The Chief Minister has stated that he does not believe the Steam Packet should be operated with the goal of offering the absolute lowest prices.
In order for this to happen the company would need to receive taxpayer subvention, which is something Alf Cannan MHK is against.
Mr Cannan’s view is that if you want the company to deliver successfully and be able to pay for itself, it shouldn’t rely on subvention.
No Subsidy
Speaking on Manx Radio’s Perspective about subsidising the Steam Packet, the Chief Minister said: “I think that would be a big mistake.
“That will be another drain, and that will be less resources available for health and for education.
“But by the same token, it needs, the company needs to deliver the best value it can for us, both as residents, but also for us economically, in terms of the goods and an infrastructure that’s been supplied to the island, but also its capacity to bring tourists to the island and to help support our economy.”
Help For Businesses?
Perspective host, Phil Gawne, explained how many businesses on the island point to freight charges on and off the island as being a cause of concern.
Mr Cannan responded saying: “People say, you know, cut the freight costs. But the problem is, if you’ve cut the freight costs, is that going to be passed on to the consumer, or is the profit going to be pocketed by the business?
“And are they still going to price the goods at the same price as you can get them across at the UK? And I don’t think it’s a simplistic issue, I think, when it is more nuanced than that, absolutely, from a personal perspective, from a council of ministers perspective, we want the best value.
“We want the Steam Packet to perform for the best interests of our economy.
“We want to see prices affordable for everybody and set at the right level, basically, so that the company can run comfortably without taxpayer subvention.”
You can hear this part of his exchange with Manx Radio’s Phil Gawne below or the whole show here.
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