Agenda item

The purpose of this report is to brief Members on the financial position of the Basingstoke Canal Authority. 

Declarations of interest:

None.

Officers:

Jane Lovett, Honorary Treasurer, Basingstoke Canal Authority

Key points raised during the discussion:

1.    The Committee were provided with an update of the financial situation of the Canal Authority and anticipated situation of the Authority in the next financial year. It was noted that saving would need to be identified in both the current year and in 2014/2015 to balance the budget, and that an updated position would be presented to the Committee at its meeting in February.

2.    Members queried the contribution of Surrey County Council and requested that if the contribution had gone down that it is stated clearly as such, rather than the Fibre Optic and cafe lease funds decreasing. Officers and Surrey County Councillors explained that they were in a time of severe budget restraints and that this decrease would only apply for 2013/14 financial year. Surrey further stated that it would continue to contribute revenue towards the canal, but also pointed out that Surrey is making substantial (£2m over four years) capital contributions plus the contribution to fund the feasibility for the Mytchett site which will generate substantial income.

3.    The Committee additionally queried the contribution for Odiham Parish Council which stated £0. The Honorary Treasurer explained that the £0 related to the contributions due under the formula, although the budget did assume that the Parish would contribute. The Parish Councils’ representative reported that although it had not yet agreed its contribution to the Canal Authority, it was understood that they would continue to contribute.

4.    Members suggested that a Business Sub-Group be created which would assist in making the Basingstoke Canal a more profitable and self-sustaining asset. Officers agreed to take this idea forward.

5.    Members queried whether the budget allocated funds for dredging the canal as silt build up would cause the canal to become impassable in future. Officers confirmed that they would like to dredge sections of the canal; however the works budget was £100,000 per annum less than the Asset Management Plan recommended and that it was not allowing anything other than limited spot dredging to be carried out. Officers agreed to address this issue and update the Committee in due course.

6.    The contributions from Surrey Heath Borough Council and Runnymede Borough Council were raised as a concern, though officers confirmed they had a meeting arranged to discuss the canal with senior officers from Surrey Heath. It was suggested by Members that Councillors should also attend this meeting.

RESOLVED: That

1.    The revised budget for 2013/2014 be agreed.

2.    The proposed forward budget for 2014/2015 be accepted.

3.    The Committee urge all partner authorities to make their full contributions and to honour the agreed scale contributions for 2013/2014 and 2014/2015.

Recommendations:

1.    That a Business Sub-Group be formed to utilise the business expertise of the Committee membership in order to make the Canal Authority a more profitable and sustainable facility.

2.    That officers consider future dredging of the canal to ensure that it remains navigable in the future.

Actions/further information to be provided:

That officers consider appropriate approaches to further improve the Canal Authority’s financial sustainability and profitability.

Committee next steps:

None.