Committee Recommends Review of Ferry Firm’s Arm’s Length Operation

An examination of the arm’s length management of a government-owned ferry company is among several recommendations put forth by a committee investigating the island’s services. The Tynwald select committee was established in January with the purpose of reviewing the Sea Services Agreement (SSA) with the Isle of Man Steam Packet Company. The panel concluded that there had been a “missed opportunity” to renegotiate the contract between the parties when the government acquired the ferry firm in 2018. The committee advocated for the development of a new sea services framework for the Isle of Man by the close of 2025, with consideration given to establishing it as a statutory board. Currently, the ferry firm operates independently, managed by a board of directors, with the Treasury serving as its sole shareholder. The existing 25-year SSA, drafted in 2020 and based on previous linkspan user agreements, outlines conditions regarding fares, routes, and the frequency of sailings. Committee members MHKs Ann Corlett, Jason Moorhouse, and Michelle Haywood stated they found “no consideration” was given to whether the agreement constituted the “best approach to deliver social and economic value from the service”. The panel concluded its evidence gathering in early November, and Michelle Haywood was subsequently appointed infrastructure minister later that month during a ministerial reshuffle. The committee’s final report, scheduled to be presented to the island’s parliament in January, also determined that the Department of Infrastructure had a potential conflict of interest due to its responsibilities for regulating the agreement and overseeing harbours. It proposed that the Department for Enterprise would instead be “best placed” to lead a working group, including representatives from the treasury, infrastructure, and environment departments alongside the ferry firm, to formulate a new framework for sea services by the end of next year. The committee further noted that while it agreed with the principle of “limited political and government interference in the day-to-day running” of the firm, this “important national strategic infrastructure asset would benefit from greater direct political support”. Consequently, it advised that the Council of Ministers should “consider the practicalities of transitioning the firm into a statutory board”. A spokesperson for the Steam Packet indicated that the company was unable to comment until it had “fully reviewed the findings and their potential impact on our operations”, though the firm reiterated its “committed to our role as the island’s lifeline”.