GLOUCESTER HARBOUR TRUSTEES

Report of the Trustees and the Treasurer
for the year ended 31 March 2000

GLOUCESTER OFFICE: 2nd Floor,
St Luke’s House,
3 Llanthony Road,
Gloucester GL2 5QT

Tel: 01452 413009; Fax: 01452 310647;
E-mail: [email protected]

SHARPNESS OFFICE: Severnside House,
The Docks,
Sharpness,
Berkeley,
Glos GL13 9UD

Tel/Fax: 01453 811913
E-mail: [email protected]

TRUSTEES FROM 1 APRIL 1999 TO 31 MARCH 2000

Name: Nominated by:
I M Walker (Executive Chairman) Additional Trustee appointed by GHT
B G Booth (Vice-Chairman) Gloucestershire County Council
2Capt K Badsey MNI British Waterways
1Capt A Boyack MNI British Waterways
4B Brooks (Commercial Interests) Appointed by GHT
6G Clark Royal Yachting Association
5J Clune Additional Trustee appointed by GHT
3D Foice (Severn River Crossing plc) Additional Trustee appointed by GHT
G Garbutt Gloucester City Council
M Gatehouse (Sharpness Dock Ltd) British Waterways
K Hadley (Pilots’ Representative) Gloucester Pilots Partnership
R W Hall Stroud District Council
1D MacFarlane (Commercial Interests) Appointed by GHT
E Renshaw Chamber of Shipping/Institute of Chartered Shipbrokers
2K Spooner BNFL Magnox Generation
1D Twidale BNFL Magnox Generation
D Tyrrell British Waterways

1 Retired 31 July 1999
2 Appointed 1 August 1999
3 Retired 31 December 1999
4 Appointed 17 September 1999
5 Appointed 1 January 2000
6 Tendered resignation at meeting on 3 December 1999 but agreed to remain as a Trustee until a successor could be appointed.

TRUSTEES’ ATTENDANCE RECORD

 
Trustee Possible Attendances Actual Attendances
K Badsey 3 3
A Boyack 1 1
B Booth 4 4
B Brooks 2 2
G Clark 4 4
J Clune 1 1
D Foice 3 2
G Garbutt 4 2
M Gatehouse 4 4
K Hadley 4 4
R Hall 4 4
D MacFarlane 2 0
E Renshaw 4 3
K Spooner 3 2
D Twidale 2 1
D Tyrrell 4 2
I Walker 4 4

BACKGROUND INFORMATION ABOUT THE TRUSTEES AT 31 MARCH 2000

The term of office of all Trustees expires on 31 July 2002 subject to the provisions of the proposed new Harbour Revision Order which the Trustees will be promoting.

Ian Walker
Civil Engineer BSc C Eng FICE
Consulting Engineer
Long career in inland and estuarial navigation

Basil Booth
Community Interest
Farmer, County Councillor, Regional Flood Defence Committee

Capt Keith Badsey Duty Harbour Master of GHT
Certificate of Competency Class 1 (Master Mariner), MNI – experience in harbour management
British Waterways Harbour Master at Sharpness

Brian Brookes
Commercial/Industrial
General Manager, Dragon Alfa Cement

George Clark
Retired after career in British Army
Member of Royal Yachting Association Council and Chairman of RYA Training Committee
Teaches and examines in marine subjects

Jim Clune
Financial/commercial management Quantity Surveyor, MCIoB, PG Diploma in Law
General Manager, Severn River Crossing plc

Graham Garbutt
Background in architecture, planning and corporate management
Chief Executive, Gloucester City Council

Mark Gatehouse
Port Management
Managing Director, Sharpness Dock Ltd and Victoria Group

Keith Hadley
Gloucester Pilot
Partner in Gloucester Pilots Partnership

Bob Hall
Teacher/Physicist BA PhD
Community Interest and Trustee of SARA

Ted Renshaw
35 years experience as a Port Agent and Freight Forwarder FICS BA (Business Studies)
Chartered Shipbroker

Keith Spooner
Nuclear Engineer BA MSc MSRP MIOSH
Site Manager, Trawsfynydd Decommissioning Site

Dave Tyrrell
Building and Civil Engineering, Honours Degree in Business Administration
Waterway Manager responsible for operation and maintenance of Sharpness Dock, Gloucester and Sharpness Canal and River Severn from Gloucester to Stourport

OFFICERS AT 31 MARCH 2000

Clerk H R T Shackleton LL B
Treasurer H Baker FCMA
Duty Harbour Master Capt K Badsey MNI
Marine Officer M Johnson Eng Tech AMIIE AMNI
Secretary/Admin Assistant Mrs R Elsey

