Isle of Man Steam Packet Company welcomes Chief Minister’s comments on pricing structure and future funding of vessels
Chief Minister Alfred Cannan’s interview on Manx Radio’s Perspective programme was a welcome opportunity for the public to understand a little more about the context in which IOMSPC is operating.
The Company welcomes the Chief Minister’s comments about the progress made in relations between the Board and the Isle of Man Government.
The Isle of Man Steam Packet Company has engaged proactively and productively with Treasury, Isle of Man residents and a wide range of Isle of Man stakeholders over the past year to ensure it is working to offer best value for money to all users, and to its ultimate owners, the Isle of Man taxpayer.
Following the Government conference in September 2024, the Steam Packet made a series of changes to fares to bring greater value to local residents including children travel free. While there is still work to be done, the Isle of Man Steam Packet Company is very clear that it is working hard to provide local economic benefit and serve the needs of our Island Community.
We acknowledge the Chief Minister’s comments regarding the challenge faced by all ferry operators in terms of balancing affordability for users with also being in a position to fund future investment.
Over the course of the next 5 years, the Board of the Isle of Man Steam Packet Company is expecting to have to invest approximately £100m to £120m on a replacement for HSC Manannan, whilst maintaining its operational fleet at an annual expenditure of circa £12.7m.
As with Manxman, it is expected this will be funded by a combination of the Group’s profits and additional debt, at zero cost to the Isle of Man taxpayer. Furthermore, the Group continues to repay its annual debt and interest obligations of £7.5m per year to the Treasury, again, funded by operating cashflows.
We will continue to work with local stakeholders and our shareholder to build a Ferry service that offers the best value to our Island.
We look forward to providing a more in-depth update at the Isle of Man Government Conference on September 23rd.