PAPER C

Purpose : for Decision

REPORT TO THE EXECUTIVE

Date : 10 MARCH 2004

Title : FUTURE MANAGEMENT OF NEWPORT HARBOUR

REPORT OF THE PORTFOLIO HOLDER FOR SUSTAINABLE DEVELOPMENT, ENVIRONMENT AND PLANNING POLICY

IMPLEMENTATION DATE : 22 March 2004

SUMMARY / PURPOSE

1. To consider options for the future management of Newport Harbour.

BACKGROUND

2. The Isle of Wight Council is Competent Harbour Authority for Newport Harbour which extends from Newport Quay in central Newport down river to the Folly Inn at Whippingham, a distance of approximately 5km. Newport Harbour has been managed by the Isle of Wight Council since local government reorganisation in 1995. Since then, a transformation has occurred in the vicinity of the harbour, particularly on the eastern side. What was primarily a commercial location has gradually adapted to a more recreational and leisure usage with the former industrial interests being relocated to the Newport Industrial estate and elsewhere, thereby providing opportunities for redevelopment and improved public access.

3. Since 1995 a key consideration in terms of harbour management has been to try and encourage boat owners to come up river from Cowes and the Folly to Newport and to integrate as effectively as possible the historic and picturesque Newport Quay with the town of Newport, and particularly the Georgian / Victorian part of the town in the vicinity of Sea Street and Quay Street.

4. A strategy for regeneration, on an incremental basis, has proved a successful approach. A hotel and pub and a new access road from Fairlee Road together with other basic infrastructure has been provided. The Property Services Manager will be recommending further regeneration of the harbourside in due course. A similar approach is being developed on the western bank where efforts are being made to bring together the Council’s landholdings in a co-ordinated way. It is recognised that successful regeneration of the harbourside can only be achieved if a vibrant successful harbour operation exists, allowing development to take full advantage of all the benefits offered by a waterside location.

5. The Isle of Wight Centre for the Coastal Environment within the Engineering Services section of the Council currently manages Newport Harbour with the assistance of the Harbourmaster and two harbour operatives. The Centre is completing a review of all its activities in terms of best value and, in this context, has developed national best value indicators for coastal management for the Local Government Association. As part of this process officers have been examining options for future management of Newport Harbour in order to ensure that the best possible service and value for money is being provided. As part of the best value process, one option that has been considered in terms of future management of the harbour (water area) is the possibility of just one harbour authority for the whole of the River Medina. Currently the Isle of Wight Council manages the area south of the Folly to Newport whilst the area from Whippingham northwards to Cowes is managed by Cowes Harbour Commission. There are many inter-related and cross-cutting issues relevant to both harbour authorities within the river system.

6. In order to consider this issue two meetings have been held when all elected members whose wards abut the River Medina were invited to discuss future management options; the meetings were also attended by the Newport Harbourmaster.

7. An issue facing the Council is the ability to generate sufficient income to cover the costs of running the harbour (see financial implications below). The harbour has been a victim of its own success because whilst there has been considerable progress made in terms of regeneration, the clearance of sites and the demolition of buildings has led to a reduced income stream from rents and royalties accruing to the harbour revenue budget. Although a sum of approximately £120,000 is generated each year by the harbour, this still leaves a deficit of approximately £85,000 to be funded by the Council when capital financing and accounting costs are included. The question to be considered is whether, through economies of scale, and by managing at the River Medina holistically it is possible to reduce this deficit or achieve a surplus.

8. In order to provide information for the meeting with elected members a preliminary discussion was held with Cowes Harbour Commissioners who, at officer level, expressed interest in on-going discussions. At the first meeting with elected members it was agreed that the Coastal Manager should write formally to Cowes Harbour Commission in order to obtain the Commissioners’ views on commencing detailed discussions in order that a more comprehensive report can be brought to the Executive and provide the basis for consultation with stakeholders. A copy of the letter sent to Captain Stuart McIntosh, Cowes Harbourmaster, and his response are attached as an appendix to this report.

STRATEGIC CONTEXT AND CONSULTATION

9. Newport Harbour extends for approximately half the length down river from Newport, and the river is managed currently by two harbour authorities. A Medina Estuary Management Plan has been in existence for a number of years and recommends an all embracing approach to management of the water area of the river and its environs. Issues such as sediment transport, management of environmentally sensitive areas and development proposals are of interest to the whole of the estuary. The Medina Estuary Management Plan provides informal support to the Isle of Wight Unitary Development Plan. Newport Harbour is also included within the scope of ‘Project Cowes’ in relation to the regeneration opportunities that are available.

10. A consultative meeting chaired by the Portfolio Holder was held with harbour users on 2 February. The harbour users were anxious to ensure that any management change did not lead to significant rises in harbour fees.

