An update on whether controversial plans for corporatisation of the Post Office will go ahead could be given at next week’s Tynwald sitting.

Douglas North MHK David Ashford was originally due to ask Treasury Minister Alfred Cannan about what the situation was at last week’s House of Keys sitting, but withdrew the question.

He explained the Treasury had requested more time to prepare a response. He plans to raise the matter in Tynwald on May 16 instead.

Mr Ashford said he had no fixed opinion on whether corporatisation was a good idea.

’I am in the middle at the moment,’ he said. ’I can see the benefits of it, but I can also see the pitfalls.’

He wanted to know whether the plan was to still follow the route to corporatisation and whether that policy was being followed ’blindly’, or whether there was an intention to have a ’proper review’.

The issue of corporatisation led to Graham Cregeen’s sacking as chairman of the Post Office last year, when he was at odds with the board’s proposals.

When the matter came to Tynwald in April, there was further turmoil after members voted to support the principle of corporatisation - to turn the Post Office from a statutory board into a government-owned company - but rejected other recommendations.

The recommendations rejected including the proposal that the Treasury minister be the sole shareholder and that Tynwald approve a memorandum of understanding on the Post Office’s purpose, aims and objectives.

Critics claimed there was no clear business plan.

If the Post Office were corporatised, it would operate on a more independent basis from the government.

A report from an independent expert recommended that the Isle of Man Post Office should become a government-owned company rather than a statutory board.

The theory is that that would give the Post Office more commercial freedom to grow its profitable international business, according to postal services consultant Elmar Toime.

The change would be good for the Manx economy and for the long-term viability of the Post Office, said Mr Toime.

It would mean less political involvement in the operation of the service,but the government would retain 100 per cent ownership and set aims and objectives through a memorandum of understanding requiring Tynwald approval.