of 

such a unit is justified by the 

savings on calls but I think that 

the price of such devices is now 

at a level where they are worth a 

look for most small businesses. 

Q: Does the new ‘chip & pin’ 

system affect e-commerce 

websites selling goods using 

systems such as ‘Worldpay’ 

A: No. All transactions on these 

types of e-commerce payment 

systems are treated as ‘card 

holder not present’ by the 

payment clearing systems that 

handle them. 

What this means in practice is 

that, whereas a shop using ‘chip 

& pin’ can get a refund for a 

payment that is refused by the 

cardholder’s bank or credit card 

company, you will not. 

This usually limits the amount 

that vendors will accept or 

means that goods are not 

dispatched until payment is 

cleared. You need to read the 

small print carefully before 

implementing such a system. 

iomtoday.co.im 

Ask Gordon 

Find out more about the issues dealt with this week, as well as many more, at 

www.gordonlloydwest.com. And ask Gordon a question using the website form 

provided.


PORTFOLIO 

PETER SHARKEY 

Peter.Sharkey@btinternet.com 

EQUITIES 

M&B’s one of those gems 

During idle 

moments — and 

I can assure you, 

there have not been too many of 

those recently — I make a point of 

examining what I call peripheral 

businesses, ones that do not 

necessarily fit my ideal criteria for 

stock selection, but which remain 

worthy of perusal because, well, 

you just never know… 

Over the past few years, I’ve 

looked at all sorts of angles and 

different sectors, with varying 

degrees of success, and about 18 

months ago, I decided to start 

compiling a database of 

companies that had what I 

considered to be an undervalued 

asset base. Granted, that’s a 

subjective notion, but having 

decided to ignore intangibles, I 

concentrated instead upon 

examining the value of each 

organisation’s realisable assets. 

What makes this exercise 

rewarding is the occasional 

discovery of an absolute gem. 

I define a gem as a profitable, 

non-property sector company 

which nonetheless owns huge 

chunks of real estate and where 

the people running the business 

are concentrating upon doing 

precisely that, rather than trying 

to turn it into a completely 

different beast. Of course, the 

assets can sometimes be used as 

security for borrowings, although 

the level of debt must never 

exceed the value of the company’s 

tangible assets. 

According to my criteria, a gem 

becomes even more attractive 

when its UK property portfolio 

has not been valued for years — 

the longer, the better. 

Late last year, which feels like 

the last time I enjoyed an idle 

moment, I identified the pub 

chain Mitchell and Butler as one 

of my ‘peripheral’ businesses. 

There was nothing particularly 

scientific about this selection, 

merely that I had reached the 

letter ‘m’ in my alphabetic trawl 

through organisations which I felt 

might be of interest. During the 

course of my analysis, however, 

M&B began to sparkle. 

Turnover had risen steadily 

between 2003 and 2005, from 

£1.5bn to £1.67bn, while 

operating profits had increased at 

a slightly slower rate, but were still 

a shade under £300m. What really 

started making M&B appear 

seductive, however, was its 

freehold property portfolio. 

More than 85 per cent of the pub 

chain’s 2,000-odd estate was 

freehold properties, valued in the 

books at £3.85bn; they were last 

valued in 2003. I heard a little bell 

ring when I read this, because at 

the time, M&B had a market 

capitalisation of £2.1bn and 

around £1.6bn-worth of 

borrowings. I deemed a modest 

dabble was in order, buying M&B 

at 410p, although I was a bit 

miffed when they fell back 

towards 390p in January, despite 

some early rumblings of a 

potential takeover. Perhaps 

another modest dabble then… 

Step forward Robert Tchenguiz, 

who, it is reported, has 

approached Goldman Sachs with 

a proposal to launch a joint bid 

for M&B. He has yet to make a 

formal offer for the chain, 

although his interest caused the 

share price to surge towards 490p, 

enough to ensure I raised a glass 

to him last week. 

Tchenguiz already owns some 

1,200 pubs and bid for Spirit’s 

1,800-strong chain last year, 

although he lost out to Punch 

Taverns. He would appear to have 

everything in place to launch a 

genuine bid for M&B, after which 

several analysts believe he could 

leverage the freehold estate to 

release as much as £500m, 

especially as M&B’s ratio of debt 

to earnings is considerably lower 

than the sector average. 

I suspect that although 

Tchenguiz probably doesn’t keep 

a list of ‘peripheral businesses’, he 

knows a gem when he sees one 

and there is little doubt that in his 

eyes, Mitchell and Butler falls 

firmly into that category. 

