According to accounts exclusively obtained by the Western Morning News, the Harbour Commission in charge of Newlyn port lost nearly £182,000 in 2008.
The papers, which are for the last year that accounts are available, up to the end of March 2008, also reveal that, in the previous financial year, spending outstripped income by an astonishing £207,000.
The news comes as a further blow to Newlyn, which has just suffered a humiliating setback when a £2 million grant for a new fish market was rejected because of a poor business case.
After years of turmoil as the fleet size was cut to accommodate quota rules, many fishermen are muttering that radical new leadership is needed if the port is to survive.
David Stevens, skipper of the Crystal Sea, lands his catch at Newlyn but sells at Plymouth because of the better facilities.
He called for a "total clean sweep".
"In my opinion, for many years they [the Harbour Commission] have not been forward-thinking.
"They have had proposals before them but they have not grasped the nettle and moved forward.
"That is just bad management, as far as I'm concerned."
Mr Stevens said the Harbour Commission had been "too insular" for too long. "It's been going on for 20 years."
Newlyn Harbour, on the tip of South West Britain, is in the prime position to land fish from some of the richest waters in the world.
But, said Mr Stevens, that was being squandered.
"Newlyn could have a great future if they really looked to it. We could get European vessels landed there.
"The geography is perfect, there is no better place than Newlyn. But we need to clear out the dead wood."
As Newlyn is a port with trust status, it is run by a Harbour Commission with members appointed by the Secretary of State for Transport. Trust ports are independent statutory bodies governed by unique local legislation and controlled by an independent board, rather than shareholders.
There are currently six Harbour Commissioners at Newlyn, the quorum for any decisions to be legal.
Representing boat owners are chairman Billy Stevenson, Mike Williams and Steven Hicks.
Mr Stevenson is a senior member of the firm W Stevenson and Sons Ltd, which has admitted breaking EU quota laws by "blacking" fish – falsifying landing documents to allow the fish to be sold more expensively – between April and September 2002. The company is expected to be ordered to pay back all the illegal proceeds of its actions, but a confiscation hearing was adjourned last month for extra data to be gathered.
County councillor John Payne represents the local authority on the Harbour Commission, fish merchant Godfrey Adams represents his industry and Edward Bolitho was co-opted on to the body last year.
The Harbour Commission governs the activities around Newlyn port and, according to its own official accounts, has assets of more than £6.7 million, as valued in March 2006.
According to the Revenue Account for 2008, Newlyn Harbour made £575,000. This income largely comes from landing fees and charging for facilities.
However, the Harbour Commission is living well beyond its means, spending £758,000 in 2008, including £114,000 on repairs, £217,000 on staff costs and £17,000 on bank and interest charges. The previous year, the Harbour Commission's turnover was £585,000, but its expenditure was £793,000, with repairs of £122,000, staff costs of £234,000 and bad debts written off of £10,000.
The Harbour Commission is currently in the process of a review which could set new rules for the way it is governed.
However, this Harbour Review Order is in limbo because of one objection.
A spokesman for the Department for Transport, which oversees Britain's ports, confirmed there was one objection to the harbour revision outstanding, which if not withdrawn may lead to a public inquiry being held into the new rules.
She said: "It has been decided that the one outstanding objection cannot be counted as trivial and therefore stands.
"If it is not withdrawn, then a public inquiry will have to be held."
The DfT was asked to comment on Newlyn Harbour being £182,000 in the red.
The spokesman said all ports were expected to abide by DfT rules, but that the department would not comment on individual cases.
According to its guidelines, Modernising Trust Ports, a Guide to Good Governance, board members must have a range of skills and attributes. While they do not insist that trust ports must always operate in the black, they do call for "good housekeeping".
In terms of probity, the guidelines state: "As a general rule, any board member who has been previously dismissed from any trust board should not be reconsidered for appointment, neither should any applicant who is bankrupt or has a criminal conviction remaining unspent."
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