- Boat owners are concerned about soaring costs if harbours are privatised
- Associations and clubs have raised concerns with the States due to discuss issue this month
- Proposal to incorporate Airport and harbours as States-owned company
- Should the harbours be privatised? Take part in our poll below
BOATING associations and clubs are worried that their costs could soar after the Island’s harbours are privatised.
They say that although they have been assured that charges will not go up by more than the cost of living, they fear the financial burden of maintaining the historic harbours could be passed on in mooring and other charges and say that the States should continue to foot the bill instead.
States Members are due to debate proposals later this month to incorporate the Airport and harbours as a States-owned company, Ports of Jersey Ltd.
The plan, approved in principle in 2012, is intended to avoid increasing taxes to cover declining business and rising costs, with an estimated shortfall in the ports’ revenue of £314 million by 2038.
The Economic Affairs Scrutiny Panel, which is currently reviewing the final proposals, heard evidence on Thursday from representatives of seven boat owners’ associations and clubs.
Dr Rhys Perkins and his wife, Louise, of St Catherine’s Sailing Club, said one of their concerns was that Ports of Jersey would be putting the clubhouse rent up, from £3,500 a year to a ‘commercial value’ of £15,800, although subsidised for the first three years.
Mrs Perkins said: ‘At present, we have not seen sight of a lease. There is disquiet about what will happen to the sponsorship – there is no guarantee. They have told us future increases will be affordable, but what does that mean?’
Mike Stevens, representing the 500 members of St Helier Boat Owners Association, said that moorings around Jersey were already twice as expensive as Guernsey’s and also more expensive than in France.
He said there was concern that repairs to the historic harbours, such as Gorey and St Aubin, could run into millions of pounds, particularly following winter storms, all to be paid for out of Ports of Jersey funds.
‘We feel that it should not be the case,’ he said. ‘General maintenance, yes, but if there is a major issue, the States should be looking at that.’
St Aubin’s Boat Owners Association vice-president Robert Thompson said increased costs were hitting elderly people. ‘There are a lot of pensioners with small boats,’ he said, adding that the cost of moorings had gone up by 60% over the past four years. ‘If the States paid for major maintenance work, the Ports could drop freight charges – that could cut the cost of living for everybody,’ he suggested.
St Helier Yacht Club Commodore Julian Barber said the club’s funding was dependent on maintaining a healthy membership, but demand had been going down at a time when mooring fees were increasing. ‘We hope that the incorporated Ports of Jersey will look at their own costs more than they did as a States Department,’ he added.
Steven Carter of the Bonne Nuit Boat Owners Association said their historic pier was used by tourists, swimmers and the café. ‘We do not feel it is fair that maintenance should be paid for by boat owners,’ he said. ‘It is an asset for the whole Island, and it should be funded by the Island.’
Clive Russell of Jersey Rowing Club said that undoubtedly more money could be made from the clubhouse site and he was concerned about what might happen in five years’ time. And Grant Feltham, of Rozel Boat Owners Association, said the community would not want Ports of Jersey pushing up mooring prices for ‘a harbour full of Sunseekers’.
The Scrutiny hearing was chaired by Grouville Constable John Le Maistre, sitting with St Clement Deputy Simon Brée, St Ouen Constable Michael Paddock and St Mary Deputy David Johnson. The panel are due to reconvene next Wednesday when they will hear from the Ports shadow board, chief executive Doug Bannister, the regulator and relevant ministers.
STATES efficiencies are likely come from restructuring public departments as private companies, the Treasury Minister said in February.
Senator Alan Maclean said: ‘We need to be providing services in a more cost-effective way, using fewer people, more technology, more efficiently and at lower cost. ‘In the past we have not done enough. We need to do more and raise the pace.’
Asked whether that would mean privatisation, he referred to the forthcoming incorporation of the Ports of Jersey, which will bring together the former Harbours and Airport public sector operations under one company structure.
‘We do not necessarily have to privatise,’ the minister said. ‘One of the key states of modernisation is looking at structural reform – by restructuring, we can be more cost-efficient and get better value for money.’
The incorporation of the ports follows the restructuring of the Housing Department as a new company, Andium Homes last year.
The Tourism Department is also being restructured as a private company, Visit Jersey, which effectively means that staff who transfer to the new organisation will no longer be on the States payroll or part of the public sector pension scheme.
Referring to selling a proportion of JT – which is currently 100% owned by the States – Senator Maclean said: ‘We would not want to give up our commitment to this company, but we can bring institutional investors in, to better manage the business, but still retain control.
‘That would provide some capital that could be put into the liquid waste plant, or the hospital.’
He said the business model would be similar to that of Jersey Electricity, which is a stock-exchange- listed company in which the States has around 62% of the voting rights.
