‘Guernsey Ports’, which includes both Guernsey Harbours and Guernsey Airport, is a wholly inappropriate pairing of two States Trading Businesses. It is our view that these were combined in 2009 to obfuscate the Accounts of these two entities which appear to have no synergy, no shared experiences and no obvious efficiencies.
Guernsey Harbours is a profitable business, normally returning a surplus after depreciation in excess of £2m per annum and with a current turnover of £14m. Harbours over 28 years have made surpluses of £32m and have only ever made a loss in that period over the two years of Covid of -£0.5m.
Over the same 28 year period the Airport has lost the sum -£46m. The Airport has not made a single surplus since 2008. In the 2024 accounts forecast the turnover is £14m and the Airport is forecast to lose a further -£6m in 2024 alone.
As a result, the required maintenance and improvements of the Harbours have suffered badly. Necessary work has either been avoided or suspended for many years because the funds have been unavailable due to the Harbours’ surpluses having been expended covering the airport losses, repairs or maintenance.
The Harbours need to focus purely on their operation and opportunities and to be run by the Harbourmaster and his small team of experienced marine people alone, answerable to a separate board of directors as the “Harbours Co.” with no overarching Joint Management or association with the Airport in any way at all.
It is essential that the Harbours finances be fully separated from those of the Airport and that Harbours has its own Holding Account (Capital Reserve) completely separate from that of the Airport.
On the question of regulation and scrutiny as outlined in Section 7 of the STSB Policy letter on Incorporation of States Trading Departments which is being presented to the States Assembly on 19th of March, it is absurd that where every other incorporated business in Guernsey currently can come under the scrutiny of the Guernsey Competition and Regulatory Authority (GCRA), there is currently an exemption for the States own Trading Businesses. It is essential that all the States Trading Companies come under the scrutiny of the GCRA in future as well, especially in light of the fact that all the States Trading Departments are in fact monopolies and it would be very easy for them to be abusing their dominant market position.
The Directors of the new Trading Companies once incorporated who will be acting on behalf of the States of Guernsey (the Shareholder) may be able to discharge their duty as a Director but cannot effectively “regulate” at the same time on behalf of the Islands population.
We believe that all incorporated businesses including all of these States Trading Businesses should be included in the remit of the GCRA going forward.
This independent body was set up to protect the local consumers, whatever the product or service on offer.
As many of you are aware we have looked into this in depth and have information from States sources available. We have included a brief spreadsheet which is attached which tells the full story.
Statement made by:
Guernsey Boat Owners Association LBG
Guernsey Marine Traders Association LBG
Royal Channel Islands Yacht Club
Statement signed by:
Nick Guillemette; President of the Guernsey Boat Owners Association LBG
David Norman; President of the Guernsey Marine Traders Association LBG
David Coleman; Guernsey Marine Traders Association LBG
Peter Lloyd; Commodore of the Royal Channel Islands Yacht Club