THE settlement of a legal challenge to the user agreement will allow the government to plan the development of Douglas outer harbour with more certainty.
That was the verdict of Infrastructure Minister David Cretney who was asked in Tynwald about the impact of the withdrawal of a petition of doleance lodged by Seaside Shipping.
The petition was lodged in September 2007 to challenge the 1995 user agreement which effectively gives the Steam Packet sole use of the linkspan at Douglas harbour.
The shipping firm had planned to operate a roll-on, roll-off passenger and freight service between Douglas and the UK.
But its petition has now been withdrawn with Seaside Shipping paying towards the legal costs of the other parties.
The terms of the settlement have not been disclosed.
Onchan MHK Zac Hall asked how the dismissal, by consent, of the Seaside Shipping petition of doleance will affect any planned extension, assignment or re-tendering of the user agreement and Douglas Harbour development.
In his written reply, Mr Cretney described Douglas outer harbour as an important facility which he said will continue to be improved and developed.
He said: ‘The present infrastructure is well maintained and provides sufficient capacity and contingency for the foreseeable future for the next five to 10 years.
‘A draft masterplan for the improvement of the Douglas outer harbour has been accepted by the department and will be the subject for public consultation in late 2013. The dismissal of the petition of doleance therefore enables the department to plan for the development of Douglas outer harbour with more certainty.’
The Minister explained that the extended user agreement will terminate in 2020 but it was expected that the Steam Packet will exercise its option to extend it for a further six years so it will therefore run until 2026.
He said: ‘Although preliminary discussions have been held with the Steam Packet with respect to the potential for amending the user agreement, there are no current proposals to extend the agreement.
Any user agreement post-2026 may possibly be the subject of a tendering process, if this is determined to be appropriate.
‘Such a decision will be a matter for future consideration.’