The boss of one of the Steam Packet’s biggest customers says he fully supports the government’s acquisition of the ferry company.

John Quaye, chairman of haulier firm Manx Independent Carriers, said: ’I believe that a government-owned Steam Packet is definitely best for the island community now and into the future.

’I think this is a good move and probably one of the best things to come from Howard Quayle’s government. I’m right behind it.’

Mr Quaye said if a new user agreement had been signed with the current owners, they would have immediately hawked it around the financial markets and sold it on at a price that would burden the business with more debt.

He said the alternative of waiting for the expiry of the current user agreement in 2026 and starting a new company was not viable.

’First of all the cost of new vessels and infrastructure would be significant in any case but secondly you can bet that the instructions from the Packet’s current owners would be to cut costs and sailings and to maximise profits,’ he said.

Mr Quaye said not many businesses can lay claim to a 20% margin. ’No wonder that the business was able to service such a large debt,’ he said.

But he said the large profit was totally down to the current harbour user agreement.

In January this year freight rates increased by 6.4% and Mr Quaye said he was certain that the Packet’s costs had not increased by anything like that amount.

Mr Quaye said he had no issue either over the £76m loan. ’Doesn’t the government have reserves of over £1bn invested all over the world?

’Why not invest nearer to home?’

He said he supported the idea of a bond issue to enable government to recover some of its outlay and he supported the news that the current Packet management are to remain.

’The current vessels have a good few years of life in them and if the current profit is set aside for five years then one vessel could be bought for cash,’ he added.

TravelWatch described the proposal as a ’once in a lifetime opportunity’ to address the island’s sea transport needs - but added it is too important to be kept solely behind closed doors.

’There are still detailed legal and contractual matters to be finalised, and it is vital that the informed views of the island’s business and passenger communities are taken into account,’ it said.

It said government should learn from the experience of the current user agreement, and suggested a Passenger Focus-style organisation so that ferry users’ views can be expressed and considered.

TravelWatch also suggested further consideration be given to the most appropriate types of vessels.

It also wondered whether reliability would be improved by having two all-weather vessels, with the fast craft replaced by a fast conventional vessel.