On Mon, 30 Oct 2006 22:43:24 +0000, Steve Wood wrote:

>Roger Millin wrote:
>>> If you're never going to sell it why the interest in whether it is 
>>> managed on that basis? Adrian are you around to clarify?
>> 
>> I read that particular statement as saying that you keep a close eye 
>> on property values and wheel and deal with your portfolio, just as 
>> you would if they were shares or building society accounts, to 
>> ensure that the capital value increases or is maintained while 
>> getting the income from it. That, surely, is prudent financial 
>> management and if it means selling one bit to fund buying an even 
>> better bit (or a bit with more future potential) then so be it, IMO.
>
>I guess that's where I part views from many on this list. I do think BW 
>should retain the parts of its property portfolio that define the 
>waterside environment, but for heritage not commercial reasons. By that 
>I mean the physical infrastructure of the canal, plus related (listed) 
>buildings, ancient monuments etc. They would still be free to derive 
>income from those buildings but the focus should be on heritage.

You don't part with me at this stage - I even think that the pub
partnership can be a good idea to keep some historically important
canalside pubs going.  I don't think it is being used properly yet -
there's too much S&N bog standard chainery - but it has scope.

>It may well be very old fashioned to say it but I do believe that BW is 
>a national asset and belongs in the public sector. It is not a viable 
>business in a commercial sense simply because it has insufficient 
>sources of income. Most of its customers (walkers etc.) don't pay to use 
>it and there is no easy way to get them to pay except through general 
>taxation. I have no enthusiasm for the contrived business models I've 
>heard to privatise BW here and elsewhere in recent weeks.

But - as we've seen - pure old-fashioned public sector doesn't seem to
work either because of  the danger of random fluctuations in funding
driven by short-term political expediency

I'm very interested in seeing if there is a way to escape this: but I
don't know if it has to be complete privitisation (and, indeed, I'd be
very worried indeed for the character of the canals if controlled purely
for profit).  I think there are still a lot of unanswered questions
concerning the property idea including long term viability and the
tension between avoiding a loss and making maximum profit: a true
private sector organisation will always tend to the latter; I can think
of many cases when a body entrusted with the waterways should only be
doing the former.

>** Retreats and prepares to be shot down by assorted capitalists **

I'll watch and cheer from the sidelines
-- 
On-line canal route planner: http://www.canalplan.org.uk

(Waterways World site of the month, April 2001)
My Reply-To address *is* valid, though likely to die soon


 
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