The committee will look at fares over the last 12 months

A select committee is to look at its price structures in the last 12 months, any fare increases and a comparison of prices on and off the island.

It will also consider whether excessive charging has taken place.

Mark Woodward, operations director, said the ferry company had "every confidence" that its fares represented excellent value for money.

"The User Agreement that governs Steam Packet operations was introduced in 1995 and has provided the platform for a real improvement in shipping services over the past decade," said Mr Woodward.

"Since its introduction the Steam Packet Company has doubled the frequency of sailings, doubled capacity, substantially lowered fares and invested �60m in new tonnage.

"IOMSPC is proud of its service record - we fully comply with all of the terms of the User Agreement and indeed exceed these terms in every respect."

Onchan MHK Peter Karran had wanted a select committee to investigate the user agreement and whether an alternative service to the Steam Packet would be desirable.

But his motion was amended by Chief Minister Tony Brown in Tynwald on Wednesday night and the committee will only look at fare structures.

The committee will comprise Speaker of the House, Steve Rodan, South Douglas member Bill Malarkey and Juan Turner MLC.

It is due to report back to Tynwald in October.