Rear Admiral J F Perowne OBE Vice Chairman (until 4 August 1998)

Rear Admiral R P Stevens Vice Chairman (from 4 August 1998)

Rear Admiral A P Hoddinott CB OBE (from October 1998)

Dr R Bud The Science Museum

Captain R F Channon Royal Navy (Rtd)

Captain T J Meadows CBE Royal Navy (Rtd)

Mrs P L Lee Principal St Vincent College

Mr R M Webb

Mr J R Brett (from October 1998)

Councillor P C Langdon Nominated by Hampshire County Council (from January 1999)

Mr R D Wilson Nominated by Gosport Borough Council

Mr D W Patch Nominated by Submarine Old Comrades

Association

Commander J J Tall OBE Royal Navy (Rtd)

Mr A Aberg Royal Naval Museum, Portsmouth

Mr D R G Higham, Blake Lapthorn

Lieutenant Commander C G O Walker MBE Royal Navy (Rtd)

Miss J F Moys

Mr S Lawrance, Walton and Co.

Lloyds Bank plc.

National Westminster Bank plc.

Captain T J Meadows CBE Royal Navy (Rtd) Chairman

Mrs P L Lee

Mr B Ridley

Commander J J Tall OBE Royal Navy (Rtd)

In this report, the last before I hand over my appointment as Chairman to Vice-Admiral Sir Roy Newman KCB, I am happy to report that the year has been one of considerable progress in the task of meeting the Trustees’ aims and objectives and providing an even better service to the public.

Details of both the short term improvements to the Museum and the Museum’s long term plans for the future are contained in the body of this report. The Trustees are confident that these improvements and the implementation of longer term plans for development will enable the Museum to become a fitting memorial to the Submarine Service which celebrates its centennial in 2001.

Despite a fall in visitor income, the Museum has managed to maintain its cash reserves within £2,000 of the previous year’s level while spending over £22,000 on improvements to the Museum and other fixed assets. This has been achieved as a result of energetic and prudent management despite a fall in visitor income. The main reasons for the decline in visitor numbers are given in the Review of the Year’s activities.

It is a top priority of the Trustees to increase visitor numbers through enhancement of the Museum’s appeal to the public. In this context it is intended to take further short term measures to improve Museum facilities and exhibits and at the same time pursue vigorously the extra funding needed to implement plans for longer term development.

I should like to express the gratitude of the Trustees for the continued support of the Second Sea Lord, and our Ministry of Defence Sponsoring Department. Their valuable advice, especially to myself, has enabled the requirements of the Committee on Standards in Public Life and the Commissioner for Public Appointments, to be implemented with the minimum of extra bureaucratic work for our small team of administrative staff.

The Trustees also wish me to acknowledge the support of the Hampshire County Council, the Gosport Borough Council, the Hampshire County Museums Service and the South Eastern Museums Service.

The year’s progress would not have been possible without the hard work and loyalty of the Director and his staff and the enthusiasm of the many volunteers who have continued to give freely of their time and expertise in the Archives Working Party and other ways.

Finally, the Trustees wish to thank those who have made financial contributions to the Museum during the year, in particular the Society of Friends of the Museum and the Submarine Old Comrades Association.

The Museum has built on the solid foundations laid by my predecessors and I believe is ready to face the challenge of the new century with confidence.

Rear Admiral AJ Whetstone CB

Chairman of the Board of Trustees

The Royal Navy Submarine Museum was formed as a modest "Submarine Branch Collection" under a Deed of Trust dated 11 September 1963. It was registered as a charity on 12 February 1970. Three small rooms were made available for the collection in the submarine base at HMS DOLPHIN.

In 1977, with the collection growing rapidly, the Museum, as by then it had become, moved to larger and more attractive premises. But, as these were still within HMS DOLPHIN, public access was greatly restricted by security considerations. Therefore, in 1978 the Trustees decided that the time had come to move out of HMS DOLPHIN, to construct a purpose built Museum and to place HMS Alliance, which was loaned by the Ministry of Defence for a period of sixty years, ashore so that visitors could enter and leave by doors cut in the hull rather than through the awkward hatches used for access when the submarine was afloat. This decision also enabled maintenance costs to be reduced by removing the need for periodic docking.

A public appeal was launched in 1978 and a new Deed of Trust for a charity registered as the "Submariners Memorial" was drawn up in April 1979. The aims of the new Trust covered the preservation and accessibility to visitors of the Alliance, the preservation of the collection, held in a new Museum Building adjacent to but outside HMS DOLPHIN, and to relieve distress among past and present submariners and their dependants.

Sufficient funds, totalling about £410,000, were raised to enable these aims to be met by 1982. In May 1983, Admiral Sir John Fieldhouse formally opened the new Museum.

In 1982, the Royal Navy’s first submarine, HM Submarine Boat No. 1, of the United States "Holland " design, which had foundered in the western channel whilst being towed to the breakers’ yard, was salvaged and after some preservation put on display in the Museum.

In 1985, the Museum was given an altered status as one of the six "Designated Museums" sponsored by the Ministry of Defence. Part of the running costs of the Museum were from this time met by an annual award of Grant-in-Aid. The Museum became an Executive Non-Departmental Public Body.

In 1987, the Trustees resolved that one of their future objectives should be the support of the Submarine Service by promoting a greater public understanding of its past and present activities.

The layouts of the two galleries were revised in 1991/92 with the help of a grant from the Museums and Galleries Commission. This enabled the periscopes and Captain’s cabin of the Nuclear Submarine HMS Conqueror to be installed in the Museum.

