My constituency of Mid Worcestershire includes sections of two waterways maintained by British Waterways—the Worcester and Birmingham Canal and the River Severn. It is also the location of an important canal restoration project, the re-opening of the two Droitwich canals to create a unique "weekend" cruising ring using both the other waterways and bringing significant regeneration benefits to both Droitwich and Worcester.

CONCERNS OVER FUNDING REGIME

  British Waterways has been the victim of a funding regime which has threatened to undermine the important work it does. This was evidenced by the massive and unexpected mid-year budget cuts in 2006 whose origins lay in completely unrelated problems within DEFRA.

  I welcome the announcement by the Department for Environment Food and Rural Affairs last month confirming that the funding settlement of £57.64 million for British Waterways would be in line with expectations and not subject to any further cuts. I hope the committee will seek confirmation of the stability of these new arrangements.

DROITWICH CANALS

  Despite the financial challenges, British Waterways has, in my constituency, continued to exercise its duties with exemplary efficiency and effectiveness.

  This is particularly true of the project to restore the Droitwich Canals (the historically significant Droitwich Barge and Droitwich Junction canals) which has now received all necessary planning permission, and on which construction work should begin shortly.

  When completed, the re-opened 7.5 mile waterway will link Droitwich and Birmingham to the River Severn. Of particular significance will be the creation of a 21 mile "weekend" cruising ring in Worcestershire, with walks, cycle routes, picnic sites, play areas and information and interpretation points.

  The dream of re-opening these two canals has been kept alive by a dedicated band of volunteers in the Droitwich Canals Trust but the key to the recent progress has been the involvement of British Waterways. They were also able to build on an excellent partnership involving the Trust, and notably Wychavon District Council and Worcestershire County Council, whose financial support over many years has been critical to the continued momentum of the project.

  British Waterways were able to work particularly effectively with the regional development agency (Advantage West Midlands) and the Heritage Lottery Fund to secure major further funding and with the Waterways Trust to bring in private and voluntary sector cash.

  I have no reason to believe that the Droitwich project is at risk, but I wish to emphasise four things:

1.  Stability in BW's funding is major concern to all those using the exiting waterways in Worcestershire and to the partners in the Droitwich Canals restoration project.

2.  BW is an excellent partner and its excellence must not be diminished by any further reduction in its funding or commercial freedom.

3.  Reductions in staffing at BW as a result of the Cotswold decision could impact on the management of the Droitwich restoration.

4.  The withdrawal of BW from the Cotswold project could deter potential partners from committing to BW schemes in the future. I think particularly of the Heritage Lottery Fund, whose involvement was central to the Droitwich scheme.

  I hope these observations assist the committee. I draw the committee's attention to the excellent submission from Wychavon District Council which provides some further details on the issues I have addressed in this brief note.

Peter Luff, MP for Mid Worcestershire

Vice-President of both the Droitwich Canals Trust and the Worcester Birmingham Canal Society

March 2008