Empty ferry seats is a missed opportunity to boost tourism, says MHK

The ferry operator is publically owned but is run at arm's-length from the government

Allowing "empty seats" on the Isle of Man's publicly-owned ferry operator is a "wasted opportunity" to revitalise the tourism sector, an MHK has said.

Stu Peters asked whether the Treasury, as the Isle of Man Steam Packet Company's only shareholder, could encourage lower fares.

Treasury Minister David Ashford warned interfering could "distort the market".

The company sets its own pricing structure but must meet financial objectives set by the government.

The Steam Packet must maintain profitability and solvency under those terms, which also require reserves to held and debts kept to a minimum.

The company, which is run at arms-length from the government, operates daily sailings between the island and Lancashire all year round, with additional crossings to Liverpool between March and October.

'Dynamic role'

Mr Ashford said there was "little doubt" nationalising the company, funding the new £80m Manxman vessel, and setting financial goals would suppress price rises, while still ensuring investment could continue.

In Tynwald, Mr Peters argued the arrangements should be revisited to ensure the ferry operator had a more "strategic and dynamic role" to help the visitor economy recover from the pandemic.

"Cheap, innovative packages" could be offered to encourage visitors to fill empty seats on sailings at "vastly reduced costs" in return for accommodation bookings to benefit the economy, he added.

Treasury gave the company an extra £5 million earlier this year after it lost £10.5 million in 2020 due to Covid-19's impact on travel, and Mr Ashford warned "time was needed for things to settle down".

The ferry operator would have a "large role to play" in plans to revitalise the economy, but the government had to be "careful" not to become a "market distorter" of travel prices, he added.