This letter was sent to Kelvin Hopkins my local MP by Richard Benyon MP who passed it onto me, dated 28/11/2011
Dear Kelvin,
Thank you for your letter of 14th November to the secretary of state enclosing a copy of an email from your constituent,Mr D.Winter of (my address), about the transfer of British Waterways into a charitable sector.I am replying as minister responsible for this policy area.
I can assure you that the government remains committed to a sustainable future for our inland waterways. This was demonstrated by our announcement in October 2010 that,subject to parliamentary approval, we would transfer the functions and assets of British Waterways in England and Wales from state into civil society. The transfer to the new Canal & River Trust (CRT) is expected to take place in April 2012.
This transfer will not only give users and communities more responsibility foe governance of the waterways, it will also open up new income streams and material public support at a time when there is considerable pressure on other sources of income. Potential sources of new revenue include fund raising activities, donations, charitable grants and legacies; in addition, the charity will be able to borrow against its property assets, and develop further its commercial activities. Charitable status will also increase volunteering, enhance local partnership working and generate a range of cost efficiencies.
The Government will give the new charity the best start it can afford. Government has already agreed to transfer a property portfolio (valued at about £460 million) and to give the CRT a long term funding agreement. The Government has provided a commitment to £39m per annum from 2012/13 to April 2022. The terms and conditions of the funding agreement are currently subject to negotiation between the Trustees of the charity and the Government. A long-term agreement will enable the Trustees to develop a long-term business plan.
You will appreciate that, until those negotiations are concluded, I am unable to indicate the final terms of Government funding for the charity. We will make further announcements in due course.
Richard Benyon.
Minister for Natural Environment and Fisheries