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Bringing the SS Nomadic to Belfast

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Bringing the SS Nomadic to Belfast Bringing the SS Nomadic to Belfast The Acquisition and Restoration of the SS Nomadic REPORT BY THE COMPTROLLER AND AUDITOR GENERAL NIA 165/08-09 24 June 2009 Cover photograph, main report, Parts 1 and 2 – photographs reproduced courtesy of The National Museums and Galleries of Northern Ireland©. Main report, Parts 3 and 4 – photographs reproduced courtesy of The Department for Social Development Report by the Comptroller and Auditor General for Northern Ireland Ordered by the Northern Ireland Assembly to be printed and published under the authority of the Assembly, in accordance with its resolution of 27 November 2007 Bringing the SS Nomadic to Belfast The Acquisition and Restoration of the SS Nomadic NIA 165/08-09 BELFAST: The Stationery Office £5.00 This report has been prepared under Article 8 of the Audit (Northern Ireland) Order 1987 for presentation to the Northern Ireland Assembly in accordance with Article 11 of that Order. J M Dowdall CB Northern Ireland Audit Office Comptroller and Auditor General 24 June 2009 The Comptroller and Auditor General is the head of the Northern Ireland Audit Office employing some 145 staff. He, and the Northern Ireland Audit Office are totally independent of Government. He certifies the accounts of all Government Departments and a wide range of other public sector bodies; and he has statutory authority to report to the Assembly on the economy, efficiency and effectiveness with which departments and other bodies have used their resources. For further information about the Northern Ireland Audit Office please contact: Northern Ireland Audit Office 106 University Street BELFAST BT7 1EU Tel: 028 9025 1100 email: [email protected] website: www.niauditoffice.gov.uk © Northern Ireland Audit Office 2009 Bringing the SS Nomadic to Belfast – The Acquisition and Restoration of the SS Nomadic Contents Part 1 Introduction 2 Background 2 The Department’s strategic approach to the restoration of the Nomadic 2 Scope of this study 4 Key lessons from our review 4 Part 2 Purchase of the Nomadic and establishment of the 8 SS Nomadic Charitable Trust The purchase of the Nomadic was linked to the regeneration and 8 promotion of Belfast City Centre The Business Case for the project was submitted for approval two days 8 before the purchase of the vessel The Business Case was limited in scope 8 The Department of Finance and Personnel approved the purchase but 9 raised a number of concerns and attached conditions to its approval The Nomadic Charitable Trust was established in October 2006 and 10 granted charitable status in July 2008 There are no formal agreements between the Department and the Trust for 11 the transfer of ownership or to allow the Trust to fundraise in respect of the Nomadic Part 3 Costs of acquisition, transportation and restoration 14 The costs of purchasing and transporting the Nomadic have exceeded 14 estimates The Department has incurred further costs on the restoration and maintenance 15 of the ship Bringing the SS Nomadic to Belfast – The Acquisition and Restoration of the SS Nomadic The approved spending limit for the project was exceeded 15 Competitive tendering guidance was not always followed when 16 purchasing services for the Nomadic Raising the expected level of funds to renovate the Nomadic has proved 19 to be a challenge for the Trust Part 4 Monitoring and reporting and the future of the Nomadic 22 Regular monitoring and reporting on progress is important to measure 22 the success of the project There is lack of clarity in the Department’s commitment to return the 23 vessel to auction if the Trust fails to make sufficient progress The Trust has made some progress against the targets set 23 A post-project evaluation has yet to be undertaken to determine the 24 effectiveness of the project The business case included Key Performance Indicators but it is too early 25 to assess performance The Trust is developing a project plan for the restoration of the Nomadic 26 Appendix 1 History of the SS Nomadic 28 Appendix 2 The merchant schooner ‘The Result’ 29 Bringing the SS Nomadic to Belfast – The Acquisition and Restoration of the SS Nomadic Abbreviations BHC Belfast Harbour Commissioners CPD Central Procurement Directorate DCAL Department of Culture, Arts and Leisure DFP Department of Finance and Personnel DSD Department for Social Development NIAO Northern Ireland Audit Office UK United Kingdom Part One: Introduction 2 Bringing the SS Nomadic to Belfast – The Acquisition and Restoration of the SS Nomadic Part One: Introduction Background The Trust was subsequently established in October 2006 and is comprised mainly 1.1 The SS Nomadic was built by Harland & of volunteers who give of their service Wolff in Belfast in 1911. It served as a and time in taking forward this significant passenger tender for Olympic class mail maritime heritage restoration project. The steamers and, in April 1912, carried Department recognises the contribution passengers to the RMS Titanic (Appendix made by these individuals in terms of the 1). In November 2005 the ship was put up free time they give up as well as the work for auction in le Havre, France. However, they do for no remuneration. In its view, the ship, which had a reserve price of complex maritime projects such as the €500,000 (approximately £340,000), restoration of the Nomadic need time and failed to sell. space to bring to a satisfactory conclusion. 