You will be aware that we have terminated our contract with the Council to run the ferry from Shaldon to Teignmouth. This decision was very reluctantly taken.
We have been having discussions with Council officials for three years about the future of the ferry service and in particular for the need for a new ferry boat. In October 2005 we had plans drawn for a new ferry and a quote to build a new ferry to our specifications.(in excess of £100k)
Our concession started in October 1998 and was due to run until 30th September 2018. On April 11th 2006 we met with the council to outline our proposals to build a new ferry.
We offered to pay for the replacement ferry subject to a revised contract price to be agreed with the council – we heard nothing. Therefore, in March 2009 we gave six months notice that we would have to terminate our contract.
I thought it would help if I set out the reasons why we took our decision to terminate.
1. In the course of our discussions mentioned above the Council’s declared its intention to sell the ferry assets IN 2007.. This led to concerns as to the future of the ferry operations to the extent that there was no conclusion to our discussions
2. The terms of the Contract were such that they had become too restrictive and onerous, as the basis of a commercial undertaking by a private operator. We understand, of course, that the Council wishes to provide a service but as we had to run at a financial loss for extended periods it became clear that the existing contract was becoming heavily weighted against a viable commercial operation
3. The operational costs of running the business including the maintenance of the ferryboat increased and this coupled with the inconclusive discussions left us with little scope and incentive for developing the business.
In September 2009 the Council sought Tenders for the continued operation of the Ferry on an annual basis. We submitted a Discussion Document setting out the issues as we saw them and how we thought the Council should consider going forward. The document also outlined our proposals for a contract.
We also agreed to assist the Council by extending our termination period to run the ferry operation until the end of October 2009
I should state that we would be pleased to continue the operation of the ferry for a minimum period of five years and to finance the works to the hull of ferry T&S4 subject to a renegotiated contract. On 29th June 2009, R Cann & Son quoted a sum of £28,350.00 plus VAT. Details of these proposed works were sent to the Council.
You will be aware that we have terminated our contract with the Council to run the ferry from Shaldon to Teignmouth. This decision was very reluctantly taken.