Legal Costs and Nigel Moore

I wrote previously about Nigel Moore's situation and CRT have now responded to my FOI request on costs. Give or take the litigation has cost them us £1/4 million.

The sublime and the ridiculous

Which of these is sublime and which ridiculous I leave you to judge.

First there is Nigel Moore's thumping victory in the Court of Appeal. Now that the litigation is apparently concluded more can be said on this.

Then there is shock news that NABO Chairman David Fletcher has been served with an enforcement notice by CRT enforcement officers.

Boaters' financial contribution to British Waterways: update

FYI - I have just added the following to the previous post on this:

Addendum - 22 January 2012 - As anyone who has used the link to my FOI on this will see, BW has answered and say that an additional £4.7M of their annual income comes from businesses whose primary customers are boaters. Add this to the the figures above and we have confirmation that Boaters provide at least 20% of BW's annual income worth around £35 million pa at last year's rates.

British Waterways' Commercial activities - Risk versus Gain

Something strange for you today - I am going to say something positive about British Waterways' property portfolio! (Before you get too excited do read the whole thing!)

Headline news is the Wood Wharf development in London Docklands, and that Canary Wharf Group has bought out Ballymore and British Waterways' regeneration/redevelopment interests in the scheme. British Waterways retain their freehold interest and it seems have some reasonable expectation of significant rental income in the medium to long term, once individual elements in the regeneration are completed and let.

Whatever the detailed in and outs of the Wood Wharf deal, this deal is, to me at least, reassuring. This much safer and less risky model of commercial investment, where BW stick to the Landlord function and stay out of the riskier Developer function, is one I have advocated to BW for years. I therefore have to be pleased about this week's events.

Now to return to my usual more critical mode!

Is the Canal and Rivers Trust going to mortgage the waterways?

My recent post alluding to the point of view that in fact the waterways are about to be privatised was somewhat tongue in cheek. However like most jokes, there is an element of worrying truth in there somewhere.

One of the key points that is being touted in favour of the proposed transition of British Waterways to the Canals and River Trust is that the new body will have more scope to raise funds. However everyone seems to be conveniently overlooking a potentially very sinister change in BW's powers that hides behind that proposed liberalisation of BW's financial powers. In Hansard's written replies last week Richard Benyon, the Waterways Minister, said

22 Nov 2011 : Column 304W
The transfer of British Waterways to the charitable sector creates new opportunities for growing income from private and commercial sources, making efficiencies and forming supportive partnerships. The charity will also be able to borrow against its assets and so expand income in the longer term.

Source

Given the current managments' mixed record on making successful investments, do we really trust these people with the power to mortgage the waterways in order to make more speculative investments?

How much do boat owners contribute to British Waterways' property income?

I don't know the answer to this question though I have wondered from some time. When I had my NABO hat on in the last few days the question of how much boaters already contribute financially to the waterways was in my mind. So now I have asked.

What I do notice is that when asked questions about how much boaters contribute financially to BW, the figures referred to are usually based only on the direct income that boaters contribute to BW as per the Annual Report and accounts.

• Boat licence income - 17.4M
• BW moorings - 6.3 M
• BWML total income - 6.6M

(Source Page 31 in BW 2010/11 Accounts)

So direct income from boaters last year was £30.3 million or 17.2% of BW's gross income. These are direct payments from boaters but what about the indirect payments that boaters make to those waterside businesses that in turn BW get a cut from?

It will be interesting to see the numbers and understand better how much of BW's commercial income from property is in fact derived indirectly from boaters pockets.

(Old rant about where my mooring fees do and don't go) 

Addendum - 22 January 2012 - As anyone who has used the link to my FOI on this will see, BW has answered and say that an additional £4.7M of their annual income comes from businesses whose primary customers are boaters. Add this to the the figures above and we have confirmation that Boaters provide at least 20% of BW's annual income worth around £35 million pa at last year's rates.

More Boaters voice concerns about the Canal and River Trust

Life has been a bit hectic (but all positive) hence nothing new here for a few days. Like a lot of other boaters I have an ongoing feeling that CRT is a done deal and that what boaters have to say on the subject is not getting the airtime it should do, not least when one considers the financial contributions we make to the waterways. I am still left feeling that I am being asked to feed the hand that bites me and that we boaters continue to be seen by some in BW as a problem rather than an ally.

One thing that reassured me that I am not completely out on a limb in my thinking  was the appearance of the Boaters' Manifesto.

Feeding the hand that bites you

A slight rant today but I feel the need to say this. I was reminded of the above epithet which, I think I saw from someone else on-line on the same issue, when I saw this morning, the 'Biking for Bonuses' article from Narrowboatworld's Alan Richards in which he has highlighted an example of what is for myself and many a fundamental problem with the New Waterways Charity. I don't know and haven't met BW's new head of Fundraising and whether she or someone else is the originator of the idea that hard pressed staff members should pay an entry fee and give up annual leave to take part in a fundraising event for the NWC, I also don't know.

However I take the same sort of view as Alan, that who ever is responsible for this is on a another planet. Alan says it all in his article. By simply not standing firm and not paying the directors bonuses as previously agreed the BW Remuneration Committee has put a huge obstacle to any fundraising.

British Waterways prefer to forego income rather than lose face?

Another boater and I were laughing about this earlier this week and a good joke is always worth sharing: BW's residential moorings at Engineer's Wharf.

