British Waterways Board (Hansard, 30 June 1994)

§ Mr. Atkins

I have today placed in the Library of the House the British Waterways Board's initial response to the report by the Monopolies and Mergers Commission, which was published in January 1994.

I am grateful to the commission for the extensive review of the British Waterways Board which it has undertaken. I 690W am happy to report that, in addition to meeting its statutory duties, the MMC found an organisation which has been transformed by devolving responsibility from the centre to individual waterways, the overall performance of which has been improved, and which is developing a strong commercial outlook. The enthusiasm and dedication of staff and their substantial achievements since the MMC's last report in 1987 have been commended. The commission concluded that the BWB must aim to strike the right balance between sustaining the considerable progress already made in developing its commercial ethos and discharging its wider responsibilities, especially for conservation. It made 48 recommendations aimed at securing further improvements in the BWB's performance, in particular in expanding its share of the leisure market. I welcome and endorse the commission's recognition of the BWB's achievements and its constructive recommendations for the future.

I also welcome the BWB's positive response to the MMC's report, which demonstrates a firm commitment to improving the efficiency of the business. Most of the commission's recommendations have been accepted in whole or in part and many have already been implemented. Where appropriate, the board has embarked upon further work as recommended by the MMC. I am satisfied that the BWB has addressed fully those recommendations which have not been accepted. I support the board's programme of seeking increased private sector involvement in the business through market testing and contracting out and I am pleased that the BWB has taken steps to explore potential in the leisure market and to improve relations with its customers.

A number of recommendations would require action either by the Government or jointly by the Government and the BWB. We are keen that the BWB should develop its commercial approach and, with the new chairman, Mr. Bernard Henderson, will be reviewing the board's strategy during 1994–95, in particular the prospects for increasing private sector—including voluntary sector—participation in the BWB's business. This will include consideration of the criteria against which strategic options for the future should be assessed and corporate planning and targets. In the light of the MMC's recommendations we shall also look at appointments to the board and the time that the chairman needs to spend on board matters. We have already confirmed arrangements with the BWB over the treatment of proceeds from property disposals. We are taking into account, as the opportunity arises, the MMC's recommendations on radio communications, development of the BWB's property, development control, dredging tips, wayleaves and inland waterway commercial transport.

I shall continue to monitor the BWB's progress in implementing the MMC's recommendations and will report to the House in due course.