Select Committee on Culture, Media and Sport Minutes of Evidence


Memorandum submitted by the Heritage Lottery Fund

1.  THE ROLE OF THE HERITAGE LOTTERY FUND AND THE NATIONAL HERITAGE MEMORIAL FUND

  Heritage Lottery Fund (HLF) is the body that distributes the share of funding raised from the National Lottery to heritage projects. The Fund opened for business in January 1995 and since then has given around £3 billion in 15,000 awards to heritage projects. The aims of the Fund are:

    —  to conserve and enhance the UK's diverse heritage;

    —  to encourage more people to be involved in and make decisions about their heritage; and

    —  to ensure that everyone can learn about, have access to, and enjoy their heritage.

  A further aim is to bring about a more equitable spread of our grants across the UK. The parent body for HLF is the National Heritage Memorial Fund (NHMF), which was set up by the National Heritage Act, 1980 with wide powers to fund heritage throughout the UK in memory of people who have given their lives for the UK. The NHMF still operates as a separate fund. It administers the Heritage Lottery Fund.

  HLF currently distributes 16.66% of the money for good causes. At first, HLF concentrated on capital works, conservation and acquisitions. The National Heritage Act 1997 formally extended its remit in 1997 to encompass activities such as improving access, learning opportunities, skills and helping people enjoy heritage.

  In 1998, the Secretary of State for Culture, Media and Sport issued revised policy directions to the Trustees setting out the matters they should take into consideration when deciding on grants. These still apply. These require the Fund to consider carefully how to use grants to meet the needs of the national heritage, to promote access for people from all sections of society, to promote knowledge of and interest in the heritage by children and young people, to achieve sustainable development and to reduce economic and social deprivation. Projects also need to be time-limited, financially viable and deliver an element of partnership funding and working with other organisations. HLF submitted evidence to the previous Culture, Media and Sport Select Committee that inquired into the preservation of HMS Cavalier.

2.  FUNDING FOR HISTORIC VESSELS AND MARITIME HERITAGE

2.1  Awards to historic vessels

   Since 1994, HLF has awarded £38.6 million to 68 projects relating to 44 individual vessels, including maritime vessels and excluding those relating to inland waterways. Our awards range from the conservation of the remains of the Mary Rose and the Dover Boat, to working vessels such as the Waverley Paddle Steamer. We have funded larger vessels such as SS Great Britain as well as smaller vessels of local interest such as the MV Wincham or the Portwey lifeboat. That funding has covered a range of activities, including the conservation and refitting of vessels, interpretation, the acquisition of objects and the refurbishment of facilities. HLF has also contributed towards the planning costs of projects. NHMF has contributed an additional £1.5 million to five vessels.

  As an example of a larger project, HMS Trincomalee is the oldest ship afloat in the UK and the last surviving example of a classic Royal Navy frigate. HLF has supported the restoration and interpretation of the ship in Hartlepool where the South Docks are being transformed into a major visitor destination and commercial area. The project is an example of a conserved vessel leading a regeneration scheme and has won a number of awards.

  Under Awards for All, the small grant scheme run jointly with other distributors, there have been 21 projects in England, seven in Scotland and two in Wales which include works to historic boats or their infrastructure.

2.2  Maritime heritage

  Many of these awards also include funding for related maritime heritage such as facilities on the dockside. In addition we have funded a wide range of maritime heritage projects, including maritime museums and collections, and built heritage including piers, docks, harbours and other historic maritime features.

  For example, Chatham Dockyard has received 18 awards totalling £12.8 million which include funding to vessels and to associated infrastructure. After its closure a Trust was established to preserve Europe's most complete example of an 18th century dockyard. A museum was opened in April 2001 and HMS Gannet (1878), HMS Ocelot (1962) and HMS Cavalier (1944) have been brought together in an accessible environment that will ensure their long term future. The project has benefited the vessels but has also brought wider regeneration benefits. The dockyard is helping to support the wider leisure and retail economy. Research by the Southern Tourist board concluded that the dockyard is worth £20 million per annum to the local economy.

  In Scotland, the repair and refurbishment of the former premises of the fishing boat builders Smith and Hutton has enabled the Scottish Fisheries Museum to provide covered accommodation for the conservation, display and maintenance of the museum's collection of historic fishing boats, including the "Zulu" fishing vessel also supported by HLF. Visitors can also see conservation work being carried out by volunteers and museum staff.

