The Department of Infrastructure is seeking to put in place the foundations on which to secure the long-term future of the Isle of Man’s ferry services.
The July sitting of Tynwald will be asked to support spending up to £3.5 million to purchase a site for a new Liverpool ferry terminal.
Members will also be called upon to endorse a set of principles to underpin a new strategic sea services policy aimed at securing safe, reliable, high quality and fairly priced ferry operations for the next 25 years.
The Department is recommending that it continues to negotiate with the Isle of Man Steam Packet Company, with a view to presenting a new agreement to Tynwald for final approval in November. This would be subject to the Department seeking further concessions from the Steam Packet in relation to break clauses and the financial transparency of the company.
Infrastructure Minister Phil Gawne MHK said:
‘Robust sea links with our neighbours are absolutely fundamental to the economic and social wellbeing of the Isle of Man. I believe the Department’s proposals represent an opportunity to provide stability for our people and businesses in an increasingly uncertain world.’
He added:
‘After considering a wide range of options, the Department has concluded that the Isle of Man can best safeguard its strategic sea services by purchasing land at Princes Half-Tide Dock in Liverpool for the development of a new ferry terminal and by negotiating a new agreement with the Steam Packet.’
The need for a new ferry terminal in Liverpool is becoming increasingly pressing, with the existing facility nearing the end of its operational life.
The Department is proposing that Government buys a new site approximately 800 metres from the current Pier Head landing stage. It is intended that an open tender would then take place to engage a developer to design and build a new ferry terminal.
Minister Gawne said: ‘If we do not have a ferry terminal in Liverpool we risk losing our most popular sea route. Liverpool is not only the nearest major UK city to the Isle of Man it is our gateway to the North West of England and our route to involvement in the UK’s Northern Powerhouse initiative.’
The Department has emphasised that in order to ensure a return on Government’s investment no work would begin on developing the new landing stage until agreement has been reached with a ferry company to operate from the facility. A requirement to service the Liverpool route would be a condition of a new strategic sea services agreement to replace the existing Linkspan User Agreement.
The Steam Packet presented an offer to Tynwald in May for a new agreement up to 2041, highlighting proposals for a £170 million investment in new vessels, fare controls and improvements to operations and systems.
Minister Gawne said:
‘The User Agreement has had its critics, but it has played an important role in helping the Isle of Man to secure modern ships, market growth, competitive fares and improved services. The recommendations being put forward by the Department will build on this progress and provide resilient, reliable and good value services into the future. If we fail to grasp this opportunity we could face significant difficulties finding a new ferry operator to take over in 2026 when the current User Agreement ends.’
He added:
‘The offer made by the Steam Packet is a good one, but it could be even better. That is why we are asking for Members’ support to continue our discussions over financial transparency and the inclusion of suitable break clauses. I am confident we can present a new agreement to Tynwald in November that will secure the best possible outcome for the people of the Isle of Man and our economy.’
