The government took ’bold and direct’ action by not accepting the Steam Packet’s offer for a new sea services agreement earlier this year, Tynwald was told.

In July, Tynwald voted merely to note the offer from the Steam Packet - which included a commitment to new vessels and service levels in exchange for a 25-year agreement - and continue negotiations.

The Steam Packet had warned it was a final offer.

Many were taken by surprise when, despite a lengthy report outlining the options available to the government, Tynwald spent fewer than 10 minutes discussing the matter in public.

But Chief Minister Howard Quayle says he is pleased with the direction his government took, with Tynwald’s support.

He told Tynwald this week: ’We have taken bold and direct action on the future of our strategic sea services and will continue to hold out for a good deal for the Isle of Man.’

The Council of Ministers had actually wanted an outright rejection initially, but Infrastructure Minister Ray Harmer instead put forward a less confrontational recommendation to Tynwald, seeking to continue negotiations and note the offer.

That was the approach approved by Tynwald.

The Steam Packet responded by saying the ball was now in government’s court to put forward a new offer of a deal.

The current linkspan user agreement, which effectively gives the Steam Packet exclusive use of Douglas harbour for passenger services, is due to expire in 2026.

Some fear the government approach could be a high-risk strategy, however, unless a viable alternative operator to the Steam Packet is found. But, equally, there was concern at the length of the deal sought by the Steam Packet.

In his state of the nation address, Mr Quayle said: ’The current discussions in relation to our strategic sea services are of vital importance.

’I have been clear we must achieve an outcome that is right for the Isle of Man. That means being clear on our objectives and moving at our own pace. We will not be forced into making a decision before we are ready to do so.’

In terms of air travel, he confirmed that CoMin continued to support the open skies policy ’as the best approach to ensuring the security of our vital links to the UK’.