Ferry services offer rejected
Tynwald has rejected the Steam Packet's offer to continue running ferry services after 2026.
The Department of Infrastructure will now continue to explore the options for potential operators once the current user agreement expires.
Mr Harmer said he wanted to be 'absolutely certain' that any chosen provider could provide the best possible passenger and freight services.
Earlier this week, Steam Packet boss Mark Woodward said that the £170 million offer would be withdrawn should it fail to win favour with Tynwald members.
The firm will still be able to submit a revised offer, should it choose to.
It's refused to comment on parliament's decision.