Report and Accounts to 31 March 2011 Table of Contents Directors of the Lighthouse Board 1 Office and Advisers 2 Executive Chairman’s Review 3-5 Directors’ Report and Management Commentary: 6 - Nature, Objectives and Strategy of the Business 6-10 - Current Developments and Performance 10-19 - Resources 20-21 - Risks and Uncertainties 21 - Relationships 22 - Financial Position 22-25 Remuneration Report 26-28 Statement of Accounting Officer’s responsibilities 29 Executive Chairman’s Statement on Internal Control 30-33 Statement of Comprehensive Net Income for the Year Ended 31st March 2011 34 Statement of Financial Position as at 31st March 2011 35-36 Statement of Cash Flows for the Year Ended 31st March 2011 37 Statement of Changes in Reserves for the Year Ended 31st March 2011 38 Notes to the Accounts 39-71 Five Year Summary 72 Appendix A – Letter of Comfort 73 DDirireecctotorrss o of ft hThe eL iLgighhththoouuses eB Booarad rd: ReRaera Ar dAmdimrairl aSl irS iJr MJ Md ed He aHlpaelpret rKt CKVCOV OC BC BFR FIRNI* N* ExEexceuctuivteiv Ce hCahiramiramn an CaCpatpatina inR DH CB aGrklaesrs (retired 21st May 2009)* DiDreircetoctro or fo Nf aNvaigvaigtaiotnioanl aRl eRqeuqirueirmeemnetns ts CoCmapmtoadino rRe HS BJ aSrckoerre (ra*p FpCoMinIted 21st May 2009)* DiDreircetoctro or fo Of pNearvaitgioantisonal Requirements J SC oWmemdgoed,o CreI PSF AJ SMcBoAre Br*A F(CEcMoI n) Hons** DiDreircetoctro or fo Ffi nOapnecrea taionnds Support Services CaJp Sta Wine Nd gRe ,P CryPkFeA, MCBIAT B FAN (IE* con) Hons** DeDpiruetcyt oCrh aoifr mFianna nacned a Nnodn S-u Epxpeocrut tSivee rvices F C aBpotauirnn eN* *R* Pryke, MCIT FNI* NoDne p–u Etyx eCchuatiivrme an and Non - Executive D FA CC oBlotmuranne***** * NoNno n– –E xEexceuctuivteiv (e until 22 October 2010) M DG lAa dCwoyltnm*a*n* *** NoNno n– –E xEexceuctuivteive J DM PGrliacedwyn*** SeNcorent a–r yE xecutive J D Price Secretary * - Member of the Corporation of Trinity House *** - A-s Msoecmiabte rM oef mthbee rC ofr ptohrea tCionrp oofr aTtriionnit yo fH Toruinsie ty House ***** - N- oAmssinoeceiast eo fM tehme bSerc roeft athrye oCfo Srptaotrea tfiorn Torfa nTsripnoitryt H(DofuTs)e and Associate Member of the Corporation of Trinity House *** - Nominees of the Secretary of State for Transport (DfT) and Associate Member of the Corporation of Trinity House 1 2 Office and Advisers Office and Advisers Principal Office Corporation of Trinity House Principal Office TCroinriptyo rHaotiuosne of Trinity House Tower Hill Trinity House London Tower Hill ELCo3nNd o4nD H EC3N 4DH Auditors of the General LAiguhdtithoorus soef Fthuen d General Comptroller & Auditor General Lighthouse Fund NCaotmiopntarlo Alleurd i&t OAfufdicietor General 1N5a7t i-o1n9a7l ABuudcikti nOgfhfiacem Palace Road Victoria 157 -197 Buckingham Palace Road London Victoria SLWon1dWo n9 SP SW1W 9SP Bankers Lloyds TSB Bankers 2L3lo0y Hdsig ThS SB treet D2o3v0e Hrcioguhr tStreet Essex Dovercourt CEOss1e2x 3 TA CO12 3TA Solicitors Norton Rose Solicitors 3N Morotoren LRoonsde on Riverside, L3o nMdoorne London Riverside, SLEo1n d2oAnQ SE1 2AQ Actuaries Hymans Robertson LLP Actuaries 3H0y Wmantesr lRoob Setrrteseotn LLP G3l0a sWgoawterloo Street G2 6DB Glasgow G2 6DB the GLF which is where the GLAs’ funds reside. Another example is the JSB taking responsibility for tackling the GLAs’ pension deficit. It