Memorandum submitted by the Company of
Proprietors of the Stroudwater Navigation
This document is assembled in four parts in
accordance with the Select Committee "Guide for Witnesses;
written evidence" document—i.e. Summary, Brief Introduction,
Factual Information; Recommendations for the Committee to consider.
1. SUMMARY
1.1 British Waterways have attempted to
solve a short-term (albeit major) financial problem on their network
at the expense of longer term, strategic gain to that network.
In doing so, they do not appear to have had due regard to the
national priorities for canal restoration, the issues of economic
regeneration in the Stroud Valleys, or of their obligations contained
in a property and operational Lease which they obtained from this
Company for the express purpose of restoring the Stroudwater Navigation.
1.2 The three recommendations listed in
Section 4 of this submission are designed to address the principal
points made in Clause 1.1 above, whilst permitting latitude for
British Waterways to seek ways of overcoming the current financial
crisis in a reasonable manner.
2. INTRODUCTION
2.1 I am the current Chairman of the Company
of Proprietors of the Stroudwater Navigation. The Company was
constituted by Act of Parliament in 1730, and has remained in
existence since that date. In 1954, a further Act removed the
duty on the Company to provide navigation on the canal known as
the Stroudwater Navigation, and amended the framework within which
the Company operates.
2.2 The Company exists to manage the land
embracing the Stroudwater Navigation canal; it has no employees
and Directors are not paid, nor do they normally receive expenses.
There are shareholders with 200 shares in the Company ( a figure
laid down in the 1954 Act). The majority of those shares are held
in trust "for the good of the people of Stroud and the surrounding
area".
2.3 The Company of Proprietors leased all
its property to British Waterways in April 2005 for a period of
999 years, retaining the significant archive of the Company and
its operation of the Canal. The specific purpose of that Lease
is to enable the restoration of the Stroudwater Navigation, and
the abutting Thames and Severn Canal, which together comprise
the Cotswold Canals, and to maintain and operate that Canal.
3. FACTUAL INFORMATION
3.1 The Lease referred to in 2.3 above contains
a Clause (3.2) which states;
(3.2.1) At any time prior to the commencement
of any restoration;
(3.2.2) If restoration of a Navigable Channel
has not been achieved within 30 years of the date of this Agreement
[April 2005] or such longer period as may be agreed between the
two parties acting reasonably
The Tenant [British Waterways] may serve notice
to terminate this Lease as set out in Schedule 5 hereof
Schedule 5 permits the Tenant to terminate the
Lease prior to restoration being completed if, in its reasonable
opinion, the provision of a navigable waterway is not feasible
"due to unavailability of funding or other reasons beyond
its immediate control".
3.2 Restoration commenced in November 2007,
removing 300m of infill and recreating one bridge. Therefore Clause
3.2.1 above does not apply.
3.3 Clause 3.2.2 above specifies a period
of 30 years for the achievement of a navigable channel. It is
quite clear that, after only 3 years of the 30 year period, it
is not possible to demonstrate that a navigable channel cannot
be achieved. With regard to condition in Schedule 5 (in italic
above) funding has been available up to January 28th 2008, and
that the decision taken by the BW Board on that date was a step
entirely within the immediate control of the Tenant. The combined
effect, therefore, of Clause 3.2.2 and Schedule 5 is that British
Waterways will retain the Lease.
3.4 Another Clause contains the following
requirement; Prior to the Restoration Date [completion of restoration]
the Tenant will continue to take all reasonable steps to obtain
third party funding, . . . . . . . . . . . ..
In order to abide by the terms of the Lease, it is
difficult to see how British Waterways can withdraw from the Cotswold
Canals Partnership.
3.5 The Cotswold Canals are the top priority
for canal restoration throughout the United Kingdom. This has
been repeated identified as such by British Waterways in successive
Annual Reports and in their document "Our Plan for the Future".
3.6 The Aims for British Waterways, mandated
by Government in BW's Framework document state the following key
objectives;
— to maintain and develop our inland
waterways in a sustainable manner so that they fulfil their full
economic, social, and environmental potential
— promote and enable rural and urban
regeneration
— maintain and enhance leisure, recreation,
tourism, and educational opportunities for the general public.
3.7 Government policy documents for Rural
and Urban Regeneration, and the policies contained in "Waterways
for Tomorrow" require British Waterways to maximize canal
restoration to achieve the best possible regeneration. BW endorse
this mandate in a recent Annual Report;
"Along with our existing property and waterways,
we work tirelessly with partners to help restore derelict waterways
with an end aim to provide even further regeneration and public
benefits.
Canal restoration projects are often the most
visible or tangible evidence of our wider cultural commitment
to regeneration—a commitment that recognizes the increasingly
valuable contribution that waterways make to the quality of local
life today."
3.8 The press release issued by British
Waterways on 4th February 2008—without prior warning—announced
their intention to withdraw from the Partnership. In the same
statement, BW listed several waterway restorations with which
they propose to proceed, even though these are of lesser strategic
significance than the Cotswold Canals.
3.9 The Cotswold Canals measure 57 km in
total, and, when restoration is completed will form a key element
of the national network.
3.10 A length of 5 km of the Stroudwater
Navigation constitutes 55% of the current Phase 1a project for
which British Waterways, as lead Partner, obtained funding amounting
to £37 million in total, on behalf of the Partnership for
the dual purposes of canal restoration and economic regeneration.
The base estimate for the engineering of the Phase 1a project
totals £15.2 million.
3.11 According to studies carried out by
British Waterways, restoration of the Cotswold Canals Phase 1a
is forecast to generate 620 jobs (Project Atlas 2005). The Cotswold
Canals are of high heritage value and with strong community support
and involvement.
3.12 The reason given by British Waterways
for withdrawing from the Partnership was due to a "one-off"
financial problem with the Monmouthshire & Brecon Canal. It
was stated that failure to address this problem would result in
loss of an unspecified number of jobs and downturn in the local
economy.
3.13 We understand ("The Citizen",
February 15th 2008) that opportunities for funding the repairs
of the Monmouth & Brecon Canal may exist through freer borrowing
powers which may become available to British Waterways and through
suitable approaches to the Welsh Assembly.
4. RECOMMENDATIONS
FOR CONSIDERATION
BY THE
SELECT COMMITTEE
4.1 THAT British Waterways be directed not
to withdraw from the Cotswold Canals Partnership—Reason
; there appears to be good reason, in the long term, for BW to
retain a strong interest in this canal and, indeed, reason in
the short term with regard to land ownership, technical standards
and methods for restoration, through the provision of advice.
Also there is a commitment within the British Waterways Lease
with the Company of Proprietors to continue to seek funding for
the restoration of the Stroudwater Navigation. [ 3.3,3.4, 3.5
& 3.6]
4.2 THAT British Waterways be required to
have proper regard for the agreed national priorities for restoration
of canals. Reason: in reaching their decision, the Board of British
Waterways appear to have disregarded currently adopted national
programmes.[3.5 & 3.6, 3.7 & 3.8]
4.3 THAT British Waterways be directed to
seek sources of funding for the Monmouthshire & Brecon Canal
repair work other than at the expense of the Cotswold Canals [Phase
1a]. Reason: The Cotswold Canals is a strategic link in the national
canal network which would bring added value to that network, and
also has a high return in terms of regeneration and value to the
community. [3.5, 3.6, 3.11 & 3.12 taken together, & 3.13].
Neville C. Nelder
Chairman of the Company of Proprietors of the Stroudwater
Navigation
March 2008
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