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British Waterways Sell-off

Boatgypsy

By Boatgypsy
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Boatgypsy

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I thought I would bring the following information to everyone's attention. I like to monitor what questions get asked in the House of Commons relating to the waterways. This recently came up

 

 

Charlotte Atkins (Staffordshire Moorlands, Labour) asked the Secretary of State for Environment, Food and Rural Affairs:

 

(1) what estimate he has made of the effect of the sale of British Waterways' property portfolio on the finances of British Waterways;

 

(2) what plans are in place for selling the property portfolio of British Waterways; and if he will make a statement;

 

(3) what the timetable is for the sale of British Waterways' property portfolio;

 

(4) if he will bring forward proposals to compensate British Waterways for the reduction in annual income from its property portfolio if its property is sold.

 

Huw Iranca-Davies holding answer on 16 December 2008 was as follows:

 

"The Treasury Operational Efficiency Programme Review will consider the scope for improved asset management across Government and will provide an update on progress by the April 2009 Budget. The scope of this Review will include British Waterways' non-operational property portfolio, and business model, to consider how its assets might best deliver public value. The Review will also consider any implications of options considered for the long-term funding of British Waterways' statutory responsibilities carefully. No conclusions have yet been drawn regarding any possible disposal of British Waterways' property portfolio."

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Machpoint005 Veteran II

Machpoint005

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No conclusions have yet been drawn regarding any possible disposal of British Waterways' property portfolio.

It is to be earnestly hoped that what this means, is that the powers that be realise it would be utterly stupid to flog off property under present circumstances, because there is no way in which it would 'best deliver public value'.

 

In other words, anyone contemplating selling bricks-and-mortar property when they don't have to is certifiably insane. Give it a few years.

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david and julie Rising Star

david and julie

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The cynic in me says its the ideal time for them to sell because they can then justify getting nothing for it - which is very handy if you were in any way involved with the buyers or had shares in the buying companies etc. :lol:

 

I wouldn't put anything past these people and BW was only one part of the so called "firesale sale" list.

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seaandland Proficient

seaandland

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The truth of the matter is, that B/W are skint and the only real money coming in is from DEFRA grants (£29 million less than needed each year) and a few European gifts for projects, the government are not bothered about the state of the canals or how much money B/W charge its customers to use the waterways, they have more pressing priorities like education and health and paying for a few wars. Evans is very worried that he may be told to sell properties because he thinks that it not the way forward for B/W and he and the board are arguing their case in some very important meetings due to take place soon, this is all in Evans thinking as he is now about to announce major changes again within B/W, we are expecting redundancies and some business units to disappear.

Watch this space.

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Boatgypsy Collaborator

Boatgypsy

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It is to be earnestly hoped that what this means, is that the powers that be realise it would be utterly stupid to flog off property under present circumstances, because there is no way in which it would 'best deliver public value'.

 

In other words, anyone contemplating selling bricks-and-mortar property when they don't have to is certifiably insane. Give it a few years.

Er, I'm not convinced that wouldn't happen. There's another big row just developing as HMG have just been caught out sneakily selling off our third share in AWRE to the Americans, at the worst possible time in terms of getting a good price as well.

 

We'll probably hear that BW has been sold off to some French utility company, and the news will leak out just before a government recess so that it can't be properly debated.

 

Incidentally, Charlotte Atkins MP, has been consistently asking many important questions on the issues around BW, I think she should be congratulated for this.

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Allan(nb Albert) Veteran

Allan(nb Albert)

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The truth of the matter is, that B/W are skint and the only real money coming in is from DEFRA grants (£29 million less than needed each year) and a few European gifts for projects, the government are not bothered about the state of the canals or how much money B/W charge its customers to use the waterways, they have more pressing priorities like education and health and paying for a few wars. Evans is very worried that he may be told to sell properties because he thinks that it not the way forward for B/W and he and the board are arguing their case in some very important meetings due to take place soon, this is all in Evans thinking as he is now about to announce major changes again within B/W, we are expecting redundancies and some business units to disappear.

Watch this space.

 

Are B/W skint?

 

They made getting on for £40,000,000 profit last year.

 

Does the forum have an accountant who understands the 2007/8 accounts?

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Allan(nb Albert) Veteran

Allan(nb Albert)

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Just pick up a copy of B/W monthly Allan, its all there for you to see.

 

I already have and the figures don't add up thus prompting my question - are they really skint?

 

In 2007/8 BW spent £21.5m on infrastructure works.

 

They are told they can have another £5m grant in 2009/10

 

BW say the money will be used for dredging and major works.

 

They go on to say that in 2009/10 they will spend £33m on major works - £11.5m more than 2007/8.

 

So where is the missing £6.5m coming from?

 

And where is the money for extra dredging coming from?

 

I can only see it coming from Realised Capital Reserves which my hazy knowledge of accounting suggests is capital put aside to fund major projects. As realised capital reserves stand at £229m (and seems not to include property - property revaluation reserve is £315.9m) we should perhaps query what these reserves are, what they have been used for in the past (apart from generating interest) and why they can not be used to plug the shortfall in funding.

 

Again I would ask - do we have an accountant who actually understands BW's 2007/8 accounts and can explain them?

Edited by Allan(nb Albert)
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carlt Veteran II

carlt

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I thought BW were already selling off property? or have I missed something here?

I believe the government wants to sell off property, managed by BW, and the money go into the treasury, rather than BW's coffers though, as BW say the money wouldn't be used for maintenance, anyway, I can't see what difference it makes, to us, who gets the dosh.

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DHutch Veteran II

DHutchDonate to Canal World

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The main problem as i see it, is that 'selling off the family jewels' is somthing you can only do once.

- If you sell it all, you get some quick cash. But 6months down the line you back to square one, n-minus a stack load of usefull buildings.

 

JCB reguarly buy up run down houses in uttoxeter and do them up, and add them to there property portfolio.

 

Why?

- Because then have inhouse maintainance anyway, so when there quiet, they can work on the houses (non urgent) almost for free.

- Becuase when they then have students or staff needing tempary accodation, they can offer a neat solituion. And make a profit from doing so.

- Becuase at the end of the day, house and land prices are only going in one direction. And they want to be there doing some of that too.

 

I doubt there buying any houses up just now. But im sure as eggs is eggs it will be long time before they consider selling it all off!

 

 

Daniel

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