Government welcomes 3rd sector debate for waterways

7 December 2009

The new approach, contained in the Asset Portfolio which accompanies the Smarter Government White Paper, confirms and builds on the conclusions of a previous Treasury report in April 2009 which concluded there was no financial or economic case to sell off the property assets and a sale of the property endowment would not achieve best public value.

British Waterways’ waterside land and buildings, which range from brownfield regeneration sites to 18th century warehouses, fund a significant proportion of the maintenance of Britain’s historic waterways and have been vital to the recent renaissance of the 200-year-old network.

British Waterways’ chairman, Tony Hales, comments: "British Waterways’ canals, rivers and docks create over £500 million of public benefit annually and we share and welcome the Government’s commitment to unlocking the potential of the network and delivering best value for money to the taxpayer. We are pleased that the Government wishes to explore with us the benefits of a third sector approach to the waterways. We need long-term security for the future of the historic network and believe third sector status together with our property endowment provides the basis for that security."

"The waterways would not be the place they are today without the passion and commitment of waterway stakeholders and partners and we very much look forward to working with them to further develop our thinking on a third sector strategy."

In the last decade Britain’s inland waterway network has undergone a widely acclaimed revival, with more than 200 miles of canals built or restored and record number of boats and towpath visitors using the system. British Waterways is influencing and enabling an estimated £10 billion of waterside regeneration, which has helped towns and communities across the country to rediscover their local waterway. This revival has been made possible thanks to the support of Defra and the Scottish Government, the lottery, local authorities and countless volunteers and enthusiasts.

For media enquiries please contact:
Ed Fox T. 020 7985 7226 / 07801 049829 / edward.fox@britishwaterways.co.uk
Jonathan Ludford T. 020 79857275 / 07747 897783 / jonathan.ludford@britishwaterways.co.uk

Notes to editors:

• For information on ‘Smarter Government’ visit http://www.hmg.gov.uk/frontlinefirst.aspx. Details relating to British Waterways are contained in the ‘Asset Portfolio’ at http://www.hmg.gov.uk/media/52715/oep-assetportfolio.pdf

• British Waterways is responsible in England and Wales to Defra and is devolved in Scotland. Decisions relating to British Waterways in Scotland are a matter for the Scottish Government

• According to KPMG there is a funding shortfall of approximately £30m per year between the cost of maintaining the waterways and the funds available to British Waterways

• This year British Waterways is undertaking an internal restructure and efficiency review, including a pay freeze and redundancies, which will save around £10m per year

• British Waterways’ 2010/11 grant settlement from Defra for England and Wales will reduce by £4.6m. The grant will have reduced by 47% in real terms from between 2003 and 2010. BW has been able to maintain its waterways in a safe and functional condition because its commercial income (mainly property) rose by 60% over the same period which reflects the requirement for BW to become more self-sufficient

• A decade ago British Waterways’ inland waterway network was in decline. It now generates over £500m of public benefit every year (assessed using Treasury Green Book methodology)

• In April 2009 the Government announced that British Waterways should retain its property endowment. The decision followed a detailed study as part of the Operational Efficiency Programme which concluded there was no financial or economic case to sell off the property assets and that best public value was achieved by the assets remaining in the ownership of British Waterways

• British Waterways owns over 1,400 individual properties ranging from major urban regeneration sites to important listed buildings and humble lock cottages. This endowment estate entirely originates from land historically belonging to the waterways and has since been grown and developed by British Waterways as an investment to fund the network. None of this endowment derives from any of the public funding provided by Government for the support of the waterways

• Over 50% of BW’s network lies within one or more of Government’s priority areas for regeneration, renewal & growth (8 Housing Market Renewal Pathfinder areas; 13 Urban Regeneration Companies; 4 Rural Delivery Pathfinders; 5 former coalfield areas; 4 Growth Areas; 13 Growth Points; and the Olympic Park in London).

Waterway facts

• 11 million people visit the waterways each year
• 32,500 licensed boats on the network, more than at the height of the Industrial Revolution
• £1½ billion is spent by visitors to the waterways each year on goods and services
• 22,000 jobs are supported
• Half the population of the UK lives within five miles of a BW waterway
• 95% of people say that waterways are an important part of the nation’s heritage