The government is considering ’flipping’ work permit rules, so that they would be only required for specific professions.

The Department of Economic Development this week launched a consultation on proposed work permit reforms.

It has listed seven proposals, including reforming the current process to a single stage employer-only application, simplifying the matters considered for granting a work permit, the granting of longer work permits and assisting cohabiting partners of Isle of Man workers, work permit holders and exempt persons through the granting of automatic permits.

A spokesman added: ’The department is also seeking comments on the idea of "flipping" the current system so that, rather than everybody who is not an Isle of Man worker requiring a permit unless the employment is exempt, there would be no requirement for permits other than in the cases of a minority of designated employments and persons of a particular description - e.g. persons previously sentenced to a term of custody.’

Economic Development Minister Laurence Skelly said case for reform was ’compelling’, with labour shortages across many sectors of the economy.

’This, paired with a high number of job vacancies, is creating an island-wide skills shortage which has the potential to deter businesses looking to grow in the Isle of Man,’ he said.

’The 2016 census indicates there has been a reduction in the economically active population and that the dependency ratio is worsening.

’Although the recent indications are that this trend has reversed, ensuring the island is an attractive destination for those seeking work is critical.’

He added: ’While the department does not intend to abolish work permit controls, there are strong grounds for additional reforms to ensure the legislation is in keeping with the evolving needs of the island.’

He said the proposals were ’intended to make key changes to the operation of the system to ensure that employers can act swiftly when recruiting to roles where they have not been able to find suitable, available Isle of Man workers’.

Mr Skelly insisted any reformed system would continue to protect the interest of Isle of Man workers.

If the department pushes ahead with any of the proposals, it would need to bring legislation before Tynwald in the autumn.

The closing date for responses to the consultation is August 31.

The work permit situation was also raised in Tynwald this week, when Bill Shimmins (Middle) commented: ’No one could accuse the government of moving too quickly on this matter.

’The skills shortage causes real damage to the economy and public services.’

He asked where work permit reform came on the DED’s priorities. Mr Skelly said it sat ’very high’ on the list.

Responding to concerns that some of the proposed changes could attract unskilled labour, Mr Skelly told Tynwald: ’There is a shortage in all industries.’

But he added: ’We must not look at the work permit system as the silver bullet. We must consider training as well at the same time, and succession planning from within.’