The island’s economy is changing at ’almost an alarming rate’, according to Economic Development Minister Laurence Skelly.

He was giving evidence to Tynwald’s economic policy review committee.

Mr Skelly outlined the progress made on transforming the Department of Economic Development into the Department for Enterprise, describing it as ’a considerable period of transition’.

There had been a positive reaction to the change, he said, and the department was due to give a presentation to Tynwald members in November to detail how the transition would be made and how certain responsibilities would be transferred to other government departments.

The aim was to create a ’modern department for the modern economy’, he added.

’Our economy is changing at almost an alarming rate, in terms of the various sectors, seeing a lot disruption, new emerging sectors opening up all the time.

’Our challenge, as a department, has always been how do we service that wide economy, which is our strength?’

Acting chief executive Mark Lewin told the select committee there was a ’significant number’ of businesses looking to expand and create more jobs and that would be a focus of the new-look department, to support them.

A number of those businesses were multi-jurisdictional operations.

’If we cannot help to fulfil that appetite here, there is a real risk they will be placed in other places, which clearly, we do not want,’ he said.

Earlier this year, proposals were announced to change the department’s title and transfer a number of its functions to other departments, including the operation of the Villa Marina and Gaiety Theatre, the Job Centre, training services, energy policy and mining and minerals.

The plan will also see the creation of four public-private executive agencies covering finance, digital services, business and tourism.

About 50 full-time staff, about a quarter of the total, plus 200 casual contract staff at the Villa-Gaiety complex, will be transferred. But there will be no compulsory redundancies.

Mr Lewin revealed that some staff were already in the process of moving to their new desks, but the transition for others would be subject to Tynwald approval of the changes.

Mr Skelly added: ’Transition is never easy because there is a fear factor.

’What we have done is spend a considerable amount of time with our people, particularly to explain in great detail what the change of functions would mean in terms of their transition to other parts of government.’

The department had been conscious not to rush change for that reason, he said.

Committee chairman Michael Coleman MLC asked what the logic was behind the planned switch of responsibility for the Villa and Gaiety to the Department of Education and Children.

Mr Skelly said it was to fit with the education department’s cultural remit, saying that while ’in yesteryear’ the Villa was mainly a tourism complex, the vast majority of those who used it these days were local.

The department name will change when the transfer of functions orders are approved and is likely to take effect in December.