The Steam Packet are paying just over £14,000 a month to use the new ferry terminal in Liverpool.

This is big discount on what the state-owned ferry operator was paying to use the old Pier Head facility.

But the figure is only for six months, pending the outcome of lease negotiations between the Steam Packet and the Department of Infrastructure.

The new £70m-plus terminal at Prince’s Half-Tide dock opened to passengers on June 25.

Treasury Minister Dr Alex Allinson told Tynwald that under the licence agreement the Steam Packet will pay £14,272 to use the IoM ferry terminal for the next six months.

This includes a peppercorn rent of £1 but Dr Allinson said the figure does not include the cost for rates which he said was awaiting evaluation. He said this would be determined by the Liverpool authorities and the total cost is not entirely known.

After the licence agreement concludes a lease will be agreed between the Steam Packet and the DoI setting an appropriate rent for the facility, the Treasury Minister told members.

Dr Allinson said the total annual cost of using the previous landing stage was £737,000 and if the cost of rates and rent is removed as a comparison the amount was £580,000 or £48,333 per month.

Douglas Central Chris Thomas queried why this was just a peppercorn rent compared with the £737,000, including rates, that were previously paid.

Dr Allinson replied that commercial lease negotiations between the DoI and the Steam Packet are continuing.

He added: ‘A final figure has not been agreed yet. Treasury are aware there have been some challenges as one would expect in a commercial negotiation and are working with both parties to reach a mutually acceptable conclusion. That work continues.’

The Manx government purchased the site for £3.5m on long-term leasehold and pays the owner the Peel Group a peppercorn annual rent. The arrangement is in place for more than 230 years.

A government spokesperson said the majority of the annual sum under the short-term licence agreement, in place until the lease is finalised, is to cover the insurance premium.

Further sums are attributable to the surface water discharge fee and the service charge for common areas. These costs, plus the £1 peppercorn licence fee, come to an annual sum of £171,267, which equates to £14,272 a month.  

Mr Thomas asked if anyone else would contribute to the costs. Dr Allinson replied there were options to use the facility on a rental basis for various events and these will be pursued as it becomes a more established part of the Liverpool skyline.

Onchan MHK Julie Edge asked if it was a peppercorn rent, how the upkeep of the landing stage will be funded without additional cost to the taxpayer.

Dr Allinson agreed that facility like this would need ongoing maintenance.

He said the Treasury has been working with the DoI about how the lease payment from the Steam Packet can be ring-fenced to deal with ongoing demands of maintenance and replacement for what will be a very much used facility.