Annual Report 2012

As anticipated, business has been sluggish in 2012 in a bleak economic landscape. Commercial income from the import of sea-dredged aggregates continues at a low level as the building industry struggles through recession. Recreational income from trailer-launched craft has also suffered as a result of one of the wettest years on record. Despite these unwelcome outcomes, the Board has now reduced its reliance on the two constituent Councils by 43% between 2006 and 2012.

At the beginning of the year the Board adopted a Business Plan based on a precept maintained in real terms at the 2011 level for the life of the plan. Nonetheless, a budget for 2013 based on a further 10% reduction of the precept was under consideration at the end of the year in recognition of deficit-reduction pressures on the local authorities.

Although most of our commercial traffic operates under exemption the provision of a pilotage service is one of our principal obligations and we have kept our pilotage function under review through the Solent Navigation and Pilotage Coordinating Committee (SNPCC). This committee is an important element of our compliance with the Port Marine Safety Code and following an external review of our Safety Management System the Board formally indicated compliance with the requirements of the Code to the MCA.

We have been involved in a number of new initiatives aimed at improving management of the Solent European Marine Site, enhancing the protection of species and broadening our understanding of the factors influencing the natural environment of the harbour. The initial consultation on Marine Conservation Zones (MCZ) was concluded this year with nine MCZs proposed for designation in the Balanced Seas area. However none of the proposed sites in the Solent were recommended for progression in 2013.

The work we do to ensure that harbour activities are safe, sustainable and compatible with the ecological sensitivities of the harbour would not be successful without the cooperation and assistance of our many stakeholders. We enjoy the support of our sailing clubs, local conservation organisations and national regulatory bodies and I am grateful for the help and guidance they have provided to the Board in 2012.

Cllr Jackie BransonChairman of the Langstone Harbour Board

Chairman’s Introduction

Annual Report 2012

Commercial vessels and pilotageThe number of vessel calls remained steady but imports of marine aggregates fell 5.6% to 353,031 tonnes as the recession continued to stifle demand for building materials.

The Board provided an uninterrupted pilotage service in 2012. Over 90% of vessels operated under pilotage exemption. 3 new Pilotage Exemption Certificates (PECs) were issued and at the end of the year there were 8 PECs in force.

Moorings and recreationSlipway income is generated almost entirely during the period April to September when trailer activity is at its peak. Recreational activity during this period was adversely affected by wet weather and overall slipway income for 2012 remained at the same level as 2011. The active membership of the Langstone Harbour Water Skiers Association (LHWSA) was slightly reduced and this accounted for a small fall in income from this source. Slipway income from Personal Watercraft (PWC) rose 10% while income from general boat launching fell by 15%.

[1] Harbour Activities

All vessel visits 2011 2012

Vessels requiring pilotage service 25 25

Vessels operating under pilotage exemption 238 233

Vessels not subject to compulsory pilotage 1 1

Total 264 259

Slipway income 2011 2012

General 9,007 7,644

Water ski 3,867 3,472

Personal watercraft 16,094 17,702

Total (all activities) 28,968 28,818

Marine aggregate to Langstone (tonnes)600,000

500,000

400,000

300,000

200,000

100,000

02006 2007 2008 2009 2010 2011 2012

Slipway Income 2008-2010

2008

2009

2010

2011

2012

25,000

20,000

15,000

10,000

5,000

0Slipway Waterski Jetski

While overall mooring occupancy remained stable the number of allocated Board Deep Water moorings increased. Mooring income increased 5.9% to £99,584.

[01]

[02]

Eastney Cruising AssociationWork was undertaken by the Eastney Cruising Association (ECA) between August and October to extend ECA Pontoons A and B and provide a wavebreak (Pontoon C) to the north of the existing installation. The new pontoon incorporates over 200 metres of wave calming floats and the project increases the number of ECA pontoon berths by 54.

Personal WatercraftThe committee of the Hayling Island PWC Club (HIPWC) stood down at the club’s AGM on 28 August 2011 and a new chairman was elected conditionally. However, there were no further nominations for the committee and the club subsequently ceased to exist. HIPWC had been a positive influence on the PWC community in Langstone Harbour since 2007 and our partnership with the club yielded benefits to both parties.

Despite significant improvement in the effectiveness of our patrols and hence the discipline of recreational users the PWC community continues to provide our patrol team with its greatest challenges and this is reflected in our prosecution record for 2012 (see Enforcement below). We issued 197 permits in 2012, down from 210 in 2011. The small decline in PWC permits is attributable in part to poor weather during the summer and in part to the removal of discount incentives previously offered to HIPWC members.

Waterskiing30 water ski licences were issued in 2012, down from 36 in 2011. The number of water ski licences issued is closely associated with the active boat-owning membership of the Langstone Harbour Water Skiers Association (LHWSA). The declining number of active members continues to be a concern to the LHWSA. To assist the Board in regulating the Water Ski Zone, 20 ski patrols were undertaken by LHWSA in 2012.

