The Front Page. - Copy 181 (DHB's new initiative on Port Privatisation)
6 June 2011
PORT OF DOVER: BUILDING COMMUNITY TRUST
On 16 May 2011 the Department for Transport launched a new consultation period, inviting views on a revised set of criteria which might better reflect Government policy on the sale of Trust Ports, such as Dover. The new consultation period will run for six weeks until 27 June 2011.
Community participation in the port is at the heart of these revised criteria.
Dover Harbour Board (DHB) believes its scheme for privatisation will give the port and its community a better future by:
. Establishing the Port of Dover Community Trust (PDCT), enabling the community to become true partners and share in the prosperity of the port by direct cash contributions, for the first time in the port’s history
. Creating an Employee Share Ownership Trust (ESOT) which will involve all port employees in a share ownership arrangement that further adds to local ownership – staff are part of the community too
. Allowing the port to use its strong commercial position and the skills and experience of its staff to grow the business, add value to the community and to the port, and create new opportunities and jobs
In April 2011 independent consultants Arup reported back to DHB on the potential scale of regeneration and economic development likely to arise from the creation of the PDCT. This would follow the privatisation of the Port and the creation of a new operating company (OpCo) as a subsidiary of the Dover Harbour Board.
The PDCT would receive a £10m initial cash settlement from OpCo as well as funds for the purchase of shares in the Port, which are anticipated to have a value of approximately £20m at the point of sale. There is a commitment by OpCo to contribute £1m per annum over the first five years in lieu of dividends, with future funding coming from market-rate dividend returns on the shares.
After factoring a number of considerations Arup calculates that the PDCT could have a total estimated potential economic impact of the order of £95m over the first five years and £60m annually thereafter.
The PDCT represents a fundamental change in the port’s relationship with the town and district and provides for the first time an opportunity for the community to benefit directly and financially from port activities and to share in the port’s success.
DHB’s privatisation scheme, and particularly the PDCT, appears to fit extremely well with Government's latest thinking on the criteria for the sale of trust ports. This encouragement has spurred us to engage with as many people as possible during the next six weeks in working hard to create positive momentum, interest and enthusiasm for a PDCT which works for the community. All of us are involved or have connections with local groups, societies, clubs, schools, charities, community and voluntary groups, and more now than ever are in need of scarce funding to carry on with the good work that they do for the community. Aside from the big regeneration agenda in Dover that the PDCT may also address, such community groups are at the very heart of what DHB is trying to achieve in making the PDCT work for Dover.
So what happens next? The Government, through the DfT, could issue a ‘minded to approve’ decision for the privatisation of the Port of Dover. Any sale would not happen immediately, but would be likely to take until at least the middle of 2012. In the event of a ‘minded to approve’ decision, DHB would immediately prioritise, in advance of any sale process beginning:
. Formally establishing the PDCT in readiness for the injection of at least £10 million at the point of sale of the port.
. Consulting widely with all of our stakeholders, most especially the community and customers, so that those stakeholders are kept as fully informed as possible as the process develops and the sale goes ahead.
In advance of this we wish to work with the community in establishing what it wants the PDCT to do for Dover, to build consensus and enthusiasm so that at the right time it is ready to launch the good work we all wish it to achieve.
This is an exciting time for the Port of Dover and most especially the community. With the help of the entire port community and the town of Dover, supported by new investment, it really could become the expanded, world class port facility we wish to see for the benefit of future generations of users and for the community of Dover as a whole.
ENDS.
The pictures above show the main players/protagonists on BBCTV last week arguing their corner. Bob Goldfield (Left) for DHB extolling the virtues of this new plan as shown above, and Charlie Elphicke for the Peoples Port pooh-pooing the latest DHB developments with a wry dismissive air....Charlie Elphicke said...
"there is nothing new here. This is mutton dressed as lamb, and no matter how you dress up mutton it is still mutton at the end of the day"
So there you have it.
