Steam Packet freight row: government keep out

The Manx government draws up contingency plans for reduced ferry services but will not interfere in fair competition issue.

The Manx government is meeting with Steam Packet bosses to discuss threats to ferry services and jobs after a rival freight service set up.

Unions say the Steam Packet is being undermined by Mezeron which is crewed by seafarers on 'poverty pay'.

Workers are urging the government to come up with a contingency plan in the event that services are lost.

Infrastructure Minister Phil Gawne said the government will not interfere in the operations of private companies.

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Infrastructure Minister Phil Gawne says commercial decisions by the Steam Packet are a matter for the company, even in the face of possible service cuts.

Mr Gawne says he is aware of the worries of staff, which centre around the competing freight service run by Mezeron.

They claim the company could cut back on passenger services under the user agreement with the government, as the competition takes its toll on profits.

Mr Gawne says any such decision would be for Steam Packet management to make:

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Minister Gawne said it's the debt that the Steam Packet and its associated companies carry that is the root of the problem, and for the company to move forward a strategy of how to remove the debt needs to be formulated.