Ports a big concern as trading assets struggle

STSB oversees a number of trading assets, and Deputy Roffey said the various businesses had faced a perfect storm of the war in Ukraine, the pandemic and Brexit.

He said that ports, which posted a £4.3m. loss, remained his biggest concern.

‘Before Covid, the ports authority, the harbour and airport had returned a small profit. But the reduction in passenger numbers made it very exposed.’

Although passenger numbers have bounced back, they remained at 80% of pre-pandemic levels, he said.

‘The ports also have cargo and freight but the airport relies heavily on passenger fees and therefore passenger numbers. That has left us leaning on general revenue which is not sustainable.’

The ports are predicted to make a £6m. loss this year, due to capital spending on infrastructure projects, but Deputy Roffey said his board was determined to return to profit in the next three years, through a combination of efficiencies, new income streams, and increased charges.

‘We are benchmarking ourselves against other ports and there is room to increase fees. But we can’t increase fees so that we deter tourism and business. We are working hard on this at the moment.’

One source of income could be leasing ports-owned properties, which he said was being hampered by a delayed Development & Planning Authority report on the harbours.

‘At the moment we can only offer short-term leases which is discouraging investment and handicapping generating revenue.’

Deputy Roffey said that Guernsey Water was generally sound, but supply chain issues had increased costs, leading to a deficit of more than £500,000. Again, he hoped to be back into profit in the next few years, he said.

Guernsey Waste turned a profit of £172,000 despite being predicted to make a £1.3m loss. Deputy Roffey said the picture here was not so rosy as it might appear.

‘We thought we would be using that money for a new inert waste site, but because that site hasn’t yet been agreed upon, its still waiting to be spent. In the long term that waste which is accumulating at Longue Hougue will need to be moved, which cost more in the long run.’

Deputy Roffey said problems at the Dairy was a difficult and inefficient building.

The Dairy had a deficit of almost £500,000 in 2022. This year it is predicted to lose £857,000.

‘A new dairy could wash its own face. Its not that the business is run inefficiently, but rather that the physical building and machinery is holding the business back.’

Aurigny’s turnaround plans are ahead of schedule, Deputy Roffey added, and set to continue.

• STSB is due to give an update statement to the States next week.