Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Examination of Witnesses (Questions 369 - 380)

MONDAY 16 APRIL 2007

MR SIMON ROBBINS, MR DEL BRENNER AND MR JOHN KEYES

  Q369  Chairman: Welcome, gentlemen. We are very pleased that you are able to join us. You know the format. We will do exactly the same thing, starting with Simon Robbins, then Del Brenner and on to John Keyes. If you could keep your remarks to about five minutes, that would be very helpful so we can get as many questions in as possible. Over to you, Simon.

  Mr Robbins: Good afternoon, Chairman and Members of the Committee. I will get on with it. I would like to put a couple of suggestions to the Committee this afternoon. The first thing I would like to suggest is that it is time to consider permanent independent scrutiny of British Waterways and all its activities. The reason I think it is time to consider such serious measures is that I find British Waterways' approach to many matters to be defensive, secretive, inefficient and bullying. Their attitude towards the public and their representatives increasingly seems to be, "Leave us alone and ask no questions, we know what we are doing". Another reason to apply such rigorous scrutiny to British Waterways, as was touched on earlier, is that if, for example, English Heritage said, "We are going to start selling off assets and will be redeveloping some of our sites because we can't afford to pay for those we've got", there would be a national outcry. Well, this seems to be precisely the position that current funding policy forces British Waterways into and that, in my view, has been happening for over a decade. I believe it is also time to appoint more canal users to the British Waterways Board, specifically as constituency representation for the boaters and the boating businesses who are being asked to put an increasing share of their income into British Waterways. If this trend is to continue we should at least be entitled to have an active say in how that money is raised and what it is used for. Thank you.

  Mr Brenner: I will get straight to the point: are our canals in good hands? My answer is no, not if you are talking about top management, that is British Waterways and Government. I include Government here up until now maybe, we will see. Concentrating on BW, British Waterways' role has become too dominant and too controlling, almost obsessive, there is a control freakery about it. BW has too much of a stranglehold. What this means is that the waterways have been taken out of other hands, that is obviously boaters and core users but also commercial and freight interests, marina and boatyard owners, residential moorers and so on, there is a long list of users and interests and they are sidelined. An example is the initiative for freight should be coming from industry and commerce but it seems that it cannot develop without the behest of BW, and this is the wrong way round. I would also like to identify at this stage the local authorities. All the canals obviously run through one or other local authority area stretch and that stretch of the canal should be in their hands on behalf of the community. It is gratifying that this Committee has homed in on the importance of local authorities, who have not come to the surface. I do not think it is a lack of interest on their part, it is all too often a lack of knowledge and expertise within the councils, they do not know what to do with the canals. To a great extent they have been disenfranchised, they do not think they have a right or the responsibility to become more deeply involved with the speciality of the waterways. I think this is made clear in the UDPs in the London area anyway which in most cases are very sound on waterway issues but the councils do not know what to do with their own policies, which is a bit sad really. Local authorities must be drawn in again and your Committee's concern is most welcome, Chairman. There is a point in passing, that we would like to scrutinise the BW local authority road shows that are travelling around the country—BW mentioned them at a previous meeting—about which there is very little information available, surprise, surprise. We need to confirm that BW is not taking any more into their own hands, thus disenfranchising councils even further. Also at that level, the local authority level in the London region, we had the London Plan in 2004. A whole section of the London Plan, chapter 4C, is on the Blue Ribbon Network. The waterways in London are categorised by that name. The London Plan is the best thing that has happened to the canals and the waterways in London for the last 30 years, that is no exaggeration, regardless of Acts of Parliament and government committees and so on. I commend the Blue Ribbon Network policies in the London Plan to this Committee and I think every region of the country, without exception, should have its Blue Ribbon Network policies along similar lines. What did British Waterways London do about the Blue Ribbon Network policies in the London Plan? Of course they ignored them. They do not suit BW's schemes. There are a number of examples where policies have opposed British Waterways head on and BW carry on regardless. This also raises a very good example about consultation. The London Plan took years of discussion and drafting and we were involved in the drafting process. There were endless meetings and months of consultation followed by a public inquiry, too right. However if you look at BW's Waterways and Development Plans, which went to every local authority in the land, that was produced behind closed doors by BW in 2003 without one word of consultation. In fact, no-one seemed to know about it at all. I can confirm that the first IWAAC knew about it was when they received the printed copy, and IWA likewise. This is typical of BW. The same goes for their so-called water space strategies and guidelines and things of that nature which suddenly appear from nowhere. To get back to whose hands the canals are in, the takeover as suggested, we need to look at this very closely to see what has taken hold and also ask why. It is not just about the operational financial framework of British Waterways itself that I am referring to, it is the way in which this is being operated and who the main protagonists are. The line of inquiry is in whose interest is this? Who gains out of it? We do not know the answers because BW have built a shell around themselves, as you have heard. Why has this shell been made so impenetrable? We have made cracks in the shell undoubtedly but the cracks need to be widened to reveal what has been hidden. There is something driving this and I am sure it is to do with money; it has to be. In conclusion, we, that is the wider waterways' interests, have got to take things into hand. The drive in initiative should come from the bottom up. We also want a culture to develop that it is okay to speak out about the canals and waterways, and that would benefit everyone but we are going to need a lot of help. To finish on a positive note, in London very recently TfL has got water freight in their grasp and are developing a number of very important initiatives for waterborne freight without British Waterways. BW are engaged as a navigational authority just as with freight initiatives on the Thames, for instance, the PLA are involved, but it is a very encouraging example. One overall comment to end, Chairman: we want our canals back, please. Thank you.

