Tynwald committee to review ferry service contract

The Sea Services Agreement was introduced in early 2020

The service contract between government and the Isle of Man Steam Packet Company is set to be reviewed by a Tynwald committee.

The court had been asked by Jason Moorehouse MHK to assess the potential of regulating the island's government-owned ferry firm.

But members instead chose to back Michelle Haywood MHK's proposal to form a select committee to the review the Sea Services Agreement, which was introduced in 2020.

Dr Haywood said there was a "growing sense of frustration" about decisions made by the company.

The Steam Packet said it was unable to comment on the committee's creation until the terms of reference of its remit had been received.

The three-strong panel of MHKs Ann Corlett, Jason Moorhouse and Dr Haywood is expected to take evidence from the ferry firm's board and "relevant government departments".

It will also consider the sole shareholder status of the Treasury.

The 25-year agreement, which is due for review every five years, includes conditions on fares, routes and the frequency of sailings.

Mr Moorhouse had asked politicians to back an independent assessment by the Communications and Utilities Regulatory Authority, which he said could lead to extra protection for users.

'Public relations disasters'

But Dr Haywood said "frustrations" were growing among some members about the "apparent lack of understanding" by the ferry company's board about the "political, social and economic impacts of their operations".

She said a direct political representative on the ferry company's board would help it to "understand some of the ramifications of the decisions they take and to help them avoid future public relations disasters, such as issuing fire and rehire notices in the days before Christmas".

Some officers were served notice papers on 22 December in an ongoing dispute with the union Nautilus over new contracts that would see staff live aboard the new Manxman vessel rather than go home during rest periods while on shift.

The letter were later withdrawn and the union's industrial action was halted after the two parties agreed to more talks facilitated by Manx Industrial Relations Service.

A report by the panel is expected to be completed by the end of September and debated by the December 2024 sitting.