Huge increases in ports fees proposed
FEES are set to rise way above inflation at the airport and harbours over the next three years as the States looks to stop the need to subsidise the loss-making operations.
The proposed rises are typically in the region of 20% to 30% above the retail price index, and will apply to a range of current fees and charges, including passenger charges, aircraft landing fees, cargo and bulk freight charges, hydrocarbon import and marina fees.
Consultation is taking place with airlines, commercial port users, and leisure customers over the next month, before Guernsey Ports finalises its charges for 2024.
Ports managing director Colin Le Ray said that phasing the increases would give customers time to adjust.
‘We are mindful of the potential impact of a sudden, sharp rise so we have looked to smooth the increases so our customers have time to adjust to them.
‘However, there is also a pressing need to reduce the reliance on general revenue funding.
‘It was felt a three-year transition provided the right balance, and gives Guernsey Ports the opportunity to monitor any impacts and respond accordingly.’
Since the pandemic began, Guernsey Ports has received a total of £30m of taxpayer funding, and is forecasting a loss of about £6m. this year.
Mr Le Ray said that, while the proposed fee increases would not return the ports to an operating surplus next year, additional rises in 2025 and 2026 would enable Guernsey Ports to meet all its operating costs and the majority of its capital investment programme.
In total we have about 110 capital projects totalling £110m., £75m. of which are based at the harbours, including the replacement of the roll-on roll-off ramp and pontoons, and repairs to concrete structures, and £35m. at the airport.
He acknowledged that the increases may have a negative impact on the total number of port users, but said that Guernsey Ports had tried to blend the rises across as many functions as possible so as not to place them on one particular group of customers.
‘Airport passenger dues would only increase from £6 to £6.83, for example. With about 800,000 airport passengers every year that’s an extra £750,000.
‘We’ve tried to target larger groups over smaller ones, while also balancing volume against the current market.’
. Full details of the proposals can be viewed online at harbours.gg/mooringfees2024.
Islanders wanting to contribute to the consultation can contact Guernsey Ports by email on commercialandproperty@ports.gg.
Boat owners to put own fees proposal
LOCAL boat owners are planning to make their own proposal to Guernsey Ports having learned of increases of 20-30% above RPI on a range of fees and charges at the harbours.
Some charges will only rise by the cost of living, and Ports has said a ‘small number of targeted increases’ will see some relatively low user charges rise by up to 150% above RPI over the three-year period.
Guernsey Boatowners Association president Nick Guillemette said that he feared the proposed increases would lead to owners selling their boats and Guernsey Ports experiencing a shrinkage in revenue.
He said that the States should instead invest in the Pool marina project, which would see a large new marina built in St Peter Port Harbour.
‘It would not only generate extra income in the region of £10m. plus, but also put Guernsey back on the map within the leisure boating world, where we used to be.’
He added that the association was meeting with the authorities next week to discuss its concerns and to put forward its own proposals.
