Town harbour ‘needs £64m. of upkeep over next 10 years’

About one-third of the total sum of £64m. would be spent upgrading ageing facilities at the marinas, including £10m. at the Queen Elizabeth II, which has not seen significant investment since it was opened in 1989.

States Trading Supervisory Board president Peter Roffey described the board’s plan, announced this morning, as ‘absolutely crucial, must-do capital works’ which in many cases were overdue.

‘For example, if we don’t replace the gates of the QEII marina in the next few years, we will no longer be able to impound water, which keeps boats afloat when the tide is low,’ he said.

‘This very large capital requirement is partly made up of the significant, routine investment which any port needs to make, and partly a backlog of work we inherited.

‘The States is often criticised for not properly maintaining its assets and we are determined the ports should not be guilty of that going forward.’

The work will start this winter with the replacement of two pontoons adjacent to the QEII marina entrance. About 130 boats should benefit from the installation of modern, heavy-duty pontoons and stronger supporting piles during the first and second quarters of next year, at an estimated cost of about £1.4m.

The board hopes to announce further details about its £64m. plan over the next few months. But Deputy Roffey admitted there was still uncertainty about how to pay for the works.

‘Our preferred route is out of operational revenue surpluses. The ports are meant to be commercial entities. But the States has to approve all of our fees and charges, so we can’t be certain of achieving that,’ he said.

‘The second route is through general revenue subsidy. I suppose a third is through a blend of both.

'To put this in context, the harbours are expected to make a modest operating profit this year, but nowhere near sufficient to fund the required capital investment.

‘That is why we are proposing a significant uplift in fees and charges for 2024.’

‘This is due for debate in the States next month.’

Proposals have been published for increases in mooring fees of between 50% and 150% over the next three years as the ports – which include the airport as well as the harbours – try to stem losses of about £30m. over the past four years.

That has drawn an angry response from the Guernsey Boat Owners Association, which is holding its annual general meeting tomorrow evening and has said it will put forward counter-proposals for raising more revenue.

The board is still considering fees for 2025 and 2026 in light of feedback from ports users and predicted passenger and freight figures.

‘There is no way that income from mooring fees over the next 10 years will cover both the revenue and capital costs. As many boat owners point out, the marinas generate a revenue surplus, but not sufficient to fully fund the required capital spend,’ said Deputy Roffey.

‘The capital expenditure over the next decade will be atypically high, so it would be unfair to expect today’s boat owners to cover it in full. Rather we should be looking to at least break even over the long-term cycle of capital investment.’

The £64m. plan does not include a new marina outside the existing Albert and Victoria Marinas, known as the Pool, which would provide access in all tides, unlike existing facilities.

‘I am hopeful that matter will go to the States within a few months,’ said Deputy Roffey.