Like most people, I 

remained blissfully 

unaware of the fact that 

2006 is the European Year of Worker 

Mobility, although when I discovered 

this potentially life-changing 

information, my immediate thought 

was, ‘Who decides upon such labels 

and what is the EU planning to 

celebrate its Maoist-sounding 

project’ 

A visit to the appropriate EU 

website informed me that ‘As the EU 

strives for more “Growth and Jobs” 

(sic) helping workers to move to new 

countries/sectors has become even 

more important.’ 

What’s this The EU not only 

embracing, but actively encouraging, 

one of the most significant aspects of 

Britain’s competitive advantage 

Apparently so. Moreover, it plans 

spending 10 million euros to raise 

‘mobility awareness’ and will screen 

‘mobility evenings’ on ‘a European 

TV channel’. Sounds like riveting 

stuff. 

I mention this not to poke fun at 

the EU, but because early next 

month just six weeks after the 

EYOWM was launched, the UK 

Government plans to impose severe 

restrictions on labour mobility, with 

potentially damaging consequences 

for the British economy. 

On April 6, the UK Government 

will introduce its mandatory 

‘Property Licence’ for properties it 

deems are ‘houses in multiple 

occupation’ (HMO), namely houses 

of three or more floors let to five or 

more people. Under the provisions 

PROPERTY 

An assault on landlords 

of the 2004 Housing Act, property 

owners failing to register for a fiveyear 

licence could be fined up to 

£20,000. 

However, in addition to being 

fined, landlords who do not register 

with the local authority in which the 

property is located could discover 

they have committed a criminal act 

and may find themselves subject to a 

rent repayment order, permitting 

local authorities to seize up to 12 

months rent. 

The effects of this hateful landlord 

levy will be severalfold. 

First, it will push the cost of owning 

investment property up by 

thousands of pounds: one local 

authority has already suggested its 

licence fee will be ‘around £1,100’; 

others may go higher. Second, it will 

invariably push rentals up too, 

especially for students, who tend to 

be the people most likely to occupy 

an HMO as tenants. Third, some 

landlords will feel the additional tax 

makes it uneconomic to remain in 

the buy-to-let sector and will sell up 

altogether, thus reducing the stock of 

private rented accommodation. 

According to the UK Government 

department responsible for 

introducing the law, it is designed to 

‘eliminate poor housing for the 

vulnerable’, although in truth, the 

licence fee will merely fund another 

layer of bureaucrats who, after April, 

will be able to formally identify 

rented property and retain the 

owner’s details on file. 

Of course, the next legislative step 

will be explained as some form of 

‘rationalisation’ or even promoted in 

the name of ‘fairness’. 

‘Why,’a housing minister will 

almost certainly ask within the next 

few years, ‘should one body of 

private landlords have to pay a 

licence fee and others not We 

believe there should be a standard 

fee, etc, etc…’ That’s right. The real 

estate in which you have invested as 

an adjunct to your pension will soon 

be hit with yet another form of 

taxation. 

But if that were not enough, two 

particular aspects of this odious 

legislation annoy me more than 

anything else. 

First, UK structural unemployment 

levels are lower than elsewhere in 

the EU precisely because the UK 

already enjoys a high degree of 

labour mobility. It is well oiled by a 

supply of private sector 

accommodation, much of which 

falls into the HMO category. If this 

disappears, or its operational costs 

rise, labour mobility will be 

hampered. 

Second, the teams of bureaucrats 

funded by this invidious licence fee 

will have to justify their existence; 

they will do so by imposing extra 

costs upon landlords — insisting 

that extra fire doors be installed in 

properties, or completely useless 

additional kitchen facilities be 

installed in lounge areas. 

It is galling to note that local 

authorities have been able to do this 

at least for the past 20 years, but 

most have been too inefficient to do 

it properly. No new law was required; 

the legislation already existed, 

although when the latest one comes 

into force, many landlords may 

decide they’ve had enough of 

assisting labour mobility and 

consider investing elsewhere. 

< I’m 32, two kids, 

a house to run, haven’t 

studied since Duran Duran 

were No 1. I’ll never get 

a degree > 

Think again. 

Over a quarter of students on our degree 

programmes are people who have changed 

lifestyles and careers by coming to the 

Isle of Man International Business School… 

and most thought the chance had passed 

them by before coming to speak to us. 

You could be eligible for government 

funding and our part time study options 

mean that you can easily organise your 

studies around other commitments. 

So do yourself (and maybe your family)* 

a favour and call our friendly team on 693709 

to arrange an informal visit to find out about 

the options available to you. 

* According to researchers, a graduate can expect to 

earn significantly more over their lifetime compared 

to those with just A-levels.