1.2 Following the auction, some Northern 1.5 The estimated cost of restoring the vessel Ireland government departments considered to its original condition is considered to the possibility of returning the ship to Belfast be in the region of £7 million. However as a tourist attraction given its link to the a Conservation Management Plan, history of the Titanic. However, mainly commissioned by the Trust, and currently due to budgetary constraints and other being developed, will give the first priorities, they concluded that they could accurate estimate of the likely costs. not purchase the ship and incur the cost of transport, storage and restoration. 1.6 While ownership has not yet transferred to the Trust, the Department has continued 1.3 Subsequently, the Department for Social to incur costs. In the period to December Development (the Department) decided 2008, these were £319,000 for that the acquisition of the Nomadic transportation of the vessel and mooring would contribute to promoting Belfast’s in Belfast, £107,000 for essential Titanic Quarter’s maritime history and the maintenance repairs, insurance and safety associated heritage and tourism benefits. checks and £224,000 in the form of ring- In January 2006, staff from the Department fenced grants for project management, travelled to France to purchase the ship fundraising and maintenance and at auction; the cost, including auction caretaking. and solicitors fees and insurance, was £263,000. The Department’s strategic approach to the 1.4 The Department purchased the Nomadic restoration of the Nomadic with the objective of transferring ownership of the vessel to a new charitable trust (the 1.7 The Department’s strategic approach to the Trust) which would then be responsible for restoration of the Nomadic has three main its restoration and ongoing maintenance. strands: Bringing the SS Nomadic to Belfast – The Acquisition and Restoration of the SS Nomadic 3 • to support the Trust to put in place plans 1.9 The Department considers that Belfast can to raise the necessary funds for the follow the example of other cities and restoration of the ship; regions which have exploited their cultural assets to deliver wider economic and • to work with the trustees to ensure that social development benefits, through the the Trust has appropriate management promotion of tourism, encouraging foreign and financial policies in place for the direct investment and generating higher effective governance of the project; levels of expenditure by residents and and visitors. • to explore with the Department of 1.10 The Trust considers that a number of Culture, Arts and Leisure (DCAL) achievements have been delivered to date: and other stakeholders, options for maximising the contribution of Nomadic • the negotiation of the arrangement to the presentation of Northern Ireland’s with Belfast Harbour Commissioners maritime industrial heritage. (BHC) and Titanic Properties to berth the Nomadic in Hamilton Dock has secured a vital aspect of the project 1.8 In taking forward this approach, the giving the Nomadic an ideal berth and Department told us that it has worked with dry dock facility for the foreseeable the Trust to develop a business case for the future; restoration which would provide a basis for attracting funding for the project. The • the opening of the Nomadic over the Nomadic has also been added to the Summer of 2007 confirmed public UK National Register of Historic Ships as interest with vital feedback for almost a further confidence building measure in no financial outlay; the future of the vessel, and a project plan for its restoration has been put in place. • excellent relationships have been This project is seen by the Department as forged and maintained with all key having the potential to make a contribution stakeholders and funding support to its overall regeneration approach in has been achieved from Belfast Northern Ireland, and specifically the City Council, Belfast Harbour maritime industrial heritage landscape at Commissioners and others; and Queen’s Island in Belfast. The Department has stated its commitment to ensuring that • a high level of positive media the Nomadic becomes a vital part of this coverage. landscape and it is planned that it will be located close to the site of the proposed Titanic Quarter Signature Project1. 1. The Titanic/Maritime Heritage Signature Project is one of the Northern Ireland Tourist Board’s five Signature Projects which were identified for their potential to create “international stand out and world class excellence for Northern Ireland”.
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