BACKGROUND INFORMATION ABOUT THE OFFICERS

Richard Shackleton
Retired Solicitor - Former Local Government Chief Executive
Secretary of Oxbode Housing Association Ltd and Trustee of National Waterways Museum
Appointed during good conduct

Howard Baker
Former Local Government Treasurer
Appointed during good conduct

Mike Johnson
Ex merchant marine officer
Appointed January 1997 on 5 year contract

Rosemary Elsey
Secretarial/administration
Appointed April 1997 on 5 year contract

PARLIAMENTARY AGENTS
Dyson Bell Martin 1 Dean Farrar Street, Westminster, London SW1H 0DY
.
SOLICITORS
Rowberry Morris Morroway House, Station Road, Gloucester GL1 1DW
.
BANKERS
Lloyds Bank 19 Eastgate Street Gloucester GL1 1NU
.
AUDITORS
Griffiths Marshall 172 Southgate Street, Gloucester GL1 2EZ

1 Report of the Trustees

The Trustees present their report and the financial statements for the year ended 31 March 2000. 

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2 Principal Activity

The Trustees are the competent harbour authority for the Gloucester Harbour pursuant to the Pilotage Act 1987.

The main duties and responsibilities of the Trustees are to provide a pilotage service, to provide and maintain navigation aids and generally to ensure the safety of navigation within the Gloucester Harbour.

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3 Background

The Gloucester Harbour Trustees were originally constituted in 1890 by the Pier and Harbours Confirmation (No.3) Act 1890 and initially comprised some 22 Trustees. The Trustees became a competent harbour authority by virtue of the Pilotage Act 1987 and are now responsible for both pilotage and conservancy (ie the provision and maintenance of navigation aids) within the Gloucester Harbour.

The boundaries of the Gloucester Harbour are defined by the Gloucester Harbour Revision Order 1988. It covers a large area of the Severn, its outer limits commencing seawards of the Second Severn Crossing and its inner limits ending at the weirs at Llanthony and Maisemore near Gloucester. It also includes the River Wye downstream of Bigsweir Bridge. (A map of the area appears inside the cover to this report.)

Both the River Severn and the River Wye are notified SSSIs. The Wye is a cSAC and the Severn is a pSAC. The Trustees have environmental duties placed upon them by both British and European legislation.

The traffic includes commercial vessels arriving at and departing from Sharpness Dock which require the services of a pilot. Both the docks and the dry dock at Sharpness are operated by private sector companies and the Trustees do not own or operate any docks, quays or loading/unloading facilities. Pilotage is compulsory for larger vessels. The remainder of the traffic comprises leisure craft although there is at least one sand dredger operating within the Gloucester Harbour on a regular basis.

The Trustees are a statutory body and as such are classed by HM Government as a Trust Port and the doctrine of ‘ultra vires’ applies to them. They derive their powers from general legislation and local Acts and Orders. The Trustees aim to break-even taking one year with another and any profits must be reinvested for the benefit of the Harbour.

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4 Trustees

The current constitution of the Gloucester Harbour Trustees comprises 13 Trustees appointed in accordance with the provisions of the Gloucester Harbour Revision Order 1994, which also sets out the procedures applying to the Trustees’ meetings.

The present Trustees are listed at the front of this Report together with the names of the organisations by whom they are appointed. Their current term of office (3 years) expires on 31 July 2002.

The Trustees are responsible for the overall strategy and performance of the Authority.

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5 Staff

The day to day running of the Authority is carried our by a small staff who report to and attend at the Quarterly and other meetings of the Trustees.

The Trustees’ staff at their Gloucester office comprises a part-time Clerk and part-time Secretary responsible for administrative matters and a part-time Treasurer responsible for financial matters. The office is manned from 09.30 to 13.00 hours each day.

The Trustees also have a full-time Marine Officer who operates from the Trustees’ Sharpness office. He is responsible for maintaining the pilot watch radar system and supervising the maintenance of the other navigation aids which includes lights, buoys, beacons and daymarks. He is also responsible for environmental management issues plus duties relating to the pilotage service.

The British Waterways Harbour Master at Sharpness acts as the Trustees’ Duty Harbour Master under contract arrangements made between the Trustees and BW.

The licensed Pilots are self-employed but one acts as Duty Pilot on a rota basis and is deemed, during his period of duty, to be an officer of the Trustees.

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6 Property Portfolio

The Trustees’ offices at Gloucester and Sharpness, together with the workshop and garage at Sharpness, are all occupied under leases.

