DEFRA Funding Cuts- Impact on Waterways

In a previous post I mentioned the cuts to DEFRAs budget. I payed particular attention to waterways. Please read on to get an overview of the effects of the cuts on waterways as written by one of our Aire Action Leeds reps; Ian Moore of the Inland Waterways Association- West Riding Branch.

Report to KEoL Meeting for 5th February 2008
At the adjournment debate in Parliament on the future funding of canals in the UK on Tuesday 11th December, the Waterways Minister, Jonathan Shaw MP, said that he expected the budget for British Waterways would now be broadly around flat cash for a three-year period.

This sounds better than the previously reported Comprehensive Spending Review settlement to British Waterways for the next three years which was suggested to be £54 million minus 5% each year.

However the full details of the final settlement are not expected to be announced until the end of February 2008.

British Waterways has just announced (4th February 2008) that it has decided to withdraw from a major partnership project (the Cotswolds Canals Partnership) following a review of funding commitments for the next financial year and the diversion of significant funds to progress the urgent first phase of a repair programme for the Brecon & Abergavenny Canal, which breached last year.

The IWA has strongly condemned this decision as it puts at risk a £11.9 million grant from the Heritage Lottery Fund.

There is still concern about the rising cost of waterways use leading to the less well off and the elderly on fixed incomes being priced off the water. BW has for example announced an average mooring price increase of 7.4%.

This will ultimately result in social exclusion from the waterways if only the affluent can afford to go boating. And this could create further division between the boaters who are individually paying the most and the other users, like walkers, who are individually paying substantially less through taxation.

Further information can be found at www.waterways.org.uk

Report to KEoL Meeting for 4th December 2007

It was reported in mid November that the Department for Environment Food and Rural Affairs (DEFRA) are having funding problems due to the costs of the outbreaks of Foot and Mouth Disease, Blue Tongue Disease and Bird Flu. And there would be no additional money available from the Treasury. This would make further funding cuts seem likely to British Waterways (BW) and the Environment Agency (EA), which are DEFRA sponsored agencies.

This is on top of the recent funding cuts, which started in 2006, when DEFRA was unable to meet its financial obligations due to a major overspend particularly over late payments to farmers via the Rural Payments Agency. With no further funding available from the Treasury, it cut funding to the various agencies under its control, including the Environment Agency and British Waterways.

For the following year, British Waterways’ grant-in-aid from the government for 2007-8 was cut by 12½% from it’s 2005 level of £62.5 million.

There was a campaign against the cuts, and in parliament there were numerous early motions, 3 adjournment debates and a select committee report into BW, which is available at: www.publications.parliament.uk/pa/cm/cmenvfru.htm

As part of the cabinet reshuffle at the beginning of July 2007, there was an almost complete change in Ministerial posts at DEFRA with only Lord Rooker remaining. Local MP for Leeds Central, Hilary Benn became the new Secretary of State for the Environment, Food & Rural Affairs. And a new Waterways Minister (Jonathan Shaw, MP for Chatham and Aylesford in Kent) was appointed.

The new DEFRA team has said it will do "everything within its power" to assist British Waterways. And there have been some discussions about changes that would allow British Waterways to use its assets more effectively.

However the Comprehensive Spending Review settlement to British Waterways for the next three years is reported to be £54 million minus 5% each year. And the parliamentary select committee were extremely concerned at BW’s forecasts of the impact of this settlement on the maintenance of its waterways network.

British Waterways has been hard hit by this summer’s flooding and the recent breach in the Brecon and Abergavenny Canal - a total additional cost of over £10 million.

BW is currently consulting on a 33% or more boat licence increase over the next 3 years. Other costs such as moorings are rising. There is a concern that this will price some people, especially those with fixed incomes, off the waterways. And of course will have a knock on effect on waterside businesses etc.

The cost of boating has been rising above inflation for some years and is becoming something that only the better off can afford and thus an issue of social inclusion. And it has the potential to polarise users. Those that are paying the most may feel that they should have first call on how money is spent.

But boats using the waterways bring them alive and are an essential ingredient to making the waterways so appealing to so many people.

And of course cuts in maintenance can affect all waterways and towpath users.

For the UK population of 60 million, the grant-in-aid from the government to British Waterways works out at less than a pound per head per year.

For the latest Information see the IWA’s Head website at www.waterways.org.uk

There was a Westminster Hall debate on the issue of waterways funding held on 11/12/07 see:
http://www.publications.parliament.uk/pa/cm/cmtoday/cmwhall/01.htm#hddr_4


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