British Waterways Board Minutes
British Waterways Board Minutes – 24 September 2009
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British Waterways Board Minutes – 24 September 2009
BOARD MEETING
Minutes of a meeting of the British Waterways Board (the Board) held at 1 Sheldon Square, Paddington Central, London, W2 6TTon Thursday24 September2009 at 1.30 p.m.
PRESENT:Mr T HalesChairman
Mr J Bridgeman
Mr J Bywater
Mrs M Carver
Mr R Green
Dr J Hargreaves
Mr N Hugill
Mr E Prescott
Mr P Sarwal
Mr D Sutherland
IN ATTENDANCE
Mr R EvansChief Executive
Mr N JohnsonCorporate Services Director
Mr S MillsDirector of Property
Mr V MoranCustomer Operations Director
Mr P RidalFinance Director
Mr S SalemMarketing & Customer Service Director
Mr M BenstedDirector London
Mr S DunlopDirector Scotland
Mr C StampPrism Cosec, Secretary of the Meeting
APOLOGIES
Mr R Bowker
Mr J StirlingTechnical Director
MINUTES
09/119 / The minute of the meetings of the Board held on 16 July 2009 were approved.
MATTERS ARISING
09/120 / [Confidential Minute]
09/121 / Cheshire Locks (09/92): Mr Moran reported that the issue raised at the previous meeting had been investigated and dealt with.
09/122 / [Confidential Minute]
09/123 / Management Development (09/114): Mr Evans reported that a presentation on management development and succession planning would be given at the next Board meeting. / RE
09/124 / Disability and Elderly (09/116): Mr Salem confirmed that a strategy would be presented at the January Board meeting. / SS
PARTICIPATION AND ENGAGEMENT STRATEGY (BWB 3381)
09/125 / Mr Salem introduced a paper explaining the proposed strategy for the period 2010 to 2014 for increasing engagement with a wider stakeholder base though greater participation and improved openness.He noted that the Participation and Engagement Strategy should be seen in the context of the Marketing and Communications Strategy.
Discussion focused on the headline aspiration (as set out in the paper) that, by 2020, there would be a network of 5,000 directly recruited individual volunteers giving their time to assist the work of BW. In response to questions about the relationship between volunteer work and paid employment, Mr Evans explained that volunteers were providing capacity to undertake projects that could not be undertaken currently by paid employees thus there was no conflict. The biggest challenge would be the resource needed to manage the increased number of volunteers in a way that would continue to ensure a positive volunteering experience. Members of the Board felt that if the programme could be accelerated without compromising its quality, then that would be welcome.
The level of focus given to engagement with local communities in the paper was discussed and it was felt that more information should be provided to the Board about local adoption schemes. / SS
Subject to these comments, the Participation and Engagement Strategy was accepted.
STEWARDSHIP INDEX
09/126 / Mr Ridal tabled a presentation summarising the proposed system for measuring stewardship developed by the executive team in conjunction with Deloittes. He explained that the purpose of the system was to measure the condition of the waterways in order to show relative improvement or deterioration on a consistent basis. He stressed that it was not designed to be a measure of performance because it was influenced by many factors outside BW’s control. Other measures were available for performance assessment.
Mr Ridal explained that measurement would be index based on a starting point of 100, consisted of two key indicators – Maintenance of the Network and Delivery of Public Benefit. Both of these key indicators were derived from weighted supporting indicators. He explained that most of the data was available to be able to calculate the index as at April 2009. He could not predict when the April 2010 figure would be available.
Members of the Board challenged the assumption that the movement in the index should not be used as a performance measure. Stakeholders would use it as a measure of performance whether BW management liked it or not. Management were therefore advised to track a few key variables to show how the score linked to performance on key issues within BW’s control.
CHIEF EXECUTIVE’S REPORT (BWB 3379)
09/127 / Health & Safety: Mr Evans reported that the improvement in health and safety had continued and BW were back into the top quartile on the Construction Industry Safety Benchmark.
The tragic fatality at Varney Lock on the OxfordCanal was reviewed. Mr Moran confirmed that there were no infrastructure issues involved in the death. BW was cooperating with hire boat industry representatives in reviewing safety guidance issued to boaters.
09/128 / Stakeholder Relations:A programme of meetings with boating users over the summer had produced some good discussions despite relatively low turnouts. The Inland Waterways Association’s “Save our System” campaign was noted.
09/129 / Restructure:Mr Evans that completion of the restructure had been delayed by a month to 2 November 2009. Of the 800 jobs to be reallocated, 680 had now been appointed with most of the balance expected to be appointed within the next fortnight.
09/130 / Boat Licence Fees:The proposal for boat licence fees from April 2010 was discussed and agreed. The Board noted that consultation would now take place.
09/131 / Other Highlights: Mr Evans highlighted the following specific points within his report which were noted without material discussion:
- A 290% year-on-year increase in the number of requests for information under the Freedom of Information Act;
- The increase in visitor numbers compared to 2008-9;
- The policy and advice note for inland waterways prepared by the Town & Country Planning Association which had been launched and well received;
- The award of “Best Heritage Project” winner to the Stourport-on-Severn Canal Basins in the National Lottery Awards;
- Issues concerning the abstraction from the River Usk at Brecon to supply the Monmouthshire & Brecon canal and the prospect of substantial restrictions on the introduction of abstraction licensing; and
- A protocol agreed with the Environment Agency for exchanging information.