The Trustees also have a series of leases, agreements and licences relating to the siting of the navigational aids both on shore and off shore.

The Trustees do not have the benefit of any freeholds.

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7 Aims and Objectives

The Trustees have, as their overriding consideration, the safety of navigation within the Gloucester Harbour.

The Trustees aim to run an efficient effective and economic operation for the benefit of all stakeholders. Over recent years it has reduced the number of employees and also reduced its pilotage charges and there has been no increase in local lights dues for nearly ten years.

The Trustees aim to modernise the navigation aids whenever the opportunity arises, especially where this reduces the costs of on-going maintenance and improves performance and reliability and/or has environmental benefits.

The Trustees are in regular contact with its stakeholders through bi-annual meetings of its User Forum. In addition, several stakeholder organisations are directly represented on the Trustees.

The Trustees have participated in the Reviews of Trust Ports and Pilotage carried out by the DETR and will implement the Guide to Good Governance for Trust Ports launched by the DETR on 17 January 2000 and the Port Marine Safety Code launched by the DETR on 13 March 2000.

It is also relevant to point out that the 1988 and 1994 Harbour Revision Orders will have to be supplemented by a further Harbour Revision Order providing the Trustees with a new constitution to meet the Guide to Good Governance.

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8 Environment

The Trustees are members of the River Wye Management Advisory Group (WyeMAG) which is the body which will ultimately become responsible for advising English Nature and the Countryside Council for Wales on the management of the River Wye Marine Special Area of Conservation (SAC) which is currently a notified candidate SAC.

The Authority is also a member of the Association of Severn Estuary Relevant Authorities (ASERA) which, with some others, is the body which will ultimately become responsible for the management of the Severn Estuary SAC. It is currently a proposed SAC. The Trustees are actively pursuing the concept of having a sub-group of ASERA responsible for the Upper Estuary which largely falls within the area for which the Trustees are responsible.

A formal pattern of consultation has been established with English Nature and the Countryside Council for Wales to discuss matters of mutual interest in relation to the Severn Estuary and River Wye. It is hoped to continue these meetings which have proved to be mutually beneficial.

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9 Statement of the Responsibilities of the Trustees for the Financial Statements

It is the responsibility of the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Authority and its income and expenditure for that year. In preparing those financial statements the Trustees have:-

  • Selected suitable accounting policies and applied them consistently
    .
  • Made judgements and estimates that are reasonable and prudent
    .
  • Complied with applicable accounting standards subject to any material departures disclosed and explained in the financial statements
    .
  • Prepared the financial statements on the going concern basis.

The Trustees are responsible for ensuring that arrangements are made for keeping proper books of account with respect to the Authority's transactions and its assets and liabilities and for maintaining a satisfactory system of control over the Authority's books of account. The Trustees are responsible for ensuring that arrangements are made to safeguard the assets of the Authority and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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10 Internal Financial Control

The report of the Cadbury Committee on the "Financial Aspects of Corporate Governance" recommends that public authorities should report on the organisation's systems of internal control.

The Trustees acknowledge their ultimate responsibility for ensuring that the Authority has in place systems of internal financial control that are appropriate to the various business environments in which it operates. These controls are designed to give reasonable assurance with respect to:

  • The reliability of financial information used with the Authority or for publication
  • The maintenance of proper accounting records
  • The safeguarding of assets against unauthorised use or disposition.

It is the Trustees' responsibility to establish and maintain systems of internal financial control. Such systems can only provide reasonable and not absolute assurance against material financial mis-statement or loss. Key elements include ensuring that:

  • Policies and procedures are in place including the documentation of key systems and rules relating to the delegation of authorities, which allow the monitoring of controls and restrict the unauthorised use of the Authority's assets. This documentation has been prepared to QA standards.
    .
  • The Trustees employ experienced and suitably qualified staff to take responsibility for day to day administrative, financial and technical matters
    .
  • Forecasts and budgets are prepared by the Treasurer which allow the Trustees to monitor the key business risks and financial objectives and progress towards financial plans set for The year and the medium term. Financial and other information is regularly monitored and significant variances from budgets are investigated as appropriate.
    .
  • All significant new initiatives, major commitments and investment projects are subject to formal authorisation by the Trustees.
    .
  • The Trustees review reports from the Auditors to provide reasonable assurance that control procedures are in place and are being followed. This includes a general review of the major risks facing the Authority.
    .
  • Appropriate action is taken to correct weaknesses identified from the above reports.

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11 Trustees and Officers Insurance

The Trustees and their officers have professional indemnity insurance.

