Contact: David Evans, tel 01489 576387

email: [email protected]

1. Summary

1.1 This report outlines proposed changes to the regime and charges for Harbour Dues chargeable to leisure users of the River Hamble.

2. Corporate Strategy

2.1 This report supports Aim 5 of the Corporate Strategy (Improving Services) by ensuring that all who use the service provided by the River Hamble Harbour Authority pay a fair rate for it.

3. What Are Harbour Dues?

3.1 In simple terms, Harbour Dues are a toll which gives the right to use the facilities on the River which are provided by the Harbour Authority.

3.2 In reality, this means that the owner of a vessel is making a contribution towards the upkeep of the facilities of the River such as navigation marks and lights, and to the monitoring and control of the Harbour by the Harbour Master and his staff, as required by the Port Marine Safety Code. If such matters were not properly controlled, the Harbour would become less safe for all users, so it is reasonable that all users should contribute. At present, this is not the case.

4. Current Situation

4.1 At present, only the following categories of River user pay Harbour Dues:

(i) Marina berth holders (boats kept afloat);

(ii) Mid-stream mooring holders;

(iii) a proportion of dry-sailed yachts;

(iv) visiting yachts which arrive by sea and berth on visitor facilities (paid as part of their visitor's fee);

(v) commercial users; and

(vi) Houseboats (50% of full rate).

4.2 The following categories do not currently pay Harbour Dues:

(i) vessels on sub-let mid-stream moorings (strictly speaking, they pay visitors fees which include an element of Harbour Dues, but these monies do not currently accrue to the Harbour Authority);

(ii) dry-sailed dinghies (mainly from dinghy compounds);

(iii) tenders;

(iv) some dry-sailed yachts;

(v) visiting boats which arrive by road and launch on one of the public slipways;

(vi) visiting yachts which berth on Club jetties;

(vii) visiting yachts which enter the River from seaward but do not berth in the River;

(viii) Regatta competitors in boats which have not paid Dues in any other category;

(ix) Hamble inshore lifeboat;

(x) Club safety boats; and

(xi) some charity vessels.

5. Proposed Way Ahead

5.1 It seems desirable to devise a mechanism whereby all boats using the River should pay appropriate Harbour Dues and should carry a clearly visible mark to that effect. Broadly, there are two categories of vessel which need to be addressed. The first is those boats which are `resident' and `in commission' on the River for long periods (referred to hereafter as `Annual users'). The second is those boats which use the River for relatively short periods at a time (up to three days) (referred to hereafter as `Temporary users').

5.2 For simplicity of collection, it is proposed that Annual users should pay Harbour Dues at a `per metre' rate whilst Temporary users should pay a form of flat rate per boat, per day.

5.3 It is proposed that Annual users should receive a conspicuous coloured sticker to indicate that Harbour Dues have been paid. These should be issued annually upon receipt of payment. For ease of administration, a boat should be deemed to be `in commission' if it goes afloat at any stage during the year (ie a vessel which remains ashore throughout the year should not pay Harbour Dues).

5.4 Two distinct rates for Annual Harbour Dues are proposed. The higher rate (the 2006 rate is £10.78 per metre) should apply to all vessels over 6 metres Length Overall (LOA), whether they are dry-sailed or permanently berthed afloat. The lower rate of £5.00 per metre (ie about 50% of the higher rate) should apply only to dry-sailed boats such as sailing dinghies and small keelboats up to and including 6 metres LOA (ie vessels under 6 metres LOA which are kept permanently afloat in a marina berth or mid-stream mooring should continue to attract the higher rate of Harbour Dues). It is proposed that vessels under 3 metres LOA with no engine (such as Optimist Class dinghies), or an engine of less than 10 horsepower (hp), should not pay Harbour Dues (the engine size limit will ensure that all Personal Watercraft (Jet Skis) have to pay, regardless of their length). It is for consideration that bona fide tenders up to 4 metres LOA (appropriately marked with the mother ship's name) should receive a free Harbour Dues sticker when the Dues for the mother ship are paid. Harbour Dues for dinghies could be collected through sailing clubs or directly from the owner. It is proposed that invoices and reminders in this category would not be issued.

5.5 It is proposed that Temporary users should pay a flat rate per boat, on a per diem basis, using a two tier system with a break at 6 metres LOA. Visiting yachts which berth (either on Harbour Authority berths or in a Marina) during their visit to the River should have their Harbour Dues included in their visitor's fee (as is currently the case) and a distinctive label issued to that effect. It is proposed that vessels up to and including 6 metres LOA which launch into the river at the various public and commercial slipways should pay at the rate of £4.00 per boat per day or £10.00 for three consecutive days, although they may, if they wish, pay the full annual rate for the appropriate size of vessel if they intend to be regular visitors. Vessels over 6 metres LOA should pay at the rate of £6.00 per boat per day or £15.00 for three consecutive days. All Temporary users should be issued with a distinctive coloured label upon payment of their Dues, to be attached to the rigging or guard rails of the vessel. The date of validity should be written on in indelible pen and there would need to be a simple colour code to avoid fraudulent re-use, details of which will be administered by the Harbour Office.

5.6 Collection of Harbour Dues from Temporary users should normally be from the owner, either on the water or on the slipway (by a Patrol Officer), or in person at the Harbour Office. Appropriate signage to this effect would be required on each slipway. It is not proposed to collect Harbour Dues from non-commercial vessels entering the River from seaward which do not berth in the River, because these are few in number and it would be impractical to do so.

