27 July 2026
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Politics

Fears Delay on New Sea Services Agreement Could Cost Taxpayer Money

Delays to a new Sea Services Agreement could mean be extra cost to the taxpayer.

That was the fear raised by Ramsey MHK Lawrie Hooper.

Direct negotiations between the government and the Isle of Man Steam Packet over any possible revision to the Sea Services Agreement have yet to take place.

Infrastructure Minister Tim Crookall told Tynwald that while his department had completed its preparatory work ahead of any negotiations with the Steam Packet, there was still work on the “socio-economic” side to come.

Hooper, a former Department of Infrastructure member, wanted to know what the cost implications were.

He said: “I understand the department is currently bearing the costs for operation and maintenance of the ferry terminal in Liverpool, much of which would be hopefully passed onto the Steam Packet as part of the agreement.

“The fact this has not happened leads me to conclude that these significant costs are being borne by the taxpayer, via the DoI, at the moment.”

Progress being made

Crookall said progress towards a revised Sea Services Agreement with the Steam Packet was being made “through the development of the new sea service framework”. The Infrastructure Department had completed its part of reviewing the existing agreement but the “principal remaining work” related to the socio-economic side and supporting material, which was being led by the Department for Enterprise.

“Following the review it is hoped that the new agreement with modernised provisions that better accommodate socio-economic conditions will be put into place,” Crookall said.

The framework needed to be complete before formal negotiations with the Steam Packet over any amendments to the Sea Services Agreement, which is designed to ensure the security of lifeline services.

“It must be stressed this is an agreement between the Isle of Man Steam Packet Company and the government and both parties must be agreeable,” said Crookall.

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