11. The strategic objectives of the Medina Estuary Management Plan are “To achieve the sustainable use of the Medina Estuary through the integrated management of its resources by ensuring that a balance is secured between the protection and enhancement of the natural and man-made environment and the continued development of the local economy”.

and

“To develop appropriate management of the resource through co-operation and liaison between estuary managers, user groups, the voluntary sector and the community.”

12. It is important to recognise that the Medina Estuary Management Plan is an informal strategic document that supports the UDP. Day to day harbour management by Cowes HC and the Council is undertaken within that framework.

13. In addition, Newport Harbour fulfils the following aspirations set out in the Community Strategy:-

· Guaranteeing our quality of life and sustainability

· Supporting jobs and the local economy

· Developing tourism

· A quality built environment

FINANCIAL / BUDGET IMPLICATIONS

14. The future success in terms of regeneration of Newport Quay and elsewhere on the Medina depends upon effective management of the water area. This is the outlook from many properties overlooking the harbour and the quayside, the harbour providing a pleasant recreational area in the centre of Newport. It is vital, therefore, that any future management arrangements should ensure that a high quality environment is maintained for the future.

15. Two major issues have proved particularly problematical for the Council. The first of these is the condition of the Newport Quay walls, which require a substantial investment. A survey commissioned by the Property Services Manager has indicated that in the short and medium term a sum in excess of £900,000 is required in order to put the walls into a satisfactory condition. Second is the issue of harbour dredging. There has not been a capital dredge at Newport Quay for at least ten years and there are increasing problems with silting up of the harbour. A minimal amount of dredging has been undertaken but this has been limited to approximately £15,000 every other year when a total expenditure in excess of £400,000 is actually required. In the past some harbourside infrastructure improvements have been funded from land sales (eg. Fairlee Link Road and new sewerage system). However, it is unlikely that further land sales would be capable of funding such large capital projects. An incremental approach to funding, therefore, may need to be adopted, achieved through both land sales and a contribution from the capital programme.

16. There may be opportunities for further income generation within the Medina Estuary but the designation of the centre part of the river, north of the Newport Quay walls, as a Special Protection Area under the European Birds Directive provides a significant restriction on the possible provision of additional moorings. It is possible that there is an opportunity for some rationalisation of moorings at the Folly at Whippingham. Again, however, capital bids in the past for improvements to pontoons and landing stages have not achieved the priority required.

LEGAL IMPLICATIONS

17. Management of Newport Harbour is under the Harbours Act 1964, the River Medina Navigation Act 1852 and the Harbours, Docks, Piers and Ferries Newport (Isle of Wight) Harbour Revision Orders 1987 and 1988.

18. The Executive has the power under ss15, 20 Local Government Act 2000 and s101(13) Local Government Act 1972 to arrange for the discharge of it’s functions through the Commissioners; through Part 1 Local Government Act 2000 to procure management services from the Commissioners under contract, and to seek amendments to the current statutory remit of the Council and / or the Cowes Harbour Commissioners, and consequently has the power to incur expenditure in pursuing and evaluating these alternative future management structures. The power relied on in effecting any change in management arrangements will be determined by the detail of any agreement reached with the Commissioners.

OPTIONS

19. i) Existing arrangements in terms of management of Newport Harbour to continue. However this provides less opportunity ‘in house’ to consider the management of the whole estuary holistically and it is unlikely that the current revenue deficit can be reduced significantly without a considerable capital investment.

ii) To approve, in principle, the transfer of harbour management to Cowes Harbour Commissioners.

iii) To authorise the Coastal Manager, in consultation with the Portfolio Holder, to enter into negotiations with Cowes Harbour Commissioners for the management of Newport Harbour.

EVALUATION / RISK MANAGEMENT

20. Cowes Harbour Commission has an excellent reputation for its organisation and management of Cowes Harbour. From the Council’s perspective it is vital that under any new management arrangements the whole of the River Medina benefits from this proposed change, particularly the Newport Quay. The challenge is to establish whether an improved level of service can be achieved together with the generation of additional income as a result of the proposed change.

21. The results of the discussions with Cowes HC will assist the Council over what is essentially a decision over future procurement options for harbour management services. A more detailed understanding of the possible benefits of management of the Medina Estuary by one Harbour Authority would allow proper consideration of cost / benefit, specifications and timescales if considered appropriate.

RECOMMENDATION

22. As Option 19 (iii).

BACKGROUND PAPERS

23. Medina Estuary Management Plan. University of Portsmouth, 1997.

24. Correspondence between Coastal Manager and Cowes Harbour Commissioners dated 8 May and 25 June (attached to report).

25. Revenue budget Newport Harbour and Folly moorings, page 151 of Budget Book.

Contact Point : Robin McInnes; tel : 857220; e-mail : [email protected]

D ROWELL Strategic Director Environment Services

T BUTCHERS Portfolio Holder For Sustainable Development, Environment And Planning Policy