Other than for large capital projects, such as the construction of the QEII Marina and the major refurbishment at Guernsey Airport a decade ago, the ports are generally user-funded. Fees and charges are levied on all freight, so everyone contributes to some extent in the price we pay for products. They are also applied for other services, such as landing fees and passenger charges, leisure boat mooring fees, and rents on commercial premises.  

However, the money currently raised from fees and charges is not sufficient to cover all the operating costs and essential maintenance requirements of the harbours and the airport. The need for substantial renewal and repairs has been flagged for many years, and this work is now critical if we are to continue to offer the range of facilities we currently do. The vast majority of that essential work over the 10-year planning period is needed at the harbours and the marinas.  

This comes at a time when the financial position of the ports has never been worse. The Covid pandemic ravaged their finances and passenger numbers have still not recovered to pre pandemic level. As a result, the reserves have been exhausted and the States has provided more than £30 million from taxpayers’ funds to cover the shortfall.  

Even with recently announced fee increases, Guernsey Ports has budgeted for an operating loss of £146,000 next year, in addition to which we plan to spend £4 million on much needed repairs and improvements. Taken together this means the ports will need cash funding of more than £4.1 million in 2024. Clearly this is unsustainable at a time when there are lots of competing demands on the public purse. Taxpayers cannot just continue to write cheques unless the ports can demonstrate they have done all they can to finance themselves.  

The Board responsible for Guernsey Ports is acutely aware that the proposed increases are significant. As we have set out previously, we have started work on a comprehensive review of all income and expenditure, aimed at cutting costs, improving efficiency, and increasing our non-traffic revenues. We have a large estate with a lot of untapped potential to generate new income, but these will take some time to realise and will need to be self-funding. However we will have this work completed as soon as possible and well before we consider the fees and charges for 2025 and later years.  

We have sought to spread the 2024 fee increases across all port users in a reasonable manner, and for most islanders the impact should be limited. For example, the increase in passenger fees will add less than a pound to each journey, so the effect on the cost of travel will be relatively small. Similarly, the increase in freight charges will have only a marginal impact on the cost of goods.  

Those increases in airport charges and harbour commercial fees will account for more than 80% of the additional, above inflation income for next year. But in headline terms, the largest rise will be in leisure mooring fees. On the recommendation of the Ports Board, the STSB has agreed these should go up by between 12% and 22% above inflation for 2024. For a mediumsized boat, a berth in one of the marinas will cost an extra £375 next year, and the increase is weighted more towards those with larger vessels.  

Unsurprisingly some boat owners oppose these increases, but we believe there is little choice. We need to invest in our infrastructure and facilities, and that includes the marinas, where we anticipate having to spend more than £22 million in the medium term on essential works and improvements.  

Some have argued this would not be a problem had marina charges been set aside to fund their future refurbishment, rather than contributing to other ports infrastructure. That is not the case. The marinas were built with taxpayer funds, and there has never been a provision made in the accounts for their renewal.  

As our accounts clearly state, the ports have been run as one business since 1962. Income from mooring fees is no more ringfenced for investment in the marinas than commercial port fees are earmarked only for maintaining commercial facilities. Our ports are inextricably linked, which has been the case for more than 60 years. While the balance of investment may at times favour the airport, currently the needs of the harbours significantly outweigh those.  

One can argue about how facilities here compare to other marinas - and we are looking to improve these – but the simple fact is mooring charges in Guernsey are much lower than in Jersey, and the south coast of the UK. That will still be the case for most boats, even after these increases.  

As the new chair of the Ports Board, I can see that we have a significant capital programme and a funding deficit. If we are to keep the facilities open, the money must come from somewhere. If it is not through user charges, then it must come from taxpayers, many of whom may use these facilities very little and may prefer their taxes to be spent on other priorities. The Ports Board and the STSB have only agreed increases for 2024 and we are committed to conducting a thorough cost, efficiency and income opportunities review before any further rises are proposed.