British Waterways

Alun Michael Excerpts

Wednesday 7th July 2010 Commons Chamber

[Tristram Hunt]

I am in full agreement with my hon. Friend, who brings me to the dark spectre of Her Majesty’s Treasury, which is where we fear that forces are at work that want to access that property in not the most progressive manner. The capacity of British Waterways to use volunteering, to bring in all sorts of other funders and to have that property asset inspires regeneration.

[Alun Michael (Cardiff South and Penarth) (Lab/Co-op)]

I am grateful to my hon. Friend for the way in which he is introducing the debate. As a former waterways Minister, may I tell him that what is striking is the nature of the cross-party consensus in respect not only of canals as a vital part of our heritage, which he has illustrated so well, but of their importance to tourism, regeneration and the environment? Will he invite the Minister to embrace the proposal made in the last Parliament to create a national trust for canals, to secure their long-term future and viability, using the assets to which he refers for the benefit of the long-term future of the canal network and therefore balancing the strengths of the system with the resources to deal with the repair and maintenance requirements, without which the canals will not be much of a heritage for long?

[Tristram Hunt]

I am in full agreement. First, I would like to say what the Minister should not do, which is listen to the Adam Smith Institute, which is keen to privatise British Waterways, and in the process hopes to realise £400 million—a rather low price, I think, for the centuries of heritage as well as the property assets.

There is no doubt, however, that a change in governance is needed. Currently, the nation is underspending by around £30 million a year on its waterways, and, in the words of the British Waterways chairman,

“without the required spend on canal maintenance and repairs the overall physical state of Britain’s waterways will once again go into decline.”

As my right hon. Friend makes clear, the Labour party fought the last general election on precisely that message of reform.

In December 2009, the then Government published details of its asset portfolio and promised

“to consider alternative models for the British Waterways business as a whole, such as mutual or third sector structures.”

That is what my right hon. Friend has described as the National Trust model, whereby British Waterways’ property endowment will be placed in a charity-locked mechanism to fund future maintenance. But this means more than just establishing an effective financial footing. It also means mutualising the governance system by extending democratic control to waterway licence holders, employees, volunteers, partner organisations such as local charities and the lottery, as well as members of the general public. That third sector model will give energy, activism and public buy-in to the sector. We in the Labour movement call it the co-operative principle.

So it was with great delight that I read in the coalition agreement that the Government

“will support the creation and expansion of mutuals, co-operatives, charities and social enterprises, and enable these groups to have much greater involvement in the running of public services.”

I was equally impressed by the Minister’s statement on 21 June where he highlighted the role of civil society in creating what the Government call the big society, and his commitment to look at a third sector model for the future of the waterways.

--- Later in debate ---

[Richard Benyon]

My hon. Friend touches on a very important point. Sir John Lawton is about to report on work commissioned by the last Government that this Government firmly supports. It examines the coherence between different natural sites around the country, and looks into corridors of biodiversity that can flow and allow species to increase in population in different parts of the country. Canals are a vital link in our natural environment, and I am keen during my tenure in this post—however long it lasts—to bang that drum as hard as I can.

I do not care whether our modern canals structure is based on the writings and teachings of Friedrich Engels and is considered part of the co-operative movement, or whether it can be considered the inheritance of Edmund Burke and his little platoons. What matters is that canals are properly managed and have a sustainable long-term future.

I shall do my best to deal with many of the points raised by the hon. Member for Stoke-on-Trent Central and others. However, I would caution him on his view of the Treasury. In my experience, it consists of cuddly souls, warm-hearted and full of understanding on these matters. I do not share his deep pessimism.

[Alun Michael]

rose—

[Richard Benyon]

I am glad to give way to the chairman of the all-party group on waterways.

[Alun Michael]

The Minister has an almost unique experience of the Treasury. However, I encourage him to make the case that a model that engages the public and makes them feel a part of the ownership and running of the canals might make sense financially to the Treasury, too.

[Richard Benyon]

I am delighted that the right hon. Gentleman is in the Chamber for the debate, as he is a notable chairman of the all-party group through which I hope we can continue these debates. I hope that what I am about to say will satisfy his concerns, if I have the time.

I am well aware of the concerns of Members from all parties about the future of British Waterways. I made a statement to the House on 21 June in which I explained our intention to move British Waterways to the civil society, subject to the outcome of the spending review. I again had the opportunity to set out the Government’s position to the hon. Member for Stoke-on-Trent Central and others during oral questions two weeks ago, and I welcome this further opportunity.

I fully understand the important role that volunteering and the civil society have played over many years. Volunteering on the waterways has a long tradition, and many enthusiasts give freely and generously of their time to help re-create and restore our waterways. Without that, many historic canals would no longer be in operation and the network that we have today would be much poorer for it. I firmly believe that civil society has a valuable role to play in delivering public services, and as I recently announced, we will therefore continue to look in detail at such a model for British Waterways. As the hon. Gentleman pointed out, that is a good example of the big society we are trying to create.

I assure hon. Members that that would not be a privatisation of British Waterways. I hope the hon. Gentleman and others will get the message across to some of their colleagues on the Opposition Benches that that is not what we are about. We want a mutualised product for the waterways, dependent on three clear objectives. First, it must have a clear purpose and robust governance arrangements that protect waterways assets and the public benefits that they bring, both now and in the future. Secondly, it must ensure that all users, local communities and other stakeholders can hold the new body to account. Thirdly, it must ensure that the waterways are placed on a more sustainable footing for the longer term while reducing the ongoing cost to the taxpayer.