Read our letter to the Deputies:
Dear Deputy
With reference to the proposed Ports Commercialisation
Further to our email Statement Of Friday 14th March at 10:47.
In response to the comments made by the STSB in the media this week.
STSB Comment 1 “There is an Urban Myth that somehow the Surplus at the Harbours is subsidising the losses at the Airport is patently untrue” Peter Roffey BBC Radio Guernsey 17/3/2025.
STSB Comment 2 “The Harbours does make a profit but it is less than is required to invest in capital projects itself”.
Both Comments were Made by deputy Roffey on BBC Radio Guernsey 17/3/2025 at about 17:14.
These comments are patently not correct.
The Facts:
- COVID
Covid has certainly made the overall financial position worse, but it is completely false to blame the “Guernsey Ports” financial situation entirely on Covid and even worse to blame Covid for any future investment support which may be required at the harbours.
The previous under-investment in the harbours (despite the harbours having continuously generated surpluses) has nothing to do with Covid – it is because monies generated at the harbours have been used to subsidise the airport operations.
The figures are crystal clear. Looking at operational surpluses for the period we have studied (1996 to date) – all taken from States published accounts:
1996 to 2019 (Pre-covid years)
Harbour operating surplus £30.8m
Airport operating deficit -£16.0m
2020 to 2021 (Main covid impact years)
Harbour operating deficit £0.5m
Airport operating deficit -£19.7m
2022 to 2023 (Post-covid years)
Harbour operating surplus £1.7m
Airport operating deficit -£10.5m
Total 1996 to date `
Harbour operating surplus £32.0m
Airport operating deficit –£46.3m
So the harbours accumulated strong operating surplus was relatively little affected by Covid.
However the airport had accumulated deficits of -£16.0m before covid, had an operating deficit of £19.7m in the 2 covid years, and followed that up with an operating deficit of £10.5m in the 2 post covid years.
Meaning for the airport:
- The airport was already consistently loss making before Covid 2009 to 2019.
- The airport suffered losses of -£20m during covid.
- Post-Covid the airport is suffering losses of around -£5m per year – and this loss of around -£5m per year continues into the 2024 forecast Loss -£6m and the 2025 budget Loss -£4.3m.
- We don’t see how substantial losses of -£5m p.a. now being made can be blamed on Covid.
- General Position Regarding Funding
The above analysis shows that the harbour has consistently posted surpluses, and the airport consistently posted losses. It should also be noted that all figures are taken directly from the States accounts and are not inflation adjusted – so the real value of harbour surpluses is actually much higher.
Had the harbour-generated funds been used for harbour maintenance and replacement of harbour assets then the condition of the harbours would be much improved. Also the list of future harbour projects would be much shorter, and probably manageable from future harbour revenues.
- Business Similarities
The harbours and airport are entirely different businesses and looking forward will have very different challenges and opportunities.
The harbours may have a large list of improvement projects and may need some initial support (merely replacing monies previously generated by the harbours but diverted to support the airport) but essentially the Harbours are a profitable business. It can and should focus on maritime matters, harbour infrastructure, and developing commercial opportunities across its large estate.
The Airport, on the other hand, is a loss making “strategic asset” for the Island. Of course there will be some minor commercial opportunities, but it will continue to need significant States subsidy, and the strategic focus should be on aviation operational efficiencies and cost reductions.
To suggest (in the Policy Letter) that synergy exists in matters such as hire car concessions etc is simply an attempt to divert attention away from the very important strategic differences.
Our position firmly remains that there are no significant synergies or efficiencies between the Harbours and the Airport or shared experiences the Harbours are completely different animal to the Airport. The Harbours would be far better operated under the Harbour Master and his small team of maritime experts focusing on all areas of their business, with its accounts and residual funds completely separated from that of the Airport.
Yours sincerely
Nick Guillemette
President
Guernsey Boat Owners Association LBG
Tel 07781156118
Email Nicklg@cwgsy.net
David Norman
President
Guernsey Marine Traders Association LBG
Tel 07781 104 411
Email David.N@mge.gg
David Coleman
Guernsey Marine Traders Association LBG
Tel 07781 110 408
Email d.coleman@cwgsy.net
Peter Lloyd
Commodore
Royal Channel Islands Yacht Club
Tel 07911 747323
Email Commodore@RCIYC.com
