A shake-up of the Government Catering Service is creating uncertainty for staff.

Long-serving manager Derek Peters has been replaced with an interim manager, who has been tasked to turn the loss-making service round within six months.

Health chiefs insist the service - which provides catering in hospitals, primary schools, the National Sports Centre, University College Isle of Man and Meals on Wheels - is operating as normal.

But they added that no options are being ruled out to improve cost-efficiency - and that could include possible future outsourcing of the operation.

Unite union leader Eric Holmes said he was ’extremely annoyed’ at the lack of consultation.

He said he and Prospect union negotiations officer Angela Moffatt were called to a meeting with DHSC financial controller Tim Mansfield, finance director David Catlow and head of human resources Jon Callister last week.

Mr Holmes said: ’The service has not been run efficiently but the DHSC believes they can turn it round with the staff and trade unions - and to achieve that within six months.’

He added: ’Staff, as you can imagine, are concerned about mass redundancies and outsourcing. There is the risk that there could be redudancies or redeploment but it is the intention of all parties that we can make this work.’

Mr Holmes said he would be meeting with the new interim catering manager tomorrow (Friday) to clarify the situation.

It is understood that Mr Peters has been transferred to another position with DHSC, off the Noble’s site.

DHSC chief executive Malcolm Couch confirmed that the catering service made a ’signficant’ six-figure loss.

But he said: ’I do think we can turn it round.’

He explained that there are discussions about transferring catering responsibilities for primary schools, the college and the NSC to the education department. Secondary school catering staff transferred from DHSC back to the DEC in April.

Mr Couch said there would a review after six months and if the financial situation had not been turned round other options would have to be considered. Alternative means of service delivery, including outsourcing, ’has to be an option’, he confirmed. Imposing cost cuts was another option including reducing the number of staff.

A DHSC spokesman said: ’The Government Catering Service continues to operate as normal. The department is working with colleagues across the catering service to explore options to improve efficiency. Although there are no immediate changes, no options have been ruled out.’

He confirmed no one has been made redundant.