Agenda item
Call-in: Decision Reference - T19 22/23 - Lease Surrender of Land at Cattewater Harbour
The Committee will consider the decision called in by Councillors Kelly, Mrs Beer, Hulme and Singh.
Minutes:
Ross Jago (Head of
Governance, Performance and Risk) explained that the Call-In had
been accepted on the grounds that “the decision maker did not
take into account relevant factors only. The Barbican Landing Stage
is a platform that used correctly could open up the coastal waters
to many more users, therefore encouraging greater participation of
the National Marine Park (NMP), one of the Council’s
objectives for the NMP.”
Councillors Mrs Beer, Kelly and Singh introduced the reasons for the call-in and highlighted -
a)
The Barbican Landing stage was a public asset with a book value of
£441,469 with an 84 Year lease remaining;
b)
The income to the Council was £14,576 in 2021, with a cost to
Plymouth City Council of £24,328; a deficit of £9,752
which if divided into the asset value represents 45 years before
the incurrence of the giveaway of the book value;
c)
The Council has been seen in the past by the public to
‘giveaway’ or sell public assets at a very reduced, or
nil rate such as The Civic Centre, Airport, Pavilions or The Dome
and the only benefit to public of this decision was the saving of
£10,000 a year;
d)
Plymouth had the first National Marine Park and part of the
Corporate Plan was to encourage cruise ship visitors and this
landing stage could have been used for tender’s transporting
tourists from the ships and back;
e)
The shortfall in 2021 would have been impacted by the COVID19
pandemic;
f)
The Cattewater Harbour Commissioners were able to raise their
prices on their segment of the Barbican Landing Stage as they saw
fit , and once the section in the decision was handed back, the
trust could choose to rise prices and generate a healthy profit;
they couldn’t see why the Council could not do the
same;
g)
The Barbican Landing stage would be an ideal space in the heart of
Plymouth for boat operators for fishing, dolphin watching and more,
but it was restricted to commercial operators only;
h)
If it was opened up to a wider range of users, for some as a lower
fee, Plymouth City Council could enable more users to access the
water and make a profit, rather than lose control of an
asset;
i)
In 1895, The Lord Mayor of Plymouth declared that Phoenix Wharf
should be designated a free landing point, the Mayflower Steps are
designated a free landing point, but were currently closed, and
other public landing platforms and stations had been lost, even
though on the other side of the City, Mutton Cove remained free, so
could a cap of charges be imposed on the Cattewater Harbour
Commissioners;
j)
The Corporate Plan aimed to create a friendly and welcoming city
with a varied, efficient and sustainable transport network and the
Barbican Landing stage could have been utilised for Water
Taxi’s to take pressure off of the road network and provide a
more environmentally friendly way for visitors to experience
Plymouth’s coastal landmarks;
k)
Revenue had been stagnant from the one large operator who dominated
the scene at the Barbican Landing Stage, and there could be an
opportunity for Plymouth City Council to generate
revenue;
l)
A £10,000 saving was not comparative to the benefits of
maximising on the asset for a Council with a £200 million
budget that wanted to encourage sustainable green travel on the
water as well as increasing people’s access to the
water;
m)
There had been a mismanagement of this decision when there was
already at a loss of trust between the public and the decision
makers, and it showed a lack of ambition for Plymouth as
Britain’s Ocean City and the National Marine Park;
n)
This decision showed a missed opportunity to get more young people
involved with using the water;
o) If the landing stage was opened to the cruise ships, it could generate good income for Plymouth City Council;
p)
Plymouth City Council had increased fees and charges across the
board and the opportunity to increase charges on the landing stage
and generate more income and promote Britain’s Ocean
City;
q) The Barbican Landing Stage was a £0.5m asset, and the public needed to know that Plymouth City Council looked at every possibility before a private company took it over and possibly made money from it in the future.
In response to
questions it was highlighted –
r)
The Barbican Landing point is not deep enough for Cruise Ships
themselves but would be for smaller vessels they would tender in to
drop off and pick up tourists;
s)
The Cattewater Harbour Commissioners were a trust and not a private
company, and in the rules for the trust it stated that a trust port
was an independent statutory body governed by its own local
legislation and run by independent board members, unlike private
company ports they had no shareholders, so all the surpluses
generate went back into improving the port;
t)
The Council would lose any control over the asset but handing it
back to Cattewater Harbour Commissioners;
u)
When Councillor Kelly was Leader the option of handing back the
Barbican Landing stage had been discussed, but he had wanted
something tangible in return, such as a 10-15 year period where the
public, and other operators, could use it at a reduced cost, or
free for some groups;
v) No economic modelling took place to look at the possibility of Plymouth City Council to generate revenue from the landing stage.
