Memorandum submitted by The Medusa Trust
INTRODUCTION AND
CONTEXT
The Medusa Trust exists to maintain and operate
the former HMS Medusa as a seagoing historic vessel to
provide a range of people from veterans to the general public
the chance to experience a small World War II naval vessel. As
well as the vessel, the Trust holds an archive relating to this
class of vessel (Harbour Defence Motor Launch) of which there
were 480 built with Medusa as the last operational and
original example.
The Trust welcomes this opportunity to contribute
and believes that it has useful experience to offer in understanding
the broader maritime heritage sector.
MARKET SECTORS
WITHIN HISTORIC
VESSELS
One of the major problems within the overall
sector is that it is highly fragmented with many small bodies
competing for limited funding. Sources of funding are jealously
guarded by individual groups, which has mitigated against consolidation.
The market can be broadly sectored:
Vessels owned by national bodies
An example of this is Belfast, owned by the
Imperial War Museum. Bodies such as this are high profile and
are able to use that profile to access funds. These large vessels
can be very expensive and absorb large sums of money to the detriment
of smaller vessels whose needs are more modest but do not have
the same ability to make national headlines.
Vessels that are commercially operated
Examples here are the Steam Ship Shieldhall
and the Paddle Steamer Waverly. Such vessels "earn
their keep" by passenger carrying and are viable businesses.
There is a virtuous circle here in that the vessel has a purpose,
is able to raise money through that purpose and in doing so ensures
that an historic vessel remains operational.
The current thinking is that vessels are best
preserved by keeping them operational. The concept of putting
them ashore or in drydock in the belief that this will "freeze
time" is now flawed as shown by the experience with Cutty
Sark. The Trust regards the option of Medusa coming ashore
as one of last resort as we know that she will continue to deteriorate
even ashore in a controlled environment.
Like any business they have substantial fixed
costs in berthing, power, certification, safety equipment etc
as well as variable costs for fuel and crew. If passenger numbers
and hence income fall, they can soon become overwhelmed by the
fixed costs.
Though operations sustain this class of vessel,
there is rarely enough operating surplus generated to cover major
repairs or service large loans and some grant funding is necessary.
Small vessels operated by groups or Trusts
This sector sits between the privately owned
vessels below and the sectors above and includes vessels such
as Medusa and MTB 102. These vessels are too small to make a living
out of operating as passenger vessels apart from the problems
of MCA certification. The experience is that by being owned by
a Trust (as opposed to private), funding can be raised from companies
(principally those operating in the marine sector) but this is
usually "in kind" rather than in cash.
The public benefit that these vessels offer
is mainly derived from them appearing at events (Medusa and
MTB102 lead the 60th D day fleet sailing from Portsmouth)
and opening them to the public. Though this gives real public
benefit, it raises little cash.
The experience with Medusa is that we
are able to fund normal operations and routine repairs, most of
which are done by our volunteers, but more major repairs is outside
the scope of our skills and finance.
This sector needs external funding. The boats
are of small cash value (though priceless) and the Trusts have
few other assets such that loans are out of the question. Spending
money on this class of vessel does not raise its market value;
it just ensures its survival.
Attempts to raise substantial funds from companies
are rarely successful, as they generally want something in return
such as corporate use of the vessel. This immediately raises the
question of MCA certification and raises the cost base significantly
thus using up most of the funds generated.
All roads lead to the Heritage Lottery Fund
as the source of funding for this class of vessel.
Privately owned historic vessels
The majority of the smaller vessels are privately
owned and entirely funded by the owner and private support he
can raise. We are in contact with several owners in this sector
and they are all acutely aware of their responsibility to preserve
the vessel that many regard as "in their care". All
do their best until finance, health or age gets the better of
them at which point the vessel deteriorates rapidly.
We are about to undertake a recording and rescue
mission to a sister vessel of Medusa which has deteriorated
beyond recall and will now be scrapped.
Funding is a problem for this sector as fund-giving
bodies are reluctant to put money into a privately held asset.
WHAT CONSTITUTES
AN "HISTORIC
VESSEL"?
Until recently this question was answered by
the enthusiasm, marketing capability and dedication of whoever
looked after her. We wish to pay tribute to the work of the National
Historic Ships Committee who took the initiative to select from
the 2000 or so potential candidates a collection that represents
the nation's heritage. This was the first time objective criteria
had been developed and applied. Though this is difficult for people
who look after vessels that have not been listed, it has introduced
some structure and forced the acceptance of the fact that cannot
and should not preserve everything just because it is old.
Being on the "core collection" (top
58 vessels) or the "designated list" does not guarantee
funding but goes a long way to justifying the importance of the
vessel to potential funding bodies.
The NHSCC selection went down to vessels over
40 feet and there is still a task to look at smaller vessels.
It is important to note that being on one of
the lists does not give the vessel any protection (as compared
with listed buildings) and the owners/operators are free to alter
or even scrap the vessel if they so wish. Since the NHSCC lists
were formed several vessels in both core and designated lists
have been lost.
HLF FUNDING
HLF has been identified as the primary source
of funding for historic vessels. This is positive in that there
is somewhere to go but negative in that other funding bodies tend
to think that HLF automatically looks after historic vessels.
This is not the case and historic vessels compete for funds on
an equal basis with applicants from across the board.
The process to submit an HLF bid is costly and
complex and is beyond the resources of some groups. It is reckoned
to cost £20K to put together a full bid. The Trust was fortunate
with the bid it submitted in May 2004 (due for decision in March
2005) in that it won a small Project Planning Grant from HLF and
had the requisite skills in house to produce the necessary documents.
Though complex, the HLF process forces the applicant
to think about sustainability and public access/benefit post the
project. This is important as vessels can deteriorate as rapidly
as they can be repaired. Without a sustainable business plan grant
money can easily be wasted.
THE FUTURE
At the beginning of this submission, we noted
the fragmented structure of this sector. It is unthinkable that
all historic vessels should come under common ownership but there
is a need for a national structure to set policy, routes to funding
and ensure the survival of the vessels, which have been deemed
important.
As well as maintaining the vessels per se it
is vital to maintain and regenerate the skills to operate and
maintain them. The Trust in conjunction with SS Shieldhall and
the Association of Dunkirk Little Ships has proposed to SEEDA
(South East England Development Agency) that a small part of the
redevelopment at the Vosper site at Southampton should be given
over to an initiative, in conjunction with Southampton City College,
to establish a heritage skills workshop and training facility
in conjunction with moorings for historic vessels. We are delighted
that this proposal is finding favour.
Overall we would like to see a national body,
perhaps a strengthened NHSCC, that maintains the registry of vessels,
sets policy, forms an interface to other bodies such as MCA and
has some powers to prevent the destruction of vessels as well
as an emergency fund. This body should play a major part in the
decision on allocation of funding but it should remain with operating
groups to make and be responsible for presenting their case.
At a regional level there is a need for "centres
of excellence" to maintain and regenerate the skills to maintain
vessels built with traditional techniques. These centres will
need seed funding but can become self sufficient by providing
a service to historic vessel operators and to the buoyant leisure
vessel industry. We believe this initiative can be combined with
other local regeneration initiatives.
CONCLUSION
The UK has a rich collection of historic vessels
but it is highly fragmented and does not enjoy any protection
in the same way that historic buildings do. It is important to
have national co-ordination as well as recognised funding sources
if these vessels are to survive.
28 January 2005
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