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


Annex H

Extract from Meeting with British Waterways on Tuesday 14 November 2006 to Explore Policy Co-operation

  Present:  Robin Evans, Nigel Johnson, Patrick Fraher, Sabine Mosner, Jayne Redrup, Richard Bradley, and Pam Griffin.

  RE wanted to sound out Defra's appetite for taking forward BW's proposals to achieve greater self-sufficiency and to identify those which were worthy of further investigation.

WIDER POWERS

  NJ said that the Legislative and Regulatory Reform Bill was likely to receive Royal Assent in January 2007 and would provide an opportunity to secure the additional development powers BW wished to obtain. The Bill provided the powers to amend primary legislation by the use of a regulatory reform order (RRO) which would amend BW's legislation. It might also be possible to use such an order to amend and update waterways legislation applying to other navigation authorities to allow them to manage and operate their waterways more effectively.

  RE wanted BW to develop a more balanced property portfolio with a wider geographical spread so that it could grasp more commercial opportunities and exploit its regeneration expertise. SM agreed that the policy objective tied in with the recommendations of the end to end review. RB said that the proposed RRO would need to be explored with Cabinet Office in view of their overall responsibility for RROs and particularly since the Department's experience with IWAAC suggested that Parliamentary Counsel might see the proposal as changing the nature of BW rather than as lifting a burden. The first stage would be to complete a proforma setting out the proposals in detail.

  Agreed that NJ would prepare first statement of case and would approach Cabinet Office after consulting Defra.

    Action:  RB to provide NJ with a contact in the Cabinet Office and a copy of the IWAAC proforma.

    NJ to prepare background case for RRO

BORROWING

  BW wished to increase their borrowing limit of £35 million. This would require primary legislation. The 2008 Finance Bill offered a possible opportunity.

  RE said that there were other means of raising money, citing the case of the BBC who had issued property bonds. He wished to understand how this had been achieved.

    Action:  NJ to explore avenues for increasing borrowing limit and to update Defra in due course

    PF to respond on BBC point

ACCESS TO OTHER FUNDING STREAMS

  RE said that it would be helpful to know what other funding streams within Defra might be available to BW, ie grants for hedgerows. SM said she could track funding generally within Defra, but did not have detailed information readily to hand. She suggested that BW engage with Natural England—if this proved unsuccessful, she was happy to facilitate.

    Action:  RE to pursue proposal with Helen Phillips

PLANNING GAIN SUPPLEMENT

  RE said that BW should receive PGS funding by virtue of the fact that waterside developments provided a 20% uplift in prices for developers. Given the fact that it was involved in over £10 billion of regeneration, PGS could make a significant contribution to BW's income and thus reduce its burden on government. SM said that this was a different tack, as following on from the meeting between BW and representatives from DCLG and Treasury in September, the Department had adopted a defensive approach focusing on the potential losses that BW might suffer from PGS through having to pay the supplement as developer and through the potential weakening of S106 agreements. DCLG had responsibility for the policy on the distribution of PGS to local authorities and would be able to advise BW on this aspect and clarify the future position on S106 agreements.

    Action:  RE to draw up case for BW's eligibility for PGS from local authorities and provide a brief for Defra

INTERACTION WITH LOCAL AUTHORITIES

  RE said that it would be helpful in BW's negotiations with local authorities on proposed developments such as a marina, if it had Defra's backing in the form of a letter setting out national policy on the waterways.

  SM said that Government had recently issued a White Paper setting out its proposals on the relationship/future interaction between central and local government. This set a framework for engagement, with government maintaining a strategic role. Government Departments set the broad framework, eg planning guidance, but could not be seen to influence planning decisions as this would conflict with Secretary of State's quasi-judicial role. It was a decision for the local authority to decide when and if it could provide funding to BW towards the maintenance of a local canal/towpath.

SURPLUS LAND

  RE said that it would be advantageous to both BW and government if it could receive notification of government land with a waterside frontage. This need not be solely for disposal, but also where it was underused and capable of development. SM pointed to central register and the strict Treasury guidelines governing the sale and disposal of surplus government land and assets. Departments provide annual returns to Treasury of their assets [BW contributed to this return] and these returns fed into the CSR process. This was an additional source of intelligence on what was available. SM suggested that BW contact David Edwards or David Shevill on the best ways to sound out what surplus land was available—one approach might be for BW to contact the Estates Liaison Officers of individual Departments.

    Action:  BW to contact DCLG on best way forward





 
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