Tribunal rules that marina is a charity

Tribunal rules that marina is a charity

18 October 2017

A COUNCILLOR is claiming victory after a tribunal declared that Phennick Cove Marina, in Ardglass, is a charity.

Councillor Cadogan Enright said the decision by the Charity Tribunal means that money generated by the marina must now be used for community projects around the village and not spent solely on the marina.

Phennick Cove Developments (PCD), which runs the marina, had appealed against a decision by the Charity Commission to declare it a charity but this appeal was rejected by the Charity Tribunal earlier this month.

The decision is the end of a long battle between the directors of PCD and members of the wider Ardglass community which basically centred on why the marina was established.

In 1994 Ardglass District Development Association (ADDA) received a grant from the International Fund for Ireland to help fund the construction of the marina. PCD was set up to build and run the marina which has become established as a successful business that is popular with local and visiting boat owners.

However, the original ADDA fell away leaving the voluntary directors of PCD to continue to operate the marina and retain the profits to reinvest into the marina project.

But in 2013 a new ADDA was established which believed the original reason for establishing the marina was to generate a source of income that would allow community projects to take place in the village.

This was rejected by PCD prompting councillor Enright to lodge his complaint to the Charity Commission that has resulted in this latest ruling.

PCD Director, Paul Smyth, argued before the Tribunal that there was never any intent on the part of the promoters of PCD to be a charity and that they did not “throughout the life of the company avail of any of the tax concessions which relate to or are available to charitable entities.”

He said the company was set up for the specific purpose of delivering a marina and PCD are of the view that the beneficiaries of the marina are its users.

This was supported by evidence from PCD’s accountant who said he was of the opinion that PCD was not a charity but was a trading company which charged for marina and berthing fees and for the sale of nautical supplies, equipment and marine fuel.

In its ruling the Charity Tribunal said PCD was originally set up to bring forward a “programme for economic regeneration in Ardglass … for the development of tourism …. for the relief of poverty.” This, said the Tribunal, shows a clear charitable intention.

“We find that in the context of the grant assistance which was provided the intention was to regenerate Ardglass and the wider district because of perceived economic deprivation,” said the ruling.

“The method by which that purpose or objective was approached was initially through the construction of a marina but it equally would have been possible for PCD to undertake other endeavours which may or may not have been part of its original business plan, such as in the training of young people to meet the perceived increase in tourism that may have arisen from the marina.

“In short it was for economic regeneration leading to a wider community benefit.”

Mr Enright claims the decision of the Tribunal will mean a “radical change in many aspects of governance at the marina.

“The detailed account of revenues received and expenditures will have to be published, he said. “The directors will have to be replaced every three years and members meetings can no longer be avoided.”

He also said the community will have to be consulted on how the revenues of the marina can be used.

“In Portaferry, the benefits of their community-owned marina have been recycled and the Portaferry community now owns the small hotel and restaurant at the ferry, 13 commercial units for job creation and several buildings including the tourist office,” said Mr Enright.

“Based on local village democratic village control, I believe Portaferry gives us a glimpse of what the future of the marina in Ardglass should look like,” he added.