Infrastructure Minister Ray Harmer has clarified the position regarding the payment of legal fees in connection with the new Liverpool ferry terminal.

Tynwald last month voted overwhelmingly to finance the building of the new terminal at Princes Half Tide Dock.

Members agreed a budget of £26.8m, bringing the total cost to more than £38m, up £6.5m since the planning application was approved three months ago.

The extra £6.5m relates predominantly to additional structural and construction works required to deal with the existing site as well as the quay walls, which are owned by the Mersey Dock Harbour Company.

During the debate, LibVan leader Kate Beecroft claimed that portion of the £1.42m listed as vendor Peel’s ’requirements’ was to pay company’s legal expenses, which she claimed the Department of Infrastructure ’did not realise’ it had to pay.

But in a letter to Tynwald members, Mr Harmer said he would like to clarify the situation.

He said: ’There appears to be a belief that the department has paid Peel Land and Property (Ports) Ltd legal costs it was not aware of at the time of the acquisition.

’This is not the case. The department has not paid any legal costs to Peel nor is currently due to pay any.’

Mr Harmer said the legal fees payable are to Mersey Docks and Harbour Company Ltd, which is separate corporate entity to Peel - although it is part of the Peel Ports Group - and to the Duchy of Lancaster.

The minister said these are third parties to the transaction as neither were involved in the sale. He said the DoI had to enter into agreements with them as their assistance is required for the project and it was ’obviously reasonable’ to meet the disbursements they incurred.