The appointment process for directors at the Steam Packet was outlined during Tuesday’s January sitting of Tynwald.
The Steam Packet currently employs a chairman (Lars Ugland) and three other non-executive directors as set out in the company’s shareholder agreement.
Talking about how these directors are appointed, Treasury Minister Dr Alex Allinson said: ‘The Treasury nominates suitably experienced individuals as directors, which are then appointed by the Steam Packet Company.
‘The selection of directors was by way of a recruitment exercise undertaken in 2018 by Treasury, in which the role was advertised with applicants short-listed and interviewed. A large numbers of applications were received.
‘As a result, interviews were undertaken over two rounds and conducted by senior officers and political members of the Treasury.
‘Those nominated from this process were subject to the approval of Tynwald before being appointed by the Steam Packet.
‘The directors were appointed commencing February 1 2019 for an initial period of three years, with an option to extend this for a further two years, as approved by Tynwald in its January 2019 sitting.
‘All other elements of the terms of appointment, including for example removal as director, are subject to the Steam Packets Articles of Association.
‘The next expected recruitment round will commence later on this year.’
Dr Allinson also confirmed that this recruitment process is open to any resident on the island, while there are stipulations in the Sea Services Agreement that state non-executive directors and the chair of the company should be island residents for tax purposes.
In a following question from Douglas Central MHK Chris Thomas, he enquired about how many Isle of Man residents are employed by the Steam Packet overall and what their contribution to the island’s economy is.
Dr Allinson stated there are 179 island residents employed by the company. He said: ‘I can confirm that the Steam Packet Company pay £1,077,950 of national insurance in terms of those Isle of Man resident employees and £1,121,650 of tax in the January to December 2023 tax year, giving a total benefit of £2,199,600.
‘The procurement policy for using local produce and local suppliers helps to support the local food and drink industry, while connectivity is a key part of both economic strategy and the visitor strategy. Given the lifeline nature of sea services, the overall contribution to the economy is almost incalculable.’