Tipping ash into the canal has been common practice for many years, as already stated, this practice can change the Ph values of the canal due to the alkaline levels of the ash and therefore can affect the wildlife and fish. It can also have an adverse affect on the silt analysis process during dredging investigations, C&RT have to analyse the silt before reviewing disposal options, non hazardous material can sometimes prove to be a benifit to agricultural land and be a very cost effective means of disposal and benifit the land (and more dredging (length and volume) gets completed as a result of this).
Ash contains Benzo Pyrene (http://en.wikipedia.org/wiki/Benzopyrene) and can make a non hazardous silt become hazardous over time, greatly incresing the dredging costs (or getting less dredged for the budget).
The last point (and i guess a little bit finiky) is that by tipping ash in to the canal you are technically fly-tipping!