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12 Year 2000

The entry of the Year 2000 passed without any noticeable problems partly because of the preparation which the Officers had made and partly because of the over-emphasis which the problem had been given by the Government and media.

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13 Risk Analysis

Extensive risk analysis was carried out into the effect of the construction of the Second Severn Crossing on navigation within the Severn Estuary. As a result of these studies new navigation aids and systems were installed and some of the existing navigation aids were upgraded.

The Trustees have also identified other risks (mainly financial) affecting the future of the Authority and considered what steps can be taken to mitigate these risks. Further risk analysis will be required to assess the hazards and risks to vessels navigating within the Gloucester Harbour. The Trustees also plan to carry out a hydrographic survey of the main navigation channel.

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14 Financial Procedures and Review of the Financial Year 1999/2000

a) Procedures

A budget for the financial year commencing 1 April is prepared and presented to the previous December Quarterly Meeting for consideration by the Trustees. A revised budget for the current year is also presented to that meeting which incorporates any decisions taken during the financial year by the Trustees.

The Trustees operate four separate financial revenue accounts covering:

i) Pilotage
ii) Conservancy
iii) Expenditure incurred on the Navigation Aids installed following the construction of the Second Severn Crossing and reimbursed by the Highways Agency
iv) As (iii) in relation to Severn River Crossing Plc

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b) Pilotage

This account includes the payments made to the Gloucester Pilots Partnership for the provision of pilotage services, which is subject to an agreement terminating in 2004.

The payment to the pilots is based on an annual retainer per pilot and a rate for DWT for each act of pilotage. The Trustees have an agreement with the Bristol Port Company for the provision of Boarding and Landing facilities for which a flat rate per act is paid.

The Trustees have an agreement with Associated British Ports for the provision of Pilots Lodge facilities to enable pilots to rest prior to, between, or after acts of pilotage.

The Trustees agreed at the meeting in December 1998 that commencing with the year 1999/2000 the reserves in the profit and loss account should be at least £45,000 so that they will be able to meet their obligations under the Pilotage Agreement entered into on 1 January 1998, even if there is a disruption in trade. It was estimated that at the level of charge of 23p per DWT, the income would be sufficient to meet existing operational costs plus being able to make a contribution to the profit and loss account of around £15,000 a year.

Arising solely from additional traffic the income for the year increased from the previous year by £28,465 (8%), and even after absorbing increases in expenditure arising from inflation of around 2%, a surplus of £15,671 was realised.

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c) Conservancy

The Conservancy Account is used for expenditure incurred in the maintenance of navigational aids and all Conservancy matters. It is funded from local light dues and recharging certain of its costs to Magnox BNFL who are financially responsible for certain of the lights in the Harbour. The account is budgeted to break even on a year by year basis.

The Revised Budget for the year forecast a deficit of £14,560. However, increased traffic, particularly during the latter part of the financial year, resulted in an extra £9,800 being received. This was offset by certain items of expenditure budgeted for 2000/2001 being incurred earlier than expected and charged to 1999/2000. This amounted to £7,800 and as a result the out-turn for the year was a deficit of £12,472.

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d) Second Severn Crossing Account

This account is used to record the expenditure incurred on the radar installations and the four navigation beacons installed to ensure the safe passage of vessels following the construction of the Second Severn Crossing.

All the costs, plus a proportion of the Marine Officer's time and associated overheads, are recovered from the Highways Agency who in turn recharge part of the costs to Severn River Crossing Plc.

This account is self-balancing, as the overheads recovered are transferred to the Conservancy account.

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e) Severn River Crossing Plc

This account deals solely with the costs of maintaining the Northwick Anchorage. These costs plus an element for overheads are recovered from Severn River Crossing plc. Consequently, this account is self-balancing as the overheads recovered are transferred to the Conservancy account.

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15 Pilots' Licences Issued

The Trustees pursuant to the Pilotage Act 1987 issued:

a) Pilots Licences to Pilots Hadley, Higgs and Moore and Payne.

b) Two Pilotage Exemption Certificates (Class C ).

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16 Key Tasks

The following key tasks are facing the Trustees:

a) The implementation of the Guide to Good Governance for Trust Ports which includes, inter alia, the promotion of a new Harbour Revision Order to modernise the constitution of the Trustees
b) The implementation of the Port Marine Safety Code which included, inter alia, the commissioning of a hydrographic survey of the main navigation channel
c) Assisting with the organisation of the British Ports Association Conference which is being held in Gloucester In October 2000
d) The renewal of the existing Pilot Watch Radar System (see section 17)
e) The replacement of the buoys at the Northwick Anchorage (see section 17).
f) The promotion of a second Harbour Revision Order to clarify matters relating to powers and jurisdiction

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17 Future Programme

Two major items of work are planned during the next two years.

a) The existing Pilot Watch Radar System requires renewing and the Highways Agency have been advised of likely costs of around £200,000.
b) There are problems associated with the Northwick Anchorage which will entail the purchase of new buoys and re-attaching the chains to the anchor bed. Discussions are ongoing with Severn River Crossing Plc regarding the costs.

