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The Deputy Leader, Councillor Ashton introduced report ES/2303 which provided an overview of the Southwold Harbour Annual Report 2023-2024. Southwold Harbour, along with its caravan and campsite facilities, had faced operational and financial challenges over the previous twelve months. There had been rising costs, environmental concerns, and infrastructure requirements which necessitated a strategic approach to ensure its sustainability. The Harbour Management Committee (HMC) continued to oversee its governance and operations.
Councillor Ashton referenced the investment plan, clarifying that Cabinet was not being asked to allocate funding but that it was to ensure the future of the harbour for generations to come. There were lots of costs involved and there was ongoing work to optimise the financial performance of the caravan and camping site. Income could then be utilised towards the required work on the harbour. There were a number of unknown costs and uncertainty relating to the work needed on the harbour area.
Councillor Ashton discussed some of the plans for the caravan and camping site, including the introduction of lodges on site. It was hoped work would commence for them to be operational in the 2027 season.
The overall operation of the harbour and campsite was slightly lower than the long-term running average due to some maintenance costs and increases to utility costs. All profit made on harbour lands was retained for use on the harbour lands. There was a Harbour Revision Order which would formalise the arrangement further and include the entire campsite area. Caravan fee increases were capped at 3% and the long-term plan was to invest and charge below market rates.
Councillor Beavan added there was a need to generate income to save the harbour from falling into the sea. There were significant funding challenges, and the camping and caravan site had the potential to earn significantly more income.
The Chair thanked Officers for supporting the Cabinet to have a tour of the harbour and welcomed back the fish and chip shop which was operating again after a fire.
Councillor Langdon-Morris queried if the land ownership between ESC and Southwold Town Council was resolved. Councillor Ashton responded that it related to the touring part and there was an agreement in place which satisfied all parties. The revision order included the ring fencing of income generated in the area to be spent back on the harbour.
Councillor Langdon-Morris queried if there were any taxation questions related to gross margins and if there was borrowing relating to the £179,000 repayment on capital investment and were they included as long-term liabilities on the balance sheet. Councillor Langdon-Morris also queried what assets were depreciating in the harbour.
Councillor Ashton responded that the payback of funds was predominately related to the shower improvements. Regarding depreciation, there were several assets relating to the harbour such as the ice maker which would have depreciation values and were included in the report. Councillor Beavan added that there were no margins at the present time, but there would be when more income was generated. Regarding payback there were repayments relating to the North Wall for works under Waveney District Council. The Councillor concluded that the depreciation also related to the offices and icemaker. Depreciation was not inclusive of the land itself. Councillor Topping added that depreciation was referenced on pp 19-20 of the report.
The Chair referenced p10 regarding waste and sewage management, and asked for clarity about pumping out of vessels and concerns with Anglian Water about discharges and the loss of blue flag status. Councillor Beavan responded that there was an ongoing issue with Anglian Water regarding discharges and discrepancies in information that had been reported and they had taken legal advice and was being monitored. It was their ambition to be able to pump out waste from vessels and if they got enough visitors this is something they would do.
Councillor Candy commented on the lodges and asked that they ensured any design would be unique and in keeping with the uniqueness of Southwold. There was a discussion regarding design and Councillor Ashton advised that information about the planned improvements would be made available at the caravan site and feedback would be sought. The Deputy Leader advised that the caravanning and lodge industry was going through a period of the flux. Other sites were being visited and there was an intention to be transparent regarding the forecasts and planned improvements.
Councillor Whitelock raised a concern regarding coastal erosion and the potential for investment to be made on an eroding coastline. Councillor Ashton responded that there would be a future business case put to Cabinet and Full Council relating to the wider long term future investment need.
Councillor Daly added that Southwold was a special place with a lot of historical value. The Councillor was keen to ensure consultation was carried out and that current residents were not priced out. Councillor Daly liked the considered approach to the ongoing work.
On the proposition of Councillor Ashton seconded by Councillor Beavan it was unanimously
RESOLVED
That Cabinet:
1. That having commented upon the Southwold Harbour Annual Report, Cabinet note the contents.
2. Approved the recommendations detailed at Section 8 of this report.