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IN A couple of sentences, the new waterways minister put British Waterways in its place, writes Allan Richards.
By considering a merger of both grant funded waterways authorities, BW and EA at a future date, he has effectively put the brake on BW's third sector lobbying and driven a wedge between it and the IWA.
Lost for words
BW, who can put a spin on the most negative government announcement, appear to be at a loss for words with no press release forthcoming. Not so the IWA, which has been very quick to put the boot in, stating in a press release:
‘In principle, what IWA doesn't want to end up with is a ‘rebranding' of BW in a third sector guise, IWA sees the third sector as an opportunity to radically address the way in which our waterways are managed and to seek to improve their husbandry'.
The press release goes on to say that IWA will work with the Kennet & Avon Canal Trust (K&ACT) on the third sector pilot, pointedly ignoring any mention of BW.
Put bluntly, IWA has dropped support for BW as it now thinks its plans for a waterways conservancy including both EA and BW waterways will prevail.
However, the minister had made it very clear that costs are the overriding concern. If government is not happy that a merger will save them money, then it will not happen.
Property portfolio
Of course the 22,309 who signed the e-petition, as requested by IWA, to save BW's property portfolio will be somewhat sad to learn that the £45m a year that it contributes to maintaining the waterways is a figment of BW's and IWA's imagination. Perhaps, now that IWA has put the boot in it will put the knife in and say that BW misled them over this figure.
In responding personally to a Freedom of Information Act request, BW's Chief Executive, Robin Evans, admitted that in 2008/9 after tax profit on non-operational property activities was minus £73.6 million. That's right! In the last year for which BW has provided accounts the property portfolio did not make a contribution of £45m to maintaining our canals but a loss of £76.3m.
A question
Shortly after his announcement, the waterways minister, was asked by Tristram Hunt (Stoke-on-Trent Central, Labour) about plans for British Waterways. He replied:
‘For the third sector model to work, BW will have to have access to its estate, or a large proportion of it, for it to gear up funding for sustainable funding in the future. I can assure him that it will not proceed unless it is locked in that way'.
No mention of the Environment Agency here! Perhaps the minister is saying that the Treasury may sell off all or some of BW's portfolio. Governments' third sector plans may be viable if nothing or a small amount is sold off, but unviable if all or a large amount is sold off. However, that assumes that the property portfolio can return to profitability.
As before, it seems that the Treasury will decide the fate of British Waterways.
Hopefully, the minister will address the immediate problem of halting the decline in the waterways by ensuring that property is sold off if needed. |
