The Isle of Man Trades Union Council has called for freight and travel costs to be put before profit in the operation of the Isle of Man Steam Packet Company.

In a statement issued online, the council said the government-owned operator should serve residents and businesses ‘first and foremost’.

It added: ‘Freight charges directly influence the cost of living for every household on the island. High costs also place additional pressure on local businesses who are already struggling to remain competitive with UK prices. To dismiss reductions in freight costs on the assumption that they will only boost business profits risks ignoring the wider impact on residents and the local economy.’

The council said the Steam Packet should be seen as a public service lifeline rather than a purely commercial enterprise. It called for a balanced and transparent approach that included mechanisms to ensure savings in freight were passed on to consumers, fair fares for residents, and a sustainable financial model recognising the company’s responsibility to the community.

‘The Steam Packet belongs to the people of the Isle of Man,’ the statement added. ‘Islanders deserve to see that ownership reflected in policies that put residents and businesses first.’

The intervention came after Chief Minister Alfred Cannan raised the issue of ferry pricing and investment in an interview on Manx Radio. He said the operator faced difficult choices in balancing affordability with the need to fund new vessels and cover repair costs.

Responding to suggestions the company should contribute more to the Manx economy, Mr Cannan said: ‘As a concept, I agree with that general statement. But running it not for profit - what does that actually mean? Ships cost a lot of money. Repairs cost a lot of money.’

He added: ‘People say “cut the freight costs” but the problem is, if they [Steam Packet] were to cut the freight costs, is that going to be passed on to the consumer, or is the profit going to be pocketed by the business and are they still going to price the goods at the same price as you can get them across in at the UK? I don’t think it’s a simplistic issue. I think it is more nuanced than that.’

The Steam Packet has also issued a statement acknowledging the Chief Minister’s comments. It said it had engaged with government, Treasury and other stakeholders over the past year to ensure it was offering best value to users and taxpayers.

The company said changes to fares had already been introduced, including free travel for children.

It confirmed plans to spend between £100m and £120m on a replacement for fast craft Manannan within the next five years, funded through a mix of profits and debt at no direct cost to taxpayers. It also highlighted annual fleet expenditure of £12.7m and repayments of £7.5m per year to Treasury.

A further update on the company’s plans is expected at the Isle of Man Government Conference on September 23.

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