Boat show's go but diesel fears lurk
Featuring everything from cutting-edge fish-finding devices, to mock-19th century tallships, Britain's biggest leisure marine show cast off on Friday.
Begun by a local electrician in 1969, when average house prices stood at just 4,500, the first Southampton Boat Show could claim a modest 13 boats and 37 exhibitors.
Today, around 80 times as many are on display, and around 130,000 visitors – with far deeper pockets than 39 years ago – are expected to visit the 607 exhibitors at the nine-day Solent gala.
Despite the economic downturn, there are still conspicuous displays of wealth. Among the show-stealing exhibits stands a 11m Sunseeker Tri-Deck yacht, and this year the exhibition features a 'Lifestyle Tent', offering Botox injections to well-heeled customers.
Flying the flag for Portsmouth is electronics giant Raymarine.
Berthed at the show was its new 42ft test boat, loaded with six different types of radar systems, speed systems, and its most advanced 'fisherman's friend' to date – the DSM400 fish finder, designed to track shoals, and so detailed you can see individual fish on the sonar screen.
Such advances are in keeping with the strong growth the South East sector has enjoyed in recent years, with over 1bn turnover in 2007, up five per cent on 2006.
But dark undercurrents are swirling in the Solent, and one spectre is haunting the industry more than any other – the changes to so-called 'red diesel', set to come into effect from November 1.
Red diesel, which takes its name from the red colourant which marks it, is a low-rate fuel designated for commercial haulage, commercial shipping, and agriculture, and in some countries also leisure marine use.
In 2006, an EU-wide tax harmonisation drive removed leisure marine from the cheaper rate, and make it the same as standard 'white' diesel.
Five years ago, when the plan was first mooted, 'red' cost around 25p per litre.
Today it is around 80p, and firms fear that on top of unseasonably bad weather and a credit crunch, they will be walloped by a sharp leap in fuel prices.
The British Marine Federation and other organisations have fought tooth and nail against the move, saying much of boats' fuel does not go on propulsion but on running lights and electrics.
After long negotiations, each user must still make their own declaration to the supplier when the fuel is purchased, but the UK government has agreed it expects most people to declare 60 per cent of fuel is for propulsion and 40 per cent for other uses.
So in November, an average of 60 per cent of every litre of red will be subject to the new rates – taking red diesel to roughly 120p per litre, a large increase which is sending ripples around the Solent's boatyards.
Howard Pridding, executive director of the British Marine Federation:
'The red diesel changes sound complicated, but it could've been a lot worse. We believe we've got the best out of a bad situation.
'We've built up a successful marine industry in this country on the back of red diesel.
'It's a concern when we have a situation like we have at the moment – this is one more thing hanging over the market. But it is a robust industry – some big boats are still sailing, and the people who sail those aren't affected by any kind of downturn.'
Pete Yeoman, co-skipper of the Lively Lady:
'The Lively Lady, apart from the fact she floats on water, is a totally different boat. The boats here are very much about luxury.
'It is huge. There's such a wide diversity of vessels. It doesn't matter if it's canoes or Sunseekers, it's all here.
'It shows Southampton, Fareham, Gosport, Portsmouth are still at the heart of Europe. We recently had a big American powerboat manufacturer set up here, so they must have confidence in the industry, and believe we've got the skills for it.'
Fiona Pankhurst, head of corporate marketing, Raymarine:
'Is there a downturn? It depends who you talk to. A lot of the smaller boats are made abroad, and they're doing quite well. Our revenue from the Americas has dropped, but most of the rest of the world has increased.
'Although things are being felt here, it doesn't mean it's so everywhere. Money is moving east, to the markets of the Middle and Far East. I think for the next few months and more it's going to be flat. We expect things will start to pick up into 2010.'
Pete Bradshaw, managing director, Premier Marinas:
'Everyone is nervous, but we've not really seen anything too serious yet. In fact we've had a good year, but the weather hasn't helped. But, like-for-like, 12-month berthing agreements and sales are both up by five per cent.
'For us, the worst storm has been the weather, not the credit crunch. Trepidation is too strong a word, but there's uncertainty.
'Red diesel is going to be significant for us.'
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Portsmouth
Sunday 12 February 2012
Today
Cloudy
Temperature: 3 C to 7 C
Wind Speed: 12 mph
Wind direction: North west
Tomorrow
Cloudy
Temperature: 3 C to 7 C
Wind Speed: 18 mph
Wind direction: North west
