Tynwald has been urged to regain control of the Steam Packet as a strategic asset.

Treasury Minister Alfred Cannan set out the case for £124.3m of the government’s cash reserves to be used to bring the Steam Packet into public ownership.

If approved, government will purchase a 100 per cent shareholding of MIOM, the Steam Packet’s parent company.

Mr Cannan told Tynwald this morning: ‘‘This is more than just a company – this company is a national asset.’

He said government had failed to act to prevent the inevitable takeover of the Steam Packet in the late 1980s and its subsequent sale to private equity firms and City investors.

Mr Cannan said the critical question is whether the government is paying too much money.

He said: ‘It is unquestionably clear if we were to renew the user agreement, the company would be sold in months, possibly weeks. This means one thing – new owners, new debt, new uncertainties.’

Why should the economic benefits of a monopoly service end up in the boardrooms of the big city investors, he asked.

‘The situation cannot go on,’ he said.

Mr Cannan said a second option would be to prepare to take over in some form when the current user agreement runs out in 2026. He said: ‘It sounds good but at what price to the economy? Our sea services would be run for cash maximising every opportunity for profit,’ he said.

The Minister added: ‘We as a government have to think more broadly. That’s why this is now the time to act.’

He said the figure of £124.3m represented the calculated value to the shareholders if they run the company for cash.

‘Is it a fair value? We may well get it for less. This is not a short term deal. This is government taking action in the national interest on behalf of the people of the island.

‘This is a government proposing a course of action that should have been taken years ago.’He said the deal would enable a state-owned ferry company to have significant value in the years to come but accepted this was a type of value that cannot always be calculated.

Mr Cannan said: ’It’s a lot of money. Are there risks? Of course there are risks but be assured the order paper sets out the steps needed to reduce the risk and reduce the taxpayers' direct exposure.’

He said he appreciated the deal had been ‘somewhat thrust’ upon Tynwald members but explained that the shareholders had agreed to negotiate only if the company's financial position remained confidential.

He said a condition of the sale was that it had to be concluded by 5pm on Friday May 25.

When the debate resumed this afternoon, Tim Baker (Ayre and Michael) said there was a number of compelling reasons why this was the right thing to do, offering a better return than leaving the funds in reserves. ‘It’s a good investment on purely financial grounds,’ he said.But Rob Callister (Onchan) questioned the timing of the deal, given that the value is in the user agreement and the monopoly controls Tynwald had put in place.‘I have to question the urgency of purchasing the Steam Packet Company in 2018,’ he said.He sought reassurances that a Steam Packet under government ownership would not be able to make the same mistakes made by the Manx Electricity Authority in relation to unauthorised loans.Chris Robertshaw (Douglas East) hailed the Treasury Minister’s speech as the finest he had heard since he became MHK.He said: ‘This is an incredibly important day for the island. Today is very special day, a unique and extraordinary day. I’m proud to be here to witness it.’Health Minister David Ashford said: ‘There will always be naysayers. [But] I think it’s worth every penny. Let's make a decision today we can look back on with pride.'Bill Shimmins (Middle) said the restructuring in phase two of the take-over would be critical in achieving the required goal.He warned against ‘political meddling’ and lobbying for lower fares that could not be justified commercially. ‘She would be holed below the waterline before she had set sail under new ownership,’ he said.Kate Beecroft (LibVan, Douglas South) questioned whether purchase of the Steam Packet was the best way to achieve the aim and contended there were other options that should be considered. ‘I think it’s the wrong time and £124m certainly seems to be the wrong price.’‘We can’t discuss the valuation as it is confidential,’ she added, claiming other industry insiders suggested the value was more like £50m to £70m.Mrs Beecroft criticised the short length of time Tynwald had been given to consider the proposal.And she tabled an amendment calling for CoMin not to sign any agreement with the Steam Packet until all other options had been debated and decided in Tynwald.Home Affairs Minister Bill Malarkey said it was a ‘blue riband’ day for him, having campaigned for such a move for almost eight years. ‘I feel quite emotional,’ he admitted.‘You have the chance to make history here.’Infrastructure Minister Ray Harmer urged: ‘Seize this moment on this is historic day.' All options were explored,' he insisted. 'All the other options, quite frankly, stink!’Speaker Juan Watterson said it was regrettable that more information could be put in the public domain but he understood why this was necessary. He said some information would remain confidential even with the Steam Packet in public ownership.He said it was a very good deal for the taxpayer but said there was a need to moderate public expectations.Daphne Caine (Garff) said she regretted the lack of opportunity for public debate and that having to make such a momentous decision within a week was hard to justify.