PAPER G

Committee:    AUDIT AND PERFORMANCE

 

Date:               29 MAY 2007

 

Title:                NEWPORT HARBOUR – HARBOUR DUES

 

                        REPORT OF THE CABINET MEMBER FOR ENVIRONMENT AND TRANSPORT

                       

 


SUMMARY

 

1.                  The report provides the Audit and Performance Committee with further information regarding Harbour Dues collected at Newport Harbour.

 

ACTION REQUIRED

 

2.                  None

 

CONFIDENTIAL ITEMS

 

3.                  None

 

BACKGROUND – NEWPORT HARBOUR

 

4.                  At the meeting of the Audit and Performance Committee on 14 November 2006 a request was made for additional information on Harbour Dues collected at Newport Harbour.

 

5.                  Newport Harbour derives over 99% of its income from Harbour Charges and rent from the harbour estate, not Harbour Dues. Harbour charges are set out in the Harbour Charges and Conditions Booklet, and are reviewed annually in line with inflation. Property rent is set by Property Services.

 

6.                  Harbour Dues represent less than 1% of income to the harbour. Harbour Dues are effectively a fee for passing through the harbour, but must be reasonable and relate to the expenditure incurred by the harbour authority.

 

7.                  The current basis for Harbour Dues was set by the Environment and Technical Services Committee on 7 February 2000, and was determined on the valuation advice of the Property Services Manager. Extracts from that report are set out in 1.4 below, the full report sets out the background to the collection of Harbour Dues.

 

8.                  The Newport Harbour Master, on behalf of the competent harbour authority the Isle of Wight Council, collects harbour dues in respect of the area of the River Medina extending from Newport Harbour down to the Folly Inn. Harbour dues were first charged in the 19th century, and these powers were more recently consolidated under the Harbours Act 1964 Section 26 and Section 27, and with subsequent Orders, the most recent being the Newport (Isle of Wight) Harbour Revision Order 1988 Section 14.

 

9.                  To summarise, these powers enable the harbour authority:

 

(a)               to improve, regulate, maintain, manage, mark or light the harbour of Newport (Isle of Wight) as defined in the Order;

 

(b)               to control the moorings and keeping of house boats as defined in the Order;

 

(c)               to dispose of wrecks and to deal with unserviceable vessels;

 

(d)               to make certain charges;

 

(e)               to make byelaws.

 

10.             In respect of (d) these charges must be reasonable, and must relate to the expenditure involved by the Harbour Authority in exercising its powers listed above.

 

11.             The harbour dues collected in 2006/07 were:

 

Odessa Marine   £763 This figure reflects 5% of the income that Odessa Marine collect for mooring fees.

 

Island Harbour £257.50 This figure is based on the Property Services Manager’s recommendation in 2000. “At Island Harbour, the mooring facilities which are linked to properties and which do not pay permanent mooring fees will pay Harbour Dues of £20 for each boat which approximates to about 1% of a notional income for a permanent mooring.” In light of property development at Island harbour it may be appropriate that this estimate needs revising by the Property Services Manager.

 

Medina Valley Centre £117 This figure reflects the fact that the Medina Valley Centre lay their own 3 moorings and are charged half the mooring rate at the Folly.

 

STRATEGIC CONTEXT

 

12.             Newport Harbour is one of the three Council owned and operated harbours.

 

FINANCIAL IMPLICATIONS

 

13.             Income to Newport Harbour in 2006-07 was £136,492. As can be seen above only £1138 came from Harbour Dues and this represents less than 1% of the overall harbour income. The modest income derived from harbour dues relates to the low revenue expenditure on items 1.4 (a) to (e), but does include a contribution to the maintenance of navigation lights and channel buoys, but in any event the harbour authority has a duty to maintain such aids to navigation.

 

LEGAL IMPLICATIONS

 

14.             The Council is the statutory harbour authority for Newport Harbour.

 

15.             The Newport (Isle of Wight) Harbour Acts and Order 1852 to 1988 empower the Isle of Wight Council to charge and collect Harbour Dues.  The level of Dues is for the Isle of Wight Council to set, in accordance with any requirements as set out in the said Acts or Orders.


EVALUATIONS

 

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

 

17.             The Harbour needs significant investment if it is to maximise its potential and this is being explored as part of the regeneration of the Medina Valley and a review of regeneration opportunities in this part of Newport. The repairs to the harbour walls and capital dredging are being explored as part of a larger scheme which will look to add value to the development opportunities by creating deeper water. 

 

RISK MANAGEMENT

 

18.             There are no significant risks attached to the issue of Harbour Dues.

 

RECOMMENDATION

 

19.             To note the report

 

APPENDICES ATTACHED

 

20.             None

 

BACKGROUND PAPERS

 

21.             “River Medina Harbour Dues” – Report of the Director of Environment Services to the Environment and Technical Services Committee 7 February 2000.

 

Contact Details:  Dr Robin McInnes OBE, Coastal Manager, ( 857220

email [email protected]

 

STUART LOVE

Director of Environment and Neighbourhoods

COUNCILLOR TIM HUNTER-HENDERSON

Cabinet Member for Environment and Transport