has done so by Executive Chairman’s Review Hfoorwmeinvger ,a t hPen psrioesnssu Creo mapmpiltiteede bayn tdh eco smhmip isoswionneirnsg t hanro iung dhe tphtehs ere dveiebwa toefs this Executive Chairman’s Review isnu bPjaerclita msoe tnhta at nthd ed £ir3e6c2t lmobilblioyinn gp eonfs itohne lDiaebpilaitryt mcaenn tb efo tra Tcrkalends.port (DfT) led to the setting up of a review of the General Lighthouse Authorities. TThhies preavsite ywe awr ahsa cs abrerieend oonuet ibny w Wh.icSh. Athtkei nnse wLi mgoitveedr.n Imt etonot kh assix b megounnt htso toackle The 2010/11 year has been one of significant complete and the final report was published on 15th March 2010. The activity and achievement. The publication of the the UK’s financial difficulties. Trinity House was asked to consider how it could The 2009/10 year has been dominated by events raecphoiertv eis a o rveedru 2ct0io0n p iang eexsp leonndgit uarned o cf o2n5t%ain osv 5e2r trheec onmexmt feonudra yteioanrs,. wThiec h need W.S Atkins Limited review of the General Lighthouse aim to improve the operational efficiency of the General Lighthouse Aanudth aocrtitivieitsy (trGigLgAesr)e din b yM tahrech f ir2s0t 1ri0s eh ians L ibgehet nD utehse to reduce costs across our operations, whilst continuing to meet our statutory for 16 years. The increases were introduced in two Adutthieosr iotife sm anindt atihnein gfr acmriteicwaol rskt ain dwarhdicsh o wf en aovpigeartaitoen. sTahfe tyre, phoarst bise ewnid ae key catalyst for much of our work during the last year. ranging but, while identifying improvements, shows that we are an Tsthaigs eres poonrt 1costn tJauinlye d2 0502 9r eacnodm m1setn dAaptriiol n2s0 d1e0s.i gTnheed focus of the Trinity House Board for the last decade. During the last 5 years increases were not well received by the shipping eTfrfiinciiteyn Ht,o cuosset heaffse dcetilvivee orerdg aenxipsaetniodnit uprreo svaidviing st hoef 1w6o%rl,d a’st ma atirminee rwsh wenit hc ea ntral to improve the operational efficiency of the GLAs very high level of service in our waters. aconmd mthuen Gitey naenrda l rLeisguhltheodu isne a F nuunmd b(GerL Fo)f. debates in government was expanding spending considerably. Trinity House still plans to Parliament and the lobbying of Ministers on the meet the Minister’s requirements and has identified measures to deliver the issue. On 14th May 2009, Lord Berkeley’s Marine TDrfinTi ttya rHgoeut sfeo rs tfauftfu hrea vsep epnladyiendg are kdeuyc trioolne st hthrorouugghho uat cthoem Wbi.nSa. tAiotnki nosf mreavniepw ower One of the key recommendations made by W.S in providing information and advice to the consultants. This has been ANtakvinigsa Ltiiomnit Aedid ws aBsil lt hreact etihvee dG LitAs sF sirhsot uRlde afodrinmg ain J othine t decreases; savings in running costs; sale of redundant property; increasing House of Lords, although it failed to make any pcaormtimcuelarcrliya l iminpcomrtaen; tc oinn tsihnaupiningg w tihthe coounr sluolntagn-ttesr’ mvi edwrisv ea bforu tb entatveirg avatiloun e for Strategic Board (JSB). The role of the JSB would be matters, synergies and efficiencies and Light Dues. Directors also carried tfuo rdthrievre fporowgarreds tsh ei nc ot-hored in2a0t0io8n/ 0o9f thPea rGliLaAm aecnttiavirty y money and undertaking more spend to save initiatives. Session. The Bill proposed