Lifeline thrown to waterways businesses falls short
THE IWA is calling for urgent additional financial assistance for waterways businesses in the face of the devastating effect the coronavirus lockdown is having.
“We’re currently facing a potential loss of almost two-thirds of the sector’s income, worth £1.5 billion, with a potential loss of 20,000 jobs,” said Alison Smedley, IWA’s campaigns and public affairs manager.
Almost 90% of the inland waterways leisure industry relies heavily on the months from April to September for income. Without income, it’s impossible to repay loans and the choice is to take on more debt or cease trading.
James Griffin, of the Wyvern Shipping Company based on the Grand Union Canal, said: “We are in complete lockdown with no income and no bookings. This couldn’t have come at a worse time for our business. We just paid out £100,000 in costs to cover us during the closed season and were all set to go with this year’s boating season… except we didn’t go! We are facing a very uncertain future and know it is going to be a long, slow road to recovery.”
A survey of 1500 businesses indicated that around 70% of waterways businesses weren’t eligible for the first round of government grants and loans because they weren’t based in rateable premises.
Bounce Back scheme
Since then the IWA has cautiously welcomed the new Bounce Back Loan scheme announced by Chancellor of the Exchequer Rishi Sunak on April 27. Although the 12-month, interest-free loan will go some way towards helping the 2000 or so waterways businesses that would otherwise be unlikely to survive the current lockdown, the association feels that it doesn’t go far enough and is asking for a package that echoes the specific financial support recently announced for the fishing industry.
“We are asking the Government for a financial aid package to support the navigation authorities,” said the IWA’s national chairman Paul Rodgers. “Without this, there will be significant closures.” This package would allow navigation authorities to underwrite licence and mooring fees for waterways businesses this year.
Jonathan Griffiths, of Cambrian Cruises on the Monmouthshire and
Brecon Canal, said: “If we know we wouldn’t have to pay licence fees for 12 months, it would be a huge weight off our shoulders.”
Richard Clements of River Severnbased English Holiday Cruises, which in the space of a fortnight had most customers cancel or postpone until September, agreed: “We fall between the gaps in legislation as we do not qualify for the Small Business or Leisure Business grants. We may now be eligible for this new Bounce Back Loan scheme, but would prefer not to take on any new risk at this stage. To cap it all, we are still having to pay our full mooring fee – although have requested some deferment. It is a really dire situation.”
The IWA has worked hard over the years to lobby on behalf of the waterways and the Government currently appears gratifyingly receptive. A letter outlining concerns was sent to Defra on April 15, signed jointly by the IWA, Broads Authority, Canal & River Trust and British Marine. It brought an immediate response requesting specific information which was, thanks to the survey, immediately to hand and duly submitted.
An All Party Parliamentary Group was due to meet on May 14 to discuss the situation and the IWA urged people to write to their MP asking them to attend the APPG video meeting and raise the issue with George Eustace MP, the Secretary of State for Environment, Food and Rural Affairs, and Rishi Sunak, Chancellor of the Exchequer. Find out who your MP is and how to contact them on Parliament’s website.
The IWA also provides a full list of MPs with waterways in their constituency (in the Resources Section of the Waterways Restoration Hub under the Canals and Rivers tab on the website) and a template letter requesting Business Support can be found under the Campaigns tab on the News and Campaigns page.
There’s much work to be done. “We’re looking to see what support other waterway organisations need,” explained Alison. “Most are charities, community-type organisations, boat clubs, community boats. We’ll be getting a separate survey out to work out how they need support.”
Paul Rodgers added: “This is an industry that holds a special place in the hearts of the British public. We can’t afford to lose it.”