Financial risk over harbour boat hoist plan

Taxpayers could face a bill of £1.2m if plans to build a boat hoist in a harbour were to fall through.

North Yorkshire Council, backed by the elected mayor, supports construction of the hoist, to lift vessels in and out of the sea, in Scarborough harbour.

It is hoped it would help attract offshore maintenance firms to the coast helping create new jobs.

However, officials have warned the hoist would need to be ordered before crucial deadlines, such as planning permission, have been agreed and if those were not met the council would have to cover any money spent up to the point.

York and North Yorkshire mayor David Skaith has put £700,000 from his investment fund towards the cost of the scheme.

North Yorkshire Council's contribution is £550,000 and the UK Seafood Fund (UKSF) has provided a grant of £500,000.

The mayor said: "A project like this in Scarborough, which has been called for some time, means we can bring that investment that's been needed to get it over the line.

"It kickstarts a whole new avenue of potential investment and opportunity. It's an exciting project."

However, a report to the council warned the grant from the UKSF is time limited, meaning the hoist would have to be ready by 31 March 2025, while the mayor's grant has a cut-off date of 31 December 2025.

The plan is part of a wider £11m project to redevelop Scarborough's West Pier, which does not yet have planning permission.

The report to the council's executive member for business said: "There is a risk to the council of placing the order in advance of any decisions on planning matters.

"That said the council has to balance this against the risk of losing funding."

It added that if the council chose not to place the order at this point, it will not have adequate time to complete the delivery of the hoist before 31 March 2025, which is the deadline for the UKSF grant to be spent.

"It is therefore proposed to proceed at risk," it said.

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