Chapter 4
A New British WaterwaysUnlocking the potential
4.1 Our February 1999 announcement about the future of British Waterways recognised that its waterways were a valuable public asset. It announced an increase in Government funding to enable British Waterways to make faster progress in reducing the substantial maintenance backlog resulting from decades of under-investment. And it set out a package of measures, founded on partnership, to enable the full potential of British Waterways' canals and rivers to be realised and to allow as many people as possible to enjoy and benefit from them. These measures are described in the document Unlocking the potential - a new future for British Waterways [12].
4.2 British Waterways has developed its own strategy, building on its new framework of aims and objectives described in Unlocking the potential. It is pursuing its tasks enthusiastically and imaginatively. It is drawing up in consultation with users a new set of standards for the operation and maintenance of its waterways. And it is giving priority to tackling the maintenance backlog. We support its aim to eliminate the backlog as quickly as possible.
Public/private partnerships
4.3 We want British Waterways to take full advantage of the skills, expertise, innovation and funding opportunities offered by the private sector. British Waterways is therefore exploring a number of public/private partnerships.
Property
4.4 British Waterways has an extensive property estate with an estimated total market value of over £280 million [13]. Of this, operational land, that is property needed to operate the waterways system such as workshops and land needed for access to operational sites, is worth more than £50 million. Non-operational land, for example former warehouses and stores, is valued at over £230 million.
4.5 British Waterways uses income from its non-operational estate to boost waterway maintenance, and capital proceeds from sales of its non-operational property to reinvest in development and regeneration. These sales often form part of joint venture developments with public and private sector partners regenerating run-down locations in urban areas, and generating further income.
4.6 Despite its success in forming successful partnerships with the private sector, British Waterways has frequently been unable to take advantage of opportunities to enhance its estate. For example, lack of investment funds may delay the preparation of sites for marketing or the acquisition of land to assemble an attractive site for partnership development. This has prevented British Waterways from maximising the development potential of waterside opportunities.
4.7 British Waterways is seeking to overcome this difficulty by setting up a long-term partnership with a private sector partner who would be able to bring additional funds and expertise to take forward selected development opportunities. In turn, British Waterways would identify suitable land holdings and contribute its skills in water management, and water-related development and regeneration.
4.8 British Waterways has held initial discussions with potential partners which have revealed considerable interest. It has appointed financial advisers to help develop the commercial case; to advise on the best corporate structure for the partnership; and to identify and secure a private sector partner.
Water transfer
4.9 The demand for water frequently does not coincide geographically with plentiful resources so it is often necessary to meet the shortfall by transferring water, often over long distances, using rivers, aqueducts and pipelines.
4.10 It is possible that accelerating development, accentuated by climate change, may give rise to more imbalances between demand and local availability particularly in the south east of England. Water companies can take steps to keep supply and demand in balance in a variety of ways, notably by reducing leakage and encouraging efficient use of water by households and industry. But additional supplies may still be necessary. Where these are not available locally, transferring water may be an option.
4.11 British Waterways' canal network offers the potential for transfers of water particularly in the direction of the relatively more stressed south and east of England, with relatively little need for engineering works in comparison with the construction of new pipelines or reservoirs. Parts of the system are already used to move untreated water to serve individual water companies: for example Bristol receives up to 60% of its water from the Gloucester & Sharpness Ship Canal, and the Llangollen Canal is used to supply North West Water.
4.12 Studies and pilot schemes have shown that water transfer on a wider scale than at present is technically and environmentally feasible but investment is likely to be needed to enable the infrastructure to serve its new function. For example it may be necessary in some places to reverse the flow of water; to provide back-pumping at locks; to lower the canal bed; to raise banks; or to install lengths of pipeline to avoid excessive water flows through narrow bridges.
4.13 Although canals transfer water from one catchment area to another, the environmental impact of water transfer proposals would also need to be evaluated carefully. It would be necessary to preserve water quality and avoid harm to wildlife by putting in place safeguards at both the source and destination of the water and along the transfer route.
4.14 British Waterways is currently examining ways in which it can implement its ideas for water transfer in joint ventures with private sector organisations. It is envisaged that any partnership will be based on the transfer of raw, and the distribution and sale of treated water which, where cost effective, will be of potable quality. British Waterways will continue to own and manage the waterway network while the private sector partner will bring finance, expertise in water treatment, distribution, sales and marketing, and customer management to the partnership.
