The government will still negotiate with the Steam Packet over a new user agreement - even though it owns the company.

Infrastructure Minister Ray Harmer has refused to be drawn on any plans the government may have for a replacement vessel for the Ben-my-Chree when it reaches the end of its service. He said the long-term future was a matter for negotiations over the new user agreement.

But Kate Beecroft (LibVannin, Douglas South), who had asked what the strategy was for when it was time to replace the vessel, was unimpressed.

She pointed out the government was the shareholder of the Steam Packet, so to use negotiations over the user agreement to not reveal any strategy was ’smoke and mirrors’.

The former minister added: ’It is hardly likely that as shareholders of the Steam Packet Company they are going to disagree with the government about negotiating a new user agreement before the due dates.

’So they should have a strategy of what they are going to do before those dates, because they could actually alter the terms before those dates if they chose to do so.’

But Mr Harmer said the Steam Packet had to stick with the current user agreement and that, in the meantime, it was ’business as usual’ for his department.

’We will need to negotiate the new user agreement with the Steam Packet, and that we will do,’ he insisted.

The government bought the Steam Packet in a £124 million deal, becoming a 100% shareholder of its parent firm, but said it would keep the running of the company at ’arm’s length’.

He told Mrs Beecroft - who voted against the deal - that the future freight strategy was a matter for the Steam Packet.

’We have got to be very careful that we could end up having conversations about all sorts of things about the Steam Packet,’ he warned.

’It is the Steam Packet’s responsibility. Obviously, as part of the May Tynwald sitting we said we would have a new user agreement. At the moment the current user agreement expires in 2020, or 2026 if extended by either party.’

He said the new user agreement would be important in determining how the Ben was used, but added that recent inspections should the Ben-my-Chree was fit for long-term continued use.

’While the new sea services agreement has yet to be agreed, as a third vessel it is highly likely that the Ben-my-Chree will remain in service for the duration of the new agreement,’ he added.