A former government Minister is calling for the National Insurance Fund to be invested in capital projects including the proposed Earystane onshore windfarm.

But Treasury Minister Dr Alex Allinson insisted the fund would not be raided.

The exchange came during a debate in Tynwald on measures to put the NI Fund back on a sustainable footing.

Among possible options is scrapping the ‘triple lock’ – which increases pensions each year by whichever is the higher: 2.5%, CPI inflation or average earnings growth - for anyone who retired after April 2019.

Unless changes are made, the NI Fund, which currently stands at £1.07bn, will be exhausted by 2047-48.

Ramsey MHK Lawrie Hooper, who resigned as Health Minister last month in a row over funding for the Manx NHS, said it was essentially a national investment fund, and this offered a ‘world of opportunity’.

He told Tynwald that if it was accepted that the level of the fund shouldn’t fall below two and half times expenditure, this would free up the rest to be spent elsewhere.

‘Why isn’t some of this investment directed on island?’ he asked.

‘Now we know the fund needs a core of say £600m of easily realisable assets, this will free up the remaining £600m for investment in longer-term assets, for example long-term infrastructure investments.

‘Why not take £100m of this fund and invest it in public sector housing which is something we desperately need. The MUA is looking to build a wind farm on the Isle of Man - why can’t that be funded by investment from our National Insurance Fund?

‘It will generate a return, it will protect the capital and will invest in the island.’

Mr Hooper also suggested that part of the NI Fund could be invested in the short term in health services to bring them into a sustainable financial position.

But Speaker Juan Watterson warned against such a move. He said: ‘I can see it happening here - the NI Fund will be used to prop up revenue spending and that’s something I just cannot countenance.’

He said investing in the Manx economy seems attractive, but it also magnifies the risk. ‘If the Manx economy for whatever reason takes a wobble, that’s people’s pensions that that money is invested in,’ he said.

Douglas North MHK David Ashford pointed out that the fund would be higher if there hadn’t been drawdowns on the interest over the last 10 years.

Douglas Central MHK Chris Thomas agreed: ‘We’re also in a much worse situation because £40m was taken out for the hospital 22 years ago and nearly £100m was taken out for employment support during Covid.’

But he said the options outlined in the report before Tynwald seemed to allow £500m of the £1bn NI Fund to be spent elsewhere other than on pensions, health and social security. ‘The Minister has denied that but a plain reading suggests that’s the case,’ he said.

Chief Minister and acting Health Minister Alfred Cannan said he suspected some of Mr Hooper’s comments would cause ‘considerable alarm’.

Treasury Minister Dr Allinson said: ‘There are no plans to raid the fund, there are no plans to cut pensions, there are no plans to blame pensioners. The whole idea is to sustain the fund for pensioners now and in the future.’

He said the report before Tynwald deliberately did not set out any recommendations as he wanted to hear members’ options before coming back with proposed solutions.

He said all the proposed options ensure an annual increase in pensions and ‘none of them involve any attempt to use the NI Fund to fill any gaps in wider government spending’.

Dr Allinson said he would make an announcement at the February Budget about how Treasury intended to put the fund back on a sustainable footing.

Tynwald rejected an amendment tabled by Mr Hooper by 21 votes to three in the Keys and by two for and seven against in the Legislative Council. The motion was carried by the same majority in the Keys and unanimously in LegCo.