  Mr Keyes: Good afternoon, Chairman. Thank you very much for giving us the opportunity to give evidence today. The usage of the canals has evolved from heavy goods haulage to being enjoyed by millions of people. BW are to be congratulated for their part in this transformation but, from the perspective of a waterways user, BW do not look capable of becoming self-sufficient on the incomes that the waterways alone can sustain. The radio mast company has gone, as has the cable network business, the online holiday booking website has been losing money and the marina group has run into competition issues. Mooring fees and licence groups only account for about seven per cent of BW's income. The two pubs are apparently doing satisfactorily but none of these will be capable of turning BW around financially to the point of financial independence. However, management's challenge to try and prove that the latter is possible, together with the pressing need to keep the organisation afloat, seems to have resulted in a damaging conflict of interest between BW's role as custodian of the waterways and their drive to liquidate public assets in order to raise money. Even as BW's financial crisis deepens, and whilst this inquiry has been underway, we have learned that BW are to put a further 80 pieces of canal side land on the market and that most of these are currently let on a short-term basis and house boatyards and warehouses, which is rather an all too familiar story. When BW to decide to sell off some waterside land, do they agonise over the paradox between their role as custodian and steward and their need to raise income? The latter usually takes priority with the justification put down to insufficient government funding. It somehow gets left to planning departments and concerned individuals to defend a thin brown line of canal against BW's drive to eliminate waterside assets and convert them into developments that will only satisfy land oriented demand. Should BW not be the first to ask searching questions about the operational value of the land, access to the water, potential freight usage and the effects of their proposals on local communities and businesses? This does not seem to be the case. So how efficiently do BW generate income from their property portfolio and in what way does all of it get ploughed back into the waterways? For a member of the public it is almost impossible to know because BW consistently deflects such questions on the grounds of commercial confidentiality. BW's business as a publicly funded organisation remains disturbingly private as more waterway assets fall under private control with agendas not regulated according to the core BW policy guidelines. If the network under BW's control is costing £124 million a year to maintain, and there are 2,200 miles of canal, then that works out at £56,363 per mile per year. Robin Evans tells us that a huge amount of expenditure goes under the water, which is worrying, but implies that the public do not get to appreciate it. However, as a waterways user I find it extremely hard to equate the claimed level of average expense with the poor levels of maintenance evident along the track. It is very much hoped that one of the actions of this inquiry will be to engage in a very detailed and penetrating audit that will finally ventilate the truth about how sustainable this particular incarnation of BW really is. We believe that British Waterways grant-in-aid funding should be restored, but not before there has been a root and branch overhaul of the whole management system and senior personnel at British Waterways. The membership of a restructured board should include user group representatives serving upon it so that the organisation can get some feeling back into its extremities and the property development culture that has arisen moderated. Funding should be paid at a level where BW are able to manage and maintain and modernise the waterways in their charge and attract investment without resorting to selling off public assets. As income streams start to grow again in a less commercially stressed environment funding could be reduced proportionately. Finally, may I say perhaps a new Waterways Act of Parliament could be called for that properly reflects the way in which the uses of the canals and rivers are really evolving and includes legislation to protect these waterways from pressures that currently threaten to overwhelm them. Thank you.