Maintenance work on the LHWSA ski raft was undertaken this year by the Association with the assistance of the Board’s mooring maintenance team. The work included replacement of mooring risers and renewal of a number of flotation chambers.

Sailing In sunshine and frequent rain the enthusiasm of our sailing fleet was undiminished in 2012. Events for sailing dinghies and cruisers were hosted throughout the year by Tudor SC, Locks SC, Langstone SC and Eastney Cruising Association. The racing programme, club regattas and social events of our clubs contribute to a flourishing recreational sector and consolidate stakeholder participation on the water.

Other EventsBetween March and September a number of ‘round-the-island’ events transited Langstone Harbour. These included endurance swimming around Portsea Island and circumnavigation of Hayling Island by kayaks, windsurfers and other small craft. A degree of forward planning is necessary to deconflict these events from other activities afloat and we have been pleased by the readiness of other organisations to engage with the Harbour Board early in the planning stages to ensure that risks are minimised.

“Nowhere Island”As part of the 2012 Cultural Olympiad, “Nowhereisland” - a floating sculpture built from Arctic rock - was assembled in Langstone Harbour on the silt barge VR49, which is normally used to transport silt from the two aggregate wharves to the licensed spoil ground in the Eastern approaches to the Solent. “Nowhereisland” was created to explore themes including citizenship, nationality and climate change. It left Langstone Harbour in July and travelled to ports around the south coast throughout the summer accompanied by its ‘embassy’ where local schools and communities could learn more about the project. “Nowhere Island” returned to Langstone Harbour in September and was dismantled.

EnforcementOf the 9 cases sent for prosecution in Portsmouth Magistrates Court in 2011, 4 cases concerning 7 offences were heard early in 2012 and the Board was successful in each case. Every case involved a speeding offence and 3 of the cases related to PWC. Fines of between £100 and £250 were imposed for each offence and the Board was awarded full costs. A typical case results in the defendant having to pay between £500 and £800 in fines and costs.

In 2012 the Board issued 23 formal warnings, 18 of which concerned excessive speed. Additionally, 8 offences were referred for prosecution in Portsmouth Magistrates Court early in 2013.

Offence Formal warning Prosecution

PW Permit (Bye-law 53) 3 1

PW Speed (Bye-law 6) 7 5

Other craft Speed (Bye-law 6) 11 2

Water Skiing (Bye-law 51) 2 0

Annual Report 2012

[1] Harbour Activities cont...

• TheBoard’sobligationsunderthePilotageAct1987havebeen kept under review. The Solent Navigation and Pilotage Coordination Committee (SNPCC), comprised of the five Solent pilotage authorities, met twice in 2012. The SNPCC Operations Group met four times in 2012 and reviewed all significant incidents during the year.

• Inanefforttoconsolidatethedifferentarrangementsandjurisdictions of each of the Solent pilotage authorities and make them readily available to vessels transiting the Solent we have posted the pilotage arrangements of all Solent pilotage authorities on the Board’s website.

• Workhasbeendonetoharmoniseandsimplifyincident-reporting formats in the Solent.

• TheBoard’ssafetymanagementsystemwasexternallyauditedin August. This year’s audit followed the process outlined in the MCA Aide Memoire for PMSC reviews. Risk assessments and controls have been reviewed and, as Duty Holder for the Harbour, the Board indicated to the MCA that it was compliant with the requirements of the Port Marine Safety Code.

• TheSolentpilotageauthorities(Southampton,PortsmouthDockyard Port, Portsmouth International Port, Cowes and Langstone) considered the proposal for a Marine Conservation Zone at Bembridge and expressed strong opposition to the proposed loss of a large part of the St Helen’s anchorage for the purpose of protecting sub-tidal conservation features.

• TheannualinspectionofnavigationaidsbytheGeneralLighthouse Authority was undertaken in July. All of the Board’s main navigation marks were found to be in good order and a number of defects concerning third party navigation marks have been notified to owners.

• TheBoardissued21LocalNoticestoMarinersin2012.Atyearend there were 17 Local Notices in force for Langstone Harbour.

• ThemaintenancedredgeatBedhamptonWharf,whichcommenced in October 2011, was completed in February 2012.

[2] Navigation & Marine Safety

[03]

• ThesupplyofmarinedieselfueltovesselsattheHaylingpontoon was suspended on 16 February upon discovery of a leak from the supply line. Extensive groundwork in the office yard was required to install a new fuel line, resulting in unbudgeted costs of about £20,000. Associated improvements to the monitoring and control of fuel stocks and supply were also introduced. The fuel supply was reinstated on 16 August.

