British Waterways to Keep Property Portfolio

[MartinClark]

The results of the Treasury's Operational Efficiency Programme have been released and, as expected, includes a reviews of British Waterways' non-operational property portfolio.

 

It had been feared that the Government would relieve BW of this property as a quick way to help solve financial problems. However, these fears have proved unfounded as BW's good track record with its property means that it will stay in BW's hands in a wholly-owned subsidiary and the property will continue to provide an income stream for BW.

 

Read more.

[Dutch]

The results of the Treasury's Operational Efficiency Programme have been released and, as expected, includes a reviews of British Waterways' non-operational property portfolio.

 

It had been feared that the Government would relieve BW of this property as a quick way to help solve financial problems. However, these fears have proved unfounded as BW's good track record with its property means that it will stay in BW's hands in a wholly-owned subsidiary and the property will continue to provide an income stream for BW.

 

Read more.

 

Could this be due to the current property market downturn and if/when that market picks up then reverse this?/ Sorry i do not know who i distrust more BW or this Goverment

[WillC]

Could this be due to the current property market downturn and if/when that market picks up then reverse this?/ Sorry i do not know who i distrust more BW or this Goverment

 

We need to see more details but I'm inclined to think that the idea of selling the family silver will not be raised again. My reasoning is based the last paragraph in the announcement that the property will be placed into a wholly owned subsidiary of BW. I am hoping that this subsidiary follows the KPMG review of of BW which recommended that the property should go into a CIC (Community Interest Corporation) which both protects the assets from privatisation via an asset lock as well as giving BW access to normal commercial finance (whatever that means these days!). This would give BW an opportunity to borrow money like any other property development company - something the present arrangements don't allow (they can brrow money from Govt but have to pay it back in the same year).

 

I am at a WUSIG meeting tomorrow and I will ask BW whether the new company will be a CIC.

 

Whatever, this is excellent news. Let's see if there are any negatives in the budget - there has been some chatter that the £15 billion Govt cuts will result in BW being hit with a £5/6 million reduction in grant-in-aid. So fingers crossed.....

 

One other point is that a couple of months ago SOW chaired a meeting of the heads of the major user groups where we briefed Anne McIntosh, Shadow Environment Secretary, on waterways policy and as privatisation of BW was once Conservative policy, one of the issues we emphasized was the importance of not selling-the-family-silver. We understand that current Tory policy will not follow that line again. Last week, IWAC made a very strong case against the proposed sell-off and I personally feel that would have had some influence on Govt thinking. That letter is well-worth reading and I will see if we can publish it on the SOW website.

 

Cheers

 

Will Chapman

Chair, Save Our waterways

Edited April 21, 2009 by WillC

[Dutch]

We need to see more details but I'm inclined to think that the idea of selling the family silver will not be raised again. My reasoning is based the last paragraph in the announcement that the property will be placed into a wholly owned subsidiary of BW. I am hoping that this subsidiary follows the KPMG review of of BW which recommended that the property should go into a CIC (Community Interest Corporation) which both protects the assets from privatisation via an asset lock as well as giving BW access to normal commercial finance (whatever that means these days!). This would give an opportunity to borrow money like any othe property development company - something the present arrangements don't allow (they can brrow money from Govt but have to pay it back in the same year).

 

I am at a WUSIG meeting tomorrow and I will ask BW whether the new company will be a CIC.

 

Whatever, this is excellent news. Let's see if there are any negatives in the budget - there has been some chatter that the £15 billion Govt cuts will result in BW being hit with a £5/6 million reduction in grant-in-aid. So fingers crossed.....

 

One other point is that a couple of months ago SOW chaired a meeting of the heads of the major user groups where we briefed Anne McIntosh, Shadow Environment Secretary, on waterways policy and as privatisation of BW was once Conservative policy, one of the issues we emphasized was the importance of not selling-the-family-silver. We understand that current Tory policy will not follow that line again. Last week, IWAC made a very strong case against the proposed sell-off and I personally feel that would have had some influence on Govt thinking. That letter is well-worth reading and I will see if we can publish it on the SOW website.

 

Cheers

 

Will Chapman

Chair, Save Our waterways

 

Well i for one very much hope you are right in your assessment of this development

Mick

[MartinClark]

Last week, IWAC made a very strong case against the proposed sell-off and I personally feel that would have had some influence on Govt thinking. That letter is well-worth reading and I will see if we can publish it on the SOW website.

 

John Edmonds letter from IWAC to the Minister can be read here.

[sociable_hermit]

This is excellent news.

 

Well done to everyone who had a say, and those who made the decisions.