"This Represents a Fundamental Change in the Ports relationship with the Town"
Say DHB..... in their latest Press Release below..... read on for latest....
PORT OF DOVER: BUILDING COMMUNITY TRUST
On 16 May 2011 the Department for Transport launched a new consultation period, inviting views on a revised set of criteria which might better reflect Government policy on the sale of Trust Ports, such as Dover. The new consultation period will run for six weeks until 27 June 2011.
Community participation in the port is at the heart of these revised criteria.
Dover Harbour Board (DHB) believes its scheme for privatisation will give the port and its community a better future by:
. Establishing the Port of Dover Community Trust (PDCT), enabling the community to become true partners and share in the prosperity of the port by direct cash contributions, for the first time in the port’s history
. Creating an Employee Share Ownership Trust (ESOT) which will involve all port employees in a share ownership arrangement that further adds to local ownership – staff are part of the community too
. Allowing the port to use its strong commercial position and the skills and experience of its staff to grow the business, add value to the community and to the port, and create new opportunities and jobs
In April 2011 independent consultants Arup reported back to DHB on the potential scale of regeneration and economic development likely to arise from the creation of the PDCT. This would follow the privatisation of the Port and the creation of a new operating company (OpCo) as a subsidiary of the Dover Harbour Board.
The PDCT would receive a £10m initial cash settlement from OpCo as well as funds for the purchase of shares in the Port, which are anticipated to have a value of approximately £20m at the point of sale. There is a commitment by OpCo to contribute £1m per annum over the first five years in lieu of dividends, with future funding coming from market-rate dividend returns on the shares.
After factoring a number of considerations Arup calculates that the PDCT could have a total estimated potential economic impact of the order of £95m over the first five years and £60m annually thereafter.
The PDCT represents a fundamental change in the port’s relationship with the town and district and provides for the first time an opportunity for the community to benefit directly and financially from port activities and to share in the port’s success.
DHB’s privatisation scheme, and particularly the PDCT, appears to fit extremely well with Government's latest thinking on the criteria for the sale of trust ports. This encouragement has spurred us to engage with as many people as possible during the next six weeks in working hard to create positive momentum, interest and enthusiasm for a PDCT which works for the community. All of us are involved or have connections with local groups, societies, clubs, schools, charities, community and voluntary groups, and more now than ever are in need of scarce funding to carry on with the good work that they do for the community. Aside from the big regeneration agenda in Dover that the PDCT may also address, such community groups are at the very heart of what DHB is trying to achieve in making the PDCT work for Dover.
So what happens next? The Government, through the DfT, could issue a ‘minded to approve’ decision for the privatisation of the Port of Dover. Any sale would not happen immediately, but would be likely to take until at least the middle of 2012. In the event of a ‘minded to approve’ decision, DHB would immediately prioritise, in advance of any sale process beginning:
. Formally establishing the PDCT in readiness for the injection of at least £10 million at the point of sale of the port.
. Consulting widely with all of our stakeholders, most especially the community and customers, so that those stakeholders are kept as fully informed as possible as the process develops and the sale goes ahead.
In advance of this we wish to work with the community in establishing what it wants the PDCT to do for Dover, to build consensus and enthusiasm so that at the right time it is ready to launch the good work we all wish it to achieve.
This is an exciting time for the Port of Dover and most especially the community. With the help of the entire port community and the town of Dover, supported by new investment, it really could become the expanded, world class port facility we wish to see for the benefit of future generations of users and for the community of Dover as a whole.
ENDS.
The pictures above show the main players/protagonists on BBCTV last week arguing their corner. Bob Goldfield (Left) for DHB extolling the virtues of this new plan as shown above, and Charlie Elphicke for the Peoples Port pooh-pooing the latest DHB developments with a wry dismissive air....Charlie Elphicke said...
"there is nothing new here. This is mutton dressed as lamb, and no matter how you dress up mutton it is still mutton at the end of the day"
So there you have it.