Treasury Minister Chris Thomas has ruled out considering any direct intervention to subsidise or offset the Steam Packet’s fuel surcharge.
Responding to questioning in the House of Keys, Mr Thomas said the surcharge is governed by clause nine of the sea services agreement between the Department of Infrastructure and the Steam Packet Company.
“The sea services agreement does not require either party to consult with or gain the approval of Treasury,” Mr Thomas said.
He acknowledged concerns raised by the Chamber of Commerce, whose recent survey found around 70% of respondents wanted government intervention.
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Mr Thomas said: “We are considering options around how to support households and businesses during the current energy price volatility. At present, we are not considering directly intervening by subsidising or otherwise directly offsetting the fuel surcharge.”
Jason Moorhouse pressed the minister on whether Treasury had assessed the impact on local businesses. Mr Thomas reminded members that the sea services agreement is a 25-year deal.
Rob Callister asked for reassurances that businesses were not being overcharged, with Mr Thomas saying the calculation is “very, very precise” within the agreement.
Lawrie Hooper pointed to a Covid-era variation of the agreement, asking why no similar intervention was warranted now.
However, Mr Thomas replied: “Subsidies don’t necessarily achieve the purpose that we want to achieve.”
He added: “There are big government people in here who spend public resources more quickly than those who prefer to wisely target the use of public resources.”