Broads Authority Financial Position.

[JennyMorgan]

The Authority has taken the unusual step of publishing an 'exempt' report regarding its present financial position. Mention is made of a possible tolls increase and, as I read it, possible adjustments to the hire boat toll for 2020. Interesting reading and very relevant to the public interest, not least relevant to us toll payers.

Not for publication by virtue of paragraphs 3 of part 1 of schedule 12a to the Local Government Act 1972 as amended Navigation Committee exempt minutes, 11 June 2020, Maria Conti 1 Navigation Committee Exempt minutes of the meeting held on 11 June 2020 15. Hire boat industry – financial position The Chief Executive introduced his report on the Authority’s proposed approach to hire boat tolls in response to the impacts of the Government’s COVID-19 lockdown restrictions. The suspension of the holiday industry had caused a collapse in bookings and forced the hire boat companies to cease their operations and furlough staff. To date, the Authority had received approximately £17,000 of the projected income of £1.19m from hire boat tolls. Income from private boats was approximately £325,000 behind the Authority’s projections for a normal year. In advance of lifting restrictions to allow hire boat operations to resume, the Authority was considering how it should protect the future of the industry by taking a flexible and proportionate approach to the charges that would fall due this year. The report set out the standard process of staged payments for hire craft. Government guidance on allowing the resumption of day boat hire was released on 1 June, and further guidance on allowing overnight stays and weekly boat hire was anticipated by 4 July. However, the remainder of the season was unpredictable, particularly given the risk of further COVID lockdowns and public confidence in booking holidays. It was therefore recommended that officers report back to the Navigation Committee and Broads Authority in September, when the position was clearer, to consider how to deal with the outstanding toll charges. Members felt the Authority had taken a balanced and supportive approach to date in seeking to collect tolls while also supporting the hire boat industry. It was also important to know what funding support would be made available by the Government. The Chief Executive said recent indications were that more people will be holidaying in the UK this year, which would be positive for local businesses. However, this may not be enough for some companies to survive, and the financial implications for next year were more serious. Defra had therefore been asked for £3.6m to help the industry, including ancillary services, to survive through to next season. 86 Navigation Committee minutes, 11 June 2020, Maria Conti 2 Members agreed to assess the situation in September, when hire company booking reports and other information would be available. The Chief Executive gave special thanks to the Chief Financial Officer and the Collector of Tolls for providing extensive information, often at short notice, to Defra officials. He also thanked the Authority’s Chair and Vice-Chair for their ongoing support. Moving to the Authority’s financial position, the Chief Executive had been advised that the Authority would have to demonstrate the use of its own reserves and other funds before Defra offered additional support. It was however necessary for the Authority to retain a level of reserves to allow it to remain a viable concern. Officers had identified the potential for the Authority to fund £800,000 of the projected deficit from reserves and through savings (£400,000 from Navigation Reserves and savings, and £400,000 as a one-off contribution from National Park Reserves and savings). This would leave a gap of between £200,000 and £800,000, which Defra had been asked to fill. The Chief Executive reported that Defra had signed off with Ministers a process for doing this, and would prepare a Change Control Notice. The notice would amend the Authority’s grant agreement so it could spend £400k from the National Park budget to support navigation, and Defra would underwrite the gap in loss of income above £800,000. Defra hoped to get this signed off ‘relatively quickly’. This would mean that the Authority’s earmarked reserves to fund capital purchases would remain intact. The Chief Financial Officer (CFO) added that the budget holder exercise earlier in the year had identified all possible savings, and risk implications for future years meant delaying or cancelling some projects was not an option. The Authority would not make its usual contributions into annual reserves this year, and usually sought to maintain the navigation reserves as close to 10% as possible. It would need to increase tolls next year to stay in this position as costs were increasing, but it was recognised this would not be a desirable option. In response to member questions, the CFO confirmed that the proceeds of the sale of the Field Base at Womack was in a protected capital receipts reserve, which could only be used for capital expenditure or the repayment of debt. Options for a new Ranger launch billet was under review and linked to work to the toilets at Acle Bridge. A member questioned whether the Authority should consider staff redundancies. The Chief Executive replied that part of Defra’s agreement for funding support was that there were no redundancies. In addition, if users wished to see standards of service on the waterways maintained at current levels, existing staffing resources were needed to do it. In conclusion, the Chief Executive said that Government funding would help the Authority and the hire boat industry through this year. However, next year could be much more difficult. The Authority’s National Park Grant could be impacted in the comprehensive spending review, and any loss of hire boats and private boats on the Broads would affect both the Authority and local businesses. 87 Navigation Committee minutes, 11 June 2020, Maria Conti 3 The Chair reiterated the important role of Navigation Committee members in supporting officers with expert advice, and in helping to manage public perception of the current situation. She thanked the Chief Executive for his report. The Committee unanimously supported the approach proposed in the assessment of hire boat charges in the autumn and the position reached with Defra regarding funding the potential deficit in navigation income

