Peak Forest and Macclesfield Canals

Mary Creagh Excerpts

Wednesday 6th November 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mary Creagh)]

What a pleasure it is to serve under your chairmanship, Mr Dowd. I begin by congratulating the hon. Member for Hazel Grove (Lisa Smart) both on her election and on securing this important debate. Similarly, I congratulate my hon. Friend the Member for Macclesfield (Tim Roca) on his election and on his excellent participation today.

We have heard a lot this morning—both hon. Members articulated it so eloquently—about the many benefits that the two beloved canals bring to so many people in Hazel Grove and Macclesfield. I was particularly interested to hear about the work done by CRT with the New Horizons canal boat, widening access to the canal, importantly, for children who are landlocked in the centre of the country and might not have had much access to the water. That is bringing water closer to the people.

As I was listening to the hon. Member for Hazel Grove, I was thinking about how our canals helped build our country and how our mills helped clothe not just our country, but the world. They are a vital part of our industrial heritage. I had a wry smile when she spoke about lock gates and the flight locks, because the last remaining lock gate maker is in Stanley in Wakefield, my former constituency. They are a very precise piece of manufacturing and an incredibly difficult thing to engineer. When the hon. Lady was bidding for world heritage status for the lock flight, which I am sure is an incredible piece of engineering and which I hope to visit one day, I was thinking about the canal at Marsden by Huddersfield near my old constituency. That canal has what was the longest, deepest and highest canal tunnel in the world, a real feat of pre-Victorian engineering, starting on one side of the hill and going through to the other with fingers crossed that everyone would meet in the middle, which thankfully they did.

Our canals and inland waterways are a real asset to our country. They are important for heritage and provide many public benefits. People live on them, love being by them and use them for leisure, recreation and, as the hon. Lady said, to cycle to work. They are an important part of our natural environment, providing green corridors along which nature can flourish. I know that she has kingfishers on her canal, a rare and vanishing species in our country. Canals and inland waterways also contribute to the growth of local economies through domestic tourism, about which we have heard a great deal this morning.

In my constituency is the Oxford canal, which runs through the north of Coventry. It fed and took the silks away from the old Cash’s factory, which then became the factory for Courtaulds, which invented rayon— the rest is history, as they say. As well as being really popular for walkers, joggers and cyclists, it is a nationally important site for river voles—Ratty, for those of us who loved reading “The Wind in the Willows” to our children. I feel proud that we have a nationally important site for river voles in my bit of Coventry. It is very incongruous: if you saw the site, Mr Dowd, you would not think it was a little haven for nature. Canals provide really important biodiversity corridors.

We have two navigation authorities, the Canal and River Trust and the Environment Agency. The CRT reports that there were nearly 860 million visits to its canals last year, many of which were repeat visits, with around 10 million individual users each fortnight. That gives a real sense of the scale of the popularity of our canals. Our navigation authorities have a vital role to play in the future. They must help to ensure that this part of our nation’s key infrastructure is resilient to climate change, and they will help to meet net zero targets through sustainable transport and energy generation and contribute to water security through flood mitigation measures and water transfers.

The trust is a charity independent of Government, and Ministers do not have a role in its management or operational decisions. Because it is a private sector organisation, it is free to set its fees and charges accordingly. However, we expect it to engage constructively with the boating community and take account of issues of concern it raises, such as those that my hon. Friend the Member for Macclesfield mentioned.

On the funding of the Peak Forest and Macclesfield canals, about which we have heard much today, it is the Canal and River Trust that manages the canals, as the hon. Member for Hazel Grove observed. It was set up in 2012 as a charity independent of Government to replace the publicly owned British Waterways. It owns and manages a network of 2,000 miles of canals and rivers in England and Wales, including the two that are the subject of our debate. The trust is free of public sector financing constraints, so it can source alternative revenue streams, including charitable donations and legacies, charity tax relief and third-party project funding, and it can borrow on the financial markets.

The Canal and River Trust is also endowed by the Government with a significant property and investment portfolio from British Waterways, which is now worth around £1 billion as a result of the trust’s sound management, on which I congratulate it. To provide support and certainty for the trust, a 15-year grant totalling around £740 million was provided when the trust was set up. The grant was inflation-adjusted in the first 10 years and then fixed in the final five years. It is now set at £52.6 million a year until the grant ends in 2027, representing about a quarter of the trust’s annual income. Returns from the investment portfolio provide another quarter of the annual income, which means that the trust now successfully raises half its annual income from other sources.

An important part of the transfer from British Waterways was an agreed objective that the trust would move progressively towards greater financial self-sufficiency and reduced reliance on public funding. With a reported increase of £12 million in total income last year over the previous year, the trust is already making good progress towards that objective.

A review of the current grant funding concluded that the trust was performing well and delivering value for money, and, as the Department for Environment, Food and Rural Affairs confirmed directly to the trust this summer, a further substantial grant funding package of £401 million will be provided by the Government over 10 years from 2027. Given the tough fiscal climate in which all Government spending is being closely scrutinised, and the financial black hole in which we were left by the previous Government, as my hon. Friend the Member for Macclesfield said, the new funding is a clear sign of the importance that this Government place on our inland waterways.

With all the benefits of canals that I outlined, the Government are supportive of canal restoration generally to bring those benefits to even more people. Bringing canals back into active use contributes to the regeneration of areas that have been in decline. We have seen that in urban settings and in more rural areas, where there has been growth in local economies through increased tourism. However, although we are sympathetic towards the many restoration projects under way around the country, no general Government funding is available for canals. I pay tribute to the local volunteers who come out on a Sunday morning, do the litter picks and help with the restoration, because their commitment and general surveillance of canals is an important part of making them a safe space for everyone. The navigation authorities, local authorities and canal societies, such as the one mentioned by the hon. Member for Hazel Grove, can work well together to preserve the canals for which they are responsible, including through fundraising and on restoration and maintenance work. Successive Governments have encouraged greater local community involvement in their waterways in that way.

I hope I have reassured hon. Members that the Government very much value our inland waterways and the many, varied benefits that this blue and green infrastructure brings to so many people up and down the country. We have demonstrated our commitment to ensuring that this fantastic national asset is able to thrive by providing both the trust and the Environment Agency with substantial funding over the years and into the future with a further significant new 10-year grant funding settlement for the trust.

Question put and agreed to.