---

Transport businesses in Merseyside, England, say the current bunker fuel surcharge being implemented by the Isle of Man Steam Packet Company is preventing them from doing business with the island, the Liverpool Daily Post reports.

Small businesses are warning that despite recent decreases in the bunker surcharge they are still unable to compete in the current workplace.

The claims came as the Isle of Man's government launched an appeal to businesses and passengers to provide information to help the Office of Fair Trading in its ongoing investigation of the company.

On 1st June 2009, Steam Packet announced that it had reduced its fuel surcharge for passengers and freight. The surcharge for new bookings was cut by £1.50, or 30 percent, from £5.00 single per passenger to £3.50 and the surcharge on freight was reduced by 53 pence, or 10.6 percent, from £5 per metre to £4.47 per metre.

The surcharge cuts followed a £3 reduction to the freight fuel surcharge in the last review on 1st March 2009.

However, despite recent reductions in the surcharge, Steam Packet, which sails from Liverpool to the Isle of Man, still remains one of the most expensive crossings in the UK.

Speaking about the surcharge cut in June, Isle of Man Steam Packet Company Chief Executive, Mark Woodward, said "This new agreement is good news for both the Steam Packet Company and the Isle of Man and has resulted in a substantial fall in the surcharge for passengers and a further reduction in the rate for freight, which fell by 37% at the previous review in March. The new agreement reflects current market rates and forecasts, as per the Select Committee preference, and three-monthly reviews will reflect market changes more promptly than the old agreement."

Minister for Transport David Anderson added: ‘The Department studied the Select Committee recommendations carefully and consulted widely before drawing up the new agreement. We’re confident that any flaws there may have been under the old agreement have now been adequately addressed.

‘In particular, the three-monthly reviews should be welcomed by both general passengers and freight customers, as one of the major issues with the old agreement was that it was felt there was too long between reviews and, as such, the fuel surcharges did not reflect the changes in the market quickly enough.’