GBA PRESIDENT’S ANNUAL REPORT 2024

The past 12 months have been the busiest time for me since I took over the position of President of the GBA nine years ago.

We have seen huge rises in mooring fees which have involved us in numerous meetings with Guernsey Ports, States Members, both yacht clubs, the Guernsey Marine Traders Association, the Guernsey Competition and Regulatory Authority, outside consultants, the local media, the National Press, the Guernsey Development Agency and the Jersey Association of Boat Owners.

At the 2023 AGM, it was agreed by the members that I should appeal to the Guernsey Competition & Regulatory Authority (GCRA) for their advice and possible intervention with the States Trading Supervisory Board (STSB) 2024 budget proposals which were set to increase our berthing costs by an average of 25% depending on boat size and location.

Unfortunately, GCRA informed us that they do not have the powers to act as an economic regulator in Guernsey where States departments are concerned. If STSB and the Ports had been an incorporated business like Jersey Ports, they might have been able to assist us. So, we were on our own.

However, Deputy Gavin St. Pier and some of his political colleagues did come forward and attempt to lodge an annulment motion at the States December 2023 meeting but this was narrowly defeated.

Further support then came from Deputies David De Lisle and Simon Vermeulen who approached us in January 2024 as they considered that a requete could be successful if brought before the March States assembly because of the previous narrow defeat. David Norman from the Guernsey Marine Traders Association (GMTA) and I organised two drop-in sessions at the GYC where we fully briefed a majority number of Deputies who attended. We presented all of our vast research which we had gathered over the past months and together with the able assistance of GBA member David Coleman, we included an in-depth analysis of Guernsey Ports accounts based on the past 27 years income and expenditure. This showed that over the same period, Harbours had generated surpluses of approx. £32 million whilst the Airport had made losses of £54 million. It was very clear that our contributions over many years had been used to subsidise the Airport!

The result of all of this hard work culminated in a narrow defeat once again at the March States meeting by just 4 votes. I think the announcement at that meeting of a £30million overspend on the new hospital project just before our requete was debated swayed some of our previous supporters to vote in favour of the original plans put forward by STSB.

Thus, the huge mooring fee increases came into force last April.

At the same time as this was all happening, Guernsey Ports informed me that they were planning to produce a new mooring agreement for all berth holders to sign. I requested a draft copy and having learnt that the States had just passed a new Trading Standards Ordinance in October 2023 which included a specific section on contracts, I passed this draft contract on to one of our members, retired Advocate Peter Atkinson, for his legal advice. He agreed with me that the terms of this contract were contravening the new law and we summitted a re- draft. This was passed to the Crown officers who after 9 months of to-ing and fro-ing back to the Trading Standards Board via Guernsey Ports lawyers, a fair and equitable new mooring agreement was eventually agreed between us and which you all need to sign as soon as possible either on-line or at the marina office because the wording of the old agreement is now basically illegal. For example, you will find that in the event that your vessel is damaged due to faulty marina facilities like snapping cleats and then causing further damage to other vessels, the liability cover for Guernsey Ports is now set at the same level of £3million pounds as our commitment of £3million for third party liability cover. On the old contract the States had no such responsibility! Take time to study the previous agreement and compare it with the new version to see the differences in the terms.

During our on-going struggles last year and further discussions with the Guernsey Competition & Regulatory Authority (GCRA), I have been very grateful for the advice given by them even though they are unable to intervene on our behalf as explained earlier in this report. In July, after criticism by some States members on the merits of GCRA, it became clear that a few would like to see GCRA scrapped. So, the Economic Development Committee commissioned an independent review by Frontier Economics of GCRA’s responsibilities and purpose. Local organisations were requested to submit any points of view on this and I therefore sent in a submission on your behalf supporting the work of GCRA explaining that it was even more vital that in a small community like Guernsey any protection of consumers rights should be retained and in fact GCRA powers should be extended to include States departments. Without the independence of GCRA, all local consumers are potentially exposed to an abuse of a monopoly position whatever the product or service on sale, whether that be from an independent supplier or a States trading department.

The results of this review have still to be declared.

I strongly believe that if their powers were the same as in Jersey where the Jersey Competition & Regulatory Authority (JCRA) do act as economic regulators on Jersey Ports particularly with mooring charges, our situation might have produced a different result. In this regard, I have forged good relations with the Jersey Association of Boat Owners and have learnt from their experiences with Jersey Ports and JCRA.

One of the criticisms that came from some States Deputies before the March debate on mooring fees was that we should have organised a petition against STSB and Guernsey Ports hefty increases for 2024 as this may have ultimately affected their decision. This July our concerns were once again starting to grow because we hadn’t heard from Guernsey Ports about their plans for 2025 and we knew by experience that usually around June time any future charges would be recommended to STSB by Harbours senior management for inclusion in their 2025 budget proposals. These increases are based on the Guernsey Retain Price Index (GRPI) as at June each year.