• Furtherinspectionsofthedolphinsandsubdeckofthe

Hayling and Eastney pontoons have been undertaken and a specification has been drawn up for cathodic protection to the piles and pontoon elements. Costings are also being developed for renewal of the joint connection at the brow end of the Hayling linkspan and the provision of a berthing pile at the Eastney ferry berth where impact damage is presently being caused to the linkspan

• TheintertidalseabedadjacenttoSalternsQuayhasbeencleared of debris. Although the berths are disused, the presence of rubbish on the seabed was unsightly at low water and potentially dangerous. An interesting and varied selection of debris recovered included 6 Tesco trolleys, 2 computers with screens, a brand new vacuum cleaner, a mountain bike, 2 car batteries, 2 car tyres, 2 child’s scooters, 2 push chairs, 4 road signs, 2 traffic cones, an assortment of wheels, frames and plastic baskets.

• FurtherimprovementstoourHarbourManagementsoftwarehave improved the functionality of the programme and incorporated new capabilities for managing recreational databases other than moorings and for analysis of incident data. The company that provides the Harbour Management software is developing an improved, web-based system known as eHarbours which will in due course replace the existing system.

[4] Environment[3] Premises & Facilities

[04] Annual Report 2012

BirdlifeThe numbers of nesting gulls and terns in the harbour was at their lowest since 2007 and productivity was extremely poor. Only 40 pairs of little terns nested. By the start of the breeding season, surging tides had left strandlines well above the mean high water spring levels on the harbour’s islands resulting in a significant reduction in useable nesting areas.

The key event for poor productivity was the combination of exceptionally high spring tides and storm-driven wave action during a 36-hour period in early June. Unfortunately, at that time most of the gull and tern chicks were at their down-covered stage and could not survive those conditions.

Rats were suspected of swimming out to the Oysterbeds islands in March and a fox almost certainly accessed the lagoon islands on 24 March.

By late autumn, it became apparent that brent geese had also had a very poor breeding season in Siberia. However, relatively rare birds have attracted many visitors to the harbour in 2012. Earlier in the year a shorelark was at the Oysterbeds and a glossy ibis at Farlington Marshes. This autumn, a red-breasted goose has been feeding with the brent geese at Farlington Marshes.

Unsurprisingly, given the unseasonal weather, butterfly and other insect numbers were low during the summer but things improved a bit in September when Small Coppers were particularly noticeable. Vegetation growth was generally lush but the conditions seemed to suit some plants more than others; for example, many clovers and teasels thrived while some legumes and thistles did not.

Nests Young

2011 2012 2011 2012

Mediterranean gull 498 58 0 2

Black-headed gull 5,119 4,682 411 142

Sandwich tern 175 46 11 0

Common tern 181 92 27 23

Little tern 57 40 1 0

Breeding at Langstone Harbour

Small Fish Survey ReportThe 2012 Langstone Harbour Small Fish Survey has been completed and all data collated. The survey is a collaboration between the Langstone Harbour Board, Southern Inshore Fisheries and Conservation Authority (IFCA) and University of Portsmouth. It has produced new information, including data on two species of fish not previously recorded in Langstone Harbour. More than 12,000 Herring and Sprat fry were caught during the survey, which is good news for Langstone Harbour’s tern colony as this represents an excellent food resource for these birds. A report detailing the survey’s findings has been published on the fish survey page of the Langstone Harbour Board website:http://www.langstoneharbour.org.uk/environment-fish-survey.php

Sewage Discharges2012 has been one of the wettest years on record, and as a result a large number of storm water discharges into Langstone Harbour have been reported. We have continued to inform harbour users of these events by forwarding notifications via e-mail, as well as posting notifications on our website. Due to screen failures at Fort Cumberland and Budds Farm there have also been numerous spill events where unscreened sewage has been released into the harbour. We continue to work with the Environment Agency and Southern Water to ensure sewage items washed ashore are properly reported and effectively cleaned up.

Management of fishing activity on Seagrass BedsFollowing reports of damage to Seagrass beds throughout the Solent European Marine Site (SEMS), the Southern IFCA have published a Seagrass Management Strategy in the form of a Code of Conduct. Through this Code, the Southern IFCA has requested that all fishermen who operate within the district voluntarily avoid the use of bottom-towed fishing gear within ‘Seagrass Protection Areas’. These areas are determined from best available data and include a buffer zone to account for trawl cable lengths. All commercial fishermen operating with bottom-towed fishing gear were issued with details of this Code via a letter with accompanying maps, clearly indicating where these Seagrass Protection Areas occur. Two large areas of Langstone Harbour are covered by this code of conduct. Maps of the areas along with details of the background to the Seagrass Management Strategy, and meeting reports of the SIFCA Seagrass Working Group are available on the Southern IFCA website: http://www.southern-ifca.gov.uk/category/news

RSPB Little Tern Project ProposalAs part of the action plan to reverse the national decline of Little Terns, a local project to safeguard these birds in Langstone Harbour has been proposed by the RSPB. Langstone Harbour hosts half of the south coast’s breeding population of Little Terns. The RSPB have been successful in their bid for Heritage Lottery funding and the proposal includes work to clear vegetation from existing nesting locations, improve signage, create a new wardening approach, undertake further shingle recharge following the success of the 2009 work, install further predator deterrents and also to create new islets within Langstone Harbour to increase the available safe habitat for Little Terns to breed.

