The extent of financial problems at government’s central catering service was laid bare in the House of Keys on Tuesday, when a net overspend of £719,000 was confirmed

The difficulties came to light last month when it was revealed the Department of Health and Social Care had appointed an interim manager, with a six-month target to turn things around at the service, which provides catering in hospitals, primary schools, the National Sports Centre, University College Isle of Man and Meals on Wheels.

The Manx Independent revealed what was happening on page one of November 23’s paper.

Department member Jason Moorhouse, standing in for Health Minister Kate Beecroft, who was unwell, admitted to MHKs that the performance of the service had been a concern ’for some time’.

He said: ’The financial performance of the catering service, as at October 31, was a net overspend of £719,000 against its target budget.

’The savings originally envisaged, when the shared service was created, have not been made.’

The estimated net spend of the service for 2017-18, contained in the Budget, was £2.36m.

He added: ’In terms of the future strategy, following the transfer of secondary schools catering earlier this year, we expect to see primary school catering and the NSC and UCM restaurants also returning to the Department of Education, Sport and Culture at or before the end of this financial year.’

However, Education Minister Graham Cregeen was keen to point out, ’for clarity’, that nothing had been decided.

’Discussions are underway between the departments and no decision has yet been made regarding catering services coming back to Education,’ he said.

The issue was raised by Tim Baker (Ayre and Michael), who called for a statement in the light of the problems at the services.

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

Health chiefs said no options were being ruled out and admitted that could include outsourcing.

It has caused staff to fear their jobs are under threat, say unions.

Mr Moorhouse told the Keys: ’I am conscious of speculation about outsourcing of the catering service and I would like to make it clear that is my earnest wish to turn performance around and for it to remain as a financially viable public service. ’

He also a gave a breakdown of where the overspend had occurred.

’The bulk of it is hospital services,’ Mr Moorhouse said. ’They include Noble’s, Ramsey, the coffee shop and staff restaurant. That is £519,000. The commercial - the NSC and staff canteen - is £36,000, and education, £164,000.’