PAPER I

 

Committee :   AUDIT AND PERFORMANCE COMMITTEE

 

Date :              10 OCTOBER 2006

 

Title :               NEWPORT HARBOUR AND VENTNOR HAVEN

 

REPORT OF CABINET MEMBER FOR ENVIRONMENT, PLANNING & TRANSPORT

 

 


SUMMARY

 

This report aims to briefly outline the reasons for the trading shortfall of Newport Harbour and Ventnor Haven, along with providing additional information relating to the operation of both facilities.

 

ACTION REQUIRED

 

None

 

CONFIDENTIAL ITEMS

 

None

 

BACKGROUND – NEWPORT HARBOUR

 

1.0 Newport Harbour covers the River Medina from the Folly to Newport, a distance of nearly 3 miles. The income generated is derived from 3 main sources, Newport moorings, Folly moorings, and adjacent property rental.

 

1.1  Income at the Folly is collected by Folly Reach Harbour Management who act agents for the Council. They also collect income for Cowes Harbour Commission and Whitbread who also own holdings at Folly Reach. The income is collected throughout the year from the visitor pontoons. Folly Reach Harbour Management also undertake an important safety role as they are on site 52 weeks a year.

 

1.2  The Newport Harbour Master lets summer moorings at the Folly. The demand is currently greater than the number of available moorings. It would be profitable to place additional moorings but the intertidal area is a European nature conservation site and there may be objections from environmental groups should the Council wish to expand this facility.

 

1.3  Folly income is £66K, whilst expenditure is circa £18k, giving a surplus of around £48k which offsets a significant part of the deficit for Newport Harbour.

 

1.4  Income at Newport Harbour is generated by visitors using the pontoons, permanent berth holders and winter dry berth storage. Visitor numbers hover around 2000 per annum, but vandalism and trouble with boat security threaten to reduce this figure. The use of Newport Harbour as a bus park on Tuesdays severely restricts the extent to which winter dry berth storage is possible. A further £5000 per annum could be generated if the full extent of boat storage was achieved.

 

1.5  Newport Harbour is a tidal port, and thus dries out over the low tide. Retaining water within the harbour over low tide is considered a potentially significant boost to the regeneration and redevelopment of the harbour. The obstacles to such a development are large, but the benefits are potentially significant. Not only would the number of berths increase and thereby increase income, the value of adjacent land, much of it under Council control, would also increase. Extensive studies would be necessary before such a proposal could be realised but such a scheme has the potential to transform Newport Harbour.

 

1.6  Newport Harbour also derives income from the rental of adjacent property. Since the mid 1990’s there has been a move away from commercial shipping activities towards leisure. The commercial income has reduced as various buildings were put into alternative use or demolished. Examples include Jubilee Stores, the Classic Boat Museum and the site now occupied by the Whitbread hotel and pub. The commercial importation of sand and gravel has ceased in recent years and this has reduced the harbour dues collected on landing cargo.

 

BACKGROUND - VENTNOR HAVEN

 

2.0 Ventnor Haven was built at a cost of just over £2M, using funding from a variety of sources. The Single Regeneration Budget provided the largest contribution of approximately £1.25M, with substantial contributions coming from the Isle of Wight Council (£650,000), and DEFRA coast protection grant aid (£265,000).

 

2.1 The haven fulfils a number of objectives including the removal of commercial fishing boats landing on Ventnor beach, a fair-weather haven for small yachts and pleasure craft, a walkway seaward of the Esplanade as a form of replacement for the former Ventnor Pier, a destination for visiting craft sailing along the south coast and coast protection for the Victorian seawall.

 

2.2 The haven has provided a significant impetus for the regeneration of Ventnor seafront and Eastern Esplanade.

 

2.3 Income and day-to-day management is undertaken by Ventnor Haven Management, a subsidiary of Cheetah Marine. The funding shortfall at the haven will be reduced in time as income from the fishery under construction becomes due. This was initially deferred as part of the agreement with the developer. In addition Cheetah Marine has development proposals for the Eastern Esplanade, and this will significantly reduce the cost of their supervisory function. It is hoped that within 2 years the Haven could break even.

 

2.4 Income at Ventnor Haven is around £10k per annum whilst supervisory costs are £54k

 

STRATEGIC CONTEXT

 

Both Newport Harbour and Ventnor Haven are strategically important assets with potential to support waterside and maritime regeneration.  In both locations the development of landward facilities will help to develop additional income and there are proposals in hand for both locations, subject to planning and detailed appraisals.

 
FINANCIAL IMPLICATIONS

 

 

Budget

2004/05

Revised

2004/05

Actual

2004/05

Previous Year

2003/04

Income

158,035

232,644

188,000

-

Expenditure

288,766

354,705

319,000

-

Surplus/Deficit

(130,731)

(122,061)

(131,000)

(91,000)


LEGAL IMPLICATIONS

 

The Council is the designated authority for Newport harbour and has appropriate responsibilities to fulfil in addition to Health and Safety requirements.  The Haven does not enjoy a similar designation but does require supervision to ensure the Council complies with Health and Safety requirements.


EVALUATIONS

 

Newport Harbour has greatly improved over recent years as its role has changed from freight handling more of a leisure facility.  Whilst the general environment has improved the level of income has declined and buildings which previously contributed to the revenue account have been turned to alternative uses.

 

The Harbour needs significant investment if it is to maximise its potential and this will need to be explored as part of the regeneration of the area.  Exploratory discussions with Cowes Harbour Commission revealed that it would not be in a position to run Newport Harbour effectively until the condition of the Harbour walls was improved to allow additional dredging which is long overdue.  The costs of these improvements is to be explored as part of a larger scheme which will look to add value to the development opportunities by creating deeper water.

 

Ventnor Haven will require further private sector investment if it is to break even and proposals are at a fairly advanced stage but subject to planning approval.

 

RECOMMENDATION

 

To note the report.

 

CONTACT DETAILS

 

Peter Marsden, tel: 857223, email: [email protected]

 

 

 

   DEREK ROWELL                                         COUNCILLOR IAN WARD

 Strategic Director for                               Cabinet Member for Environment,

Economic Development & Regeneration                      Planning & Transport