Little Tern SurveyTo increase understanding of the marine area used for foraging by Langstone and Chichester Harbour’s Little Tern colonies the Board assisted in a survey commissioned by the Joint Nature Conservation Committee (JNCC) and Natural England (NE). The results of the survey will contribute to an assessment of the justification for an extension of the SPA boundary to protect any important feeding habitats not covered by the existing designation. Surveyors worked at 1km intervals along the south Hayling and Portsea shores recording Little Tern behaviour. Few Little Terns were seen during the survey, although both Common and Sandwich Terns were recorded foraging outside the harbours. The JNCC and NE are yet to conclude whether extension of the SPA boundary is required to protect these rare seabirds.

[05]

Following reports of damage to Seagrass beds throughout the Solent European Marine Site (SEMS), the Southern IFCA have published a Seagrass Management Strategy in the form of a Code of Conduct.

Langstone Harbour Water QualityData presented in the table below is collected by the Environment Agency and CEFAS, illustrating bacterial levels in both the seawater and shellfish flesh in Langstone Harbour.

Solent Disturbance and Mitigation Project UpdateThe Solent Disturbance and Mitigation Project (SDMP) was initiated by the Solent Forum to investigate visitor access patterns around the Solent coastline and determine how visitor activities may influence the Solent’s internationally important assemblages of birds. Phase 2 of the SDMP has now been completed. Natural England (NE) will not provide a position statement on the findings until a peer review of the project has been undertaken. The peer review is scheduled for completion by the end of 2012 and NE will be reporting the findings of the review to the SDMP project group in January 2013. Phase 3 of the project is split into 2 parts – part 1 will identify a short list of potential suitable mitigation measures, and part 2 will develop a strategy which responds to the evidence base and NE advice. The Avoidance and Mitigation plan will be available early in 2013 for endorsement and adoption by local planning authorities.

CAA Bird SanctuaryA proposal to exclude all aircraft from airspace below 1,000 feet over the harbour was accepted by the Civil Aviation Authority and an amendment to the chart promulgated in April 2012. The purpose of the exclusion is to protect breeding and overwintering birds from disturbance.

Location and Date

Faecal Coliforms/

100mlSeawater

Faecal Coliforms/

100mg Shellfish

Flesh

Langstone Harbour

January 2010 <10 3500

July 2010 <2 50

January 2011 <10 5400

July 2011 <2 230

January 2012 <10 490

July 2012 <10 700

Hayling Seafront

(Blue Flag Beach)

Summer 2012 10 -

[06] Annual Report 2012

[4] Environment cont...

The Langstone Harbour Advisory Committee met five times in the year, representing the interests of a broad range of stakeholders and providing balanced debate on every aspect of the harbour operation. The Chairman and Vice Chairman of the Advisory Committee are members of the Board. Representatives from the Advisory Committee also sit on the Joint Working Party and the three committees of the Board dealing with Finance, Planning and Staffing. Current membership of the Advisory Committee is as follows:

The Langstone Harbour Open Forum was hosted by the Advisory Committee at the Langstone Sailing Club in October. As usual, the event brought a wide range of stakeholders together and the Chairman of the Advisory Committee, Mr Bob Russell, reminded those present of the importance of making their opinions on Harbour issues known to the Board. The Chairman of the Board, Cllr Jackie Branson, also took the opportunity to encourage stakeholder participation and thanked the Advisory Committee for their work throughout the year. Interesting presentations followed, the topics including Archaeology in Langstone Harbour, Sand and Gravel Deposits in the Solent and Protection of Seagrass in Langstone Harbour.

In the wider community the Harbour Manager and Environment Officer gave a number of lectures and presentations to Portsmouth University, local schools and other local organisations with an interest in Langstone Harbour. The Environment Officer also contributes regular feature articles on Langstone Harbour to the local newspaper.

[5] Stakeholders & Community

Constituted in 1999 order

Ruth Pelling English Heritage (EH)

Mark Pullen Hayling Health Society (HHS)

Helen Baldry (Vice-Chair) British Water Ski Federation (BWSF)

John Goodspeed Friends of Langstone Harbour (FoLH)

Stewart Ferrier (Tarmac Marine Dredging) Marine Aggregates

No representative Commercial Interests in the Harbour other than fishing

Peter Potts Hampshire Countryside Service (HCS)

5 nominated bodies

Observers

R W Russell OBE (Chair) Royal Yachting Association (RYA) - CHAIR

Trevor Clifford (Eastney Cruising Association) Portsmouth & Langstone Sailing Association (Eastney Cruising Association)