  Q370  Chairman: Thank you, gentlemen. Can I just ask the initial question, and that is how much engagement do the three of you have with BW? Are you involved in any of the formal bodies that have taken evidence or are you basically working off your own bat?

  Mr Robbins: Maybe if I can start that. I am a council member of the National Association of Boat Owners and I am the National Association of Boat Owners representative on a thing called the British Waterways Moorings Contracts Working Group. I was a consultee to the then Office of the Deputy Prime Minister on residential boating issues, so I have a very active engagement with British Waterways, but I cannot speak for my colleagues. I am also a member of the London Waterways Commission.

  Mr Brenner: I have a fairly active involvement with Waterways at the lower level. At the moment I have not got a very active engagement with the executive at the higher level and I have made it clear that I will not have regular meetings and discussions with them until they start listening, and that is how things stand on that. Nevertheless, on a day-to-day basis in the locality I deal with British Waterways. I am an active member of the User Group Association of Boat Owners. I am also a member of the London Waterways Commission, which is a GLA advisory group that engages with BW at that level.

  Mr Keyes: I, on the other hand, am a relative newcomer. I have only been involved with British Waterways for the last 18 months through having been elected to be a spokesman for the residential boaters, People of Jericho, in Oxford. Through negotiation, sometimes at quite high level, I have got to know quite a few BW managers and to interact with them, which I have to say is a task that has been very, very trying at times because you can engage with them and they will be perfectly agreeable and make promises but they never materialise. That is about the extent of my involvement with BW today.

  Q371  Chairman: You heard the previous evidence session where there were some fairly stark opinions on the degree to which BW as a developer should be distinct from BW as a manager of the network. You have touched on those issues, but what fears do you have if BW becomes much more orientated towards developing its waterside sites as a way in which it could generate sufficient income to be able to bridge this gap at the moment?

  Mr Brenner: I think our fears have already been realised. There is enormous neglect on British Waterways' part of its navigation duties, its stewardship duties on the waterways and its property development, and a very serious conflict of interest. There is one that has just arisen with which I am dealing on Limehouse Cut where British Waterways has two sites very close together, one where British Waterways objected to a five storey building which they thought should be set back from the water because of the negative impact on the water, and they then were involved with a 12 storey building just a few hundred yards down the Cut that they had no objection to and no comment about whatever because they were involved with a company called H2O Urban as a partner, so they made no comment about the development in any way at all. That is one example but there are many others. I can give you the rather tragic situation at Brentford where there was a total compromise. There are many examples like that where there are serious conflicts of interest and this is a matter that is already influencing the situation.

  Mr Keyes: Personally I do not have an issue with British Waterways developing genuinely brownfield land. There are cases like Diglis Wharf where you have got a central location which has been used for the trans-shipment of goods and it is clearly not appropriate in this day and age but when BW developed that site they did not replace those facilities which are probably now going to be needed if they carry forward with their intentions of putting freight back on the waterways. Similarly, at Castle Mill Boatyard in Oxford, the local plan stipulated that the lost facilities should be replaced and the Government inspector's report upheld this at appeal and those facilities are supposed to be replaced at an equally accessible and suitable location. We have been working with BW for the last year or so with a view to helping them achieve this aim so they can get their planning permission and they can get on with selling the site, however they have sold the site on without planning permission for considerably less than what it was worth, which I understand is in breach of one of their founding statutes under the 1968 Transport Act which insists they get the best value, and the community in Oxford still does not have a boatyard. It is not so much a development problem, it is inappropriate development and failure to replace facilities which are, after all, waterways facing. The other issue I have is that a lot of their developments are very much land-based, in other words offices and housing, and do not reflect the character, heritage or use of the waterways.

