The motion to Tynwald calling for the Steam Packet to be purchased by government recognises the national importance of having a secure and stable shipping service operating from and to the Isle of Man.

Treasury Minister Alfred Cannan’s motion to next week’s Tynwald sitting has six recommendations.

1) That the Steam Packet Company and associated companies be purchased for a maximum cash payment of £124.3m, subsequently to be reflected in government accounts as a maximum share purchase of £48.3m and a £76m loan, and further that the Steam Packet operates at arm’s length from government.

2) That £5.1m be transferred to the Steam Packet Company as a transaction related bridging loan; such sum to be repaid from maturing company deposits within 30 days of deal completion.

3) That two new non-executive directors be appointed to the board for an interim period of at least six months and permanent non-executive appointments be approved by Tynwald.

4) That a new sea services agreement be signed between the Department of Infrastructure and the Steam Packet Company within 12 months of purchase, subject to Tynwald approval.

5) That options for an external shareholder or an operating partner be considered, but that proposals, to be put before Tywnald for approval, be structured so that government retains strategic control over the company.

6) That options be considered for refinancing the £76m government loan and again that such proposals be put before Tynwald for approval.