Brian Davies (Locks SC) Portsmouth & Langstone Sailing Association

Nathan Rowsell (Langstone SC) Portsmouth & Langstone Sailing Association

Brian Tansom (Tudor SC) Portsmouth & Langstone Sailing Association

Graham Horton Natural England (NE)

Jamie Marsh Hampshire Wildlife Trust (HWT)

Phil Grant Langstone & District Wildfowlers and Conservation Association (LADWACA)

Roy Rolf Solent Protection Society (SPS)

Peter Hill Southern Inshore Fisheries & Conservation Authority (SIFCA)

John Holloway The Langstone Harbour Fishermen’s Association (LHFA)

Chris Cockburn Royal Society for the Protection of Birds (RSPB)

Paul Salmon Environment Agency (EA)

[07]

There were no reportable accidents in 2012. Risk assessments have been reviewed and a report on the Safety Management System has been issued by Nicholson’s Risk Management.

There were no incidents involving ships subject to compulsory pilotage. One incident involving a close quarters situation between the Hayling Ferry and a small craft was investigated on behalf of the MAIB.

Reporting of small craft incidents has improved considerably and this has contributed to an increase from 75 in 2011 to 114 in 2012. The commonest incident remains mechanical failure at 33%, while vessels and tenders adrift account for 29% of incidents.

[6] Safety

Incident type 2011 2012

No. % No. %

Stranding 2 3 1 1

Stranded Vehicle 0 0 1 1

Submerged Vehicle 0 0 0 0

Grounding 6 8 5 4

Tender Adrift 2 4 10 9

Mooring Adrift 2 3 2 2

Moored Vessel sunk/sinking 10 13 4 3

Sunken Vessel 7 9 1 1

Vessel Adrift 16 21 23 20

Collision 1 1 5 4

Other Impact 1 1 1 1

Near Miss 0 0 4 3

Obstruction to Navigation (floating) 0 0 0 0

Obstruction to Navigation (fixed) 0 0 0 0

Fouling 0 0 3 3

Capsize (with personnel) 0 0 3 3

Mechanical Failure 18 24 38 33

Fire 3 4 0 0

Vandalism & Interference 3 4 7 6

Trips & Falls (Pontoon) 1 1 0 0

Swimmers in difficulty 0 0 2 2

Pollution 3 4 3 3

Other 0 0 1 1

TOTAL 75 114

[08] Annual Report 2012

The functionality of our Harbour Management software has been improved to enable incident data to be entered directly into the programme. This development will enhance our ability to analyse safety information and target improvement.

There have been no changes in the establishment in the past year. In February we filled the vacant post of Patrol Officer. Our seasonal patrol team was deployed principally at weekends and in the evening between Easter and the end of October with a maximum of six members between June and September. We welcomed a number of new members to our patrol team and undertook a full induction and refreshment training programme.

85.5 were lostdays to sickness absence in 2012, up from 31 days in 2011.

Marine

Administration

Environment

Support

Harbour Master/ManagerDeputy Harbour MasterSenior Patrol OfficerPatrol Officers (2)Seasonal Patrol Team (up to 6 P/T)

Administration OfficerDeputy Admin. Officer (P/T)Admin Assistant (P/T)

Environment Officer

Clerk (P/T)Treasurer (P/T)Engineer (P/T)

[7] Staff & Training

[09]

Seasonal Patrol Profile (hrs/month)

Hours450

400

350

300

250

200

150

100

50

0MAR APR MAY JUN JUL AUG SEP OCT NOV

The Harbour Board is a statutory consultee in respect of certain developments under the Town and Country Planning (General Development Procedure) Order 1995. The Planning Committee considered 48 applications in 2012. 21 applications were made through Portsmouth City Council and 27 applications through Havant Borough Council. The Board objected to 2 applications on the grounds that they contravened one or more of the objectives of the Langstone Harbour Management Plan.

The National Planning Policy Framework was introduced in March 2012. The government’s stated intention has been to make the planning system less complex and more accessible, to protect the environment and to promote sustainable growth. The policy provides that proposed development that accords with an up-to-date Local Plan should be approved and proposed development that conflicts should be refused unless other material considerations indicate otherwise. Both Havant and Portsmouth have up-to-date plans.

FEB APR JUN SEP DEC

Portsmouth City Council 6 6 2 3 4

Havant Borough Council 6 7 1 7 6

[8] Consultation

Planning authority

[10] Annual Report 2012

The government’s stated intention has been to make the planning system less complex and more accessible, to protect the environment and to promote sustainable growth.

[9] Governance

Budget deficit

250,000

200,000

150,000

100,000

50,000

02005 2006 2007 2008 2009 2010 2011 2012

This section explains the Board’s proportional compliance with “Modernising Trust Ports: A Guide to Good Governance”, 2nd Edition, August 2009 (MTP2).

Commercial AccountabilityThe Board’s annual budget deficit is met by a precept on the two constituent local councils. The Board has continued to reduce its reliance on the two local councils. In the context of the Board’s constitution, a target level of return is not appropriate for the Langstone Harbour Board.

