The Treasury has refused to answer the concerns raised by industry leaders regarding the pricing structure of the government-owned Steam Packet.
Figures from the tourism sector have spoken out about how the pricing of the ferry services to the Isle of Man is negatively affecting their businesses.
The Isle of Man Steam Packet Company were more than obliging to answer questions, however it rightly so, diverted several questions to its sole share-holder, the Treasury.
Tourism Concerns
In a Manx.News special report, we asked members of the tourism industry and the Manx National Farmers Union (MNFU) how the pricing is affecting their industries.
Members of the tourism industry told Manx.News that they have experienced potential visitors cancelling accommodation once they have gone to book transport to the island.
Tim Baggley, director of Regency and Penta Hotels said: “I’ve seen people who have booked the hotel with us, decided to stay at one of our hotels, but then they cancel because they’ve seen what the cost is of a car and two passengers”.
Tim wasn’t the only person to experience this, as John Keggin, managing director of Island Escapes, says similar has happened to him:
One of our biggest frustrations is when somebody finds one of our properties online, they book it online, and then they go to book the ferry for example or a flight and then they go, ‘oh this is far far more expensive than I was expecting’.”
He added: “They then say, we are really sorry but we just can’t afford this, we are going to have to cancel”.
Freight Charges
A report which was commissioned by the Manx National Farmers Union (MNFU) earlier this year identified the high costs of export of agricultural products on and off the Isle of Man.
It also revealed the cost per mile and how 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.
Ean Parson, president of the MNFU and Sarah Comish secretary of the union explained that the figures quoted are that of the Steam Packet Company’s standard fares, along with genuine industry invoices.
However, the Steam Packet’s managing director Brian Thomson said he “doesn’t recognise” the figures quoted.
In the programme, Mr Thomson says “for exporting goods we will give a discount”.
He encouraged those producers who are struggling to pay the fares on freight to go to him directly and see what the company can do to make it “viable”.
The MD told us that he “hasn’t spoken to anyone” from the agricultural industry that would like the to discuss the discounted fares from the company.
The MNFU dispute these claims, and say they have been in meetings with the company to discuss the fare structure.
The union says it isn’t aware of anyone within the industry that has been able to obtain the “discounted fares that are talked about”.
Treasury Refuse Accountability
Manx.News contacted Treasury for an interview to bring to its attention the comments raised.
A spokesman for the Treasury asked for us to send the questions before it would grant an interview with Minister Dr Alex Allinson.
Once the questions were sent, the department declined our invitation to take part or respond to the concerns raised by business leaders.
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