The future of Laxey Glen Mills will be determined by the Department of Environment, Food and Agriculture’s part in the Island Plan and its food strategy.

Chief Minister Alfred Cannan said in the House of Keys this week that both bare ‘extreme importance’ for the relevance of Laxey Glen Mills in the future.

He said: ‘In line with the Island Plan, the Department of Environment, Food and Agriculture will be consulting on a plan for the future of agriculture, which I understand they intend to do at the end of this month.

‘The department will also develop and implement a food strategy by the end of April 2023.’

Mr Cannan was asked to make a statement on the importance of Laxey Glen Mills by Arbory, Castletown and Malew MHK Jason Moorhouse.

The chief minister said that the closure of Ramsey Bakery had brought to a head issues around the viability of the mill that ‘have been evident over recent years’.

‘Ramsey Bakery took around 80% of all the flour produced by Laxey Glen Mills, therefore the closure of the bakery had an immediate impact,’ he said.

‘Not only had the Glen Mills lost this market but also, as a consequence, it was forced to spread its fixed costs over sales which were over 80% lower, all compounded by the current cost of living crisis leading to further increase in costs, especially around energy.’

Mr Cannan said that even before the loss of their key market, the mill had already identified that its current business model wasn’t sustainable as its buildings and much of its internal infrastructure were in a ‘perilous state’.

Laxey Glen Mills was in the process of producing options to Treasury as to its future, a process which is continuing, says Mr Cannan.

He added: ‘Treasury support is provided to Laxey Glen Mills Limited in the form of an annual flour subsidiary and acts as guarantor for the loan facility in place.

‘Laxey Glen Mills has in the past been part of production chain for Ramsey Bakery, and remains the same today for other bakeries and food production businesses as well as retail businesses.

‘In relation to agriculture, Laxey Glen Mills has had no contact to purchase willingly with growers since the autumn of 2021 and has enough wheat currently in silos, with two years at the current rate of production.

‘As the business sales grow, it is possible the mill could make available new supply contracts to our Manx farmers in the future and are also exploring all the options to sell flour into the UK and wider market.’

Garff MHK Daphne Caine mentioned that in the year before Ramsey Bakery shut, the mill posted a loss of £19,000. She asked Mr Cannan to give an indication that he is aware the government will have to bail out the mill to a larger degree.

He said he expects the figure is higher but he would clarify with Treasury.

Mr Cannan explained that ‘in an ideal situation’ Ramsey Bakery wouldn’t have shut and the flour mill wouldn’t have lost 80% of its sale base as this also ‘caused consternation and lack of clarity for farmers’.

‘We’ll have our food security and a plan and we’ll be able to engage properly in terms of the role Laxey Glen Mills has to play in that and how we can facilitate the future of the mills,’ he said.