CRT fee increases may close some hire firms.

There are fears that some canal hire boat firms may go out of business because of Canal and River Trust changes to the way it calculates licence fees for canal businesses. Others may be forced to stop operating some longer boats or stop running day hire boats. Ironically the changes are not intended to bring in more income to CRT but to rationalise the system.

In a detailed criticism of its possible effects the Inland Waterways Association (IWA) has called upon the Canal & River Trust (CRT) to reconsider its proposals to reform its business boat licensing fees.   IWA is concerned that, if implemented, these proposals will cause serious financial difficulty for some business licence holders.

In principle, IWA does not object to revisiting the formula of how licence fees are levied for business users, but considers that the proposals should be subject to much wider consultation and that any significant changes should be phased in over a longer period of time.

IWA is opposed to any licence increases that are in excess of the ‘inflation-only from 2014’ levels announced in CRT’s press release of 15 October 2012 when it was stated that “Trustees of the Canal & River Trust have decided to limit boat licence fee increases, for three years from 2014, to inflation only.”

Among the points put to CRT in IWA’s response to the consultation, are that the significant increase proposed for day boat licenses may lead to many operators deciding to cease operating these craft; resulting in less people being able to discover the inland waterways and subsequently hire or own boats

It says that the overall increase for some holiday hire boats is also excessive, particularly for longer boats.  Many hire firms would be hit by this, as two families (or an extended family) often choose a longer boat to make for a more affordable holiday.

IWA notes that the consultation document states that the review “did not set out to increase overall revenue from business boats” yet the proposals result in an anticipated increase of £120,000. CRT acknowledges that this is an insignificant amount in its overall running costs, but it is substantial to the affected business licence holders who would have to bear this increase

The Associations’ comments are extensive and detailed, also covering passenger boats, charity and community boats; and also criticizing the distribution and availability of the consultation document.

For the full text of the IWA’s statement – which those affected by licence increases in the industry should read – it is on their web-site – www.waterways.org.uk

Perhaps the paradox of the whole situation – emphasized by IWA – is that among CRT’s charitable aims is to get more people involved in their waterways where these licence increase proposals appear to want to drive them off?

Thanks to the IWA and Harry Arnold and Waterways Images for some of content and images.