[Cheesey69]

Up go the red flags for the future. 
As usual many thanks for reporting this. 
Your on my Christmas card list🙂

[floydraser]

This is part of the agenda for this Thursday's Navigation Committee meeting I believe.

Nothing frightening there and anyone employed by the BA would find it reassuring that their jobs are relatively secure.

[JennyMorgan]

9 minutes ago, floydraser said:

Nothing frightening there and anyone employed by the BA would find it reassuring that their jobs are relatively secure.

Agreed although I firmly believe that a cull within Yare House is long overdue. Nothing unduly frightening but JP has clearly considered the option of increasing the toll in order to make up any shortfalls. We'll be wise to keep an eye and an ear open on that topic, just in case it rears its ugly head again. 

For the life of me I can not see any good reason why this agenda report should not have been released for public consumption. Perhaps a long overdue policy of transparency and openness has kicked in. 

[floydraser]

55 minutes ago, JennyMorgan said:

Agreed although I firmly believe that a cull within Yare House is long overdue. Nothing unduly frightening but JP has clearly considered the option of increasing the toll in order to make up any shortfalls. We'll be wise to keep an eye and an ear open on that topic, just in case it rears its ugly head again. 

For the life of me I can not see any good reason why this agenda report should not have been released for public consumption. Perhaps a long overdue policy of transparency and openness has kicked in. 

I don't think a rise in tolls would be anything of a shock to us, any more than a rise in petrol/diesel car tax, bus/train fares etc as a result of Covid.

The document is easily available out there originating from the BA website, I managed to find it easily enough in a rather obvious place.

[JennyMorgan]

12 minutes ago, floydraser said:

I don't think a rise in tolls would be anything of a shock to us, any more than a rise in petrol/diesel car tax, bus/train fares etc as a result of Covid.

The document is easily available out there originating from the BA website, I managed to find it easily enough in a rather obvious place.

It is all too easy for the Authority to once again increase the toll. Consider that half of our toll goes to overheads rather than to navigation. Perhaps if 60% of our toll were to be allocated to navigation rather than simply taking the easy option as has become the norm in recent years. Percentage rises are obviously cumulative, 3% this year is more than 3% last year. Perhaps if us discontented souls didn't see waste then perhaps we would be less cynical regarding toll grabs by the profligate Authority.

The full agenda paper is readily available, the obvious source being the BA's own website, along with other minutes and agenda papers. Gripping reading!

[Vaughan]

Thank you very much for posting that and it is very interesting to read.

Like Floydraser, I don't see anything frightening in it and I am sure none of us should be at all surprised if our river tolls go up next year!  The BA have done what I think is a splendid job in keeping the navigation open at all times and maintaining it, no matter what.  The Broads have survived this year under their management, a lot better than some other places.

The stage payments for hire boat tolls have had their dates revised but please remember that all hire boats on hire this year will pay the full toll anyway.  They are not getting it "on the cheap".  Whether any hire boats have remained mothballed, and so not tolled this year, I don't know.

The minutes, though interesting, are for an early June meeting which is now rather out of date.  This September's meeting should give a better idea of the current situation.  This season has been a roller coaster ride, starting with nothing at all for 17 weeks and followed by a blind panic to hire anything that floats and get out on the water!  How it will all settle down next year, is still anyone's guess.  My own prediction, based on what has happened in all the previous recessions, is that this winter, especially just after the New Year, will be the telling time for the tourist industry.  I would expect to see a lot of second hand hire boats on the market, so less hire boat toll revenue in 2021.

