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British Waterways Board (Transfer of Functions) Order 2012

My Lords, I hope that we will be able to debate the Inland Waterways Advisory Council (Abolition) Order 2012 at the same time as this order.

I am pleased that we have the opportunity to debate these two orders in Grand Committee today. As noble Lords will know, they are very important for the future of the leisure industry and as a national resource. The transfer order transfers the function of the British Waterways Board in England and Wales to a new charity, the Canal and River Trust, which I will refer to from now on as the CRT, and makes a consequential provision in Scotland. The British Waterways Board will continue to operate as a Scotland-only body and will be accountable to Scottish Ministers.

The second order abolishes in the Inland Waterways Advisory Council, an independent advisory committee to the UK and Scottish Governments. The Scottish Parliament has given its consent to the transfer and abolition orders, and the National Assembly for Wales has given its consent to the transfer order. Both orders have been subjected to the enhanced affirmative procedure and examined by the Secondary Legislation Scrutiny Committee here in the Lords—I shall have to get used to the committee’s new name; we probably remember it as the Merits Committee—and by the Environment, Food and Rural Affairs Select Committee in the other place.

I shall now briefly summarise the aims and objectives of these orders and pay consideration to the points of interest that were raised by these committees. The background to this project began under the previous

Government, and I am grateful for the cross-party support it has received. It is no exaggeration to say that it would not have made the rapid progress that it has without the broad consensus that has been reached across Parliament. I pay tribute to my noble friend Lord Goodlad and the members of the Secondary Legislation Scrutiny Committee for their constructive engagement in scrutinising these orders. We have read the committee’s report carefully and I shall respond to its recommendations during the course of this debate.

The transfer of the waterways will give those who are passionate about them increased opportunities to get involved and influence the way in which their waterways are managed. We have consulted widely in preparing for this transfer. I am confident that the clear public support for this change will make CRT a successful charity. The Government have agreed to provide a 15-year grant agreement worth around £800 million, a settlement which the CRT has described as tough but fair. The grant agreement will give the waterways a level of financial certainty that will enable them to plan for the long term, as we would wish, realising efficiencies and achieving best value for money. As was requested by the Secondary Legislation Scrutiny Committee, I have arranged for a draft of the transfer scheme to be laid in the Libraries of both Houses in advance of today’s debate. The scheme provides for the transfer of British Waterways’ assets and liabilities and is the counterpart of this order.

In order to allow for scrutiny of the financial development of the new organisation, I am happy to agree to the committee’s recommendation that Defra should provide Parliament with a Written Statement setting out the financial position of the CRT two years after the draft order is made.

In its consideration of the draft order, the Environment, Food and Rural Affairs Select Committee in the other place questioned the Government about property and charitable income projections for the new charity. I assure noble Lords that while there is a degree of uncertainty with any projection of future income, the CRT has undertaken extensive due diligence and is confident in the projections.

The estimates of charitable fundraising were finalised in 2011 and reflect recent attitudes to charitable giving. They are based on evidence-based market research, expert judgment and benchmarking by a leading consultancy in the sector. The CRT has recruited a fundraising team that is motivated, not daunted, by the challenge ahead.

The CRT trustees believe that the projections for growth in commercial income are prudent. British Waterways has a proven track record in property management and has outperformed industry benchmarks. It has shown itself to be an excellent custodian of the commercial property portfolio, which has become vital to the sustainability of the waterways. Its careful management of the property portfolio and the safeguards that we have put in place through this transfer will ensure that these assets continue to supply the waterways with much needed revenue.

We have also received a number of questions about volunteering. I am confident, indeed excited, that the move to the charity sector will significantly increase

volunteering on the waterways. Indeed, the creation of the CRT has already boosted volunteering numbers—a sign of the public’s enthusiasm for the move ahead. This is a good thing for a society at large and for the waterways, but let me assure your Lordships that the CRT will not be using volunteers to replace existing staff. Volunteers will be used only to undertake activities that British Waterways cannot do at current staffing levels.

