DEPARTMENT FOR
TRANSPORT News Release (054) issued by The Government News Network
on 24 May 2007
The Department for
Transport has today published a report on potential reform in the
trust port sector in England and Wales. The report was prepared
for the Department by independent consultants Pricewaterhouse
Coopers (PwC).
The report was commissioned to help the Department understand how
the potential of trust ports can be fully exploited and to
recommend ways in which they can improve their accountability and
financial performance.
In a Parliamentary Written Statement, Shipping Minister Stephen
Ladyman highlighted the report's key findings. They include
the following:
* the trust model retains a legitimate role
within a mixed ports sector;
* larger trust ports operate on a
sound commercial basis but their financial performance sometimes
falls short of the private sector;
* trust ports should do
more to identify and account for use of their profits - what the
report terms their 'stakeholder dividend';
Dr Ladyman said:
"The study represents a valuable
contribution to the debate on the trust port sector. The
Government will bring forward new guidance for trust ports in
England and Wales later this year, following further discussion
with the industry based on these recommendations."
Notes for Editors:
1. The Pricewaterhouse Coopers Report can
be found at http://www.dft.gov.uk/pgr/shippingports/ports/trust/.
2. Trust ports are independent statutory bodies, governed by
unique legislation and controlled by an independent board rather
than shareholders.
3. More than fifty ports in England and Wales are trust ports -
including Dover, Milford Haven, and the Port of London Authority
(which holds conservancy duties for the Thames Estuary).
4. In 2001, seven of the largest commercial trust ports were
classified by the ONS as Public Corporations for Government
accounting purposes, owing to various controls which Government
retains over them - namely a board-majority appointed by central
or local government, and the power of Government compulsorily to
privatise the port under the Ports Act 1991. The ports in
question applied in 2004 for Harbour Revision Orders (HROs) to
remove these controls. All but London were unsuccessful, after
objections to the HROs were received. The Department decided to
use the opportunity presented by the Ports Policy Review to
consider more widely the status of the trust port sector and the
Government's relationship with the largest trust ports.
5. The Department aims to complete the Ports Policy Review and
publish its findings later this year.
Public Enquiries: 020 7944 8300
Department for Transport
Website: http://www.dft.gov.uk