  Q372  David Lepper: Mr Robbins, in your evidence you say: "My impression is that British Waterways are relying far too heavily on local authority planning processes to do (or not) the sorts of consultation that they should ideally be undertaking from the outset".1[9] I think you suggest that either an unwillingness or cack-handedness in dealing with those who might be their partners might well have jeopardised some of the kinds of property dealings that we have been discussing this afternoon. Could you just say a little more about that?

  Mr Robbins: There is a whole lot more I could say about that.

  Q373  David Lepper: Within the time constraints available.

  Mr Robbins: Certainly. I draw a comparison with the sector I work in professionally, which is the public housing sector. I work as a management consultant specialising in regeneration and stock transfer of housing estates. If I compare the lengths my clients go to when they are proposing to knock down something as small as a 1,000 unit housing estate in terms of the consultation they do, the contact they make with users, the extent they all do that, with the way British Waterways approach property development, there is no comparison. That is why I have said in my submission it seems to me, and one of the other witnesses touched on this a little bit earlier on, British Waterways just from a purely business point of view should be doing that sort of preparation on their schemes in advance and they do not do it. John Keyes can talk more about that. The worst case example is the Castle Mill situation in Oxford.

  Chairman: That is an invitation to John Keyes. We have got your written evidence but just pithily explain to us what you think went wrong.

  Q374  David Lepper: Does Mr Keyes feel it is a lack of the right expertise within British Waterways or is it what others have described as an overbearing attitude which makes them fail to see what they ought to be doing?

  Mr Keyes: I think it is a lack of the correct expertise. I do not think that British Waterways have attracted the right kind of staff. There is an increasing number of property specialists who clearly have interests which are understandably very different from those that we hold dear concerning the waterways and we believe they have an overweening interest. I put it down to serious mismanagement. We took the view that it is a great shame that a boatyard is going to be lost after 170 years but times move on, you cannot put industrial smack bang next door to residential any more, and all BW were asked to do was to comply with the local plan, not to comply with the wishes of a few distressed boaters. Support came from the city council and even from the judge who eventually evicted the boaters from the site. There has been massive mismanagement, they have squandered a large proportion of the four million quid they got for the site in legal fees struggling with Oxford City Council, alienating the local community and completely mismanaging the whole thing. We have been trying to encourage them to take the steps to get their planning permission and they have fallen down 100 per cent, I am sad to say. We have looked for glimmers of hope and taken it to various different managers, gone to the board, gone to senior managers, but it has been like a stick of seaside rock, and my contention is that the incompetence seems to run right through it, up to and including the board and senior management itself.

  Mr Robbins: Very briefly on that situation, the Committee was asking about my contacts and involvement with British Waterways. I have made various attempts to broker contact between British Waterways at director level and the community in Oxford and I have to say it was like a phrase I call cutting treacle with a railway sleeper. I think you get the general impression.

  Q375  Mr Jack: In your evidence, Mr Robbins, you say: "There is also a fear amongst some stakeholders that BW are currently so financially fragile that they are unduly commercially exposed".[10] Can you give us some further solid evidence to support that? What are the consequences of that statement?

  Mr Robbins: The honest answer is I cannot give you solid evidence for reasons that other people have touched on. When we try to seek solid evidence of what is going on financially with British Waterways we seem to keep meeting with hurdles. I have got some papers in a file here, and I will not go through them because I do not think there is time, but it took approximately 18 months for British Waterways Advisory Forum—this is supposed to be the senior consultative body in British Waterways that directly reports to the board—from them asking British Waterways to produce a document explaining the basics of how their property portfolio worked and even that did not go into the financial details. The other thing I would point to is I think it was in the transcripts of British Waterways' evidence when Robin Evans made a very interesting point about how British Waterways' income is reliant on dividends rather than rent. You were talking earlier on about risk, and dividends are a risk and that does not seem to me to be a very stable or reliable financial basis on which to proceed.

  Q376  Mr Jack: Are you able to substantiate paragraph 43 of what you put in as evidence to us where you say: "However, I believe BW have reached the point where most of the family silver on which to base such activities has been exploited (not always successfully). There is therefore a fear and increasing evidence that BW are becoming engaged in much more speculative activities."