During the 60-day procedure in Parliament, Defra received representations from two separate groups of private boaters. One group asked for reassurance about the consultation procedures to be followed for making orders under Sections 104 and 105 of the Transport Act 1968. Such orders concern changes to the classification of a waterway or to the prescribed navigation dimensions to which a waterway must be maintained. My officials have given the requested assurances, and the consultation process will be set out in the memorandum of understanding between Defra and the CRT, which I shall publish in due course.

The second representation was from the National Bargee Travellers Association, from whom many noble Lords will have received communications. This is one of a number of organisations that look after the interests of boat dwellers. The NBTA has already issued responses to our two consultations in 2011 and submitted reports to the EFRA Select Committee and the Secondary Legislation Scrutiny Committee. We addressed the NBTA’s concerns about human rights and the application of the Freedom of Information Act 2000 in our evidence to parliamentary committees.

In response to its most recent representation, I can give the NBTA an assurance, on behalf of the CRT, that the CRT will not exercise its powers to remove a vessel that is thought to be someone’s home without first taking the matter to the county court and obtaining a declaration from the court that the removal is lawful.

Further, I assure the Grand Committee that the transfer order does not create new enforcement powers for the CRT. The CRT, as statutory undertaker, will have the same powers to manage the waterways as British Waterways has now. The existing safeguards that apply to the use of these powers will continue to apply to any enforcement action taken by the CRT.

In response to a recommendation from the Secondary Legislation Scrutiny Committee, I am also happy, on behalf of the CRT, to assure the Grand Committee that the Canal and River Trust will take into consideration the specific needs of all stakeholders, including itinerant boat dwellers, in the development of all future by-laws. My honourable friend the Waterways Minister, Richard Benyon, will write to the NBTA in due course to set out our position on the other points it has raised.

The creation of the CRT will significantly improve our national dialogue about the waterways. The CRT’s governance model will bring some 200 people into the business of running the waterways, whether as trustees or as members of the council or the waterways partnerships. With all this expertise and engagement, the CRT will become the Government’s principal, although not our only, interlocutor on the waterways in the years ahead.

The creation of the CRT means that the Government will no longer need an independent statutory body to advise on the waterways. The proposed abolition of the Inland Waterways Advisory Council is part of the department’s simplification of our very complex delivery landscape. In addition to improved accountability arising from the creation of the CRT, the abolition of the IWAC will lead to greater efficiency, effectiveness and economy. It will, for example, save £200,000 a year.

I should acknowledge that the abolition of the IWAC has proved mildly controversial. There were only 35 responses to our formal consultation—less than a tenth of the responses to the consultation on the creation of the new charity, for example—but most of those who responded wanted to keep the IWAC, at least until the Environment Agency navigations transfer to the new charity from 2015-16. We have considered those views carefully. However, I believe that the practical work to prepare for the transfer of the EA navigations is better carried out by our officials, working very closely with our engaged and committed stakeholders. To the extent that we may need independent advice from time to time, it is more cost-effective to commission such advice as needed, rather than have a standing body, which, in the way of the world, would find work to do.

In moving the Motion to consider the abolition of the Inland Waterways Advisory Committee, I should acknowledge the very valuable knowledge and expertise of its current members. They have made a useful contribution to the development of government policy on inland waterways, and my honourable friend the Waterways Minister wrote to them all to encourage them to make their knowledge and expertise available to the CRT.

In conclusion, moving the waterways to the new waterways charity and abolishing the Inland Waterways Advisory Committee will bring many benefits. This transfer will enable waterways users to have the opportunity to play a role in the governance of the waterways and bring their passion and expertise to the waterways they cherish. Local communities will have a greater say in how their local canal or river is run. This is localism in action.

Volunteering will increase, benefiting society, heritage and the environment. The financial footing of the waterways will be sustainable into the long term. New commercial and private income streams will become available. The long-term grant agreement offers the security that the new project needs. Fifty years after British Waterways was created, it is time to move on. With that in mind, I commend these draft orders to the Committee and beg to move.

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