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British Waterways

A national treasure, a thriving 4,500 mile linear national park, a catalyst for regeneration and economic growth, a nature reserve accessible to millions of people and belonging to us all —these are just a few of the descriptions given to our canals and waterways travelling through 250 parliamentary constituencies and past 19 million people every day. When our navigable canal and river network began to develop in the form we know it today, Napoleon and Josephine were about to be divorced, Charles Darwin and Abraham Lincoln were new-borns, the vacuum, the phone and the car were yet to be invented, and the idea that working men—or any woman—might vote was unthinkable. A lot has changed in 200 years, and the canals and rivers that played a great part in the development of our industrial success are still with us. If they are going to be able to contribute to our next 200 years, they are in great need of development, maintenance and support. The last decade or so has seen a widely acknowledged renaissance of our waterways and canals, especially as the agents of regeneration of many city centres—such as Gas Street basin in Birmingham—and of rural areas, offering some of the greenest recreational facilities available in the UK. Since 1999, this Government have invested an unprecedented £750 million in the network, ensuring—alongside the work of an army of volunteers—that it is in a much better state now than at any time since world war two. As we are becoming more aware of the challenge of climate change, we are also seeing the potential of our waterways to alleviate flooding, to provide sanctuary for wildlife and alternative modes of transport, and even to generate clean energy. The most recent figures for visitors to our waterways, from 2008, show that some 3.4 million visits were made, and that the number of boaters on the network was the highest in modern times at 32,500. Of course, many businesses depend on the efficiency and maintenance of our waterways. The British Marine Foundation estimates that some 40 per cent. of its member companies have a direct business interest, including hire fleet companies, marina operators and narrow boat builders, all of which, of course, provide many jobs. Imagine, then, the confusion, fear and anger of so many people when they heard that this fantastic network is threatened once again with break-up, destruction and possible sell-off. Such feelings were so strong that within days, a petition of 9,000 names appeared on the Downing street website. Many of us thought that the battle for our waterways and the argument for their remaining in the public sector had already been won in 2007—the last time the Treasury turned its hungry eyes our way, especially to the British Waterways property portfolio, the sale of which has been estimated to be worth around £16 billion. It was viewed then not only as a welcome answer to Treasury shortfalls, but as a way of making good the gap in funding from the Department for Environment, Food and Rural Affairs in making payments to farmers via the Rural Payments Agency. In answer to this onslaught, a massive coalition of waterways users, businesses and parliamentarians was formed. After some battles, the threat receded, although not without some loss of grant, but at least the argument was won and the waterways were relatively safe once again within the public sector. However, in the wake of the global downturn we find ourselves once more on the defensive, and once more in the sights of those ever-hungry Treasury eyes. British Waterways is facing a cut in funding of some £10 million in the next financial year, reducing the available grant to £47.8 million. Government funding from DEFRA for England and Wales has been confirmed for the year 2010-11. The base level of grant will be cut from £57 million to £52.8 million, with £5 million already brought forward to 2008-09 as part of the Government's fiscal stimulus plan. This points to an effective year-on-year reduction of £4.6 million plus £5 million, equating to a cut of £9.6 million. The Inland Waterways Association has said that British Waterways' existing grant already fails to address an ongoing deficit of between £20 million and £30 million each year in the amount needed just to maintain the system in a steady state of repair. Any cuts will only exacerbate the situation. On top of that grant cut, the prospect of the rumoured sell-off of the British Waterways property portfolio has been a bitter blow to confidence. It is difficult to see the economic sense in such a move, as the portfolio provides BW with about £45 million in revenue, which equates to more than a third of the money that it needs to run the waterways properly and almost half the maintenance budget.