Archived decisions

Decision Maker:

Executive Member for Environment

Date of Decision:

20 January 2009

Decision Title:

Hayling Ferry

Decision Reference:

533

Report From:

Director of Environment

Contact name:

Peter Shelley

Tel:

01962 847212

Email:

[email protected]

1) Summary

The following decisions were made:

1.1. That the County Council provides a grant of £16,200 to Hayling Ferry Ltd as a 54% contribution to the cost of two new engines for the ferry vessel "Pride of Hayling", subject to the remaining 46% (£13,800) being funded by Portsmouth City Council. A `clawback' clause will be a condition of this grant to ensure that an agreed proportion of the grant is repaid in the event that the ferry operation or vessel is sold by the current owners within one year (75%), two years (50%) or three years (25%).

1.2. That the County Council increases its contribution to the revenue support provided for the Hayling Ferry service by £14,000 for the period April 2009 to 2010 to enable a detailed review of operations and future funding to be undertaken. Funding would be provided on a monthly basis of £2,097.08 per month for 12 months.

2) Reasons for the decision

2.1. To permit the continued operation of the Hayling ferry service in line with the Second Local Transport Plan (LTP2) and the County Council's Ferry Strategy.

2.2. The subsidy budget is forecast to be under pressure next year, leading to a need to review service priorities.

3) Other options considered and rejected:

3.1. Option 1: Maintain existing levels of financial support for Hayling Ferry Ltd but decline to provide any additional funding.

a) Risk Assessment: There would be uncertainty for users and a potential loss of service as the defective engine would be likely to fail entirely, and a greater outlay (and delay in implementation) if it were subsequently decided to procure a replacement service.

3.2. Option 2: Provide the requested grant but decline any increase in the revenue funding.

a) Risk Assessment: Over time, the ferry service would be unable to meet its costs fully from current income and would be likely to cease or significantly reduce its current operation. This would mean a greater outlay (and delay in implementation) if it were subsequently decided to procure a replacement service.

3.3. Option 3: Withdraw all financial support from the Hayling Ferry service.

a) Risk Assessment: This would result in the cessation of the service, isolation for local residents who would face much greater journey times and a resultant transfer of journeys to road vehicles affecting traffic conditions between Hayling Island and Portsmouth. Such a decision would also have an adverse effect on County Council relationships with the Portsmouth and Havant authorities whose residents are the majority of customers of the ferry service.

4) Conflicts of Interest:

4.1. Conflicts of interest declared by the decision-maker:

None

4.2. Conflicts of interest declared by other Executive Members consulted:

None

5) Dispensation granted by the Standards Committee:

None

6) Any reasons for the matter being dealt with if urgent:

To ensure that the ferry service between Hayling Island and Portsmouth is maintained and that current operational and financial issues are addressed.

Approved by:

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Date:

20 January 2009

Executive Member for Environment

Councillor M J Kendal