He told the House of Keys this week: 'We have had 25 years of unbroken growth and, despite the recent slowdown, I do not anticipate the Isle of Man economy turning into recession any time in the near future.

'Our current forecast is for continued growth during the current period.'

David Cannan (Michael) asked what contingency plans had been put in place by Treasury to manage a recession.

Mr Bell said that while recession was not anticipated, the government could not afford to be complacent and had to be aware that the situation was changing rapidly.

He said that for this reason, the chief minister had created an executive co-ordination group to monitor the economy, government income and employment and to 'help steer the Island through what is going to be a challenging period of lower growth.'

Mr Cannan asked how the Treasury minister would overcome loss of government revenue caused by the cut in VAT and the reduction in interest rates while still providing all the services to which the Island had become accustomed.

Mr Bell accepted there would be a substantial reduction in funds available for expenditure and Treasury would be looking at how to handle this over the next couple of months, with details of the best way forward announced in the February budget.

Peter Karran (Lib Vannin, Onchan) asked: 'Can he assure this House that the weak, the sick and the poor won't be the ones who get hammered?'

Mr Bell replied that he found the question 'somewhat insulting' given the priority given by the government to help those on low incomes.

Read more at iomtoday.co.im/politics:
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