Aims of Canal & River Trust

I WOULD like to respond to Orph Mable's post on 16th December about the aim of the Canal & River Trust—Sorry about the delay, Christmas and all that, writes John Dodwell.

The draft charitable purposes of Canal & River Trust (as set out in the Minster's September statement) are, subject to Charity Commission approval, as follows:

Hold in trust

To hold in trust or own and to operate and manage inland waterways for public benefit, use and enjoyment including (but not by way of limitation):

• for navigation and other use of vessels
• for public access on foot and for recreation and other leisure-time pursuits of the public in the interests of their health and social welfare; and
• for the improvement of commerce and industry generally.

To protect and conserve for public benefit sites, objects and buildings of archaeological, architectural, engineering or historic interest on, in the vicinity of or otherwise associated with inland waterways.

Public benefit

To further for public benefit the conservation, regeneration and enhancement of the natural environment and the landscape of the inland waterways.

To promote, facilitate, undertake and assist for public benefit the restoration and improvement of inland waterways (whether or not held in trust owned managed or operated by it) and the regeneration, enhancement and enjoyment of the localities and communities through which they pass.

To promote and facilitate for public benefit awareness, learning and education about inland waterways, their history, development, use and operation by all appropriate means including, without limitation, the provision of museums.

Wider aims

Thus the aims are wider than just taking over the British Waterways waterways. As we know, the government hopes that the Environment Agency waterways will follow, subject to a number of things, including funding. Any of the independent waterways may ask to join Canal & River Trust.

So it will be fair—as Orph Mable suggests—to test against these aims.

Orph also asked about asset sales. British Waterways operates—and I expect Canal & River Trust to do the same—on what I call the 'two pot' principle. One 'pot' is the endowment fund of properties (let out for rental) and other investments (including British Waterways Marinas). The income from this 'pot' goes into the second 'pot'—which is used to pay for maintenance. Sales from such assets are not spent on maintenance—there's no long term future in that. Such sales are used to buy other assets with a view to producing extra income maintenance.

Pubs

Orph also mentions pubs. Having made enquiries, I can give you the following information. In 2004 British Waterways sold some pubs for £13.5m to a 50/50 joint venture with Scottish & Newcastle Breweries who then ran the pubs. British Waterways invested £2.6m in shares in the JV. Scottish & Newcastle arranged for the JV to borrow from a bank—without British Waterways guaranteeing the bank loan. The JV went bust in 2011. British Waterways investment division bought back the 10 best pubs for £9m Net result British Waterways investment division was £2m better off.

John Dodwell, Transition Trustee, Canal & River Trust