The final cost of the Liverpool ferry terminal remains unresolved as legal disputes delay the settlement of accounts.
Treasury Minister Dr. Alex Allinson confirmed the latest update to the saga in Tynwald.
The project, which was expected to have its final costs determined by early July, is now subject to ongoing negotiations with contractors, leaving the total expenditure unclear.
During questioning by Chris Thomas, Dr Allinson stated said: “Treasury cannot be currently certain of the exact final cost. The matter is subject to legal privilege, so as not to jeopardise any legal recourse.”
He assured members that once the final figures are confirmed, a supplementary vote would be sought to regularise the budget.
Far From Normal
Mr Thomas pressed for details, pointing out that under the type of contract involved, costs are typically finalised within 65 weeks of project completion.
The terminal was handed over on April 5 2024, but Dr Allinson acknowledged the project had been “beset by a whole range of issues,” making it far from a normal contractual process.
Concerns over transparency were raised by Jason Moorhouse, who questioned whether the final costs might be announced after Tynwald’s sitting, preventing further scrutiny.
Dr Allinson told members: “I don’t have the total final cost, but once that becomes available, or at least an indicative cost becomes available, that will be brought forward to this honourable court.”
Estimated
Mr Thomas sought reassurance that Treasury still held estimated cost ranges, referencing past oversight meetings where minimum, expected, and maximum forecasts were reviewed.
Dr. Allinson however said: “I have at no point used the words ‘no idea.’
“I said Treasury cannot be currently certain of the exact final cost. Public funds are being looked after, they have been throughout this challenging project.”
Julie Edge asked about the terminal’s insurance valuation, but Dr Allinson said this fell under the Department for Infrastructure’s remit.
He added: “I suspect it will be based on a real rebuild cost of the actual building itself, rather than anything else,” noting that significant expenses had gone into ground preparation and harbour wall reinforcement.
Tanya August-Phillips MLC raised concerns about accountability, asking how Treasury was implementing recommendations from the Public Accounts Committee’s ferry terminal project report.
Dr Allinson confirmed that contingency amounts for future large-scale projects had been reviewed and increased, stating: “Certainly in terms of the Liverpool ferry terminal, that contingency amount, in retrospect, was not sufficient.”
He also revealed that legal costs had risen due to ongoing disputes but declined to provide further specifics until the matter is resolved.
When the need for a new terminal was first confirmed, Tynwald never had to get involved, but politicians chose to interfere in what should have been between the Steam Packet and Peel Ports, lumping islanders with another massive scheme.
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