Chief Minister Alfred Cannan has addressed financial risks within Manx Care following the resignation of former Health and Social Care Minister Lawrie Hooper.
Mr. Cannan, who has temporarily taken over as Minister for Health and Social Care on an interim basis, highlighted the need for ‘robust financial control measures’ due to what he described as ‘significant financial pressures’.
During the House of Keys session on Tuesday, which was largely dominated by the no-confidence motion against the Chief Minister, Mr Cannan faced questions from Mr Hooper.
MHK for Ramsey, Mr Hooper queried how the risk of financial instability and other financial risks were categorised within the Manx Care Operating Plan 2023-26, its corporate risk register, and its Board Assurance Framework.
Mr Cannan confirmed that financial sustainability risks were indeed identified in all three documents.
He acknowledged that rising staff costs, high-cost placements, digital upgrades, and compliance obligations were recognised as pressures, with financial risks classified at both board and operational levels.
Mr Hooper pressed the Chief Minister, citing that the documents contradicted a previous assurance made to Tynwald, in which Mr Cannan suggested finances were not flagged as a major risk by the Manx Care board.
Mr Cannan defended his earlier remarks, referring to a recent internal audit, the Kirby Report, which found an ‘unacceptable assurance for both the design and application of financial controls’.
‘The Minister chose to walk away, and we’re picking up the pieces’, said Mr Cannan, referring to Mr Hooper’s resignation.
He reiterated the urgency of implementing tighter financial controls and ensuring accountability, stating: ‘We cannot afford to keep paying out money that doesn’t exist’.
Mr Hooper was critical of the Chief Minister’s response, characterising it as a ‘non-answer’ and accusing Mr Cannan of political evasion.
Mr Hooper questioned why Mr Cannan had relied solely on the Kirby Report, without examining Manx Care’s response to the findings.
Dr Michelle Haywood, MHK for Rushen, raised further concerns over governance, asking if the Chief Minister had reviewed Manx Care’s official response to the Kirby Report and what actions were being taken.
Mr Cannan confirmed he had seen the response and indicated ongoing work to address the issues highlighted.
In response to another supplementary question, the Chief Minister agreed that ultimate financial responsibility lay with the Department of Health and Social Care (DHSC).
‘The DHSC supports the budget request to Treasury and is responsible for distributing funds to Manx Care’, he said.
‘Responsibility for ensuring that Manx Care is delivering appropriately rests with the DHSC.’
Mr Cannan pledged that discussions with Manx Care and Treasury were underway to strengthen the organisation’s financial capabilities.
He also acknowledged that the situation faced by Manx Care had not been made clear earlier in the year, further emphasising that financial control measures needed significant improvement.
Mr Cannan further criticised Mr Hooper’s departure, stating that his resignation had left the Council of Ministers to ‘pick up the responsibility’.
He also expressed his intention to rise above ‘petty politics’ and focus on addressing the challenges ahead.