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GLOUCESTER HARBOUR TRUSTEES

Report of the Auditors to the Trustees
of Gloucester Harbour Trustees

 We have audited the financial statements on pages 13 to 24 which have been prepared under the accounting policies set out in note 1 to these financial statements.

Respective responsibilities of the Trustees and Auditors

The Trustees are responsible for the preparation of the financial statements. It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you.

Basis of opinion

We conducted our audit in accordance with auditing standards issued by the Auditing Practices Board . An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the trust’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain information and explanations which we consider necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In our opinion the financial statements give a true and fair view of the state of affairs of the trust at 31 March 2000 and of the surplus for the year then ended and have been properly prepared in accordance with the appropriate elements of Statutory Harbour Undertakings Regulations 1983, Companies Act 1985, Section 42 of Harbours Act 1964 as inserted by the Transport Act 1981 and as amended the Statutory Harbour Undertakings (Pilotage Accounts) Regulations 1988.

  

Griffiths Marshall
Chartered Accountants and Registered Auditors
Beaumont House
172 Southgate Street
Gloucester
GL1 2EZ 

Dated : 24.07.2000

GLOUCESTER HARBOUR TRUSTEES

Conservancy income and expenditure account
for the year ended 31 March 2000

Notes

2000
£

1999
£

Income 2

104,527

91,370

Expenditure 3

108,943

70,264



Operating (deficit) /surplus before Depreciation and interest

(4,416)

21,106

Provision for depreciation

(8,098)

(6,850)

Profit on disposal

42

-



Net deficit/surplus before taxation

(12,472)

14,256

Corporation tax at 20% (1999-21%)
Current

2395

(3,169)



Net (deficit) /surplus for the year

(10,077)

11,087



.
GLOUCESTER HARBOUR TRUSTEES

Pilotage income and expenditure account
for the year ended 31 March 2000

Notes

2000
£

1999
£

Income 6

259,581

231,116

Expenditure 7

239,992

225,712

Net surplus before taxation

19,589

5,404

Corporation tax at 20% (1999- 21%)
Current
8

(3,918)

(1,135)

Net surplus for the year 15

15,671

4,269

=====

=====

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GLOUCESTER HARBOUR TRUSTEES

Second Severn Crossing income and expenditure account
for the year ended 31 March 2000

Notes

2000
£

1999
£

Income
Income from Highways Agency

53,842

101,483

======

======

Expenditure
Maintenance of Beacons & Radar

47,979

48,640

Consultancy fees etc

217

5,432

Transfer of overhead recoveries to
Conservancy account

5,646

9,558

Hydrographic Survey

-

37,853



53,842

101,483

======

======

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GLOUCESTER HARBOUR TRUSTEES

Severn River Crossing Account
for the year ended 31 March 2000

Notes

2000
£

1999
£

Reimbursement of Direct Costs on Ship Protection Work by Severn River Crossing Plc

9,629

7,983

Administration Charge @ 5% of Direct Costs

481

423



10,110

8,406

======

======

.
Revenue Costs

9,629

7,983

Administration Costs

481

423



10,110

8,406

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=====

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GLOUCESTER HARBOUR TRUSTEES

Balance Sheet - 31 March 2000

Notes

2000
£

1999
£

Fixed assets
Tangible assets 10

19,202

21,059



19,202

21,059



Current assets
Debtors: due within one year 11

42,697

39,154

Bank balances

286,375

285,853

Cash

200

200



329,272

325,207

.
Current liabilities
Creditors: amounts falling due within one year 12

(28,655)

(32,041)



Net current assets

300,617

293,166



Total assets less current liabilities

319,819

314,225

.
Provisions for liabilities and charges 13

(1,894)

(1,894)

.
Net assets

317,925

312,331

======

======

Capital and reserves
Income and expenditure reserve 14

317,925

312,331

======

======

Trustees report

for the year ended 31 March 2000

We approve on behalf of the Trustees the accounts on pages 15 to 26 and confirm that all information necessary for their preparation has been made available. The accounts were approved by the Trustees on

I M Walker (Chairman)

H Baker (Treasurer)

Dated: 16.06.2000


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