Authorities remain deafeningly silent over the misery at Aberystwyth marina where staff have not been paid full salaries or pension contributions since early last year.
The Y Lanfa marina, parts of which are owned and leased by the Marine and Property Group Limited, whose holding company went into administration last month, has now also suspended boatyard works and a highly anticipated dredging campaign.
But Ceredigion County Council, from which the firm rents the water space where the boats are moored, has not commented once on the desperate situation facing staff, berth holders or the marina itself – the beneficiary of so-called ‘Levelling Up Funding’ from the UK Government.
A Freedom of Information request to the council by the Cambrian News about rents and fees owed to the authority by the firm is still yet to be returned nearly three weeks after the 20-working day response target enshrined in law.
The Welsh Government, from which the firm rents the Harbour House offices, like the county council refused to comment on the contents of this story.
Sources and berth holders argue that the county council or the government could end the misery overseen by the Marine Group by withdrawing its lease holdings and forcing the firm out.
And now Ceredigion MP Ben Lake has broken his silence on the matter, saying the company’s role in the future of the marina should be ‘called into question’. He has on several occasions reached out to staff to speak with them about the situation.
The company’s now sole director, Switzerland-based Chris Odling Smee, told the Cambrian News that ‘all salaries are expected to be updated in the next 10 days’.
The Marine and Property Group Limited last month sent out a statement to its berth holders at the Y Lanfa site, as well as those across its four other marinas, informing them its holding company had gone into administration. Company bosses said other subsidiaries within the group should continue trading as normal and the marinas will be unaffected.
As the Cambrian News has reported, pressure has been mounting on the firm after failure to pay staff salaries and pensions, berth holders threatening not to pay mooring fees, equipment being impounded by bailiffs and legal disputes breaking out with contractors. One of the firm’s subsidiary companies also narrowly escaped being wound up by HMRC over unpaid taxes and has until 14 June to pay any money owed. Mr Odling Smee said everything was in hand to settle debts.
A source close to the marina told the Cambrian News the staff remain months behind on full pay despite a pledge from Mr Odling-Smee they would be paid in full last month.
“We just don’t know what’s going on – it’s dismal really,” he said. “The staff are under enormous pressure.
“There are staff members who are on the floor. It’s far from normal the way they’ve been treated and, quite frankly, why should they lift a finger for the company after working without pay for months?
“The dredging has been a total failure.
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Staff are clinging on with many getting sick and mental ill health taking its toll.
Cambrian News source
“It can’t continue because a licence has expired, there has been an electrical failure and the crew have walked off the job because of non-payment.
“I’m told they only managed to dredge a quarter of the marina. The dredger itself is apparently in such a mess it’s bordering on unsafe to operate.
“Staff are clinging on with many getting sick and mental ill health taking its toll.
“No one believes in the company anymore – it’s been broken promise after broken promise.
“Why is nobody helping?
“This ship’s rudderless under Odling-Smee. But it’s unlikely the captain will go down with the ship, isn’t it?
“Let’s hope the staff are allowed lifeboats.”
Mr Odling Smee said staff have never been more than a month behind on their salaries.
The boatyard works have also been halted because of a staff walk out over non-payment of salary, sources say.
Mr Odling-Smee denies this. He says operations have not been fully suspended and any urgent work can be undertaken – and an email will update berth holders this week. He said the boatyard is ‘full’.
He confirmed the dredging campaign has been suspended due to the expiry of a licence from environmental regulator Natural Resources Wales and a ‘minor’ electrical issue. But the dredging campaign will continue later in 2023, he said.
Prior to beginning dredging work, sources said the marina was in the worst condition since it opened.
The Marine Group owns a mixture of freeholds and leases at the marina. It owns the old office and toilet block as well as the pontoons and the gates - other parts, like Harbour House and the car park, are only leased to it. Harbour dues are paid to Ceredigion County Council to effectively lease the water space beneath the pontoons.
Mr Lake, whose colleague in the Senedd Elin Jones MS slammed the marina operators last year, said: “It is a matter of grave concern that employees of The Marine and Property Group Limited based at Aberystwyth marina continue to report serious irregularities to both their pay and pension contributions.
“The law dictates an employer must pay an employee’s wages on the agreed pay day, and so it is deeply concerning that employees of this company have not been paid properly for such a long period of time.
“Staff are a company’s most valuable asset, and so it is unacceptable that the company has not resolved these issues.
“The company’s failure to honour its obligations to its employees calls into question not only its management and financial viability, but also its role in the future of Aberystwyth marina.
“I would be eager to speak with any of the company’s employees about the situation and the options that are open to them, should they feel comfortable doing so.”
A group claiming to represent almost 40 of the marina’s 128 berth holders at the site has previously called on the firm to ‘throw in the towel’’.
“[Mr Odling-] Smee should do the decent thing and simply admit defeat now and hand the marinas back to the respective councils and wind the companies up,” their spokesperson said. “That way staff will get paid what they are owed by the administrator and as berth holders, we can all simply move on and leave the Sword of Damocles, well deservedly, hanging over Mr Odling-Smee’s head.
“His other co-directors resigned and left the sinking ship, and he should do the same before he plunges himself into deeper water”
Since the Cambrian News’ feature last month, Mr Odling Smee has informed us the long-awaited capital deal has still not yet been completed – which has been held up as the reason staff have been going without pay.
Mr Odling Smee said: “We’re cracking on with the deal and we’re planning to continue with further capital deals, and we will be looking to invest further in Aberystwyth – and we’ve got various future acquisitions we’re looking at.”
He added that all the stakeholders, including the council and Welsh Government, have received all the information about the capital deal - drafted by its funders.
He said the press and social media activity had painted a ‘distorted picture’ and everyone involved including staff are ‘frustrated by the innuendos that come through.’
Despite concerns over the group’s finances, the latest accounts filed with Companies House in October 2022 show the firm – the parent company of nine other subsidiaries including Aberystwyth Marina Limited – posted before tax earnings of more than £1.7 million between December 2020 and December 2021 on a gross profit of more than £4.3 million.
It is now understood that all staff at Aberystwyth and the company’s other marinas in Cardiff, Dinorwic, Burry Port and Watchet Harbour were not being paid their pension contributions by the company during much of last year – with staff salaries not paid in full or on time leading to regular resignations.
A county council spokesperson said: “As noted previously, Ceredigion County Council will not be commenting on the undertakings of a private enterprise.
“We will be undertaking public engagement on the scheme elements relating to the improvements to the promenade and the harbour area in due course.”
A Welsh Government spokesperson said: “The Welsh Government’s only property holding at Aberystwyth Marina is Harbour House, which is leased to The Marine and Property Group Limited on a 12-year FRI (full repairing and insuring) lease.
“Due to the appointment of administrators, it is not possible to comment further.”