replacing the General out a series of staff ‘road shows’ to inform all staff of the outcome of the in the most effective way. The JSB would aim to W.S. Atkins review. achLieigveh tihmopursoev eAmuetnhtosr iatineds e(fGficLiAesn)c iews itinh trai- GnLeAw p eMrfaorimnea ncNea. v iIgna tpioanrt icAuildasr, All of these measures will contribute to maintaining Light Dues significantly Commission. An adjournment debate on ‘Light Dues, Lightships and below inflation. Despite the increase in Light Dues in 2009/10, the first the JSB would oversee the implementation of the W.S Atkins Limited Meanwhile the General Lighthouse Authorities continue to operate in line recoLmigmhtehnoduasetiso’n ws.a s T hrienldit yin H Wouesetm hians tpelra Hyeadll oan 2imndp oJrutnaen t2 r0o0l9e .i nLo ersdt aBbelrikshelienyg increase for 16 years, Light Dues remain 34% lower than they were 10 years tabled a motion of regret against the Light Dues increases in the House of wagitoh. t hLieg hdto Dcumese ncot ll'e2c0t2io0n Thhaes hVeisldio nu'p. w Eenll ddoerspeidte btyh et hfoer eDcfaTs tsit friso ma the an effective JSB, providing the first Chairman of the JSB and three other board comprehensive strategy for marine navigation around the UK and the memLobredrss,. w Dhuicrhin wg aitss dfiersbta yteda ro onf 9otphe Jrautlyio n20, 0th9e. TJShBe hLaesa dtaecr kolef dth seo mOpep doisffiitciounlt payers of Light Dues, who believed income would fall when Light Dues were signed an Early Day Motion on 15th October 2009 calling for the revocation Rinecprueabsliecd oafs Isrheilpasn dw ouunldti l b2e 0d2e0t.e r reItd ifsr ocmu rcraelnlitnlgy atth eU Kp rpiomratsr.y Isnt rfaatcetg, imc ore GLA strategic matters including reviewing the capacity, capability and document for the General Lighthouse Authorities, together with the General impoofr ttahnec eL iogfh tth eD ufoeusr iGnLcAre absueo.y Tyhairsd sl;e dth eto c oas tdse abnadte b einn ePfaitrsl iaomf ceenntt raatl istihneg vessels have called at UK Ports with chargeable tonnage 5% up at the end of Delegated Legislation Committee. On 19 November 2009, Lord Berkeley L2i0g1h0th/1o1u sceo Amuptahroerdit iwesit’ hR ad yioeNara vaiggoa.t i oTnh eP laSnh iapnpdin Vg isMuianli sAteidrs h taos N inadvigcateiodn that Aids to Navigation (AtoN) monitoring and control; and setting a framework for Plan. Key points include the retention of a mix of visual and electronic realr-ete-irnmtr ordeudcuecdti ohnis iMna rruinnen iNngav cigoastiso.n IAni desa cBhil l oafn tdh eits er eccaesiveesd t hites JSSeBc ohnad s stable Light Dues charges are important for the shipping industry and so has Reading on 5th February 2010. However, it made no further progress due asiadids; ththaet trheearleis sahtioounl do bf et hneo pinoctreenatsiael ino fL iAgIhSt Danudes trhaet edse fvoer lothpem neenxtt o3f yaears. skillfully managed to arrive at a successful agreed outcome with buoy yard terrestrial RadioNavigation back up, enhanced Loran (eLoran). This year costso stuhbes ptaronrtoiaglluye r eodf utcheed 2; 0o0u9t /o1f0 h Poaurrlsia moenittaorryin Sge csesniotnra. lized at the modern hDaess psiete nt hwiso erkx cceollnentitn urec ornd tohfe cGonetnreorllainl gL icgohstthso aunsed sAou trheodruitciiensg’ ftuhteu rpe rices monitoring facility at Harwich; and budgets set in accordance with a RPI-X% strategy beyond 2020 to 2025.