  Mr Robbins: I am not sure I can provide you with much evidence on the first part of your question for the reasons I said: to get such evidence I rely on British Waterways and I do not find them at all forthcoming on this point. On the speculative side of things, I touch on what I was saying before. The section I referred to was where it was the Chairman of British Waterways who talked about reinvesting capital into other capital projects and not being able to take capital out. Again, there is no real scrutiny of where and why particular sums of money are being invested. There was an example about two years ago where British Waterways reportedly spent £25 million or thereabouts buying a wharf building next to the canal in Camden. That may be a sensible idea as a speculative property development but apart from the fact that the building is next to the canal I am not quite sure what it has to do with the waterways.

  Q377  Mr Jack: Mr Brenner, in your evidence which focuses, I think understandably, on matters connected with London, would you like to say a word or two about the freight potential? If you could just park the Olympics project for one moment because I think we have been pretty well advised on that and we are going to have a look at it; in a major metropolis like London what potential exists for meaningful development of freight traffic?

  Mr Brenner: I think it has got enormous potential. I am an optimist but realistically you have got to look further ahead than most people look. They say, "There is a niche opportunity for freight" but I think it is a great deal better than that with a bit of vision. In London there is a 30 mile stretch without any locks at all and that is a wide waterway for 14 foot barges, so there is the potential for a very substantial highway right through one of the greatest cities and if it cannot be taken advantage of then I do not know what is going on. It also runs straight through Park Royal, which is one of the largest industrial sites in Europe, and, again, if it cannot take advantage of that I would be very surprised. It is more than a niche market, it is more than aggregates or waste/recyclates. Waste/recyclates is a big issue in London and there is a great deal of upheaval at the moment with the Mayor deciding to reorganise the whole of London's waste, a great deal of which is already taken by the water, not on the canals, down the Thames to Mucking in the Thames Estuary. Nevertheless, there is a great opportunity which will spread on to the canals. Containerisation is a great opportunity. That has revolutionised freight since the demise of the canals and I do not think how containerisation can be taken advantage of on the canals has been considered carefully. As an example, there is a huge industrial site at Tottenham Hale up the Lee Navigation, which is a commercial waterway, and it is one of the seven largest waterways in the country. An enormous number of containers go from Tottenham Hale to Tilbury. There is a direct route from Tottenham Hale to Tilbury down the Lee Navigation through Bow Locks and down the Thames on a direct line to Tilbury without going near the roads. It needs to be looked at in a broader way and with a bit of vision there is great potential for it. Not long-haul. I suspect that something like Tottenham Hale to Tilbury would be considered a long-haul. There are not many locks so it is quite a suitable route, but generally on the canals it would be short-haul, and certainly not like in the city or anything like it was in the old days, certainly within the London region. In fact, with the development of King's Cross, which I have been involved with for the last three or four years almost on a weekly basis, we are developing a route for supplying supermarkets with food in King's Cross. People believe it probably takes weeks to get there but we can supply supermarket goods from Park Royal to King's Cross within four hours, which is not quite as fast as a truck but not far off. Including even refrigerated goods because there is no reason why there should not be refrigerated containers. We have taken that example which we are still developing and I am afraid that the authorities at King's Cross and Camden have not taken it up, we are still developing the idea, but it provides an exceedingly good example. Whether it comes off or not is another matter.

  Q378  Mr Jack: Can I just ask who the "we" are?

  Mr Brenner: I am the Vice-Chair of the King's Cross Forum, so we are dealing with the matter on behalf of the community in the area. I very often use the term "we" because I work with other organisations, very often running what is called the Regents Network. It is not an organisation, it is a network, and I call myself the spokesman of the Network, very often voicing other people's points of view. The information I give to you, where do you think I get that? I get that from the operators and other people. I act as a spokesman in that way. "We" means me expressing it but very often with the engagement of other people.

  Q379  Mr Williams: Mr Brenner, you have given us some examples of good practice from local government in London in terms of the users of the waterways network but in general perhaps it is thought that the relationship between British Waterways and local government is not as good as it should be. Could you give some examples of how that relationship could be improved? As I understand it, at the moment local authorities have a power to work as partners with British Waterways but there is no duty and in that sense no initiative. I do not know whether you have any thoughts on those matters?

