Beach Trading Licence from Sunnyside Chairs to Newco Limited

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A decision made 31 October 2014:

Decision Reference: MD-E-2014-0109
Decision Summary Title :	Transfer of Beach Trading Licence from Sunnyside Chairs to Newco Limited		Date of Decision Summary:	30 October 2014
Decision Summary Author:	Hospitality and Leisure Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transfer of Beach Trading Licence from Sunnyside Chairs to Newco Limited		Date of Written Report:	30 October 2014
Written Report Author:	Hospitality and Leisure Manager		Written Report : Public or Exempt?	Public
Subject: Transfer of Beach Trading Licence from Sunnyside Chairs to Newco Limited.
Decision(s): The Minister approved the transfer of the beach trading licence from Sunnyside Chairs to Newco Limited. This transfer is subject to the new concession holder being able to fulfil the terms and conditions that apply to the licence for this concession.
Reason(s) for Decision: Ministerial Decision MD-E-2014-0100 approved the request to transfer the licence held by the concessionaire of Sunnyside Chairs, of Site No.4 and Site No.5, St Brelade’s Bay, to a third party of the licences holder’s choice. The department subsequently received an application from Newco Limited to establish a beach equipment hire operation similar to the existing undertaking operated by Sunnyside Chairs.
Resource Implications: Additional income generated, no human or additional resource implications.
Action required: The Hospitality and Leisure Manager to notify Newco Limited, Sunnyside Chairs and the Constable of St Brelade that permission has been granted by the Minister.
Signature: Senator A.J.H.Maclean		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Beach Trading Licence from Sunnyside Chairs to Newco Limited

Ministerial Decision

Policing of Beaches (Jersey) Regulations 1959

Transfer of Beach Trading Licence from Sunnyside Chairs to Newco Limited

Ministerial Decision MD-E-2014-0100 approved the request to transfer the licence held by the concessionaire of Sunnyside Chairs, Site No.4 and Site No.5, St Brelade’s Bay, to a third party of the licences holder’s choice.

The department has subsequently received an application from Newco Limited to establish a beach equipment hire operation similar to the existing undertaking operated by Sunnyside Chairs.

This transfer is subject to the new concession holder being able to fulfil the terms and conditions that apply to the licence for this concession.

St Brelade’s Beach Deckchair Concession - Submitted by the beneficial owners of Newco Limited

This is a preliminary business plan prepared to support an application to take over the licence currently held by Sunnyside Chairs for Sites No.4 and No.5, St Brelades Bay. The applicants have agreed terms with the current licensees to acquire all the deck chairs, sunbeds, windbreaks, tents, umbrellas, mattresses and other equipment used within the business known as Sunnyside Chairs. This agreement is subject to a successful application to Economic Development for the transfer of the license to the applicants.

The Applicants

It is intended that the license be held by a newly formed Jersey company (“Newco”) which will be held in equal shares by four individuals:

Business Strategy

The initial objective is to achieve a smooth transition of the business to the company and continue to offer the same services as the existing licensee. Once this has been accomplished we would like to look at ways in which the existing services can be improved and extended. Our initial ideas include the following:

• Sun Screen Spraying Service – This is a service that can be found on a number of beaches around the world and would be relatively easy to set up. Further research is required, particularly regarding health and safety issues as concerns have recently been highlighted regarding the risks associated with spraying young children, who may inhale some of the spray.

• Five-a Side football – We would like to test the demand for a five-a-side football pitch, with the possibility of running tournaments if this proves popular. We would be concerned to keep the pitch far enough away from the deck chair area to avoid disturbing those customers who make up what is considered to be the core business.

• Volleyball – We would also consider providing volleyball pitches and equipment on the same basis as five-a-side football.

• Tents – The existing tents are a dark blue colour and it has been commented that it would improve the appearance of the Bay if they were brighter in colour with a more traditional deck chair stripe. We would like to replace the tents in the not too distant future, but may wish to discuss the possibility of obtaining a licence for a period of longer than one year in order to have some comfort that we will be able to recover our investment. Mainly for this reason, we do not anticipate acquiring new tents before 2016 at the earliest.

These ideas, and any others we have, will be discussed with the Hospitality and Leisure Manager of EDD before implementation to obtain comments and hopefully, approval to proceed.

Finance

Initially, the company will be financed by shareholder loans and will not have any external borrowings. However, some of our business ideas would require additional finance and we would probably need to obtain external finance to proceed.

Parish Comment

As with all new proposals a consultation process was undertaken with the relevant Constable/s. I can advise you that the Constable is, in part, supportive of the proposal. His comments can be found below.

In regards to the new application for a Beach Concession and the Transfer of the Existing Licence, I have no issue with the transfer of the Existing Licence and am pleased that the new company have agreed terms with the existing licensees. In relation to the proposed business plan, I am pleased that the new company will be looking to improve existing services on Jersey's premier tourist beach but have the following comments to make on the new provisions

1. Sun Screen Spraying Service - This is a long overdue and necessary service that I am sure will be supported by the Health Department. I am sure the public will be also support this service in light of the ever increasing number of islanders suffering from skin cancer caused by UV exposure.

2. Five a side Football - I cannot support the provision of any regular five a side football pitches on St.Brelade’s Bay beach irrespective of where they are situated. As a former player and coach, football is a contact sport that is generally noisy and will, I feel, disrupt the public’s enjoyment of the beach as well as taking up a great deal of space.

There are regular complaints already over young people playing football near beach goers looking to relax and regular games and tournaments will exacerbate the problem on an already popular beach. I have in the last supported one off tournaments but regular events are not conducive to a relaxing trip to the beach. From experience, competitive football is often accompanied by foul language and poor behaviour and I do not wish to see this on Jersey's premier tourist beach.

3. Volleyball - Almost the opposite of football, volleyball is a non-contact sport but non the less energetic which is played I consider in a friendlier and more disciplined capacity as can be experienced by at the Gunsite. I have no problem with this provision if only one or two courts are used and are away from the main user areas.

4. Tents - Fully supportive

Recommendation

I feel that the aforementioned business plan is self-explanatory and sets out the intention to improve the existing offering and potentially diversify into other areas. This intention was also evident when I met with those wishing to undertake the concession. On this basis and following the approval from the Constable may I recommend that Newco Limited be given the opportunity to commence this operation subject to it being on a probationary basis to be reviewed at the end of September 2015. The trail will also be subject to any complaints the parishes or department may receive.

My recommendation is for the Minister to approve the transfer of the beach trading licence from Sunnyside Chairs to Newco Limited. This transfer is subject to the new concession holder being able to fulfil the terms and conditions that apply to the licence for this concession.

Hospitality & Leisure Manager

30th October 2014