In late 1993, it was found that the initial preservation of the Holland Submarine had failed to prevent the onset of metal corrosion. After a thorough survey, a major conservation programme was started with considerable financial and technical support from Hampshire County Council and a grant from the Science Museum. A further grant from VSEL, Barrow and a significant injection of the Museum’s own funds completed the financial package that enabled the conservation project to proceed. This meant that the submarine had to be withdrawn from display whilst the conservation programme took place.

In 1995, the Trustees decided that the two Trust Deeds covering the Submarine Collection and the Submariners Memorial were confusing, in some matters out of date and in others either repetitive or contradictory. It was decided, therefore, to combine the two Trust Deeds into one document. At the same time the Museum was converted into a Company Limited by Guarantee with Charitable Status. This was to enable the Trustees to be insured against liabilities incurred as a result of decisions taken honestly, reasonably and in good faith and to enable the Museum to act as an incorporated body.

In 1998 the Museum reverted to the status of a Charitable Trust.

In 1998 an appeal was launched to raise funds for the development of the Museum entitled ‘The Submarine Centennial Appeal’.

In late 1998 the Museum acquired the use of a redundant building within Fort Blockhouse that enabled it to create a display of its weapons collection, including a Polaris Missile, in a suitable environment for large metallic objects. This was a major step forward in the care of artefacts previously at risk from the elements.

In early 1999 the Museum’s avenue for charitable donations to care for submariners and their dependants in need was re-named ‘The Submariners Benevolent Fund’. It continues to be administered by the Royal Naval Benevolent Trust on behalf of the Trustees.

The Royal Navy Submarine Museum is also an Executive Non-Departmental Public Body operating under the sponsorship of the Ministry of Defence. Day to day aspects of this sponsorship are handled by the Naval Personnel Secretariat of the Office of the Second Sea Lord and Chief of Naval Personnel.

To enable the National Audit Office to audit the Museum’s Accounts under the Charities Act 1993 the Museum reverted to being a Charitable Trust with the status of an unincorporated charity on 1 April 1998.

The Mission of the Museum, which is in accordance with that agreed for the four Naval museums sponsored by the Ministry of Defence, and which is given formal basis in a Defence Council Instruction, is:

1. To provide an effective and accessible repository, both now and in the future for the heritage of the Submarine Branch of the Royal Navy and raise public awareness of the Royal Navy Submarine Service.

2. To encourage scholarship and research into the history of the Royal Navy Submarine Service.

In pursuit of their aims the Trustees act in accordance with a Code of Conduct based on guidance given by the Committee on Standards in Public Life and the seven principles endorsed by HM Government.

The Declaration of Trust declares that the Museum exists for the benefit of the public and for the purpose of educating the public in naval and social history and other matters relating to the defence of the realm and in particular:

1. To maintain and manage a public museum and library of all aspects of Submarine endeavour.

2. To preserve, promote and assist in the display, understanding and education of the public of the Submarine Collection and all other property, objects, artefacts and others having relevance to the history of the Submarine Service of the Royal Navy forming the contents of the Museum from time to time.

3. To uphold the traditions of the Submarine Service of the Royal Navy; to perpetuate and commemorate its deeds; to honour and preserve the memory of those who participated in the service and to act as keeper of the "Regimental Heritage of the Submarine Service".

4. To relieve distress or need among past and present members of the Submarine Branch of the Royal Navy and their dependants.

Trustees are appointed by resolution of the Board of Trustees following the completion of a procedure which follows the guidance given by the Office of the Commissioner for Public Appointments. This includes obtaining nominations from a variety of sources, including advertising, the vetting of nominations by a panel including an independent member and the interviewing of selected candidates. The sponsoring department of the Ministry of Defence is closely involved in the selection process.

Other than ex-officio Trustees, Trustees are normally appointed for a period of five years. Trustees may be re-appointed for a second five year term at the discretion of the Board.

During the year two new Trustees were appointed under the above procedure. They were Rear Admiral Paul Hoddinott CB OBE, and Mr John Brett. A further Trustee, Councillor Peter Langdon was appointed on the nomination of Hampshire County Council in accordance with the Museum Deed of Trust.

Board Meetings were held in May, July, September and December 1998, and in February 1999.

Major matters discussed included: Management Plan and Budget; approval of Annual Report and Accounts; appointment of Trustees; management of Submarine Giftshop Ltd; conservation of Holland One; application for Lottery Funding; future plans for Museum Development; staff salaries and conditions of service.

The Museum has continued to benefit from the support of an active Society of Friends. During the year grants totalling £10,299 were received which contributed to the following improvements to the Museum:

(a) conversion of a redundant building into a Weapons Gallery

(b) progressing preservation of important documents and photographs in the Archive

(c) rebinding valuable library books.

The accounts published in this annual report are a summary of information in the full financial statements. The summarised accounts may not contain sufficient information for a full understanding of the finances of the Museum, but the full financial statements can be obtained from the Director of the Museum. The full accounts were approved by the Museum’s Trustees on 15th July 1999 and they have been filed at the Charity Commission for England and Wales. The auditor’s report was unqualified.

I have examined the summary financial statements on pages 8 and 9 which have been prepared on the basis set out above.

The summary financial statements are the responsibility of the Board of Trustees. My responsibility is to report to you my opinion on their preparation and consistency with the full financial statements and foreword.

I conducted my work in accordance with the Auditing Guideline: The Auditors’ statement on the summary financial statement adopted by the Auditing Practices Board.

In my opinion the summary financial statements are consistent with the full financial statements and foreword of the Royal Navy Submarine Museum for the year ended 31st March 1999 and have been properly prepared in accordance with the Statement of Recommended Practice: Accounting by Charities.

For John Bourn

Comptroller and Auditor General

National Audit Office

157-197 Buckingham Palace Road

London

SW1W 9SP

September 1999