As part of the budget, the Government have announced the plan to move British Waterways into a ‘mutual’ organisation, such as a charitable trust.
This is a "yes" to the BW 2020 proposals and implies a commitment to leaving the property portfolio with BW.
There is a press release from BW on this link:
http://www.britishwaterways.co.uk/newsroom/all-press-releases/display/id/2673
You can read the Government document on a link from there, but the relevant text to BW is below. There is no further detail at the moment.
My immediate reaction is positive, but the following thoughts come to mind.
That was quick, why is this announced before the election?
What happens to Scotland?
What about the level of grant in aid?
What do the Tories think and will they support if they are in power?
What legislation is required?
These are interesting times.
David
Text from the Government paper called Reforming Arm’s length Bodies
As a result of further work, the Government can announce additional reforms as follows,
subject to necessary consultation and legislation:
Mutualising British Waterways in England and Wales1
giving the waterways’ users
and the communities that live alongside a greater say in how they are managed
and reducing the long-term public liability by transferring responsibility for
waterways maintenance to the third sector
Box 2.A: Mutualising British Waterways
Since publication of the OEP asset portfolio in December 2009, the Government has been
looking at the appropriate structure for British Waterways as a whole. The work has
concluded that it would be desirable to mutualise British Waterways in England and Wales5,
giving the waterways’ users and the communities that live alongside a greater involvement in
how they are managed, and reducing the public sector’s long-term liability for their
maintenance.
There are a number of possible forms for a mutual. At present the favoured option is a
charitable trust responsible for managing waterways assets on a long lease with the nonoperational
property endowment held in a ‘charity locked’ arrangement. However further
work is needed to identify the exact form of mutual and the detail of its governance and
relationship with government. In undertaking this work, the Government’s objectives
will be to:
ensure robust governance arrangements and purpose so waterways assets and
the public benefits they bring are protected now and in the future;
develop a governance structure that allows all users, local communities and other
stakeholders to hold the new body to account; and
put the waterways on a long-term sustainable footing while reducing the
ongoing cost to the taxpayer.
A full consultation will take place on the scope and details of the model.
