Treasury Minister Dr Chris Thomas has confirmed the Isle of Man Government is not currently considering any direct intervention to subsidise or offset the fuel surcharge applied by the Isle of Man Steam Packet Company.

It was recently announced the Steam Packet would introduce a 25% increase in its freight fuel surcharge, which came into effect on April 1.

Responding to questions during Tuesday’s House of Keys sitting, Dr Thomas said that while government was ‘considering options’ to support households and businesses amid wider energy price volatility, any measures would need to be ‘targeted and fiscally responsible’ in line with previous comments from Chief Minister Alfred Cannan.

However, he made clear that ‘at present, we are not considering directly intervening by subsidising or otherwise directly offsetting the fuel surcharge’.

He added: ‘The fuel surcharge rebate is an additional amount added or taken away from the Steam Packet’s regulated fares governed by clause nine of the Sea Services Agreement.

‘The Sea Services Agreement is between the Department of Infrastructure and the Steam Packet, so does not require either party to consult with or gain the approval of Treasury.

‘As a result, Treasury has not undertaken formal discussions with either.’

During the sitting, members raised concerns about the impact of rising ferry costs on local businesses and questioned whether government had considered intervening sooner.

Dr Thomas also acknowledged concerns raised by the Chamber of Commerce, whose recent survey found around 70% of respondents supported government intervention.

‘I acknowledge the concerns raised by the Chamber and can confirm that the government is considering options around how to support households and businesses,’ Dr Thomas added.

‘We will ensure that robust, proportionate contingency plans are in place.’