C&E proposal 'pays lip service' to idea of supporting local boat-building industry

Furthermore, we should like to highlight how it is perceived that Guernsey's government leaders have been extremely proactive in the past two years to try and endorse the 'buy local', 'quality and cost' ethos for their government projects, yet in the turn of a breath they actually are doing the opposite.

In a Guernsey Press article headlined 'States' procurement policy is good news for local firms' (23 April 2014), Deputy Dave Inglis is quoted as saying: 'Supporting business in this way will be welcomed by suppliers who have struggled to compete against the previous criteria that quality and cost are making the key drivers in the purchasing decision.'

The article says: 'The States has issued a new policy, taking into account social and economic issues in calculating best value for public sector procurement decisions, to deliver "best overall benefit" for the islands and residents.'

The opposite of this is in fact in progress, the reality is that this current proposal to have a patrol vessel built in Holland completely bypasses any local boat yard, builder, marine engineering company and many more ancillary industries that go into completing the build of such a vessel.

The GMTA struggles to understand how the 98-page report being presented in this month's Billet d'Etat from C&E can hold any water with regard to the statements issued that government supports and promotes local industry and business. Is it not part of C&E's mandate to promote and assist in generation of local industry? The C&E business plan for 2015 as published on the gov.gg website has as its mission statement: 'To strive for the creation and maintenance of a dynamic and diversified economy for the benefit of the island community.'

The GMTA sees no support for their published statements:

'High value, low footprint' – the use of local boat builders and associated marine companies does not get more high value and low footprint for this sector.

'Centre of excellence for creative sectors' – the bespoke building or refit of a sea fisheries vessel in our local community utilises its highly skilled, creative workforce.

'To strive for the creation and maintenance of a dynamic and diversified economy for the benefit of the island community' – C&E needs to promote the marine industry, boat building and boat repair, not just the finance industry.

By placing a report before the States of Guernsey for the approval of the build of a £3m. vessel by a Dutch yard, C&E's mission and vision statements fall apart.

The GMTA believes that the report for the replacement vessel and engagement with the favoured Damen Yard was indeed started many months before the tendering process started and is biased against any other tender. The specification appears to be written around the Damen boat.

Another concern to be highlighted is the very large amounts of money being spent by C&E on the Leopardess each year since she entered service – and almost all of this could have been undertaken in Guernsey. In fact, almost all of this work has been undertaken by Damen in Holland. We believe that the Guernsey marine industry is more than capable of undertaking almost all of this work and we believe it could have been done at a far lower cost, without the boat transport and travel costs associated with taking the boat to Holland.

This would have provided much-needed work and income locally, but our government is allowing this revenue creation to be sent to Holland instead. The Billet and media statements released by C&E pay lip service to maintenance on the new Leopardess being undertaken in Guernsey.

We understand that the Leopardess is in a very good condition structurally. The engines, though original, are in good condition. Looking at other vessels locally, the Guernsey lifeboat, 21 years old, has just been re-engined and is expected to serve another 20 years, while the Herm Tridents, the Sark vessels, the Brecqhou vessels and the Condor aluminium fast ferries are all expected to have long service lives. The Leopardess could be re-engined and refitted and this work could be undertaken in Guernsey to the benefit of the local marine trade. We believe that this could be undertaken at a much lower cost than that quoted in the Billet and the media release of 16 September, i.e. £400,000 to £700,000. This would provide a refurbished boat suitable for another 20 years.

On the same theme, we believe the stated buy-back value by Damen of £150,000 to be way below an expected value for a vessel of this pedigree. It would be our estimation that a vessel such as the Leopardess would have a brokerage value circa 10-15% of the value of a new build. (At £3m. this would be c.£450,000.)

Equally, the local and internationally recognised boat builder Aquastar has placed an offer on the table (should it have had the opportunity to tender), that the sale value of the old vessel at £150,000 would be a minimum it would offer as a buy-back to the States of Guernsey. Any amount that the vessel was sold for to the greater, Aquastar would split 50/50% between the builder and the States of Guernsey.

To sum up, it is clear that the island's government is intent on only paying lip service to supporting one of its longest-established industries. The expertise and skills that boat building, design and maintenance cover within Guernsey should be something we are all hugely proud and supportive of. We should be using contracts such as this to entice our next generation of apprentices to enter the industry. The GMTA are committed to growing our sector and playing on the world stage at every suitable opportunity. This is one such opportunity. Let's not give it away. We urge the States of Guernsey to dismiss this request for a Dutch-built vessel and put in place a review of the tender and procurement process in favour of locally built, refitted and maintained vessels.

MATT LE PAGE,

President, GMTA.