Issue - meetings

Consider report by Chief Financial Officer.  (Copy attached.)

5.0     EYEMOUTH HARBOUR TRUST – EXTENSION OF FUNDING SUPPORT

5.1     There had been circulated copies of a report by the Executive Director which sought approval from Members to continue the current arrangement whereby the Council underwrites a development loan provided in the 1990s from the Public Works Loans Board (PWLB) to Eyemouth Harbour Trust, which was a voluntary body.  The report explained that the Harbour Trust was very proactive in seeking to control its operating costs and in identifying new opportunities to increase income from the harbour.  The support from the Council had enabled the Trust to bring forward a range of harbour improvements and development projects that had helped bring a new income and diversify the activity of the harbour.  The Trust acknowledged that the development and improvements they had made in the first five years would not have been possible without the Council support.  However, the operating environment facing the Trust continued to present significant challenges, and should the Trust fail there was the potential to compromise the Council’s financial interest as well as causing a major economic issue within Eyemouth.  The Council was being asked to continue to alleviate a significant financial burden on the Trust in providing long term stability into the future.  In response to a question regarding re-negotiating the Loan, the Chief Financial Officer explained that this had been considered but it was too costly to change.   

DECISION

(a)     NOTED the progress made by Eyemouth Harbour Trust in developing new sources of income, controlling operating costs and recovering debts.

(b)     AGREED that:

(i)        the Council would continue its support of Eyemouth Harbour Trust by continuing to fund the Public Works Loan Board annual loan repayments of £62k for a further 10-year period; and

(ii)       the Chief Financial Officer would continue to receive regular financial and operating reports from the Harbour Trust.