Highland Fresh Mussels Ltd (HFM) - Financial Statement for the ...

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3 Returns to the Common Good of Tain 3.1 A primary objective of HFM Ltd was to maximise returns to Tain Common Good fund while retaining sufficient funds to support its annual activities. However as a result of the economic downturn, declining demand and falling profitability, Highland Council agreed to wind up Highland Fresh Mussels Ltd and to once again run the operation internally. The Council agreed to the wind up of HFM Ltd on 8 th September 2011, the Company ceased trading on 30 th September 2011 and the Highland Council took over the operation with effect from 1 st October 2011. 3.2 3.3 During the life of Highland Fresh Mussels Ltd the company made a significant contribution to the Tain Common Good fund. At the close of the financial period to 30 th September 2011 the Company had contributed £718,928.25 to the fund to the benefit of many local projects. At the wind up of the Company, assets transferred to the Tain Common Good account included: Fishing vessel (MFV Gizzen Briggs) – value £230,000 Scottish fishing licence – value £20,000 Cash balances - £9,141.71 Stock of mussel bags – value £1,750.00 4 Mussel fishery progress since 1 st October 2011 4.1 4.2 Since taking over the fishing operation on 1 st October 2011, market conditions have remained very difficult. At the time of writing only 63.52 tonnes of mussels have been sold and demand remains very low in the face of strong competition. A further blow to the operation has been the 12 week closure of the fishery (May – August) as a result of algal toxin levels within mussel stocks. The future of the operation is now called into question. Following discussion with Ward 8 Members a paper to the Highland Council will make recommendations for the future of the fishery. 5 Fit with The Programme for the Highland Council 5.1 The operation and management of the Tain mussel fishery links directly to the Programme commitments designed to empower communities. 6 Fit wit the Single Outcome Agreement 6.1 The operation and management of the Tain mussel fishery assist the Council delivery local outcomes for communities in Highland. 7 Equalities implications 7.1 There are no equalities implications arising from this paper. 8 Legal implications 8.1 There are no additional legal implications arising from this paper. Via the Local Government (Scotland) Act 1973 the Highland Council remains trustee of the Tain
Common Good fund, with responsibility for the assets held by the fund. 9 Climate change implications 9.1 There are no climate change implications arising from this paper. 10 Resource implications 10.1 There are no additional resource implications arising from this report. The financial sustainability of the fishing operation will be considered prior to recommending future options for the consideration of the Council. RECOMMENDATION That Committee: note the contents of the report, and; accept the Financial Statements for the period 1 st April 2010 to 30 th September 2011 for Highland Fresh Mussels Ltd on behalf of the Highland Council. Signature: Designation: Director of Planning and Development Date: 17th December 2012 Author: George Hamilton (Ext: 2568) Ref: GH Background Papers 1. HFMLtd Progress reports to Ross and Cromarty Area Committee since establishing the Company 2. Offer of lease of Tain Mussel Fishings to Highland Fresh Mussels Ltd – Highland Council, October 2001. 3. Highland Fresh Mussels Limited – Financial Statements for the period 1 st April 2010 to 30 th September 2011
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