Investment is limited to replacement of the Board’s fixed assets and infrastructure. The Board maintains a General Reserve fund and an Asset Replacement reserve. The Langstone Harbour Business Plan was adopted by the Board in February 2012. The Board does not provide any in-house services that are not consulted on through the Advisory Committee and we therefore do not believe that an annual efficiency statement is appropriate to the Board’s operation.

The Board’s Business Risk register was reviewed in 2012 and provisions added to take account of the Board’s new Bribery and Corruption policy. The Board also introduced Anti Money Laundering procedures as a result of a recommendation by the internal auditors. The effectiveness of our internal audit arrangements was also reviewed. Contracts are market tested and reviewed as appropriate and our statutory (stakeholder) Advisory Committee is consulted on all such matters that are considered by the Board.

Key Performance Indicators (KPIs)The Board is developing KPIs appropriate to its operation and these will evolve from the Business Plan. Indicators related to finance, governance, environmental performance and mooring occupancy are being produced.

Annual Reporting RequirementsThe Board’s Management Plan, Business Plan and Annual Report are publicly available and posted on our website. The Business Plan describes the strategy of the Board in the period to 2016.

TrainingThe Harbour Manager and four members of the Board attended a Trust Port Strategy and Governance Update organised by the British Ports Association and hosted by Shoreham Port Authority. The one day seminar covered a wide range of governance issues, financial strategy and the perspective of government.

Compliance (MTP2) We have not heard from the Department for Transport concerning the complaint under Section 2.3.4 of MTP2 by the Hovercraft Club of Great Britain (HCGB) since February when our last submission was acknowledged. However, we understand that the Department has sought further advice from Natural England and we hope this may signal a conclusion to the matter, which has been ongoing since 2009.

Compliance (PMSC) A letter has been sent to the MCA indicating that the Board is compliant with the requirements of the Port Marine Safety Code.

[11]

Havant Borough Council Cllr Jackie Branson (Chairman) Cllr Tony Briggs Cllr Mark Johnson Cllr John Smith Cllr Ken Smith Cllr Leah Turner

Portsmouth City Council Cllr Lee Mason (Chairman) Cllr Peter Eddis Cllr Caroline Scott Cllr Gerald Vernon Jackson Cllr April Windebank Cllr Matt Winnington

Hampshire County Council Cllr Frank Pearce

Advisory Committee Mr Bob Russell OBE Mrs Helen Baldry

Standing Deputies Havant Borough Council Portsmouth City Council Cllr Andy Lenaghan Cllr Hugh Mason Cllr David Collins Cllr Steve Wemyss Cllr Phil Smith Cllr Eleanor Scott

Officers of the Board

The Board comprises 15 members appointed in accordance with the 1962 Act, as amended. The Board’s Register of Interests holds no declarations of interest or related party transactions for Board members or officers in the year 2012. At the Board’s Annual General Meeting on 22 June 2012 Cllrs Ellcomb, H Mason and Stubbs representing Portsmouth City Council were replaced by Cllrs Vernon Jackson, Windebank and Winnington. Cllr Lenaghan representing Havant Borough Council was replaced by Cllr Briggs.

In accordance with the Pier & Harbour (Langstone Harbour) Confirmation Act 1962 the Board met 5 times in 2012. Minutes of the last 5 Board meetings are posted on the Board’s website.

In the attendance table below, attendance in parentheses indicates that a deputy attended on behalf of the named member of the Board. Members’ names in parentheses indicate members who were replaced at the Annual General Meeting in June. Committee membership is indicated as follows:

F = Finance Sub CommitteeP = Planning Sub CommitteeJ = Joint Working PartyS = Staffing Sub Committee

Capt. Nigel Jardine MNI Harbour Master/Manager

S P Kerr, BA, LLM Clerk to the Board

C C Braby ACMA, CGMA Treasurer to the Board

L Cairns, BEng (Hons) Engineer to the Board

[12] Annual Report 2012

[10] The Board

Committee Feb Apr Jun Sep Dec

H Baldry J,F ✓ ✓ ✓ ✓ ✓

J Branson J,F,P,S ✓ ✓ ✓ ✓ ✓

A Briggs F - - ✗ ✗ ✓

P Eddis J,F ✗ ✗ ✗ ✓ ✓

(K Ellcomb) ✓ - - - -

M Johnson J ✓ ✓ ✓ ✗ ✓

(A Lenaghan) ✓ ✓ - - -

(H Mason) ✓ - - - -

L Mason J,P,S ✓ ✓ ✓ ✓ ✓

F Pearce ✗ ✓ ✓ ✓ ✓

R Russell OBE J,F,P,S ✓ ✓ ✓ ✓ ✓

C Scott ✓ ✓ (✓) ✗ ✗

J Smith ✓ ✗ ✓ ✗ ✗

K Smith J ✗ ✗ ✓ ✓ ✓

(L Stubbs) ✓ ✗ - - -

L Turner ✓ ✗ ✓ ✓ (✓)

