From Barrie Stevens.
THE UK, it is reported at the time of writing (Sunday 12 October), will take a major stake in the Royal Bank of Scotland, which also operates Royal Bank of Scotland International on the Isle of Man. Barclays, Lloyds TSB and HBOS are also candidates for government share ownership and likewise have operations in the Isle of Man, Jersey and Guernsey.

RBS controls NatWest and Isle of Man Bank. Isle of Man Bank in turn is the bank of the Isle of Man government, being roughly the local equivalent of the Bank of England and which handles, redeems and issues the Island’s banknotes.

Fiscal autonomy away from direct UK financial control and political influence is the key to the Island’s autonomous status and the bedrock of the offshore finance sector in both the Isle of Man and Channel Islands.

Westminster may not be able to nationalise the RBS International and Isle of Man Bank without back-to-back legislation from Tynwald, the Isle of Man’s parliament, but it would be naive to think that a tremendous amount of political power over the Island’s financial activity will not come about as a result.
The RBS will be a beggar and beggars cannot be choosers. The UK will have placement on the RBS board.

With so much UK taxpayers’ money being risked it is inevitable that the UK will turn its attention to the question of delinquent tax funds in the Island(s), some of which will probably have exited by now anyway.
This same scenario applies equally to Jersey and Guernsey and it is hard to see how the Islands can survive in their present constitutional status and relationship with the UK, nor even hold on to their finance sectors as we have known them.

If the UK is forced to nationalise all UK banks, as many seem to think will be inevitable, then how can there ever be a viable offshore banking sector in the three Crown dependencies?
4 Leigh Terrace,
Douglas,
Isle of Man.