Councillor Drean
(Cabinet Member for Transport), and Mike Artherton (Group Manager
for Parking, Marine and Garage Services) explained the reasoning
for the decision and highlighted –
w)
The Barbican Landing Stage was not a Council asset but part of the
demised premises and upon expiry of the lease, the Cattewater
Harbour Commissioners could either take it back, or ask the Council
to remove it, at the Council’s expense;
x)
Surrendering the lease removed the Council from the risks and
burden of maintaining the Barbican Landing Stage at the
taxpayers’ expense;
y)
In difficult financial times, the Council was having to focus on
the delivery of core services and the management of the landing
stage was not one of these;
z)
There were local expertise in the Cattewater Harbour Commissioners
who were better placed to ensure this facility remained available
for years to come;
aa)
The landing stage required specialist maintenance, including
underwater surveys, which over time would require an increase in
financial investment;
bb) It had been
constructed as a commercial landing stage with the cost of
maintenance and operations to be covered by the income received
from fees charged for its use, and these would need to
significantly increase to cover costs if the Council were to
continue with the lease;
cc)
The Cattewater Harbour Commission was a statutory authority and had
trust port status, meaning all the monies made from provision of
services, were reinvested back into the facilities and resources to
help to maintain and improve the port for the benefit of all
users;
dd) The Cattewater
Harbour Commissioners were established within Plymouth, specialists
within the field and had an outstanding track record of working
with the Council and supporting the city of Plymouth;
ee) Cattewater Harbour
Commissioners had a statement they asked to be read at the meeting
which read –
i.
“Cattewater Harbour Commissioners will celebrate its 150th
anniversary next year. Throughout its time it has served the Port
of Plymouth, the city and wider community in accordance with its
‘trust port’ status. This means that all the monies
made from services provided are reinvested back into facilities and
resources to help maintain and improve the port for the benefit of
its users.
The team has supported and promoted cruise ships visits, in
particular those that want to bring passengers ashore straight into
the heart of the historic Barbican. We work with local businesses
and organisations across the city to support many other projects
like the swim buoys, seagrass, swim pontoons, visitor’s berth
pontoons, SAILGP, annual fireworks championship, community
engagement and charity projects, as well as the statutory duties
that keeps the Cattewater Harbour open for business, facilitating
over 2 million tonnes of cargo, with a value of over £1.4
billion being imported and exported safely in and out of our city.
We offer support and assistance here in Plymouth and across the SW
to everyday and major products too, we operate 365 days a year,
24/7.
We are excited to have agreed a hand-back of the Barbican Landing
Stage to the CHC from Plymouth City Council and already have
developed plans that would see investment to offer more
opportunities for water-based business to operate out of the site.
From angling trips to sea safaris, snorkelling trips to dive boats,
an improved facility will provide the space and management to allow
new businesses to start up, and existing businesses to offer new
pick-up locations to add the area and city’s tourist draw. In
addition, this will also provide more space for visiting and local
pleasure vessels with a ‘walk ashore berthing option’
similar to neighbouring South West ports as we look to build on
recent investments opening up the city to water based visitors, and
in turn improve the access to the water from shore.
The Port Authority are well placed to operate and maintain the
facility and its important role in supporting the local economy,
investing in much needed maintenance to ensure the longevity of the
facility, for the benefits of all.”
In response to
questions it was highlighted –
ff)
Plymouth City Council was the leaseholder and Cattewater Harbour
Commissioner was the freeholder;
gg)
Plymouth City Council could not land passengers from cruise ships
onto the landing stage as this was already done by Cattewater
Harbour Commissioners;
hh) The benefit to the
residents of Plymouth of the decision would be that they would no
longer have to pay for it through Council Tax;
ii)
Apart from the Cattewater Harbour Commissioners, no one else had
approached the Council to take on the lease;
jj)
The landing stage was a city gateway for visitors although it had
been maintained to health and safety standards, it could be more
visually appealing, but this would cost more, whereas the
Cattewater Harbour Commissioners keep their strip of the landing
stage to the desired level and they have the resources and
expertise to better manage it as an asset;
kk) It was an asset
with concerns;
ll)
It was possible that the lease could have been extended beyond its
end date.
During discussions
between Committee Members, it was further highlighted
–
mm)
It was disappointing that the investment had not been made in the
asset since the Council had taken the lease on circa
2007;
nn) It was Mike
Atherton’s understanding that the lease was not transferrable
and could not be sold by Plymouth City Council;
oo) The initial thought had been to lease it back to Cattewater Harbour Commissioner but it cannot be leased back to the freeholder, and so surrendering the lease had been explored.
In summing up
Councillor Jonathan Drean -
pp) Thanked all those involved for a good discussion from all sides.
Councillor Kelly
summed up and added –
qq) The Barbican
Landing stage was an asset to the city and if the Council had been
more aspirational it could have produced a profit;
rr)
Frustrating that assets are surrendered by the Council due to a
lack of investment in maintenance;
ss)
Cattewater Harbour Commissioners would only take on the Barbican
Landing Stage if they felt there was commercial value in
it;
tt) The expertise could have been employed by the Council in order to create revenue from it and create a way for people to gain access to the water and explore the National Marine Park.
The Committee agreed
to confirm that the decision could be implemented
immediately.
For (7)
Councillors Coker, Goslin, Hendy, Holloway, Noble, Reilly and Lugger.
Against (1)
Councillor Hulme.
Abstain (1)
Councillor Riley.
Supporting documents:
- Call In Form - T19 22.23 - Cattwater, item 80. PDF 106 KB
- Callinprocedure, item 80. PDF 120 KB
- Lease Surrender of land at Cattewater Harbour Decision, item 80. PDF 267 KB
- Briefing Report Cattewater Harbour Decision, item 80. PDF 263 KB
- EIA Cattewater Harbour Decision, item 80. PDF 110 KB