Cabinet Member Presentation - The Leader of Council
The Panel to receive a presentation on “the financial and operational performance of the Ramsgate Port and Harbour.”
During the first part of his presentation, Councillor Bayford, Leader of the Council explained that the deficit affecting the Ramsgate Port and Harbour had accumulated over a number of years and across three Council Administrations. It was worth noting that the total deficit figure of £2.637 million included noncash items that included depreciation and employee pension revaluation. If the figure excluded these non-cash items the figure would go down to £1.4 million.
1. The income and expenditure statement for the Port 2017/18 there is a £500k Direct Grant/ Contribution expenditure. What is it and who were the recipients and what for?
This amount represented contribution to provisions and as set aside at year end after an assessment of outstanding claims compared to the amount that had been set aside for that expenditure item. Due to the nature of the item there was no named recipient. This amount was set aside for prudency purposes.
2. What is the breakdown of the £750k to Central Support Services?
The Panel was given a detailed breakdown of the £721k (the correct figure in the financial accounts instead of £750k). It was explained that some of the expenditure that contributed to the £721k could be treated as direct costs to the Port and Harbour and if that was done the central support cost charges would go down to £252k.
However this did not make any difference to the overall outcome.
3. We lease the Port from Crown Estates is the total of this lease £246k?
The area of the sea bed leased by Crown Estates attracted a lease charge of £246k.
4. How was the depreciation figure of £309k arrived at?
The actual depreciation was £1.052 million. This was initially worked out at £309k, which only looked at a three month period as opposed to a twelve month period which made it £1.052 million.
5. To whom was £51.7k in consultancy fees paid and for what? What procurement process was followed to engage this consultant?
This was paid to pilot consultancy to carry out market engagement, to produce business plans for interested parties, provide on-going market intelligence and to support officers as part of the negotiations with interested parties.
As part of the consultancy brief, it was hoped that this would lead to a ferry business coming to Ramsgate Port and Harbour.
Council Contract Standing Orders were followed for amounts of up to £74,999 in that three quotes were sought and full consideration was taken in assessing the preferred supplier.
6. What is the breakdown for the £200k for security?
The 2017/18 costs for security was £194k. This allows for 24/7 cover with two staff and ad hoc cover as required. This presents good value as this 52 weeks of 24/7 cover.
The Port was under Maritime Law obligation to provide cover 24/7.
7. Why are the employees superannuation contributions £55k on a salary bill of £177k?
There were adjustments due to revaluation of £35k with the other figure being the normal employer ... view the full minutes text for item 19