18 



MOTORING 

The 6MPS has 

been described 

as ‘taking 

Mazda Zoom- 

Zoom to a 

new level for 

spirited 

dynamic 

performance’, 

reports Matt 

Joy 

Six-shooter 

CONFERENCE FACILITIES 

King William’s College offers conference facilities and corporate 

hospitality to all sectors of the business community. 

WALKER LIBRARY 

Seats up to 30 people and is perfect for 

Boardroom style meetings 

All too often 

manufacturers are 

forced to give a 

performance makeover to a car 

because it lacks a spark to ignite the 

enthusiasm of the average motorist. 

Even a resolutely dull box can be 

improved by the addition of a little 

extra power, some chassis tweaks 

and a set of gaudy stripes. 

Sometimes the bog standard 

version is blessed with vim above its 

station, however, which makes the 

hot version all the more mouthwatering. 

Mazda is firmly in the 

second category with its 6, which has 

been universally praised for its keen 

handling and general brio but 

please, don’t use the zoom word. 

Now the 6 range has a full-on 

flagship in the form of the 6MPS. The 

Mazda Performance Series is a new 

moniker to the UK, but it roughly 

translates as Mazda’s high 

performance brand, and the 6MPS is 

described as taking Mazda Zoom- 

Zoom to a new level for spirited 

dynamic performance. 

The hardware is certainly in place. 

Starting with the 2.3-litre four 

cylinder petrol engine, Mazda has 

added direct injection and an 

intercooled turbocharger to increase 

its output by 93bhp to a healthy 

257bhp. 

The direct injection aids low down 

torque in order to avoid the problem 

of turbo lag at low engine speeds. The 

power is channelled to all four 

wheels via an active torque split 

system, which can send up to 50 per 

cent of the engine’s output to the rear 

wheels depending on the conditions. 

Mazda has also fitted larger brakes 

and stiffer suspension and increased 

the stiffness of the body shell by 50 

per cent. That gives it some pretty 

serious hardware to take on the 

competition. 

The outside also benefits from 

some new adjustments, although 

these are on the subtle side. Eighteen 

inch alloy wheels is standard, as is 

the rear spoiler and smart rear 

bumper with a pronounced central 

spar. The bonnet has been raised to 

give airflow to the intercooler rather 

than a pronounced scoop, but this 

actually improves its appearance, 

giving it a chunky look. 

On paper then the 6MPS, while not 

chasing the rally-rep Subaru Impreza 

STI or Mitsubishi Evo, easily squares 

up to the Ford Mondeo ST220 and 

Vauxhall Vectra VXR, with the 

advantage of four-wheel drive. On 

the road, however, the sums don't 

quite add up. 

The 6MPS is quick, without doubt. 

0-62mph in 6.6 seconds is rapid, and 

consistently so with full traction 

take-offs. At higher speeds the MPS 

accelerates surprisingly smoothly, 

and the turbo unit is flexible and 

easy to rev. The noise is a little 

uninspiring, lagging behind its sixcylinder 

rivals, but however you use 

it the petrol unit delivers. 

More of a surprise is the MPS’s 

reactions through the bends. On 

tight, twisty roads it is secure and 

well planted, but it doesn’t feel very 

enthusiastic. Even applying large 

doses of throttle on the exit of bends 

creates little drama. 

On faster, sweeping bends it feels 

much more impressive, scything 

along with ease, but again the 

impression you get is that the 6MPS 

would be just as happy bowling 

along the motorway at 70mph as it 

would darting along a B-road. 

The same can’t be said of its MX-5 

and RX-8 stablemates. 

In fairness, the 6MPS successfully 

straddles a range of roles. A longdistance 

user-chooser could cover 

thousands of miles in one with 

virtually no more effort than in a 

regular 6, but a slippery mountain 

road would pose it no problems. 

A Vectra or Mondeo would be more 

of a handful in these conditions, but 

you could argue that the driver will 

be having more fun. 

As an overall package though, the 

6MPS is very strong. With just one 

model on offer in fairly limited 

numbers, standard equipment is 

generous. Leather seats with electric 

adjustment for the driver, climate 

control, cruise control, a BOSE 

stereo and Xenon headlamps are all 

standard, while a comprehensive 

safety package is aided by the fourwheel 

drive system. 

There’s very little to criticise the 

6MPS for, but with such a strong 

technical specification and equally 

strong competition, it may be 

undone by its all-round competence. 

BRAGG LECTURE THEATRE 

Seats up to 80 delegates and has tiered 

seating. It is equipped with OHP, 

computer projector and screen. 

