Concern Over ‘Political Interference’

The chairman of the Steam Packet has written to Tynwald members to raise concern over what he sees as increasing levels of political interference in the company.

Lars Ugland said the company has received several requests for information which have asked of the disclosure of commercially sensitive info.

The relationship between Tynwald, the gov and the Steam Packet is controlled by the Sea Services Agreement which allows the company to operate at ‘arms-length’ while delivering a return on taxpayers’ investment and ensuring a guarantee of service for the island’s lifeline.

However, Mr Ugland says that despite this, the company has received repeated requests for information and he has concerns over ‘increasing levels of political interference in the management of the company’.

Mr Ugland said: ‘Recently, the Company has been asked to respond to no less than 6 questions concerning various matters relating to the detailed operations and management of the Company, some of which request disclosure of commercially sensitive information.

‘The board has been consistently advised that it is an arm’s length Company with oversight and governance conducted through the regular attendance of Treasury observers at quarterly board meetings, attendance by the Treasury Minister at biannual EGMs, adherence to the provisions of the Shareholder Agreement and compliance with the SSA.

‘In its consideration of information requests from certain members of Tynwald, the Board has determined to respond in a manner consistent with an arm’s length company. It has therefore declined to disclose any information which it believes is not in the best interests of the company or the shareholder. To act otherwise, would be to compromise the existing governance framework.

‘The board genuinely believes that the Company is best served by an arm’s length relationship with government. There are lessons to be learned from recent events in Scotland where the SNP government awarded a contract for 2 Calmac ferries against the advice of the independent Board of CMAL. The original budget for the two ferries for delivery in 2018, was £97m; the current estimate is £360m with delivery now expected in 2024 and 2025.’

The Chief Minister has also spoken on the matter in Tynwald warning members about political interference. Alf Cannan told members that they need to decided if they want the company to be run at arms-length or if they want to run it themselves.