The Steam Packet is welcoming news of an investigation into its fare structure.

However, it is dismissing claims made by North Douglas MHK John Houghton, in Tynwald yesterday, that company directors, including the managing director, received bonus payments.

Mr Houghton claimed senior management had received in excess of ?10 million collectively, which he described as 'obscene'.

Mr Houghton said such money should have been invested back into the company, to help passengers towards the cost of fares and, he said, as the Steam Packet had a woefully inadequate number of vessels.

James Davis reports (text, below, from attached audio file):

In a statement, the company’s Operations Director, Mark Woodward, said Mr Houghton’s claims were incorrect and that no bonus payments had been made since the acquisition by Macquarie.

Although acknowledging all executive directors were encouraged to invest their own fares in a minority share in the business when it was acquired by Montagu, the subsequent sale to Macquarie required the shares to be sold with consideration paid over a three year period.

Mr Woodward said while the investments were naturally confidential, the amounts mentioned by Mr Houghton were incorrect.

A three-man Tynwald committee is to examine fare structures, fare increases and whether or not charges represent the best value for money for customers on and off the Island.