The island’s Chamber of Commerce is calling for a radical change in the size and scope of government.

It’s one of three main topics on which the Chamber says its members are calling for action - the other two being the ongoing skills shortage and the integration of AI technology.

Newly elected president Claire Watterson and immediate past president Kristan McDonald set out the issues in an interview with Media Isle of Man at the Chamber’s Hillary House HQ.

Mr McDonald said: ‘The ratio of public sector to private on the island is larger than most of our jurisdictional comparators.

‘You've got a smaller tax base having to pay for a larger public sector. We are burning cash at the moment, we're spending our reserves to keep the island afloat. There's a finite length of time we can do that for.

‘So we have to look at radically changing the size or the scope of government, or both.’

The Chamber of Commerce has traditionally been seen as singing from the same hymn sheet as government. But in recent years it has been outspoken in its criticism - calling for a vote of no confidence in this year’s Budget for example.

Ms Watterson said: ‘The relationship with the government is important to us. We're a critical friend. Somebody has to ask those tough questions. Because obviously it does impact our businesses.’

Mr McDonald added: ‘These aren’t personal views being expressed by individuals. The critical voice is being given to us by our members.’

The Chamber of Commerce’s membership comprises a broad spectrum of businesses, around 450 in total representing 25,000 individuals.

Turning to the skills shortage, Mr McDonald said this has long been a problem but the challenge now is different to what it’s been in the past.

He said: ‘We're seeing the evolution of skills and types of skills required.

‘The idea of a job for life is just not there anymore. People have multiple careers throughout their lives. So the important thing is having the environment to support that continuous learning.

‘Then obviously there are specific technical skills shortages, and how we how we deal with those, either via inward migration and making the island a better place to live and work, or whether it's via on-island training and upskilling programmes.’

He said the impact on the Manx economy of the skills shortage was profound and this, the size of government and AI are all interlinked.

‘A lot comes back to productivity. We're not unique in struggling with this but AI definitely has the potential to improve that,’ he said.

‘A lot of businesses are becoming more tech enabled. We need to develop the tech literate workforce, which then enables productivity gains, both in public and private sector, which then helps the whole economy.’

Ms Watterson agreed the island could be a leader in the field of AI.

She said: ‘It's making sure we're ahead of the curve, identifying the types of jobs that AI is going to impact, and how we support the people in those jobs, in training and retraining.’

Mr McDonald added: ‘We are a small, agile jurisdiction. It's within our grasp to get ahead on some of this.

‘But we can't have decisions being made in isolation. It needs to be a much more collaborative and joined up approach.’

Asked what score they would give the government, Mr McDonald replied: ‘In terms of effort there’s a good score. I think they get it, they see the problems. It’s the execution where we really struggle to deliver.’

Ms Watterson pointed out that governments across the western world are dealing with the same complex questions. ‘Ours are doing well, they are trying their best,’ she said.

Mr McDonald added: ‘There is sadly room for improvement. Like my report cards from school said - could do better!’