Ofwat price review 2009 - Environment, Food and Rural Affairs Committee Contents


Memorandum submitted by the Rugby Football Union (RFU) (Ofwat 18)

THE ROLE OF THE RFU

  The RFU is the National Governing Body for Rugby Union in England and represents over 7,000 registered/affiliated clubs across the country. It is the role of the RFU to grow and develop the sport across the country and look after and protect our clubs' interests at all levels.

Our clubs work hand in hand with our community rugby programme in delivering sport for young people and form a central point for many communities around the country not only providing excellent sporting facilities but also reinvesting in the sport and positively affecting local communities.

AFFECT OF NEW WATER CHARGING SYSTEMS ON SPORTS CLUBS

  New charging systems agreed by OFWAT for inclusion by 2010 are already being introduced by the water companies across the country. The new model is being recommended by all water companies, but United Utilities appear to be the only company implementing the new system. United Utilities supplies many of our clubs in the North. This change in system has already triggered new invoices and has seen a unprecedented rise in water costs for our clubs.

The RFU has been contacted by many clubs who are struggling to meet these increased costs which threaten the future of running club facilities. A sample of some of our clubs affected is tabled below. It is feared that many clubs will have to increase clubs fees, concrete pitches or in some cases even close if these increased rates remain in place.

SAMPLE UNITED UTILITIES WATER CHARGES FOR CLUBS IN NORTH WEST


Club
Charges Before
Charges After

Aspatria RFC Carlisle
£1212.00
£5105.00
Penrith RUFC Cumbria
£671.42
£4105.18
Macclesfield RUFC Cheshire
£796.00
£4193.40
Stockport RUFC
£1070.00
£2647.32
Windermere
£88.20
£143.49
Flyde Rugby Football Union Lancashire
£1353.36
£2272.60

RFU ACTION

  The RFU has raised this issue directly with OFWAT who have been urging water companies to move to site area charging for surface water drainage and not to make concessions.

It has also entered correspondence with United Utilities on the issue and United Utilities have finally agreed to put a suspension on the increased rates pending further review into the new charging system.

  The plight of many clubs struggling with these increased charges has also been raised in Parliamentary Questions in the House of Commons and with Ministers. A petition has also been started in the national press with thousands of signatures in support of a review of these new charging systems.

  We have also been working with other sports and community groups through the work of Central Council for Physical Recreation on an exemption for these community clubs.

REQUESTED ACTION

  These new water rates are not only affecting rugby but all community based sports clubs. We believe that such community based sports clubs should not be classified as businesses but should be subject to the same rates as other social community based projects such as schools, community groups and churches.

In view of the huge increases in rates these clubs are now being charged, and the detrimental affect this will have on the survival of community clubs and the development of grassroots sports we would urge you to challenge the classification of Rugby Clubs in this context and ask for the creation of a Social Tariffs for sport and community clubs.

  We hope that this inquiry into OFWAT Price review will provide new guidance to OFWAT on the implementation of rate changes across the country and an exemption for our Rugby Clubs on this basis.

RFU

February 2009







 
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