The boss of the Steam Packet has been on a farm tour to “understand a bit more about the challenges in the agricultural sector”.
Managing director of the company, Brian Thomson was invited by Paul Costain to visit his agricultural operations at Moorhouse Farm in Rushen.
Mr Thomson says that he “got a lot out of the visit” and the tour enabled himself and Paul to “understand more about each other’s day-to-day challenges”.
He says that he hopes “we have found some opportunities to improve things going forward”.
Grow Export Trade
The Steam Packet boss says that the company’s door is “open to businesses with proposals to grow the Isle of Man’s export trade”.
After saying this at the Government Conference last month, Paul Costain took the boss of the “island’s lifeline” at his word and invited him to his property to explain the challenges in the agriculture sector.
Mr Thomson said: “In return I was able to explain more about what we’re doing as a business to support the economy operating the lifeline service to and from the Isle of Man.
“I would like to repeat my message to all businesses on the island: we are here to listen to serious proposals to support economic growth and provide opportunities to develop new business propositions.
Brian Thomson, Managing Director of the Isle of Man Steam Packet Company
“We have a number of initiatives in the pipeline that will make doing business with us easier, and we’re open to listening to how we can be more business friendly,” Thomson added.
Export Struggles For Farmers
Farmers on the Isle of Man are becoming more dependent on exporting their produce as the local routes to market are diminishing.
The only option for Manx farmers to export their produce off island to the United Kingdom and further afield is via sea, with the Isle of Man Steam Packet Company.
An independent report revealed that the Steam Packet has freight costs among the highest in the world based on similar operations.
Steam Packet Costs
The report which was commissioned by the Manx National Farmers Union (MNFU), was conducted by Birnie Consultancy.
It identified that the costs of export of agricultural products on and off the Isle of Man, are high from a total cost and a cost per mile perspective and these costs are inhibiting the export of food products from the island.
It also found that the high charges are contributing to much higher input costs for farm businesses, leading to reduced profitability and in some cases viability.
Could RET Save The Day?
The Birnie Report explores the Scottish model of Road Equivalent Tariff (RET).
This is a system where farmers in remote parts of Scotland pay for the shipping what be the price had the goods gone via road.
It is a theoretical means of setting ferry fares based on the costs of traveling an equivalent distance by road.
The MNFU has stated that a ‘road haulage equivalency scheme’ similar to the RET in Scotland, would be a potentially sector-saving decision for Manx farmers to allow them to export products at an affordable rate.
A decision for a road haulage equivalency scheme would ultimately have to be made by Treasury, and is not under the remit of the Steam Packet Company.
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