Barclays is considering locating high-value e-business services on
the Isle of Man, according to the bank's head of e-business
strategy, Stuart Brocklehurst.
Antony AdsheadHe said, "To date the issue of location for e-business has
revolved around where in Clerkenwell, London, to rent premises. For
businesses looking to set up online ventures which anticipate major
revenues, the tax regime and legislative environment of the Isle of
Man could be favourable."
The Isle of Man has been promoting itself recently as a haven
for e-business, citing its favourable legislative, tax and
communications infrastructures.
Last year the island's government passed e-business legislation
validating digital signatures to attract organisations seeking to
avoid the UK's Regulation of Investigatory Powers (RIP) Act.
Telecommunications facilities on the island are well developed
with grants available for free installation of ADSL high-speed
Internet and a 1.2 terabit per second link to mainland Britain and
Northern Ireland.
Manx Telecom - a BT subsidiary - is to introduce third
generation (3G) mobile phone services in April 2001.
The island's government plans to lower business and personal
taxation to 10% over the next five years as well as create a number
of allowances and deferrals.
The island is being seen as a test bed, both for the business
use of new communications technologies such as 3G and ADSL and for
new business models which can benefit from a more liberal and
speedier legislative process.
Brocklehurst said, "The business infrastructure on the island
allows us to try out new business models in a less restrictive
environment than the mainland. To change legislation in the UK
parliament is a lengthy process but in the Isle of Man business can
take advantage of a shorter legislative cycle."
Gartner vice-president for e-business Alexander Drobik was more
cautious. "The Isle of Man does not have the RIP Act so one could
argue that business would not be as burdened by this as on the
mainland. In general there is less regulation and legislation to
worry about.
"But the crucial questions are: does it have the bandwidth; does
it have the skills; does it have the technical and commercial
structures? Here the Isle of Man might struggle."
antony.adshead@rbi.co.uk