  Mr Brenner: I would rather put it in the way that British Waterways does not work with local authorities, which is very seriously lacking. I go round to an enormous number of local authority meetings, planning meetings particularly, probably fighting last ditch battles against planning applications which are detrimental to the waterways, and I am not always a lone voice because there are other waterway people there, local residents and so on, but who is never there? British Waterways is never there, and I mean never. You never, ever see them at planning meetings. Very often the written input into the planning consultation is either very meagre, not there at all or "no comment". It is very rarely of any practical use or informative. When we respond to planning applications we do make it informative because with the local authorities who do not know a lot about the waterways we want to assist them to acknowledge the waterways and understand the waterways so that they can take the decision rather than us telling them what to decide. Informing the local authorities is very important, it is crucial, but BW does not do it, they are just not there. What are they up to? They have 140-plus staff in London and increasing, we do not know what half the staff do.

  Q380  Sir Peter Soulsby: Can I just return briefly, Mr Brenner, to the example you gave of potential for the use of freight. I was very taken by the figures Sir Adrian gave us earlier about the economics of freight. Is it not true that use of the sort you described, while superficially attractive, is never going to add up? Even the example you gave of four hours there and four hours back to serve supermarkets is never going to make commercial sense to anybody, is it?

  Mr Brenner: Four hours there and four hours back with a barge which will take four lorries off the road. A lorry might take about half the time to get there but that one barge is doing four lorries worth, so there is an economic issue there. This does need to be thought through. We are coming across a lot of problems on the economy of scale and to do a one-off setup for that King's Cross example is not perfectly viable, although it is pretty good. What we really want to do is to prime some sort of freight initiative in London so that everybody sees the freight working on the waterways and hopefully they will see the example and want a bit of it. From all of the industrial people we have talked to, all the people on the waterways, there is no ill-will at all, they want to have a part of it, but say, "We don't do freight any more otherwise we would love to be involved". Once something kicks in I think it will snowball. We need to have some sort of vision to try to see if we can make it work somehow. I have not got the answers, I am quite honest about that. We have dealt with it so much and talked to so many people that it has got a lot of people behind it.

  Mr Robbins: Just a very quick comment on freight. I agree in part with Sir Peter's query that freight in itself is not likely to save the waterways, and I think other speakers have said that to you pretty much throughout. What I do object to is it is something that I would call a bread and butter activity, it is not exciting, it is not going to save British Waterways, but it is navigation. They are a navigation authority first and foremost and they should be encouraging it. They should not necessarily be subsidising it. That is what concerns me, that I do not even see that encouragement where it is possible being followed through. A very quick example: there was a whole story about a planning application for the wharf in Willesden where I heard from the local authority that they were completely confused by British Waterways' presentation of the scheme but it was campaigned for and at least two of us at this table worked with the local community and planners to explain what it was about. That is the sort of thing that alarms me when it comes to freight.

  Mr Keyes: I do not think you can put freight back on to the narrow gauge canals any more than you can revert to a horse and cart because it is low carbon, but in areas of high congestion where lorry loads travel extremely slowly and cause quite a lot of damage to the carriageway and you have got the whole traffic problem I think freight has a part to play. I also believe it is sustainable and it is quite possible, I would imagine, to get some kind of carbon credit or something in return for the fact that a barge uses nine times less fuel or carbon per tonne than a lorry does. I imagine it could be financially sustainable even if, as Simon says, it is not producing a huge amount of money. I think the waterways authority have an obligation to facilitate it wherever it is possible.

  Chairman: Gentlemen, thank you very much for your evidence. You heard what I said previously, that what has been said is said and cannot be unsaid but there may be some additional points you wish to emphasise or enhance and we are willing to receive them. I thank you for your evidence and for coming all this way in some cases. It will be written up and published and will play a key part in our evidence and our eventual report. Thank you very much. If you could exit stage left we will get in our final three witnesses.





9   Ev 142 para 53. Back

10   Ev 142 para 49 Back


 
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