It also mainly depends on whether the Government's COVID panic will continue on into the next spring or summer.  We can expect more people to holiday in UK certainly, but will they be prepared to take the risk of booking in advance for next year, after all that went wrong with their bookings this year?  I know I wouldn't!  And will they have disposable income, if they are still in fear for their jobs?

Thanks again Peter, for keeping us informed.

[batrabill]

We own a holiday cottage. We have double the bookings for next year than at the same time last year. People are wisely getting British holidays booked I assume because they think foreign travel may still be in doubt next year. It would be good if that were true of hire boats as it would give them confidence about revenue next year. 

[Vaughan]

1 minute ago, batrabill said:

It would be good if that were true of hire boats as it would give them confidence about revenue next year. 

Which is why January may be the telling time, if there are not enough advance bookings. Nice to hear that you are booking up well though!

2 hours ago, Vaughan said:

will they be prepared to take the risk of booking in advance for next year, after all that went wrong with their bookings this year?

Incidentally, it has always been recognised in this business that a cold and wet July or August will not affect bookings in that year. But it will certainly affect repeat bookings for the same time next year!

[JennyMorgan]

I largely agree with both Floyd and Vaughan on this one. However,  I inevitably preach caution. 

The one issue I do have, both with the BA's and Vaughan's comment is that the Authority has kept the navigation open. They haven't, as such. it is inherently open as an arm of the open sea, tidal river, should be. The point is that they didn't attempt to close it, thankfully.

I do question why this unexpectedly released report was initially withheld from the public gaze. It is widely acknowledged that there is a regrettable lack of trust issue in regard to the BA and money matters in particular. This report does, in my opinion, paint the Authority in a good light. It is doing no harm by being published, indeed it is a positive.

[JennyMorgan]

The Great British Stay-Cation. will it last? If the widely reported, recent TUI flight from Turkey is anything to go by then I suspect that it will. At the moment nothing on this earth would induce me, and I suspect many others, into boarding a cruise ship or an air-liner!  Elsewhere British restaurants are reporting a rash of 'no-shows', people clearly hedging their bets, making multiple bookings just in case. Will there be a rash of cancellations in the spring? Who knows, I wouldn't be counting my chickens before they hatch. Unpredictable, worrying times. Personally I shall stick with British holidays, might go on the Broads, again and again!

[Vaughan]

And don't forget that other Sword of Damocles that has been left hanging over our heads :

A no deal Brexit.

[floydraser]

Unless someone can show otherwise (and I'm sure they will if they can!) I don't remember anyone campaigning for those minutes to be released, so the BA did it of their own decision. Similarly, I don't remember anyone campaigning for the reductions in VAT on food and holidays, again something the government came up with themselves?

I think the support needed may well be there when needed in both cases and I'm prepared to believe that someone somewhere has their feet on the ground, even if it only because they have little option!

[Boaters]

Heard from a source  at B A that there was many hundreds of private boat tolls unpaid ,surely they can’t take legal action against them all ? 

[MauriceMynah]

I don't know if Tom would be prepared to furnish us with some figures of "unpaid tolls" and perhaps give some indication as to what the BA is thinking of doing about it.

[Bytheriver]

34 minutes ago, MauriceMynah said:

I don't know if Tom would be prepared to furnish us with some figures of "unpaid tolls" and perhaps give some indication as to what the BA is thinking of doing about it.

No doubt this will come out on Thursday at the Navigation Ctte - We can all watch & listen!

https://www.broads-authority.gov.uk/about-us/committees/navigation-committee/navigation-committee-3-september-2020

[JennyMorgan]

I have two boats that are un-tolled this year, un-launched too,  sat in my garden. Three of my nearby neighbours also have boats in their gardens, likewise un-tolled. A BA person tells me that it's the same at Wroxham, many club & private moorings being unused this year.

[marshman]

I did hear the figures for the untolled private craft the other day and it was not that far below last years. What I do know is that they are in process , or beginning the process, of pursuing through the courts of those who did not pay last year! its certainly not my understanding that it is "hundreds" outstanding for the current year. If I hear the figure, I will "leak" it!!! Hire boats are further behind the curve by some margin but they are expected to catch up sooner, rather than later!

So if you are one of those, expect to be hearing sooner rather than later!!

