An MHK accused the Steam Packet of ’sharp practice and chicanery’ over its ’morally reprehensible’ use of Guernsey payroll company.

But Douglas South MHK Paul Quine’s comments in Tynwald this week were described as ’entirely out of order’ by the Treasury Minister.

Mr Quine said the state-owned Steam Packet hire their on-board crew through Guernsey agency Manx Sea Transport.

He said crews directly employed by airlines had their home base at Ronaldsway and in the same way the home base of Steam Packet crews was ’without question’ Douglas.

’And certainly not Guernsey,’ he said:

’And therefore this cocktail of sharp practice and blatant chicanery which continue to be used by the executive management of the Steam Packet is morally reprehensible’.

Treasury Minister Alfred Cannan said: ’I have to say those comments are entirely out of order and really should be withdrawn as he is going to get himself in serious trouble.’

He said there was no reason to believe that the Steam Packet was acting inappropriately.

’The Steam Packet are paying their proper fair share of tax and national insurance to the Isle of Man government - I have no evidence to suggest otherwise,’ he said.

He said shore-based staff are directly employed and the vast majority are resident in the Isle of Man and pay their relevant taxes in full here.

Mr Cannan said: ’This is a shipping business, shipping businesses have a variety of international crew on board and have various different arrangements for payroll.

’My understanding that it is in the company’s best interests and efficiency when dealing with these matters to run an international payroll structure that avoids them paying unnecessary fees to different organisations.’

employed

Mr Quine had asked what plans Treasury had to ensure all crew members on vessels owned and operated by the Steam Packet are employed directly by the company.

Mr Cannan replied: ’Tynwald voted to run the company at arm’s length.

’As far as I’m concerned, there are no plans to change the arrangements for the employment of crew.

’This remains an operational matter for the board and the executive and I understand crew will continue to be employed by a direct subsidiary of the company.’

Lawrie Hooper (LibVan, Ramsey) said the sea services agreement specified that the majority of Steam Packet staff should be resident for tax purposes in the Isle of Man.

Mr Cannan replied that if ’Tynwald members want the Steam Packet to incur greater costs, or to micro-manage its business’, he would arrange for the company’s bosses to appear before the court to answer questions.

’There is no reason they couldn’t appear before the public accounts committee,’ he said.

’If members wish to start running the business, as some clearly now do, then we will obviously have to change the initial basis of the vote.’