Maintenance
4.15 British Waterways already puts out to tender most maintenance work on the thousands of structures on its system, and the work is often carried out in partnership with contractors to get better value for money. However, new forms of long term public/private partnership for the maintenance of structures are being developed. British Waterways is considering whether there is an example which might form a suitable model for its waterways.
Telecommunications
4.16 British Waterways, in partnership with Fibreway Ltd, has laid fibre optic cables in its towpaths to provide a network service for data, pictures and voice communications. The system links London and the south east with Birmingham, Sheffield, Leeds, Manchester, Gloucester and Bristol. The system has been so successful that the partners have restructured the joint venture to expand business. This will provide additional income for British Waterways to bring forward investment in much-needed repairs and improvements to its waterways.
Partnerships with the public sector
4.17 British Waterways is making good progress in forming long term partnerships with local authorities and other public sector bodies to provide local environmental, economic and social benefits. For example, in Northamptonshire, British Waterways, the County and District Councils, the parish councils, and local canal user groups are carrying out a jointly-funded regeneration strategy and action plan for the County's canals. The Partnership is providing improved access points and towpath surfaces, interpretation materials explaining the importance of the canal environment and built heritage, and hedgerow and tree management schemes designed to encourage greater wildlife diversity in the canal corridor.
Partnership with the people
4.18 There is scope for British Waterways to develop a closer relationship with the millions of people who use its facilities, only a small proportion of whom own boats or take holidays on the waterways. Last year we asked British Waterways to consult on options for a membership scheme which would give members a range of benefits in return for an annual fee. These included being able to nominate a person for appointment as a Board Member if membership reached 100,000.
4.19 The consultation exercise also sought views on a proposal to create a charitable trust which would operate in parallel to, but independently of, British Waterways.The trust would have had similar aims and objectives to The Waterways Trust described in Chapter 5 of this document. Like the Trust, it would have been concerned with all the inland waterways in Britain, not solely those managed by British Waterways. Its objectives would have been to help conserve the natural and built environment of the inland waterways; promote their restoration, development and use for navigation and commerce; provide facilities for leisure and recreational use; and educate the public about the waterways and their history.
4.20 The consultation exercise coupled with market research carried out by British Waterways revealed great interest in the waterways, a strong desire for more information at a local level, and a perception of the waterways as a good cause worthy of donation (though not in substitution for Government funding). On the other hand, consultees were uncertain about the merits of a membership scheme, whether it could offer sufficiently attractive benefits, and its viability. They did not see the chance to nominate someone for appointment to the Board as a particularly valuable benefit. Some existing waterways groups feared a membership scheme could draw members away from them.
4.21 Consultees strongly supported the proposed charitable trust, provided it was fully accountable and independent of British Waterways. Many saw The Waterways Trust as an appropriate vehicle, if these conditions were met.
4.22 We have considered the views expressed by those taking part in the consultation exercise and the market research in the light of British Waterways' recommendations and the views of The Waterways Trust. We agree that the best way forward is for British Waterways and The Waterways Trust Ð who we agree should be the new trust Ð to form a partnership to deliver the following proposals.
4.23 British Waterways will introduce improved consultation procedures at national and local levels representing a wider range of users more effectively: it will also set up a subscription service to provide regular information about the waterways. At the same time The Waterways Trust will launch a scheme to give people the opportunity to contribute to the waterways. The Trust will include the offer of the British Waterways subscription service in its fundraising material which British Waterways will disseminate through its contacts with the millions of waterways users.
4.24 British Waterways will continue to help the Trust establish itself as a separate and accountable body. The Trust will, in turn, take steps to increase the number of its trustees to reflect its interest in all of Britain's inland waterways.
4.25 We are grateful to all those who took part in the consultation exercise and the market research. The steps that British Waterways and The Waterways Trust now plan to take offer the prospect of a fruitful partnership involving the voluntary sector which will lead to increased support for, and investment in, the waterways, so helping to secure their future.
12 Unlocking the potential: a new future for British Waterways: DETR 1999
13 as at 31 March 1999[ Previous ] [ Contents ] [ Next ]
Published 27 June 2000
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