BIG SCHOOL 

Seats up to 250 people with several layouts available and incorporates new 

lighting and sound systems, making it perfect for corporate presentations. 

Conference catering is also available. 

Contact details – Tel 820400. Fax 820402 

website www.kwc.sch.im. e mail hire@kwc.sch.im 

bumper 

to 

bumper 

FACTS AT A GLANCE 

Model: Mazda 6MPS. £23,950. 

Engine: 2.3-litre four cylinder 

turbocharged petrol unit delivering 

257bhp. 

Transmission: 6-speed manual 

gearbox as standard. 

Performance: Top speed 150mph, 0- 

62mph 6.6 seconds. 

Fuel economy: 27.7mpg (combined 

cycle). 

CO2 emissions: 245g/km.


BOOKS 

Review 

by 

Hannah 

Stephenson 

I’m an entrepreneur, 

not an apprentice 

Loudmouthed Saira Khan, the volatile 

firecracker who came runner-up in 

BBC2’s The Apprentice last year, has 

not looked back since her determined 

performance made her the star of the show. 

Few will forget how this supersonic 

saleswoman with the big voice wound 

up her colleagues with her pushy 

tactics. 

Although she received regular 

verbal lashings from businessman 

Sir Alan Sugar, it seemed he had a 

soft spot for the 5ft 2in dynamo. 

When you meet her you can 

understand why. She seems tiny 

and prettier than she appeared on 

the show, and her enthusiasm is 

infectious rather than irritating. 

Although Saira, 35, lost out on the 

£100,000 dream job to winner Tim 

Campbell, she did work for Sir Alan 

for six months before moving on. 

‘The role he gave me was another 

sales role. I was effectively selling 

computers. I thought I was worth 

more than that. Sir Alan was, 

shall we say, disappointed.’ 

Still, she says she has earned 

the equivalent of Tim’s salary in 

the past year through a number 

of media jobs, including a 

column in The Mirror, 

corporate speaking 

appearances and her own 

online business with her 

husband, internet consultant 

Steve Hide. 

She’s currently appearing on 

You’re Fired, the new 

Apprentice spin-off show on 

BBC3, and this month she 

begins filming her new 

daytime show on anger 

management, Temper Your 

Temper, which is due out in 

autumn. 

As ever, she is in saleswoman 

mode today as she eagerly fills 

me in on her new self-help 

book, P.U.S.H. For Success. 

‘In this country people see me as 

being pushy. I don’t think pushy’s a 

negative thing. As a young woman 

you have to really push yourself to 

succeed. It gives you an edge over the 

competition.’ 

She keeps in touch with Apprentice 

winner Tim Campbell, who is still 

working for Sir Alan. 

‘We have a lot in common. He’s pretty 

laid-back and chilled out, whereas I’m 

pushy and feisty, but it works. He calls 

me his sister.’ 

As for Sir Alan, she says: ‘I have an 

enormous amount of respect for him. I 

really like him because he reminds me a 

bit of my dad. He’s very hard on the 

outside but on the inside he is a very 

responsible man who cares deeply about 

his family.’ 

Saira’s parents emigrated to England from war-torn 

Kashmir in 1965, hoping to build a better life and earn 

money they could send back to the family. Saira, the 

eldest of four children, was born in 1970 and grew up in 

a predominantly white area in Long Eaton, between 

Nottingham and Derby. 

Her father, Jan Mohammed, was forced to work in lace 

factories because his qualifications as a doctor in 

Kashmir were not recognised. 

He was extremely strict. She was forced to wear school 

uniform to a non-uniform school and as soon as she 

came home she’d change into the traditional salwar 

kameez — a long tunic and baggy trousers designed not 

to draw attention to a woman’s physical shape. 

‘My childhood was quite painful at times. I really just 

wanted to be a 

part of British 

society. At home I ate 

different food to the meals my 

English friends ate and watched 

Bollywood films while my friends 

were going to the cinema. 

‘I would have loved to have had 

sausages and baked beans at home, 

or get my dad to go to the pub and 

drink cider, but that was never going to be.’ 

If Saira or her siblings stepped out of line, her 

father would beat them with belts, shoes, a 

cane or even a wire coat hanger. He also 

lashed out at his wife, once giving her a black 

eye. 

‘His frustrations with his life and the 

injustices he had to deal with at work 

translated into anger and violence, and most 

of that was taken out on the family.’ 

At home they spoke only Urdu and Bhari 

and her mother didn’t speak a word of 

English for a long time. 

Life didn’t get any easier as she grew up. 

‘My parents were from an arranged marriage 

and wanted the same for me. My mother would 

invite young men to the house and get me to 

serve them tea on a tray. I didn’t fancy any of 

them. It was just like East Is East.’ 

