Ports' fees rise in bid to end funding from States

Guernsey Ports says the current set-up is "not sustainable"

Guernsey Ports plans to increase its fees and charges in a bid to not rely on the States.

Since 2020, it has relied on the States for funding, including a loss of about £6m forecast for 2023.

It will bring the total amount of funding from taxpayers received in the last four years to about £30m.

Guernsey Ports said the situation was "not sustainable in the long-term".

'Smooth increases'

Reviews of current fees and charges have been carried out, and Guernsey Ports said it hoped to be in a self-funding position by 2026.

Retail Prices Index (RPI) increases have been proposed which will be applied to fees and charges from 2024.

A spokesperson said: "Guernsey Ports is mindful of the potential impact of sudden sharp rise in charges and will always try to smooth increases so that customers can adjust to these.

"As such, is has been decided to phase in the increases over three years.

"This also gives Guernsey Ports the opportunity to monitor and take stock of any changes to service demand or usage and adapt accordingly."

Current fees will rise by between 20% and 30% next year for berths within Guernsey Ports marinas, with further above RPI increases in 2025 and 2026.

These increases are expected to raise additional revenues of about £1.2m a year from 2026 onwards.

Moorings outside the marinas will see increases of between 60% and 150% above RPI by 2026, depending on location.

Overall, this is expected to raise additional annual revenues of £44,000 from 2026 onwards, Guernsey Ports said.

'Ageing infrastructure'

Guernsey Ports said the coronavirus pandemic had a "lasting impact" on its services.

It said although passenger numbers at the harbours and airport have recovered since travel restrictions ended, they were still 15% below pre-pandemic levels.

A spokesperson said: "As two thirds of income comes from commercial passenger, ship or aircraft charges, this reduction has heavily affected Guernsey Ports finances."

They added dealing with a "backlog of maintenance on some of the island's ageing infrastructure" was also having an impact on finances.

The annual increase in mooring fees will apply from 1 April.