3.  ISSUES RELATING TO THE FUNDING OF SHIPS AND MARITIME HERITAGE

3.1  Availability of funding

  The earlier Culture, Media and Sport Select Committee inquiry noted that the Government has effectively placed the onus for funding ships on HLF. We have given considerable support to maritime heritage and remain fully committed to it as part of our broad range of projects. However, with some exceptions, the Fund does not allocate fixed sums to specific categories of heritage and we do not envisage a discrete funding stream for historic vessels. Applications for HLF funds exceed the sums available and therefore difficult choices have to be made. This situation may become more acute as a result of Clause 8 of the National Lottery Bill currently before Parliament and if London succeeds in winning the bid to host the Olympics in 2012 (and the subsequent Olympic lottery draws money away from existing good causes, as predicted). In the longer term, the HLF share of Lottery funding is only guaranteed until 2009. If it were to be reduced in the future, competition would inevitably increase.

3.2  The needs of ships and maritime heritage

  HLF cannot fund all the needs of historic vessels or of maritime heritage. The National Register of Historic Vessels (NRHV) identifies over 1,500 larger vessels, of which 58 are in the Core Collection of pre-eminent national importance and 155 are designated as being of greater regional or local significance. The NHSC has told us that 20 of the 58 vessels in the Core Collection are at risk, eight seriously so. Twelve of the vessels we have funded are in the Core Collection and a further seven in the Designated list. Other awards have been to smaller vessels that do not qualify for inclusion on the register or to projects which demonstrate wide public benefits. Inclusion in the register provides a valuable peer-reviewed indication of the heritage merit of a vessel, but is only one of the criteria HLF takes into account in making a decision.

  The Transport Trust has assessed the needs of smaller vessels not covered by the NHSC register such as canal and inland waterways commercial craft, lifeboats, classic motor boats, fishing and military boats, as well as museum collections. They estimated that there are around 11,000 such vessels of which 500 may be of considerable historic interest. The majority of conservation is voluntary and led by individuals, although museums do play a role. The Trust identified a need for support for private individuals, training in traditional skills, a focus of activity around boatyards, and safe storage for boats at risk pending restoration.

  Whilst some of these aspirations could be delivered through HLF projects, the Fund gives priority to not-for-profit organisations. It is also only able to offer time-limited funding.

3.3  Conservation costs

  One of the most difficult issues for HLF has been the relatively high cost of conserving some historic vessels. Such work also poses technical challenges. Waterlogged wood, once removed from anaerobic conditions which originally preserved it, can be costly to preserve and maintain indefinitely. Vessels preserved in dry dock, such as the SS Great Britain and the Cutty Sark are in effect historic buildings, facing very different conditions than those for which they were designed. The long term implications of many conservation techniques are unproven, and it can be difficult to justify such costs in a competitive funding environment.

3.4  Maritime heritage and regeneration

  Our experience has shown that conserved vessels, such as RRS Discovery, HMS Trincomalee and SS Great Britain can play an important role in regeneration. The presence of a conserved historic vessel can add character and distinctiveness to a waterfront and successful projects can generate jobs and attract new investment. We would hope that Regional Development Agencies and planning authorities would recognise, support and plan for maritime heritage as part of regeneration strategies. The benefits created by regeneration may be one way of off-setting the high cost of preserving vessels.

3.5  Sustainability

  We ask all applicants to demonstrate that their projects will be financially viable in the long term. The costs of operating a historic vessel may be difficult to recoup through admissions charges or paying passengers. Our grants are generally time limited and it is difficult for us to support a long-term revenue deficit.

  In addition, many larger preserved vessels require associated dockside facilities such as toilets and interpretation space, if they are to operate as visitor attractions. The long term preservation of a larger vessel thus often raises important planning issues.

3.6  National Historic Ships Unit

  In our response to the recent government consultation, Ships for the Nation, we welcomed the creation of a new unit and look forward to working closely with it. However, we also said that we must continue to consider each project on its merits against our published priorities and available resources. It is not possible for us to pre-determine a number of vessels from the register as suitable for grant.

4.  CONCLUSIONS

  Applications to preserve historic vessels can be challenging. Conservation costs may be high, techniques unproven and long term financial sustainability difficult to establish. There may be a lack of shoreside facilities to provide education and access. At the same time, vessels have the potential to make an important contribution to regeneration and to public enjoyment of heritage.

  HLF has a strong track record of funding for maritime heritage but we cannot meet all of the needs of the sector. We would look to the new unit to demonstrate policy leadership, particularly in helping to build capacity in the sector, to help identify priorities and to seek new partnerships in preserving and sustaining maritime heritage for the future.

27 January 2005





 
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