Minister for Economic Development Allan Bell says Manx government has not let down the troubled coach firm Protours, by awarding the contract for schools' work to Bus Vannin.
He says the tender was won by the government-run enterprise on fair terms, and the firm's overseas owners were already reviewing their United Kingdom and Isle of Man businesses before Protours issued redundancy notices to its 15-strong workforce.
Mr Bell says a number of factors have led to Protours' current difficulties and the Department of Education school trip contract was not paramount:
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