Agenda item

Review of Fees & Charges 2024/25

To review the Council’s Fees and Charges for 2024/25.

Minutes:

Members considered the review of Fees and Charges 2024/25 report presented by Councillor Boden.

 

Members made comments, asked questions, and received responses as follows:

 

·         Councillor Hay asked if there has been any benchmarking with other Ports to make sure the Council is not pricing itself out of the market or is the Council still one of the cheapest? She made the point that Sutton Bridge is seeing a significant downturn in traffic and what is being done to market the Port as a suitable import/export terminal, what is Fenland Districts Council’s involvement with the Port, will there be any losses and concerning the managing of moorings who will be responsible for any losses if any on that. Councillor Boden responded to the best of his knowledge there has been no benchmarking undertaken because the Council is meant to recover any costs as part of the authority, and is not meant to be seeking to act in competition against other local authorities who have got these responsibilities, with the Council’s general fund available to subsidise these charges. He added that legally the Council must ensure that the charges made are sufficient to ensure that the general fund is not being used to create a subsidy and as far as Sutton Bridge is concerned this is not the Councils responsibility as the Council does not own it or operate it the Councils major connection is the Harbour Authority and the statutory authority for that purpose, Lincolnshire County Council would be responsible for any marketing to do with Sutton Bridge Port Ltd or any other bodies involved. Councillor Boden stated that Lincolnshire Council pay Fenland District Council a management fee. Councillor Hay asked does the Council make money from Sutton Bridge? Councillor Boden replied it depends on the costs that are incurring in fulfilling that cost of service.

·         Councillor Hay stated she would like to know about the occupancy rates at the mini factories and South Fens Business Centre together with the Boat House as it is understood that South Fens historically and currently still has problems with low occupancy. She asked if any thought been given to a rent free period or for new occupancies to be given a period of 3-6 months at a discounted rate to encourage uptake in these centres? Councillor Boden responded as members will have seen it is being suggested that for the Business Centres and units that things should not change with what is currently being proposed as being the minimum and maximum rates to be charged right across Fenland. He stated that the problem is these are all in different locations with different expectations, different pressures,  different cost, opportunities and demand which means the Council needs to be more responsive to the demands which exist or do not exists where there is persistent under occupancy and South Fens as pointed out being one of them to be aware of to give incentive to individuals to move in whatever those incentives maybe, it maybe to have more vetted periods it maybe that the rent charges for new occupancies are too high. Councillor Boden agreed that what is in the papers at the moment is not satisfactory and will be discussed further with officers and any changes presented to Cabinet. He added that as far as the higher rents across Fenland this feels the right amount for the next 12 months for those properties according to demand and supply but is something that can be looked into and feels it would be appropriate to remove those upper limits from all of the properties across Fenland and to require the best available rent obtained from prospective tenants in the future but he would not want to change the assumption which is being made about the amount of money that would be generated for the budget because this could be highly speculative. Councillor Hay stated its comforting to hear that each town is being looked at on its own merits.

·         Councillor Gowler stated for the Port of Wisbech Authority there are charges for everything and it seems ridiculously complicated so is there anyway of simplifying this document. Councillor Boden responded that he totally agrees but it is the standard practice and procedure which exists for every single Port, and it cannot be made any simpler than it is.

·         Councillor Imafidon stated there is 25% increase in the Wisbech Port report and asked are the Council working towards a situation where the officers will be offsetting the deficit that currently exists and how long will this process take if that is the plan? Councillor Boden confirmed this is something the officers are working towards, the timing is unsure and he will be able to answer this when the report is produced within the near future as there are lots of things to be taken into consideration and to take one item in isolation could potentially be misleading, with the 25% increase meant to be an interim increase and the suggestion from that is the likelihood based on all the mathematics is that a figure larger than 25% will be required potentially so the Council stays legal. He added that he could not go into anymore detail until the report is seen but would like to emphasize that what is really important is the volume of shipping which takes place and the volume of goods which are moved as it is an integral part of the equation and those volumes have gone down in recent years and in last year particular, so the intent of the port operators whether it be Wisbech or Sutton Bridge is very important indeed.

 

Members AGREED to recommend to Cabinet that the proposed Fees and Charges be included in the final budget for 2024/25 including the proposed changes around South Fens Business Centre.

Supporting documents: