Steam Packet Nationalised
The Isle of Man Steam Packet is to be Nationalised with £124.3 million of your money.
Tynwald has voted this afternoon in favour of a motion from the Treasury Minister Alf Cannan, to use the Island's reserves to buy the company from the current owners.
The deal comes with an ageing fleet that requires replacement soon – a burden that will also fall on the taxpayers within the next five years.
The announcement that the Manx Government were to buy the Steam Packet came as a shock last week and almost certainly dashes any hopes of a competitive tender for the Island’s sea routes. The DOI claimed that there were credible interested parties when they advertised for expressions of interest, however it looks certain that the Government will now keep out any competition in favour of its new ferry company.
Critics say the Government is offering too much money for the Company whose existing user agreement expires in a few years time.
Kate Beecroft was the only Member of Tynwald to vote against the purchase.