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Daily Record
Daily Record
National
Kathryn Anderson

Concerns raised over Perth Harbour losses exceeding £1 million

A councillor has raised "serious concerns" about Perth Harbour's losses exceeding £1 million.

The Perth City Centre councillor repeated his call for an urgent strategic review of this council asset.

He made the plea at a virtual meeting of Perth and Kinross Council's strategic policy and resources committee on Wednesday, February 2.

Lib Dem councillor Peter Barrett has spoken before about his concern over "spiralling losses incurred by Perth Harbour".

As councillors scrutinised a monitoring report of the current revenue budget he questioned the "increased losses".

He said: "There isn't any commentary in the report of the increased losses associated with the Perth Harbour operations.

"The budgeted deficit net loss for the harbour for the current year is approximately £171,000. This report predicts a further loss of £120,000 on top of that.

"Are losses expected to return in-line with the business plan or to continue at a loss of £300,000 a year?”

Council chief executive Barbara Renton said her understanding was PKC continued to work with the harbour board and operator to "minimise the deficit as far as possible".

One officer added some of the costs were one-off costs included in the consultancy harbour dredging so not expected to be recurring.

Cllr Barrett was told the officers who could provide more information were not at the meeting but he could be provided with more detail afterwards.

Unsatisfied, Cllr Barrett turned to PKC's chief executive Thomas Glen for answers.

Cllr Barrett said: "I raised serious concerns about the level of risk associated with the deliverability of the Perth Harbour Business Plan and the inability to achieve the necessary deficit reductions and increases in ships.

"Losses incurred by the harbour over the course of this council term have now exceeded £1 million.

"Given the exposure this council now faces in regard to significant and increasing losses and the statement by the leader of the council last September when this was discussed that a strategic review of harbour operations would be a matter for the next council.

"I'd like to ask the chief executive if he'll agree to conduct an urgent strategic or best value review to bring a report forward to the next council at the earliest stage.”

Mr Glen said he would not commit to bringing a report back to the next council meeting - given it was a special budget meeting - but added: "If members are minded I will provide a briefing and bring a report back at an appropriate point."

After the meeting Cllr Barrett said: "The losses incurred by Perth Harbour are eye-watering and show no sign of abating. In fact things are getting even worse.

"It is clear that operating a harbour does not provide best value to Perth and Kinross Council taxpayers. The council cannot afford to haemorrhage hundreds of thousands of pounds every year and urgently needs a plan B."

A Perth Kinross Council spokesperson told the Local Democracy Reporting Service: "As discussed in the meeting, the chief executive will provide elected members with a briefing on Perth Harbour and bring a report to council at an appropriate point."

In September 2021 PKC's strategic policy and resources committee approved actions to support the revitalisation of Perth Harbour which included working towards a break-even position.

Another action included holding at least one annual event for all river users and at least two events with harbour users as well as maximising community benefits.

Agreeing the business plan in September, the committee was told the harbour had been operating at a deficit with the number of vessels having declined from about 300 in 1990 to around 20. Larger ships and general economic conditions have led to a decline in the use of the Fair City's harbour.

In April 2018 PKC agreed to outsource the operation of Perth Harbour to Calmac Ferries Ltd.

Calmac took over the running of the port on July 2, 2018 for a five-year period with a possible two-year extension.

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