G Vernon Jackson

F - - ✓ ✓ ✓

A Windebank J - - ✓ ✓ ✗

M Winnington - - ✓ ✓ ✓

Income and Expenditure for the year 2011/12

The financial activity for the year resulted in a surplus of £10,312 Operating income (i.e. before adding the local authority precept) amounted to £475,390; £27,000 below budget expectations. The shortfall against budget was caused by a sharp drop in fuel sales and lower than projected commercial shipping. When compared with last year, operating income was down by £32,000 mainly due to reduced sales of fuel. However given the relatively low margins on fuel sales this drop in income had a minimal affect on overall profitability year on year. The budget deficit reduced by 5.9% when compared with 2010. Thus the precept levy year on year fell by £8,900 reflecting the Board’s policy of steadily reducing reliance on the two constituent authorities.

The resulting surplus for the year was added to General Reserves. At the same time £8,630 set aside last year to finance work on the Board’s pontoons and signage was transferred from Earmarked to General Reserves (see Note 6 to the Balance Sheet)

[13]

[11] Finance

“ ...given the relatively low margins on fuel sales this drop in income had a minimal affect on overall profitability year on year...”

Income and expenditure account for the year ended 31st March 2012

Income 2011/12 (£) 2010/11 (£)

Commercial Harbour and Cargo Dues 166,682 153,219

Harbour Dues- Leisure 64,108 61,766

Slipway Launching 11,248 12,345

Water-Ski Licences 1,887 2,180

Pontoon Fees 32,665 31,321

Mooring Rents and Licences 96,875 99,955

Boatshed and Boatyard Fees 11,334 10,063

Services Rendered 2,866 2,954

Sale of Fuel 50,704 94,315

Pilotage Charges 24,340 30,042

Other Income 5,675 7,268

Interest Income 7,004 1,943

Local Authorities Precepts 141,759 150,648

617,149 658,020

Expenditure

Employees 324,556 322,061

Repairs and Maintenance 58,222 60,436

Elect, Water & Cleaning 5,488 5,372

Rent and Rates 32,873 30,301

Boats and Vehicles 16,725 16,705

Equipment, Furniture etc 3,113 4,515

General Office Expenses 24,321 19,054

Travel and Subsistence 7,006 4,752

Insurance 25,010 23,718

Miscellaneous Expenses 6,129 4,858

Internal Audit Fees 5,000 5,000

External Audit Fees 1,950 1,970

Purchase of Fuel for Resale 43,537 80,748

Pilot and Pilot Boat Hire 17,200 23,300

Legal Expenses 7,706 11,169

Environmental 10,101 6,919

Charge to Provision for Bad Debts 74 0

Support Service Charges 9,598 9,598

Capital Purchases Note 1 7,733 10,936

606,837 641,412

INCOME LESS EXPENDITURE 10,312 16,608

Opening Balance 45,973 18,865

Add Income for the Year 617,149 658,020

Less Expenditure for the Year (606,837) (641,412)

Transfer to Asset Replacement Reserve 0 (10,000)

Transfer from Earmarked Reserves Note 6 8,630 20,500

Closing Reserves 64,915 45,973

General reserve analysis

[14] Annual Report 2012

Balance sheet as at 31st March 2012

Notes 2012 2011

Current Assets and Liabilities:

Stocks 2 10,922 5,863

Debtors 3 86,608 123,366

Cash 4 168,805 135,314

Cash 4 250,000 250,000

Current Assets 516,335 514,543

Current Liabilities

Creditors 5 (197,125) (205,645)

Net Current Assets 319,210 303,035

Long Term Liabilities 0 0

319,210 308,898

FINANCED BY

General Reserve 6 64,915 45,973

Earmarked Reserves 6 254,295 262,925

Total Reserves 319,210 308,898

Internal Auditors: Portsmouth City Council, Civic Offices, Guildhall Square, Portsmouth, PO1 2BG

External Auditors: The Audit Commission, Second Floor, Aspinall House, Aspinall Close, Middlebrook, Bolton,BL66QQ

1: Fixed Assets

Movements in fixed assets during the year were as follows:

Land &Buildings

£

VehiclesPlant &

Equipment£

Plant &Equipment

Boats£

Infrastructure£

Total£

Gross Book Value as at 01/04/11 229,625 99,664 172,137 177,972 679,398

Prior year adjustments

Revaluations 0 0 0 0 0

Additions current year 0 6,028 1,705 0 7,733

Disposals current year 0 (4,053) 0 0 (4,053)

Gross Book Value at 31st March 229,625 101,639 173,842 177,972 683,078

Notes to the accounts

[15]

1.2: Asset Valuations

Fixed Assets have been valued as follows:

2: Stocks

Stocks comprise gas oil and oils for resale and are valued at the average price paid for the deliveries remaining in stock, and is not materially different from the lower of cost or net realisable value.

3: Debtors

4: Cash

All cash balances of the Board, except for small sums held by the officers, are ultimately transferred to Portsmouth City Council which maintains banking facilities on the Board’s behalf. This transfer is done via the Board’s Account held with National Westminster Bank Plc. Interest is credited to the Board by the City Council at the monthly average of 7-day market lending rates. In March 2011 a 12 month Fixed Rate Bond was purchased from National Westminster Bank Ltd.

Balances as at the 31st of March 2012 were as follows:

2011/12£

2010/11£

Debtors Control Account (less reserve) 45,989 84,950

VAT 0 0

Unbilled Receivables 19,367 17,231

Payments in Advance 21,252 21,185

TOTAL 86,608 123,366

Land & Buildings £

Vehicles Plant &

Equipment£

Plant & Equipment

Boats£

Infrastructure£

Valued at Historic Cost 0 63,729 41,837 177,972

Valued at Current value in: 229,625 37,910 132,005 0

2003/04 0 4,724 0 0

2004/05 184,700 11,734 0 0

2005/06 0 5,784 130,300 0

2006/07 0 0 0 0

2007/08 44,925 0 0 0

2008/09 0 0 0 0

2009/10 0 2,757 0 0

2010/11 0 10,936 0 0

2011/12 6,028 1,705 0 0

Total 229,625 37,910 132,005 0

2011/12£

2010/11£

Co-Operative Bank 125,978 114,372

National Westminster Bank Plc 42,427 20,542

Cash in Hand 400 400

TOTAL 168,805 135,314

All valuations of Land and Buildings were carried out by RICS qualified staff from Portsmouth City Council’s Property Service in accordance with the practice statements and guidance notes contained in the Royal Institute of Chartered Surveyors manual of appraisal and valuation (1995) as revised. The boats were valued by Associated Maritime Consultants, AMC), Surveyors, Consulting Marine Engineers and Valuers. The following statement shows the progress of the Harbour Board’s rolling program of fixed asset revaluation.

[16] Annual Report 2012

12 month Fixed Rate Bond (Nat West) 250,000 250,000

5: Creditors

6. Movement on Reserves

2011/12 2010/11

GENERAL RESERVE £ £

Opening Balance at 1st April 45,973 18,865

Add surplus for the Year 10,312 6,608

Transfer to/from other reserves

To Earmarked Reserves 0 0

From Grant Funding for Harbour Signage Reserve

630 0

From Earmarked Reserves 8,000 20,500

To Reserved Receipts 20,500 20,500

64,915 45,973

7: Pension Costs

In 2011/12 the Harbour Board paid employer’s contributions of £29,927 (£23,492 in 2010/11), representing 13.1 % of employees pensionable pay, and 6% of the 2010 pensionable pay (fixed for 3 years) into Hampshire County Council’s Pension Fund.

The Employers contribution rate is determined by the Funds Actuary Hewitt, Bacon and Woodrow based on three-yearly valuations. The next such review being 31 March 2014. Under pensions regulations contribution rates are set to meet 100% of the overall liabilities of the fund.

Further information on the Hampshire County Council pension fund can be found by contacting the County Council at: The Castle, Winchester, Hants SO23 8UB

2011/12£

2010/11£

Sundry Creditors 32,282 66,429

Key Deposits 650 690

Income Received in Advance 141,841 136,530

Warner Mooring Fees 1,537 1,674

Fuel Duty 389 0

VAT 20,426 322

TOTAL 197,125 205,645

EARMARKED RESERVES

Asset Replacement Reserve The Board are committed to maintain a reserve to finance the replacement of certain assets. This applies particularly to the Board’s vessels and the pontoon landing stages at Eastney and Hayling Island all of which are now ageing.

Opening Balance at 1st April 254,295 12,750

Transfer from General Reserve 0 10,000

Transfer from Reserved Receipts 0 231,545

Closing Balance at 31st March 254,295 254,295

Grant Funding for Harbour Signage

Opening Balance at 1st April 630 1,007

Grants received during the year 0 0

Expensed during the year (630) 0

Closing Balance at 31st March 0 630

Reserve for Pontoon Repairs and Maintenance

Opening Balance 1st April 8,000 28,500

Transfer from General Reserve 0 0

Transfer to General Reserve (8,000) (20,500)

Closing Balance at 31st March 0 8,000

Langstone Harbour BoardFerry Road, Hayling Island, Hants PO11 0DG

T: 023 9246 3419 F: 023 9246 7144E: harbourmaster@langstoneharbour.org.uk

W: www.langstoneharbour.org.uk

Harbour Manager: Capt Nigel Jardine

Deputy Harbour Master: Mr Nick Lyon

Administration Officer: Mrs Christine Overy

Environment Officer: Louise MacCallum