Anyone who knows London Canals will know that the moorings in question are sited near Yeading on the Paddington Arm of the Grand Union Canal. Like many good jokes however the underlying truth is less comfortable and again goes to question the honesty or lack thereof with which the BW system of Moorings auctions is implemented.

New Name for Britain’s New Waterways Charity

Away from the official launch, waterways campaigners were celebrating their new name for the proposed waterways charity which will replace British Waterways and planned to come into being next April Fool’s day. After many months consulting it has been confirmed that the new waterways charity will be known as Canals and Rivers Are Privatised (CRAP).

A spokesman commented that “we consulted widely on the correct name to adopt and after speaking to many stakeholders and other waterways users we feel we have found a solution that will work going forward.” The chairman of the transition trustees is reported as confirming his view that, “The new name represents what our waterways mean to so many people.”

Raw deal for British Waterways mooring customers

Most of you will realise that the I take some interest in the issue of Moorings. I'm quite unashamed about giving BW a hard time when they don't perform, especially when like me you are paying a premium rate for what I say is too often a poor service.

I always have a close read of the Waterways Ombudsman's annual report so was pleased this year to see that Ms Bainbridge has again highlighted two areas of longstanding concern to me. Lack of independent scrutiny of the charges we pay and more worryingly what I characterise as BW's persistent unwillingness to be clear about we mooring customers get for out money.

What it will cost us to eradicate the parasites

Like many others I am picking over the latest British Waterways annual report. One thing I have spotted is a new section in the Directors Remuneration Report (pp 48 ff) setting out the notice periods that the current Directors are entitled to. The short answer is that if BW or its successor want to get rid of a director they potentially get a years salary!

I would like to think that this is writing on the wall for some BW Directors?!

Paddington Business Barges confirmed as a White Elephant

My friend Allan Richards has through his persistent public questioning of BW proved what most of us locally thought was the case: The business barges BW installed in Paddington Basin are a financial failure. It did not take a genius in property investment to work out that trying to market these barges as workspaces adjacent to one of the biggest office space developments in West London was going to be a challenge, whatever the economic climate.

The signs of course were apparent a year ago.

The answer to Allan's latest FOI request demonstrates that over the last eight years the project has made no return.

Report on 'Waterways For Everyone' consultation issued.

I would commend to readers DEFRA's report on its consultation which  from earlier in the year on 'Waterways for Everyone'. Full details from the DEFRA web page. A fair bit to read but I think worth the effort.

Feathering the nest?

BW Directors have had a good year even if the rest of the business has suffered. According to the Annual Accounts, last year the value of their pension funds increased by £1.8 million pounds. (Annual Accounts page 47).

Robins Evans pension fund increased by in excess of 33% in the year and spin master general, Simon Salem's pension pot increased by 43%, which the annual report claims will provide them with pensions of £78 000 and £63 000 a year respectively.

Now I don't how that increase I was achieved and maybe the directors had a result on their Lottery Syndicate? However it is curious that at a time when everyone else's pensions are reducing in value that the BW Directors pension funds did so well.

As predicted their property portfolio sucked money out of BW instead of providing net income. Page 50 of the annual reports suggests a net loss for the year of in excess of £12 million.

Can someone explain?

Spending our money on Spin

This week BW have been heralding how they have 'invested' half a million pound in new pontoons in Liverpool. Good news for boaters?

Of course as Victor on Narrowboat World has so accurately pointed out, getting to take your boat there to take advantage of the new moorings may prove a problem!

Robin Evans Pay

Thanks to the publication last week of the salary bands of the top earners in quangos etc, Robin Evans' salary is again in the public domain. Robin comes joint 14th place from the top of the 332 person list, (in the £230 000 - £235 000 salary range.)

I also saw Christoper Hope's comment on his telegraph blog pointing out that this is more than the heads of M15 and M16. He wonders what Robin (and others) do that is of so much more value than the security of the nation. Good question! Well I don't think it's that the heads of the Security Services are under-paid... See 23 April

The BW Board was due to meet on 17th June to approve the latest set of Annual Accounts*, which many of us await with interest, to see just how much money BW has lost this year and how much of their our commercial portfolio they have sold off to keep themselves afloat and maintain Mr Evans and his cronies at the salary levels they are used to!

Stop press! - the 2009/10 Annual Report and Accounts are now up on their website here.

Spending public money wisely?

I was reminded of some old accusations against BW London about abusing the the funding process by a couple of things this week. Some more recent examples? What do you think?

Games Monitor has been watching the Three Mills Lock project closely and I have to say their and ITV's findings tally closely with mine. We may have our first completed white elephant of the London Olympics.

Alive and well: Smoke and Mirrors

A few things have come zipping over cyberspace over the last few weeks which reminded me of something I said in the past: my view that the current debate about the future structure of British Waterways is a load of smoke and mirrors.

(In my book it's the also increasingly looking like the dying throes of a failed BW senior management who have led BW to the edge of oblivion, and are now desperately scrabbling around for a way out.)

The real question for me remains the question I first raised at the BW AGM, back in the Autumn. "The fear is, as was mentioned, this doesn’t address your £30m a year funding gap."

Time for more labels

Due to the burgeoning volume of posts where BW get a mention I have added some more labels, in effect as subgroups of the existing 'British Waterways' label I already use to sort my posts. I have so much to say on the subject of BW it now needs sorting in to sub categories, even if only for my benefit - not sure if this is a good or a bad thing?!

Although this makes the BW label almost redundant I'm leaving it in place anyway as a counter!