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PRESS RELEASE FROM PETER LUFF, MP

25 October 2006

LUFF WADES IN TO WATERWAYS FUNDING ROW

Mid Worcestershire MP Peter Luff has criticised the government's decision to slash funding of the country's leading canal and river organisation, British Waterways. He has written a sharply worded letter to Barry Gardiner, the waterways minister in the Department for Environment, Food and Rural Affairs (DEFRA).

Peter's constituency includes sections of two waterways maintained by British Waterways - the Worcester and Birmingham Canal and the River Severn - and he is a supporter of the organisation's leadership in the plans for the re-opening of the Droitwich canals.

Peter explained,

"DEFRA notified British Waterways in March that its grant would be cut by 5% (£3.1 million). British Waterways subsequently adjusted its budgets, but in August DEFRA announced that British Waterway's funding would be cut by a further 7.5% (£4.5 million) with the > possibility of a further 2.5% (£1.5 million) being slashed in November. This lower level of funding is to continue through 2007 and perhaps until 2012. It is a response largely to the massive problems in the management of the farm grants scheme by the Rural payments Agency but also to the expenditure on avian flu."

In his letter, Peter says,

"I completely fail to see why the difficulties of the Rural Payments Agency - caused by a bad policy, badly implemented by DEFRA ministers - should lead to a funding reduction in other parts of DEFRA.

"Why should British Waterways pay the price for such spectacular incompetence at political level?

"I am left completely breathless. The problems of the Rural Payments Agency should be met out of the general reserve, and not out of DEFRA's specific budget.

"I understand there is generally a challenging climate for public expenditure at present with the Chancellor imposing cuts pretty well across the board except in a few key protected areas. If British Waterways were just being cut in line with those reductions elsewhere in government although I might be unhappy, I would not be vitriolic.

"DEFRA made a mess of the Rural Payments Agency as you and I know, but I completely fail to understand why the reaction of the government is to cut the grants to bodies that bear no share of the blame whatsoever and have indeed behaved with exemplary efficiency. Is this any way to run a government? Reward failure and penalise success - it hardly sounds like a motto for good government.

"Can you explain to me why British Waterways should pay the price for bungling elsewhere in the Department?"

Peter Luff
Member of Parliament for Mid Worcestershire
Chairman, DTI Select Committee

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