Spending £20m-plus on a new terminal in Liverpool for island ferries is an ’excellent deal for the taxpayer’.

That’s the view of Chief Minister Howard Quayle who said the investment will protect both ends of a key transport link - and the costs will be recouped through the ferry operator being charged for using the new facility.

Meanwhile, the Steam Packet says it has agreed to use - and pay fees for - the new terminal until the current user agreement ends and would commit to doing so beyond that as part of a new strategic sea services deal.

Our sister title the Manx Independent reported last week how the taxpayer is set to foot the entire bill of £20m plus for the new terminal at Princes Half-Tide Dock, including land purchase, design and construction.

The Chief Minister said the strategic value of the site has been highlighted by the confirmation of proposals for Everton’s new stadium not far down the river at Bramley Moore dock.

And just upstream, Liverpool City Council is planning an international cruise liner terminal.

Mr Quayle said: ’We are going to be in the centre of this. This is expenditure on investment in a key area. The Liverpool route is vital for the Isle of Man and having control of both ends of the route would give us added security.

’Whoever is the preferred operator of the user agreement will obviously be charged for using our facility and we will recoup the money in that way. We are not going to see fares rise as a result.

’This is an excellent deal for the taxpayer.’

Back in 2014, we reported that Peel Ports would invest £15m in a new landing stage at Liverpool but would require a long-term financial commitment from the Steam Packet before doing so.

Then in its offer to government last year over a new strategic sea services agreement, the Steam Packet suggested it could work with government to agree a financing plan for a new terminal.

In July last year Tynwald approved spending of up to £3.5m to purchase a site for the new Liverpool ferry terminal at Princes Half-Tide Dock.

Steam Packet Company chief executive Mark Woodward said: ’We initially started discussions with Peel Ports about securing new facilities away from the existing landing stage.

’The company would have funded this by way of a long-term commitment to the Liverpool route. However, the Isle of Man Government decided it wanted to secure and control any new facilities at Liverpool, and as a result of this decision Peel Ports chose to suspend discussions with us.

’However, we have agreed to use the government’s new facility in Liverpool - and pay fees towards that use - until the end of the existing user agreement.

’Looking further ahead, the Steam Packet Company is prepared to commit to using the new Liverpool facilities beyond that, as part of a new Strategic Sea Services Agreement, which we submitted to government last year and for which we await a decision.’

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