So, I arranged a meeting with the President of the GMTA, and the respective Commodores of the RCIYC and the GYC, to agree on a suitably worded petition for all leisure boaters and their supporters to sign with a view to presenting this petition to the President of STSB prior to them finalising their Budget plans at the end of October.

This petition was circulated around the local chandleries, cafes, yacht clubs and via various helpers with the result that over 1100 people have signed. Our intention is now to make this presentation to the President of STSB, Deputy Peter Roffey, on the steps of the Royal Court building on the 11thDec. at 9.00am. prior to the start of the December States Meeting when the STSB 2025 budget proposals are due to be debated. I do hope that many of you will join me on that day to emphasise our combined support. And if you haven’t signed it yet, please do so now before it is too late!

At least we have achieved a wide range of media coverage regarding this petition including an article in the October issue of the Practical Boat Owner Magazine (PBO) whose Features Editor contacted me for an interview and is interested in any future developments.

Eventually last September we received a consultation paper from Guernsey Ports outlining their 2025 mooring fee increases of 8.3% based on GRPI of 5.3%+3%. Although this demonstrated a marked reduction in their original proposals first published last year, they included their plans for 2026 rises ranging between 11.9%-35.7% plus GRPI depending on size of vessel and mooring position. So, it was obvious that Guernsey Ports had not changed their minds on imposing further hefty increases and that the 2025 rates were simply a sweetener to keep us quiet!

Official responses from the GBA, RCIYC and the GMTA were separately submitted to Guernsey Ports in early October followed by a meeting with their senior management to discuss our concerns.

Since then, we have recently received a response from Guernsey Ports that they have ‘recognised concerns expressed through a number of responses’ and in particular our references to proposed charges in 2026. As a result, ‘it will recommend a similar more modest increase in charges for 2026, so as to moderate any concerns amongst existing boatowners as to the future affordability of moorings’ and that they would share their 2026 details next Autumn. Well, that’s 10 months away and we need to know now how much it is going to cost us to keep our vessels, at least over the next 5 years.

Do we sell, downsize or just put up with this abuse?

To add to this complicated equation, the States decided at their recent November meeting to set up plans to introduce a Goods & Services Tax (GST) in 2027 at a minimum rate of 5% or more, depending on any exemptions like food, which when added to any GRPI increases in fees would likely cripple our local marine industry and any future growth in leisure boating.

After consultation with the GMTA, RCIYC and GYC, I therefore contacted the new Managing Director of Guernsey Ports requesting a further urgent meeting with him and his senior management this week to find a compromise on future fee structures before our situation worsens and I am pleased to report that he replied ‘that he would welcome continued constructive dialogue on mooring fees for 2026 and beyond and other matters’.

I am hopeful that a sensible result will at last be reached which will not only give you some comfort for the way forward but also be beneficial to all concerned.

Whatever transpires, STSB must split the accounting system between Airport and Harbours to clearly show where the revenues are and the costs involved.

Our research showed that traditionally harbours always produced a profit and the airport lost money. And I think that the general public in Guernsey, whether a boat owner or not, have come to realise that this is a fact.

Now despite all of the turmoil over the mooring fee issue, there have been some successes which I am pleased to report. The Coastguard service is back in its rightful location at the harbour mouth along with Guernsey VTS control and this is thanks to Capt. Barker, our recently retired Harbourmaster, and his professional maritime staff for their endeavours over the past decade. The management team responsible for the marinas, led by Kieran Higgs, continues to work hard to provide a better service for local berth holders despite all our grumbles and my frequent visits to their office on the New Jetty to sort out individual disputes on your behalf!

The introduction of Passport L’Escales which offers free nights at over 120 ports in France, UK and other European marinas has been introduced by Guernsey Ports for Guernsey leisure boat owners and I would recommend that you join via our Marina Office if you plan to go further afield in your vessel. And especially as the French customs have now relaxed their protocol for our visits.

And at last, I can report that the GBA has entered the 21st.century with a revised website and Facebook Page with the added facility of being able to join online. Membership forms are widely distributed around the ship chandleries so please encourage your berthing neighbours to come and join us.

This forthcoming year will be my last as your President as my 10yr term will terminate at our 2025 AGM. My main priorities during the next 12 months will be to attempt to obtain some sense of stability with our mooring fees and to increase our membership. I like to think that your membership of the GBA provides you with value for money.

My thanks go to our GBA Committee, especially to our secretary Jeremy Witham, our retiring Treasurer Tim Lowe, and above all to you for your continued support.

Let’s hope 2025 will find us in calmer waters and a less volatile atmosphere.

 

Nick Guillemette.

President of the GBA.