6. Dealing with Special Cases

6.1 The list of those categories which do not currently pay Harbour Dues (at paragraph 5.2 above) includes a number of `special cases'. It is proposed that they should be dealt with as follows:

(i) Vessels on sub-let mid-stream moorings: It is proposed that the rate (currently the same as the Visitor's Pile mooring rate) should be increased from £0.50p per metre per day to £0.55p per metre per day (an increase of 10%) and that the additional income (estimated at £2,500 per annum) should accrue entirely to the Harbour Authority. This has already been agreed with the Crown Estate.

(ii) Entrants in regattas and other events administered by clubs: It is proposed that entrants who have not paid Harbour Dues in any other category should pay at a reduced rate, to be collected by the organising club/organisation as part of the entry fee, to be paid to the Harbour Authority. The proposed tariff is:

(a) vessels up to and including 6 metres LOA - £1.50 per day, £4.00 for three days;

(b) vessels over 6 metres LOA - £2.50 per day, £7.00 for three days.

(iii) Visiting vessels on Club jetties: Most vessels which use Club jetties will have already paid Harbour Dues in another category. However, there are some which visit from outside the River and use Club facilities under a reciprocal arrangement. Options include charging individual vessels at the daily rate or charging a fixed annual sum to each Club to cover the estimated usage. For simplicity, the latter is favoured and it is proposed that a charge be levied at the rate of 25% of the full rate for the useable length of the jetty, calculated using the Yacht Harbour's Association formula - the accepted industry formula which is currently used to calculate the capacity of marinas on the River Hamble.

(iv) Hamble inshore lifeboat, Club safety boats and registered charity vessels: It is proposed that these boats should be exempt from Harbour Dues. Such exemption should not be presumed, and the operators should apply in writing to the Harbour Authority, giving details of the vessel(s) so that full records can be maintained.

Table showing proposed Harbour Dues (2006 rates)

Boat type and location	Annual user	Temporary user	Collected by
Afloat in Marina berth or commercial mid-stream mooring	£10.78 per metre (included in berthing fees) (see Note)	Not applicable	Marina/ commercial operator
Afloat on mid-stream mooring	£10.78 per metre (see Note)	Not applicable	Harbour Authority
Harbour Authority Visitor berths	Included in Visitor Fee	Included in Visitor Fee	Harbour Authority
Dry-sailed vessels over 6m LOA	£10.78 per metre	£6.00 per day or £15.00 for three consecutive days	Harbour Authority or marina/ commercial operator
Dry sailed vessels over 3m LOA, up to and including 6m LOA	£5.00 per metre	£4.00 per day or £10.00 for three consecutive days	Clubs, Harbour Authority or marina/ commercial operator
Vessels under 3m LOA with engines over 10hp	£5.00 per metre	£4.00 per day or £10.00 for three consecutive days	Harbour Authority or marina/ commercial operator
Vessels under 3m LOA without engines, or with engines less than 10hp	Free	Free	Not applicable
Tenders up to and including 4m LOA	Free with Harbour Dues for mother ship	Free with Harbour Dues for mother ship	Not applicable
Entrants in organised regattas/ events up to and including 6m LOA	Not applicable	£1.50 per day or £4.00 for three consecutive days	Organising Club
Entrants in organised regattas/ events over 6m LOA	Not applicable	£2.50 per day or £7.00 for three consecutive days	Organising Club

Note:

The rate of £10.78 per metre was agreed in December 2004 for the calendar year 2006. The rates for 2007 will be decided in December 2005.

7. Costs

7.1 Annual costs for the implementation of this proposal are minimal. The cost of collection and enforcement can be contained within existing manpower resources. The stickers and labels will cost about £3,000 per annum. There will, however, be additional costs in Year 1 for the provision of appropriate signage on public slipways (which may need planning consent from the appropriate Local Authority). A maximum of six signs will be required (Warsash, two at Hamble, Swanwick, Lands End, and A27 roadbridge [adjacent to Deacon's Boatyard]) - provisional estimates suggest that a total of £2,000-£3,000 should be allowed for this.

8. Income

8.1 Clearly, this proposal will only be viable if the income generated significantly exceeds the material and manpower costs of implementation and enforcement. It is assumed that income from those vessels kept afloat, visiting yachts and the dry-sailed yachts which already pay will remain more or less constant. Potential additional income is difficult to assess accurately, but can be broken down into rough estimates as follows:

· Visitors launching from public slipways (Temporary users): 50 boats per week averaged over the year = £10,000

· Dry sailed yachts (Annual users): 80 vessels of average 8 metres LOA at standard Harbour Dues rate = £6,000

· Dry sailed dinghies (Annual users): 300 boats of average 4 metres LOA at £5 per metre = £6,000

· Vessels on sub-let mid-stream moorings: £2,500.

This gives a total projected annual income of about £24,500, giving a net income of about £18,500 in Year 1, and £21,500 in subsequent years. There will be no loss of income from the level of Dues currently charged.

9. Consultation

9.1 The Harbour Authority is empowered to levy Harbour Dues by the Southampton Harbour Act 1949 and subsequent Harbour Revision Orders. Thus, strictly speaking, there is no requirement for formal consultation. However these proposals, if implemented, would affect large numbers of River users, and thus consultation with affected parties and their representative groups may be appropriate in this case.

10. Impact Assessments

10.1 It is proposed that Harbour Dues should be payable by all, regardless of income. The exemption of vessels under 3 metres LOA should ensure that younger users (in boats such as Optimist dinghies) are not unduly penalised by the new proposals. It is proposed that registered charity vessels should continue to be exempt from Harbour Dues.

Recommendation

That the River Hamble Harbour Management Committee debate this issue and report its conclusions to the River Hamble Harbour Board.

627/DE