The UK Government has announced its intention to transfer British Waterways’ inland waterways in England and Wales into a new charitable body to be named the Canal & River Trust.. This has understandably resulted in a lot of queries and speculation. We have attempted to answer the most frequently asked questions below.
What has been proposed?
As part of its reform of public bodies, the Government has decided to transfer British Waterways’ network in England and Wales from the public sector into a new charity to be named Canal & River Trust (C&RT) as a sort of ‘national trust’ for the waterways.
The target date for the transformation of British Waterways to the charity is April 2012. This, however, will depend on smooth progress of the public bill through Parliament, successful negotiations about key issues such as financing between the charity trustees and Government and final approval by the EU and Charities Commission.
During the intervening period a ‘shadow’ Board of Transitional Trustees has been formed to guide the process of transition and negotiate final terms of the transfer with Government. Other ‘shadow’ groups, notably Local Partnership Boards with the responsibility of looking at local issues at regional levels. There will be set in motion so that the new charity will have a running start in April 2012.
What do we mean by ‘civil society’?
A charitable trust representing a broad range of community and stakeholder interests and able to act commercially for the benefit of its core cause.
This process has been described in lots of different ways (Third Sector, Mutualisation, Charity, Trust, Conservancy, Civil Society, Big Society, Social Sector, Public Interest Company, etc.), but essentially boils down to the same thing; a charitable concern that is run independently of Goverment.
Why does British Waterways need to be changed?
The waterways have been transformed in the 40 years since British Waterways was set up and they are now better used and busier than ever. They also, however, face enormous challenges which were not envisaged under the 1960s legislation which established the organisation.
In recognition of this, in May 2009 the Board of British Waterways launched a new strategy recommending that it be moved into the ‘third sector’ as a way of closing its funding gap and giving stakeholders greater involvement in the running of the network.
Does this mean that British Waterways will be privatised?
Not at all. In British Waterways’ place will be a new charity caring for the waterways. The charity will be in a much better position to protect our waterways heritage whilst strengthening the link between the waterways and local people through elected bodies at a local, regional and national level.
Privatisation of the waterways has been repeatedly rejected as impractical and undesirable by various Governments over the last 20 years. While British Waterways manages a valuable property estate that contributes substantially to the upkeep of the waterways, it also has enormous funding liabilities which make it an unattractive proposition for privatisation.
How will the new charity be funded?
The charity will continue to be funded through a combination of Government grants, income from boat licences, third party grants and other commercial activities. The main change would be through the establishment of a guaranteed, long-term contract with Government that will give greater certainty over funding; place an ‘asset lock’ on British Waterways’ property endowment that will protect it from the whims of future government; and offer a route for growing income from tax relief and charitable sources (e.g. donations, legacies etc).
What will the funding contract with Government be?
Decisions have not yet been finalised about the scale of future funding but DEFRA have announced that funding will be fixed until 2022/23. This 10 year contract will mean that the new charity is better able to plan for the future. The contract will be for provision of services related to keeping the canals open for public use and such matters as contributing to flood control, etc. The level of funding will be decided in negotiations between government and the Transitional Trustees. At the moment, DEFRA have offered £39 million a year, a figure that is widely recognised by waterway insiders as being some £20-30 million short of realistic requirements.
What will the objectives of the new charity be?
The charity will exist to protect and promote our inland waterway network and to ensure that our unique waterway heritage will always be a valued part of local landscapes and communities. In delivering this responsibility, it will
- Own, operate and manage Inland Waterways in the United Kingdom for public benefit, use and enjoyment:
- for navigation
- for recreation or other leisure-time pursuits of the public in the interests of social welfare with a view to improving their conditions of life;
- for the improvement of commerce and industry generally
- Protect and conserve sites, objects and buildings of archaeological, architectural, engineering or historic interest on, by or associated with the Inland Waterways of the United Kingdom (“the Inland Waterways”).
- Conserve and enhance the natural beauty of the Inland Waterways through the conservation of flora, fauna and geological or physiographical features of special interest on, by or associated with the Inland Waterways.
- Promote, encourage, undertake and assist in the restoration of the Inland Waterways (whether or not owned managed or operated by it) for the public benefit.
- Educate the public about the Inland Waterways, their history, development, use and operation by all appropriate means including the provision of museums.
How will the new charity be run?
A new Members Council of representatives will be established – bringing in a range of interests such as boaters, anglers, heritage, environment, local authorities etc – with oversight over a Board of Trustees with the responsibility for the running of the organisation and for the appointment and oversight of directors. As is the case with most charities, the Trustees will not be paid.
At the Regional waterway level, local waterway partnership boards will be set up to give local waterway communities and people – for example local authorities, user groups, charities, individuals, etc. with a vested interest in the waterways – a greater role in the running of our waterways. The chairs of these local boards will have a seat on the Members Council. Trial local boards have been set up in the West Midland and North West regions of British Waterways; others are under consideration..
What needs to be done to move British Waterways into a new charity?
British Waterways and the Transitional Trustess will work with Defra and other stakeholders to put in place transitional arrangements to establish the new governance structure and agree a smooth transition into the new body.
Will there be job losses?
Job losses can never be ruled out but there will not be any as part of this move. The functions that British Waterways carries out now to care for and maintain the waterways will still need to be done. The charity that replaces it will have the same obligations to maintain the waterways for the benefit of future generations. Therefore the vast majority of BW employees will be doing exactly the same job they do now, except they will do it for the charity instead of British Waterways.
What will be the scope of the new body?
The core of the new charity will be made up from British Waterways’ existing network of canals and rivers in England and Wales. Defra has stated its intention to explore the potential inclusion of other river navigations currently under the management of the Environment Agency. The main target for this is the Thames, a move which is currently scheduled for 2014/2015.
In the future there is no reason why the Trustees of the new charity could not agree to accept the responsibility or ownership of other waterways, subject to viability, if that was the choice of the guardians of the target waterway.
What about the waterways BW currently cares for in Scotland?
The Scottish Government has decided not to include its waterways in the new charity but details of how this will work have yet to be decided.
This article was originally based on a BW press release dated October 14th 2010. That document has been updated to reflect current developments by Will Chapman. The most recent revision was made on October 19th 2011.
Loading ...
Recent Comments