DETAILS of the annual rent that would be charged for a proposed subsea cable that would run through Manx territorial waters were not disclosed in the House of Keys as negotiations were ‘commercially sensitive’.
Infrastructure Minister David Cretney was questioned over proposals for a Western High Voltage Direct Current (HVDC) link, a marine cable that would run between Ardneil Bay in North Ayreshire in Scotland and Leasowe in the Wirral.
Kate Beecroft (Lib Van, Douglas South) asked how much the government would receive by way of capital payments and annual royalties for approving the application by NGET/SPT Upgrades Ltd.
Mr Cretney replied: ‘With the completion of the first UK to Ireland gas interconnector pipeline in 1993, the department ceased to charge a single capital payment for a lease of easement through territorial waters for such infrastructure projects.
‘Since 1993, all subsequent cables and pipelines have been charged with annual rent for the necessary lease of easement and that would be the department’s intention for this cable, should matters progress.
‘The rent that will be charged for this cable, should the application be progressed and be approved, would be based on available, comparable commercial rents, including those already being paid for existing cables and pipelines.
‘Negotiations are some way from being completed with representatives of the applicant and, as these negotiations are commercially sensitive, it would be inappropriate to disclose the department’s position at this time.’
The minister said there Tynwald approval was not needed for the application but he was happy to privately brief members about details of the proposals ‘so as not to expose the commercial confidentiality aspect’.
Mrs Beecroft asked: ‘This represents significant opportunities for our future economic development. Has his department been involved in negotiating any planning gain from this application for the 72km marine power cable to run, buried in our rocks, beneath our sea?’
The minister said he was not in a position to answer about planning gain.