INFORMATION REPORT
BWB 3415D
CONFIDENTIAL
MEMORANDUM TO THE BO ARD
S C O T L AN D R E P O R T – J AN U AR Y 2 0 1 1
Report by Director Scotland
1.
PURPOSE
1.1.
This report is to update the Board on matters relating to Scotland and progress against key
projects.
2.0
RECOMMENDATION
2.1
Board Members are recommended to note and comment on the information in this report.
3.0
STRATEGY IN SCOTLAND
3.1
Keith Brown MSP has been appointed as the new Scotland Minister for Transport and
Infrastructure following the resignation of Stewart Stevenson. A meeting to give a briefing to
the new Minister has been requested and a response is awaited.
3.2
Consultation on proposals for Scottish Water to develop its commercial activities and take on
new functions was launched in December 2010 and copies have been circulated to Board
members. A formal response from BW is being prepared by Director Scotland and will be
circulated when available. As an appendix, the extract of the document which refers to the
canals is provided. Also an outline of the proposed response is included for discussion.
3.3
The transition project for BWS is underway with two strands in place, external with Scottish
Government and Defra working on the technical and legal aspects of the change and internal
to ensure minimal disruption to the day to day operations of both BW and BWS until the new
charity is established in April 2012 including a review of service level agreements.
4.0
SCOTTISH SPENDING REVIEW
4.1
The grant settlement for Scotland has been provisionally agreed at £10m, the budget will be
confirmed by Scottish Parliament in March 2011. This is a £1.5m in year reduction with an
anticipated 3% efficiency target to be met as well. Discussions are underway with Chief
Executive of Transport Scotland David Middleton with a view to increasing our grant to enable
some contingency in the Scotland plan. A plan of action including reduction in overhead costs
(flexible working and redundancy), reduction in seasonal workforce and reduced service levels
is being developed in parallel with BW at a group level.
5.0
HELIX
5.1
BWS's Head of Operations, David Lamont has stepped in as Interim Chief Executive this will
be for approximately 6 months and is working well. With the canal and kelpies in their final
design stage the focus is currently on demonstrating that the Helix is a sustainable tourist
destination.
6.0
THE FALKIRK WHEEL
6.1 The Falkirk Wheel was particularly affected by the severe weather conditions in December
with the wheel itself being inoperable from 27th November. This resulted in all boat trips being
cancelled through our peak period in the run up to Christmas and through the festive period.
A contingency plan for an ‘alternative experience’ was implemented and well received
however this still resulted in only 35% of planned activity resulting in a forecast loss of £0.1m
compared to the planned break even position.
7.0
PARTNERSHIP WORKING
7.1
Freight – Caledonian Canal
Great Glen Shipping (GGS) commenced freight operations on the Caledonian Canal with the
first passage of m.v. Kanutta on 18th October 2010 and her last passage before closure (due
to ice accumulation) on 1st December. During that 6 week period, ‘Kanutta’ made 13 single
transits of the canal and conveyed 2,700 tonnes of timber which is equivalent to 215 lorry
journeys and saved c. 14,000 lorry miles.
Operations were considered a success with transits of the canal taking 1 ½ to 2 days, GGS
have advised their intention to continue the carriage of timber and other occasional cargoes
on the canal, post completion of the trial at the end of April 2011.
8.0
COMMERCIAL ACTIVITY
8.1
Metropolitan Glasgow Strategic Drainage Group
Further testing of the surface water model has been undertaken and we now believe that the
Forth and Clyde canal can become a key asset in managing surface water runoff in the North
Glasgow Area. The canal has significant capacity to accept runoff from up to the proposed
100ha of development land due to be developed over the next 20 years. It may also be
possible that we can help reduce the amount of SUDS that has to be provided as part of these
developments. A final report is due mid Feb.
A site belonging to Diageo site is due to come to market this year and we will be closely
monitoring any potential upside for BWS.
Progress is being made with Scottish Water in forming a joint venture to provide our first hydro
scheme at the Crinan Canal. A costed proposal is due at Easter.
8.2
Edinburgh Canal Quarter
Discussion continues with City of Edinburgh Council (CEC) regarding the Fountainbridge
application. We are also working with CEC in respect of a new canal development strategy
(due to complete June 2011). Part of this will include the formation of a new steering group
which will include Ricardo Marini the design champion at Edinburgh City Council
8.3
Glasgow
The legal arrangements for the Glasgow Sculpture Studio are underway with the studio
opening expected in 12 months’ time. Terms have also been agreed for the redevelopment of
the adjacent Hancocks Warehouse to provide a West Beer micro brewery, visitor centre and
floating café. A paper will be presented soon to SG in this respect.
The Canal Steering Group has also agreed to a revised water space strategy for Speirs Wharf
with the provision of a substantial amount of residential moorings and floating homes. The
commerciality of this is currently being assessed.
STEVE DUNLOP
Director Scotland
January 2011
2
AP P E N D I X A – B U I L D A H YD R O N AT I O N C O N S U L T AT I O N
Extract from the Scottish Government’s Build a Hydro Nation Consultation, circulated to the Board via
email on 15 December 2010.
The response is proposed to follow and expand on these lines.
BW supports the concept of the Hydro Nation for Scotland and can see many positive
benefits
The canals must/could/should play a significant role in this agenda
3
Benefits could range from
o Major efficiencies in asset management
o Access to financial resources not currently available for long term maintenance
o Integrated approach to flood mitigation, water sales, hydro scheme development and
urban heating and cooling
BWS has an unique wide/cross cutting agenda from a regeneration/property development,
leisure and tourism and community development which is highly developed. These
attributes/skills must not be lost and therefore BW would favour some form of
subsidiarisation rather than a fully integrated model.
4