Boaters pay their way
IT SEEMS the Guernsey harbours' finances are in a bit of a mess again.
The consultative document that has been produced does not make happy reading for all. In particular, the implication seems to be that leisure-boat owners have been slacking and are not dipping their hands deep enough into their pockets. Perhaps consideration should be given to some of the figures in the document and to those relevant in the annual budget Billets.
In the years 2008 through to 2013, the combined annual income of both ports, St Peter Port and St Sampson's (including income from the marinas), increased by 12.4% – an average annual increase of less than 2%. During the same period, charges to leisure-boat owners were increased by 22.1%.
This 22.1% increase to leisure-boat owners is, of course, within and part of the 12.4% increase in overall harbours income. There is a waiting list for marina berths and it seems unlikely that business activity in the rest of the harbours has declined over the period.
In each of the years 2008 to 2013 inclusive, income from leisure-boat owners represented more than 28% of overall harbours income for that year. The average was just over 30% – enough for that income to have a significant effect on the overall income of the harbours. One is forced, therefore, to wonder what happened to shipping dues, passenger fees, pilotage dues, rents and all the other harbour charges in that period, such that the overall harbour income increased by only 12.4%.
Comparison has been made to marina charges in other areas. Charges to their berth holders are only a part of the business. What about the costs to those other marinas of providing their services, such costs as business rates and various taxes? They are not monopolies – they have to compete with other marinas. It is unlikely that they are making super profits. Their high charges are probably driven by high costs.
Income and expenditure of the local marinas used to be stated separately in the Billets, but since 2011, only the surplus that the marinas produce has been shown.
Judging by the amount of visible maintenance activity in the marinas, as compared with the rest of the harbours, costs of running and maintaining them do not appear to be high. The depth gauge at the entrance to the QEII marina failed a number of years ago and has never been repaired and more recently, the cost of providing fresh-water hoses has been reduced to zero by their removal.
In the 2015 budget, staff costs for the harbours work out at just over £53,000 per head. This, of course, together with any comparison with charges in marinas that are of no use at all to Guernsey boat owners is totally irrelevant.
It is really pleasing to read that for 2012, the harbours made a transfer to the ports holding account of £2,124,000. It is even more pleasing to note that, while it seems the exact figure has not been published, on past record and by extrapolation, it is likely that, of that £2,124,000, approximately £1,500,000 was the surplus emanating from the marinas.
Perhaps anyone slavering to tap into the milch cow should beware the law of unintended consequences, or more probably its economic sister, elasticity of demand. Most fair-minded people will conclude that there is absolutely no justification for bleeding leisure-boat owners any further.
FRANCIS G. MARSHALL,
La Vieille Cour,
11, Back Street,
St Peter Port,
GY1 1HS.