Purpose
This strategy sets out LHCRT’s strategy for what happens after the restoration of one or both canals has been completed.
Introduction
At some future point LHCRT will complete its objective to restore both the Lichfield and Hatherton canals. At this stage both canals will be complete, in water and navigable to boats. The Lichfield Canal will run between junctions at Huddlesford and Ogley, Brownhills and the Hatherton will run between junctions at Hatherton and Fishley.
The timing of full completion is almost certainly different. It is also certain that opening to full navigation will occur in stages. The current intention is to fully open the Lichfield canal from Huddlesford, allowing access to Lichfield, and then complete in stages to Ogley junction. Similarly, if the M6 canal crossing can be delivered, the Hatherton canal can be restored to provide access to Cannock prior to completion up to Fishley junction.
Once complete and in use, not only for navigation but for all other uses, there will be a need to operate and maintain the canals so that they continue to deliver the benefits that have justified their restoration. A strategy is required to ensure that the canals are maintained in perpetuity and in operational state.
Post restoration options
There are three options available
- LHCRT remains in existence as owner of the canals and continues to operate and maintain the canals.
- LHCRT transfers the canal assets and liabilities to a third party who will take ownership of LHCRT
assets and then operate and maintain the canals. - LHCRT remains in existence as owner of the canals and contracts out operate and maintenance of
the canals.
For transfer of canal assets and liabilities to a third party the following entities have been identified:
- Canal and River Trust
- Local authority – Staffordshire County Council or Lichfield District Council
- Inland Waterways Association
Precedents include:
- CRT taking ownership of the Droitwich Canals.
- Locally CRT own the section of Lichfield Canal from Huddlesford to Cappers Lane and have agreed to take ownership of the section of canal to be diverted and extended by HS2.
- CRT owns and operates, for water supply to the Staffordshire and Worcestershire Canal, the section of Hatherton Canal from Hatherton to Meadow Lock to the west of Cannock.
- Derbyshire County Council took ownership of the Cromford Canal in 1974.
- The Basingstoke Canal is owned and operated by Hampshire/Surrey County Councils.
- IWA own and maintain the Chelmer & Blackwater Navigation.
Why should LHCRT transfer assets to a third party?
LHCRT is a voluntary organisation with a current focus of restoring the canals to full use including for navigation. It is reliant on volunteers who undertake both general restoration and maintenance. The pace of restoration and maintenance during restoration can be varied to match the available volunteer resource. Once partial or full restoration is complete allowing navigation, there will be a requirement to continuously maintain and operate the canals such they are available for navigation at all times. It will be difficult to ensure guaranteed volunteer resource.
Income is required to maintain and operate the canals. Obtaining income through funding bids for
restoration is challenging but possible. Bids for funding of maintenance and operation are unlikely to be
available. As a result, in order to guarantee post completion operation, an income stream is required.
This problem is avoided if a third party is found that is willing to take ownership of the Lichfield and
Hatherton Canals.
Third Party Pros and Cons
CRT
CRT owns, operates and maintains the national canal network using a combination of internal workforce and specialist contractors. They clearly have the experience and capability to take on the Lichfield and the Hatherton Canals.
The Lichfield and the Hatherton Canals provide direct links between the Coventry, Birmingham Canals Navigation and the Staffordshire and Worcestershire Canals. Incorporation of the completed Lichfield and Hatherton canals provides for greater use of the existing canals and the potential reduction in congestion on the network. It is acknowledged that this benefit is achieved whether or not the canals are taken over by CRT. However, the completed canals will assist in providing new sources of water for the existing canals and greater flexibility in moving water between parts of the national canal network.
If CRT owns the canals administrative barriers such as the need of more than once license for navigation and other activities is removed.
If CRT was to take ownership, this will increase their assets but it will also increase their liabilities. It is assumed that CRT will want some balance between assets and liabilities. It is likely that in order to minimise liabilities that CRT will require the transferred assets to have been constructed to certain standards and to be in reasonable condition at point of transfer of ownership. It is possible that sections of canal already constructed may require upgrade or retrofitting.
Local Authority
Examples of restored canals being owned and operated by local authorities do exist. However, it is more common for local authorities to support or facilitate restoration by voluntary groups. Whilst local authorities are well experienced in operation and maintenance of highways using a combination of internal workforce and specialist contractors, they do not generally have equivalent experience with canals, although this can clearly be learnt by replicating CRT.
Local authority canals are funded partly through taxation and partly through licencing of activities including navigation. Local authority budgets are continuously under pressure of competing demands and expenditure has to be prioritised. The funding for operation and maintenance of canals is in practice a low priority and hence the canals are likely to be undermaintained resulting in deterioration.
Boat users of the CRT canal network and the Basingstoke canal require to have separate licenses for
navigation which increases cost.
IWA
The Chelmer & Blackwater Navigation also known as Essex Waterways is separate from the national canal network and its 14 mile length is used by local and ocean going craft. From a navigation point of view there is very limited transit and connection to the national canal network.
Since being taken over by IWA the standard of maintenance is stated to be much improved. Like CRT, operation and maintenance is undertaken partly using local labour, contractors and also IWA volunteers.
Preferred option
The preference is for ownership to pass to another organisation on completion of one or more of the canals. This will be kept under review.
Strategy Implementation
It will be necessary to develop the strategy required to implement the decision this includes identifying the organisation preferred to take transfer of ownership, assumed to be CRT. Negotiations are then required to confirm whether there is a willingness to take ownership and the conditions for transfer. In particular there is a need to understand any canal infrastructure specification requirements and ensure that future restoration is undertaken to those standards. Board will also need to consider the future of LHCRT post transfer, whether it will continue to exist and in what form and with what objectives.
July 2022