09/132 / Electricity Usage: In response to a question about metering at Westport, Mr Evans confirmed a report on energy usage generally would be presented at the Board meeting in November. / RE
09/133 / Falkirk Wheel: Mr Dunlop was asked to convey the Board’s congratulations to the team involved in the improvement to the summer visitor numbers at the Falkirk Wheel.
FINANCE REPORT (BWB 3372)
09/134 / Cashflow: Mr Ridal reported that the cash position remained healthy with the cash balance benefitting from the £5 million Defra grant brought forward. The commercial capital account was also in line with forecast.
09/135 / Treasury Policy: Mr Ridal proposed that the Treasury Policy be amended as follows:
- By increasing the maximum deposit period from three months to six months in order to take advantage of the upward slope in the sterling yield curve; and
- By adding Clydesdale Bank plc (Yorkshire Bank) to the list of approved banks available for deposit.
09/136 / JV Bank Loans: Mr Ridal confirmed that the renegotiations of JV loans which were due for renewal were generally progressing well. [Remainder of minute confidential].
09/137 / Minimum Cash Holding Level: Mr Ridal reported that the minimum cash holding level of £20 million had been reviewed by the Property Committee. Given that there were still some risks about JV cash flows and planned disposals, it was felt that the current cash holding could still be required, particularly if anticipated JV disposals were not achieved. It was therefore proposed and agreed that the minimum holding level should remain at £20 million with a further review in six months time. / PR
09/138 / F4 Full Year Forecast: The F4 Full Year Forecast was noted with the key variances to the original plan being primarily a positive variance in utilities (due to surface water discharge income), adverse JV profits, reorganisation costs and savings. Mr Ridal also updated the Board concerning recent developments on vacant properties at Watford and Hemel Hempstead.
PROPERTY REPORT (BWB 3378)
09/139 / [Confidential minute]
09/140 / Property Subsidiary: The basis on which the membership of the board of the proposed LLP property subsidiary would be appointed, particularly in relation to external membership, was agreed.
The Board noted that the ‘designated members’ of the LLP subsidiary would be BW and a wholly-owned nominee company and that those designated members would appoint authorised representatives to form a governance board for the subsidiary.
At its meeting on 2nd September, the Property Committee had discussed whether external authorised representatives should be appointed to the LLP.
The Board accepted the recommendation of the Committee that there was no issue with external membership in principle, but nevertheless as a 100% subsidiary LLP, the appointment of authorised representatives to the subsidiary Board should be controlled by the BW Board acting on the advice of the Nominations Committee, who would have regard to the balance of skills and experience required by the property LLP.
The Board agreed that, in terms of the balance of skills and expertise required to meet the challenges posed by the current economic environment, the current membership of the Property Committee was appropriate as the initial appointees to the subsidiary Board. The Board also agreed that any future external appointee should not chair the LLP, which should instead be chaired by an individual having the requisite property expertise from the BW main Board.
Mr Sutherland commented that the Scottish Government would wish to see that the options for including Scottish properties in the new property subsidiary had been properly considered. Mr Evans confirmed that it was not currently proposed that the Scottish properties would be transferred.
09/141 / ISIS Funding:Mr Mills reported that discussions on ISISloan facilities were progressing satisfactorily. Residential sales were going well. He was also confident that planned sales would go through by the end of the year.
09/142 / [Confidential minute.]
CORE WATERWAYS (BWB 3380)
09/143 / Unplanned Stoppages: Mr Moran reported that two of the four unplanned stoppages set out in his report had been fixed. A new ground stabilisation technique was being applied at the Shebdon Embankment which was expected to re-open in October 2009.
09/144 / Droitwich Restoration: The hold-up in completing the Droitwich Restoration was noted. Wychavon Council were leading efforts to deal with the legal issues affecting completion of the final section of the Restoration. Management would update the Board on developments. / VM
09/145 / Olympic Waterways Report:Mr Evans highlighted the progress being made in resolving the dispute with LDA over the valuation of rights.
Mr Bridgeman asked whether the adjacent scheme at Three Mills would be ready by 2012. Although this was not BW’s responsibility, Messrs Evans and Salem agreed to find out. / RE/SS
COMMITTEE MINUTES
09/146 / Minutes of the Remuneration Committee meeting held on 29 July 2009, the Property Committee meeting held on 2 September 2009 and the Audit Committee meeting held on 9 September 2009 were all noted.
ANY OTHER BUSINESS
09/147 / 2009 Annual Meeting:Mr Salem confirmed that a briefing paper would be prepared for directors attending the Annual Meeting.
09/148 / Board and Board Committee Changes:Mr Hales asked that the Board’s thanks to Mr Bowker be recorded for his considerable contribution to the Board, particularly as chairman of the Audit Committee, over the past five years.
Mr Hales further stated that the Nominations Committee proposed that Mr Hugill be appointed as Chairman of the Audit Committee. This appointment was approved.
Mr Hales also reported that the Nominations Committee recommended that Mr Hugill,as someone with significant property experience, be appointed the Chairman of the Property Committee with the intention he become Chairman of the Property subsidiary once it takes over the property portfolio in April 2010. Defra had been consulted as a matter of courtesy and were supportive of this. He proposed and the Board approved this appointment.
In keeping with precedent it was proposed that Mr Hugill, as the new Chairman of the Audit Committee, also be appointed to the Nominations Committee. The new Vice Chairmanwould also be appointed to the Nominations Committee. These appointments were approved. Mr Hales reported that Defra was shortly to approve an appointee for the role of Vice Chairman.
There being no further business the meeting concluded at 4.00pm.
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Chairman
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