Calls for an end to ‘secrecy’ over Portsmouth council-owned MMD Shipping

In line with councillors' decision to retain MMD Shipping at a cabinet meeting yesterday they asked that an annual financial report on the company be made publicly available.

The cabinet also agreed to a £15m loan from the council over the next five years with assurances MMD will be profitable from 2021.

And it was acknowledged that the company would need a further £35m from other sources to secure its future.

The company is expected to run at a loss of £1m in the 2019/20 financial year, following a £5.8m loss at the end of 2018/19.

Speaking at the meeting, council leader Councillor Gerald Vernon-Jackson argued against the decision to make the port's financial report exempt from press and public.

He said: 'My worry is that it is owned by the public body and if there's advice about how it could be run shouldn't people in the city get to see it?'

His concerns were backed by Southsea resident Jerry Brown. In a deputation to the cabinet he said: 'I understand that Portsmouth City Council may benefit even if MMD makes a loss, because of the value of the rent and rates, port fees and other revenues that accrue as a result of MMD remaining operational, and that without the fees garnered by MMD, the cost per ship into the ferry port would make it so expensive that the ferries would have to go elsewhere to remain competitive.

'My last request on this matter would be that Portsmouth City Council make it clear and simple why we are ploughing money into MMD; if it makes financial sense then let’s get that on the table, and show why.'

Director of MMD, Mike Sellers, said some information needed to be withheld.

He said: 'The port industry and operators in port are highly competitive.

'If we are having discussions on the customers it will affect commercial agreements we have. There are ports that will do everything they can to take our customers.'

Officers agreed to a yearly financial report on MMD that would be available to the public.