Subject: Scrutiny of the Port of London Authority Report Number: 13 Report to: Transport Committee Date: 22 April 2004 Report of: Director of Secretariat 1. Recommendation 1.1 That the Committee notes this report and agrees the preliminary work needed to conduct a scrutiny of the Port of London Authority in the new Assembly term. 2. Background 2.1 The Committee proposed that it conduct a scrutiny into the Port of London Authority (PLA) at one of its earlier informal work planning meetings. This report sets out some background to the PLA and a suggested work plan and timetable for conducting this scrutiny. 2.2 The PLA was established as a Public Trust under the Port of London Act 1908, for the purposes of administering, preserving and improving the Port of London and for other purposes including the conservancy of the tidal River Thames. These powers have been extended and modified by Parliament in subsequent Acts, the most recent being the Port of London Act 1968 and further amended through Harbour Revision Orders, the most recent being approved by the Secretary of State for Transport in 2003. The PLA is accountable to the Secretary of State for Transport. 2.3 The PLA's limits extend from its landward limit in Teddington to its seaward limits, which are roughly on a line from Clacton in Essex to Margate in Kent. In 2002 (the most recent DfT figures), the PLA was the second largest port in the UK and the largest in the south, handling 51.2 million tonnes of cargo through over seventy privately owned terminals, extending from Fulham in the west to Canvey Island in the east. Over 10 million tonnes of cargo are handled at terminals within Greater London. 2.4 By Section 5(1) of the 1968 Act, the PLA's duty is "to take such action as the consider necessary or desirable for or incidental to the improvement and conservancy of the Thames" 2.5 Its general powers are set out in Section 5(1A) of the 1968 Act, namely: "to provide, maintain, operate and improve such port and harbour services and facilities in, or in the vicinity of, the Thames as they consider necessary or desirable and to take such action as they consider incidental to the provision of such cervices and facilities" City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov 2.6 The 1968 Act also provides powers to undertake the following: - Regulation of navigation by means of River Byelaws, General Directions and other associated Byelaws Licensing of River Works and dredging Hydrographic Surveying Registration and inspection of boats for hire Removal of sunken vessels and other hazards to navigation Licensing of watermen and lightermen Maintenance of Richmond Lock and Weir 2.7 Statutory powers are also given the PLA as a Competent Harbour Authority under the; Pilotage Act 1987, which empowers the PLA to make Pilotage Directions as the Pilotage Authority for the London Pilotage District; The PLA is also empowered under the Dangerous Substances in Harbour Areas Regulations 1987 to make Byelaws to regulate the movement of vessels carrying dangerous substances in bulk on the Thames. Additionally this legislation requires the PLA to prepare, exercise and review port emergency plans and procedures; The Merchant Shipping Act 1995, which empowers the PLA's Harbourmaster to initiate proceedings against masters of vessels and owners of installations involved in oil pollution, also empowers the Authority to provide navigational lights, buoys and marks within the port area. 2.8 The PLA's Annual Report and Accounts for 2002 notes that the PLA posted an operating profit of £2 million, from a turnover of £32.3 million. The profit before taxation was £2.6 million. This surplus is reinvested into works for the benefit of the trust's stakeholders. The majority of the PLA's turnover is derived from dues on vessels and cargoes entering or leaving the Port of London. The remainder of income is received from rents for river works placed in the river (the PLA owns the majority of the bed and foreshore of the River Thames and its tidal tributaries, the remainder being owned by the Crown) and other miscellaneous sources. The PLA has no equity capital and all its operations are funded from revenue. Finance for capital works comes from internally generated funds, supplemented by commercial loans and leasing. 2.9 The PLA Board comprises a Chairman and up to seven non-executive members appointed by the Secretary of State for Transport plus up to four executive members appointed by the Board. 3. Issues for Consideration 3.1 Members are asked to agree the following Terms of Reference for this piece of work, the range of stakeholders from which evidence is sought and a draft timetable as set out below. Terms of Reference 3.2 To seek an understanding of the structural issues surrounding the PLA including its status, responsibilities, budgets, objectives and priorities. 2 3.3 To seek information on the organisation’s corporate governance including an understanding of the appointment of its members, internal management arrangements, financial accountability and equalities policies. 3.4 To seek an understanding of the management and audit of the PLA in relation to performance monitoring, external auditing arrangements and independent complaints procedures. 3.5 To understand the range and effectiveness of the partnerships within which the PLA operates including its relationship with the Mayor, TfL and GLA, its relationship to Mayoral strategies and objectives and its relationships with other London bodies and stakeholders. Consultation 3.6 Over the summer recess written views will be sought from the full range of stakeholders with which the PLA works with. The PLA maintains and seeks to develop its working relationships with a range of London bodies active on or adjoining the River Thames including (but not exclusively) the Metropolitan Police and London Fire Brigade, the 16 riparian boroughs, the Association of London Government, the Environment Agency, British Waterways, English Nature, RoDMA, London Port Health Authority, Maritime and Coastguard Agency, Cross River Partnership, Pool of London Partnership, London Home and Water Safety Council, the Company of Watermen and Lightermen, Transport on Water, London Rivers Association, the River Thames Society, RAFT, Thames Estuary Partnership, London Chamber of Commerce and Industry, London Resilience Forum, Thames21, University College of London Geomatics Faculty, the Mayor's Thames and Waterways Steering Group, London Marine District Safety Committee. 3.7 Views will also be sought from other stakeholders and individuals identified by the organisations set out above. Draft Timetable 3.8 Upon agreement of the Terms of Reference and any other matters for consideration within this report, written views will be sought over the summer recess and Members will be asked to agree a slot in the forthcoming work plan of the Committee. Members are advised that the earliest this could be realistically considered would be in September or October 2004. 4. Strategy Implications 4.1 There are no direct strategy implications. The PLA, although not a statutory consultee in the planning system, is the formal adviser to the Mayor on waterborne freight on the River Thames including general and specific advice on safeguarded wharves in London and on issues affecting the River Thames more generally. 4.2 The PLA has worked closely with the Mayor and the GLA in the preparation of the London Plan, particularly on polices related to the Blue Ribbon Network. 5. Legal Implications 5.1 S.59(1) of the Greater London Authority Act 1999 requires that “The Assembly shall keep under review the exercise by the Mayor of the statutory functions exercisable by him” and under S59(2) it may “investigate and prepare reports on “ …actions and decisions of the Mayor, actions and decisions of a member of staff; matters relating to the principle purposes, matters in relation to which statutory functions are exercisable by the mayor and any other matters which the assembly considers to be of importance to Greater London. 3 5.2 Under S.60 the Assembly may submit proposals to the Mayor and under S. 61 may require the attendance of witnesses and the production of documents for the purposes of conducting a scrutiny including the attendance by staff and office holders of the GLA and by staff and office holders of the Functional Bodies, by those who have had contractual arrangements with the GLA and those who have received grants from it. The Port of London Authority does not fall within Section 61. 6. Financial Implications 6.1 There are no direct financial implications arising from this report. Background Papers: There are none. Contact: Paul Watling, Scrutiny Manager E-mail: [email protected] Tel: 020 7983 4393 4.