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A review of Guernsey Ports is being planned as it's announced the harbours and airports are looking at a projected collected deficit of almost £8 million next year.
The Ports Holding Account - which used to pay for routine capital investment at the harbours and airports - was completely emptied during the covid pandemic, and it's not been topped up in any real sense since.
Deputy Peter Roffey told the States during his annual update statement yesterday that "passenger numbers overall at both the harbours and airport were still down by a quarter last year, compared to pre-pandemic levels".
He also said that "the financial impact of that is being keenly felt at Guernsey Ports, at a time when the business is also having to address historic under-investment in its infrastructure."
Pictured: Aurigny's fortunes have improved over the past year.
The President of the States Trading and Supervisory Board said that while Aurigny is in the best financial position it has been in since being recapitalised in 2021, and is on course to " achieve, if not better, its forecast for a modest operating profit in 2023" the rest of the island's transport network is not doing so well.
The airport has seen an increase in air passenger numbers but they are still down on pre-pandemic figures and that - coupled with the States wider financial pressures - is having an impact on the Ports funds.
Deputy Roffey said that while it is expected to be better than budget, "Guernsey Ports deficit will again be around £6m in 2023, and could be as high as £7.8 million next year if the target for capital investment is achieved at current income levels".
In recognition of the ongoing challenges facing the Ports, Deputy Roffey said STSB has started a "comprehensive review of revenue and expenditure".
"I stress that this is not all about raising charges," he said. "We anticipate the route to financial stability requires a combination of approaches. It will require efficiency savings, as well as exploring new revenue opportunities, and there may be a case for some targeted general revenue support, where a specific requirement is identified."
To offset any fears about increasing charges at Guernsey Airport, Deputy Roffey acknowledged that would likely deter some passengers so "there may be an argument for government to provide some level of grant, in recognition of the wider economic benefits", he suggested.
Pictured: Deputy Peter Roffey.
He warned that whatever happens, the Ports have to act more commercially if they are to become financially self-sufficient again.
"All current tariffs are therefore being reviewed to identify where additional revenues can reasonably be achieved. That is likely to have the most immediate impact in reducing the forecast trading deficit for next year. Efficiencies are also being sought and new revenue opportunities identified, which will be an ongoing process. While those benefits may take longer to realise, they will make a significant contribution to a financially stronger Ports business.
"I shall not prejudge the outcome of the review, but if States Members wish to see the Ports on a more sound financial footing, then I hope we will have your support when we return to the Assembly by the end of the year with our proposals for fees and charges."
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