To her father, education was everything. Saira 

went to Brighton Polytechnic when she was 18 and 

later gained a Masters at Nottingham University. 

‘I had boyfriends at university but my parents 

never knew about them. I was sensitive towards my 

religion and culture.’ 

Her father worked longer hours in the factory to 

help pay her university fees and she now realises that 

she was driven by the yearning for his approval. That 

focus disappeared when he died suddenly in 1998 of 

a heart attack, while visiting family in Kashmir. 

‘I was absolutely devastated. For the first time I felt 

really alone.’ 

To deal with the grief, she flung herself into work 

and set out to achieve more. 

She met her husband, Steve, in 2002 when 

they both worked for United Biscuits. 

‘I knew instantly that Steve was the one,’ 

says Saira. ‘I had a mental tick list of what I 

wanted in a person. It was never about the 

looks. He was career-minded and I never 

wanted to be hanging around with a lazy slob. 

Keeping fit was a big part of his life, and mine, 

and he liked a hot curry. He ticked all my 

boxes.’ 

The first time Steve, a Christian, met Saira's 

mother was to ask for Saira’s hand in marriage. 

‘I never introduced Steve as a boyfriend. She was 

furious at first but she’s come round. I was the first girl in 

my family to marry outside the culture.’ 

They live in west London and she would love to have a 

big family. At 35 she is well aware that the biological 

clock is ticking, but talks in terms of when they have 

children rather than if. 

And at the end of a rather exhausting conversationfilled 

hour, Saira doesn’t pause for breath as she 

launches into her plans for the future — to be a 

successful businesswoman launching new products, 

influencing government on a variety of issues and 

making a difference. She even suggests that one day she 

may be prime minister. 

‘I don’t want to work for anybody else,’ she asserts. ‘I’m 

an entrepreneur, not an apprentice.’ 

As this 

year’s 

candidates 

continue to 

battle it out 

for Sir Alan 

Sugar's 

dream job in 

the second 

series of 

BBC2’s The 

Apprentice, 

P.U.S.H. 

For Success, by Saira Khan, is 

published by Ebury, priced at 

£9.99. Out now 

last year's runner-up Saira Khan has a 

new book out, appropriately named 

P.U.S.H. For Success. She reflects on her 

fortunes since the show. 

The Glen Helen :- 

A four bedroom, 

cottage style 

home with three 

bathrooms, two 

lounges and a 

spacious kitchen. 

This design, with its narrow design is perfect for a smaller town 

plot. This house offers a spacious interior with 4 bedrooms, 1 

en-suite with walk-in closet plus a large lounge that opens onto 

the patio and swimming pool. As with all our designs, the 

interiors can be altered to fit your specific requirements

Backpage 20 

businessupdate Isle of Man Examiner, March 2006 

PEOPLE 

HOW 

I GET 

MY 

NEWS 

JEAN 

LLOYD-WILLIAMS 

Programme director, Manx 

Centre for Management 

Development 

Radio 

I wake in the morning to the UK theme 

tune to Radio 4 and from that time I listen 

to Farming Today followed by Today. On the 

way home I listen to Radio 4’s PM for an 

update on world events although I try to 

catch the local weather forecast on Manx 

Radio at 10 past the hour. 

TV 

I regularly watch the BBC at 10pm which 

you can now catch via their News 24 station 

on Sky. Other shows which I watch for news 

include The Money Programme and 

Panorama. 

Broadsheets 

I hate tabloids so I read The Daily Telegraph 

on a daily basis and the Financial Times 

when the opportunity arises. For local news 

I am an avid reader of the Isle of Man 

Examiner on a Tuesday and the Courier on 

a Thursday. 

Magazines 

Although I have subscriptions to 

professional journals such as Professional 

Manager and Management Today I also 

counter balance this with subscriptions to 

Country Living and Good Housekeeping. 

Books 

I read books for a living and to relax. In 

terms of professional development I am 

reading Richard Pring on the Philosophy 

of Education and to relax I have just 

finished a Tom Clancy, The Bear and the 

Dragon. 

I also like Jack Higgins especially those 

about Sean Dillon but I was very sad when 

he killed off Det. Sup. Hannah Bernstein. 

Adverts 

I hate adverts and whenever possible fastforward 

through them. 

Teaching Students 

Teaching students, most of whom are 

managers from a cross-section of 

businesses throughout the Island, at both 

the Isle of Man College and the 

International Business School gets one a 

unique perspective on the local news items.

p001front.qxd (Page 1) - Isle of Man Today

Create successful ePaper yourself

Delete template?

Save as template?