Incidentally PW, don't forget that Wroxham is a bit misleading as I think it is an adjacent water isn't it?

 

[Daphne]

A very interesting thread.

As a private boat user, we have been watching the hire boats and the congestion on the river around Wroxham.  There have been precious few hire boats available since they came back on stream in early July.  So whilst I can accept that the hire boats have lost part of their income due to CV19, I am struggling to reconcile their meagre contribution to the BA. Whereas private boat owners are GBP325k short, what proportion of the whole amount due from them does that represent? I am sure it must be more that the slightly less than 2% of the amount expected from the hire fleet.

Looking online at a couple of hire companies, they remain heavily booked throughout September.

Whilst JM et al have elected not to use their boats in 2020, and therefore not pay their toll, I think it is different for the hire boat fleet. We have all lost out this year in one way and another. Some have lost more than others. I hope the boat hire companies end up making fair contribution.

If I am wrong in my analysis, I will happily be corrected.

[JennyMorgan]

3 minutes ago, Daphne said:

I hope the boat hire companies end up making fair contribution.

Hello, Daphne, welcome to the forum, a good first post, thank you.

I do have a tolled skiff and a kayak, I'm still getting my Broads fix, in a limited manner.

Re the hire fleet, I agree, they ought to make a fair contribution although I do wonder what will be deemed as fair and who will make that final decision? 

[Poppy]

A very interesting thread.
As a private boat user, we have been watching the hire boats and the congestion on the river around Wroxham.  There have been precious few hire boats available since they came back on stream in early July.  So whilst I can accept that the hire boats have lost part of their income due to CV19, I am struggling to reconcile their meagre contribution to the BA. Whereas private boat owners are GBP325k short, what proportion of the whole amount due from them does that represent? I am sure it must be more that the slightly less than 2% of the amount expected from the hire fleet.
Looking online at a couple of hire companies, they remain heavily booked throughout September.
Whilst JM et al have elected not to use their boats in 2020, and therefore not pay their toll, I think it is different for the hire boat fleet. We have all lost out this year in one way and another. Some have lost more than others. I hope the boat hire companies end up making fair contribution.
If I am wrong in my analysis, I will happily be corrected.

I have little doubt that the Broads Hire Boat Federation will be lobbying strongly. I would like to think that the Norfolk and Suffolk Boating Association will be equally vociferous on behalf of private owners - but I'm not holding my breath.

Sent from the Norfolk Broads Network mobile app

[JennyMorgan]

2 minutes ago, Poppy said:

I would like to think that the Norfolk and Suffolk Boating Association will be equally vociferous on behalf of private owners - but I'm not holding my breath.

Likewise . What is good for the goose should be good for the gander.

[marshman]

I do think to base any comment on the toll figures in PW lengthy opening post could be a little misleading as those figures are likely to be very out of date - no, I would go as far as saying I expect they are usefully out of date!!!

Can we just wait until we know the exact situation before jumping to perhaps the wrong conclusions?

[Daphne]

The river seems to be significantly busier than last year (with hire boats).  Its great to see folks enjoying themselves. Sadly we are noting more flotsam in the river.  This is often unsavoury material that should not have been dropped into the water. Used nappies, bags of dog poo, drinks containers, polystyrene take away trays seem to be a constant reminder that some people are less considerate than one would hope for.

[Bytheriver]

9 minutes ago, Daphne said:

The river seems to be significantly busier than last year (with hire boats).  Its great to see folks enjoying themselves. Sadly we are noting more flotsam in the river.  This is often unsavoury material that should not have been dropped into the water. Used nappies, bags of dog poo, drinks containers, polystyrene take away trays seem to be a constant reminder that some people are less considerate than one would hope for.

Where boat waste facilities are not coping there needs to be some serious thought before next summer  into how the overflowing bins (or lack of any proper provision at all at some locations). The strong winds of recent weeks is likely to have caused some pollution - I can imagine bags being blown off the back of boats overnight.

Visitors here for the first time must be perplexed by the different methods of disposal between boatyards and  various mooring locations as you travel from one council district to the next. 

As far as the finances are concerned all will be revealed  on Thursday afternoon. Lets see if the number looking in can beat the last Members Meeting when there were 24 people logged in at one stage