The Steam Packet now has more than double the amount of debt than when it was first bought by the government in 2018.

The news came to light as the Chief Minister Alfred Cannan fielded questions on the company during the October sitting of Tynwald on Tuesday.

Issues raised by MHKs covered a range of topics relating to the Steam Packet’s operations, including the proposed changes to employee contracts which has led to a clash with the Nautilus trade union, the regularity of shareholder meetings and the money involved in the introduction of the company’s new flagship the Manxman.

Prior to the sitting, Lars Ugland, the chairman of the Steam Packet, had issued a letter to members of Tynwald calling for clarity about the government’s ‘arms length’ policy regarding its control of the Steam Packet (see front page).

And while the Chief Minister did not go into specific details on the letter, he addressed the issue in his answer to a question from Jason Moorhouse, MHK for Arbory, Castletown and Malew, who asked if there had been recent meetings between ministers and members of the Steam Packet.

Mr Cannan said: ‘I think we’ve made clear this morning that the board has been operating at arm’s length and continues to operate at arm’s length.

‘This arrangement was specified when the company was purchased and should not be a surprise to anyone within Tynwald.

‘The shareholders have a bi-annual meeting with the Steam Packet to discuss any issues that have been raised from either the annual report or any issues regarding the relationship between the company and the government.’

Mr Moorhouse also asked whether the company’s proposed changes to employee terms and conditions had been discussed, to which Mr Cannan replied :‘Provided that the company is operating within the law, then I see no reason to interfere with the business.

‘The negotiations have been taking place for two years with two separate unions, but I understand that the company has acted completely legally.’

Chris Thomas, MHK for Douglas Central, later told the sitting that the company now had more than twice the amount of debt than when it was first purchased by government.

The Chief Minister confirmed that the firm’s finances had always been ‘transparent’, and that £80 million of the £400 million sustainability bond issued to Tynwald had been put towards the Manxman.

Mr Thomas then asked Minister for the Treasury, Dr Alex Allinson, how regularly the Steam Packet shareholder meetings took place.

Dr Allinson said: ‘These meetings look to provide financial and operational updates (on the company),’ and that they take place roughly two to three times per year.

He added:‘Strategic objectives of the company are discussed, which includes pricing and service levels and how to lower the amount of debt the company is in.

‘All details of the Manxman’s implementation have been discussed during these meetings, including the company’s plan to adopt a live-on-board policy for its employees.’

Mr Moorhouse then quizzed the Minister for Infrastructure, Tim Crookall, on the future plans for the Manannan, which is due to be replaced by 2026.