A proposal on how to refinance the Steam Packet’s debt was passed in Tynwald unanimously in just seven minutes.

The recommendation by Treasury Minister Alfred Cannan was for the company to repay the £76m, lent by the taxpayer to clear its debts, by raising external debt from a financial instution.

Mr Cannan said: ’In short, the document itself explains why we have shied away from public participation, because of the costs of doing so and the negative effects that such costs would most likely have on the overall financial performance of the Steam Packet vis-à-vis translation into their ability to offer, I hope, the best price and deals for the island.’

He said that Treasury believes the interest rate through a private loan ’would be around 2% to 2.5%’.

He admitted it is not the outcome he would’ve desired but that the costs of greater public participation ’outweigh the benefits’.

Mr Cannan added: ’When considered, the returns that we are getting for our overall investments through our investment programme with external investments, we are getting a much higher rate of return, so actually overall it will be more beneficial for us, purely from an investment perspective, to have that money returned to the government.’