TRUSTEES MEETING 23Rd January 2014

TRUSTEES MEETING 23rd January 2014 – 09.00 am to 4.00 pm At RAF Club, 128 Piccadilly, London W1J 7PY AGENDA 0900-1200 Strategy development/ review (notes to follow) Richard Parry / Heather Clarke

1200 Business Plan Update [CRT68] Richard Parry / Philip Ridal

1230 LUNCH

1245 Communication strategy – presentation by Simon Salem Champollion

1330 Board meeting start

1. Apologies for absence

2. Minutes of meeting on 21st November 2013

3. Declaration of interests in any matters on Agenda

4. Matters arising

Decision Papers 5. Health & Safety Annual Review [CRT69] Vince Moran

6. Pension Fund update [CRT70] Philip Ridal

7. Company Seal and Certificates [CRT71] Philip Ridal

8. Chief Executive’s Report [CRT72] Richard Parry Appendix 1: KPI Report Appendix 2: Operations & Technical Appendix 3: Finance Appendix 4: Property Appendix 5: Marketing and Communications Appendix 6: Volunteering Appendix 7: Fundraising Appendix 8: HR Report Appendix 9: Partnership Progress

9. Board Committees  To note the Minutes of the Investment Committee meeting on 14th January

10. Any Other Business

11. Next Meeting – 23rd March – Cardiff

MEETING OF THE BOARD OF TRUSTEES

Minutes of a meeting of the Board of Trustees (the Trustees) of Canal & River Trust (the Trust or CRT) held at RAF Club, 128 Piccadilly, London W1J 7PY on Thursday 23rd January 2014 at 13:25.

Trustees: Tony Hales Chairman Jane Cotton John Bridgeman John Dodwell Frances Done Tom Franklin Lynne Berry Simon Thurley Steve Shine Manish Chande

Executive Directors: Richard Parry Chief Executive Stuart Mills Property Director Vince Moran Operations Director Philip Ridal Finance Director Simon Salem Marketing & Fundraising Director

Secretary of the Meeting: Mark Devin Prism Cosec

Action 14/001 CHAIRMAN’S WELCOME

The Chairman welcomed all those present.

14/002 DECLARATION OF INTERESTS IN ANY MATTERS ON THE AGENDA

No interests were declared by individual Trustees other than, in considering agenda item 14/005, the Trustees noted the following interests:

i. John Bridgeman, Jane Cotton and Stuart Mills are Employer Nominated Trustees of the WPF; and ii. Philip Ridal, Simon Salem, Stuart Mills and Vince Moran are members of the pension scheme.

In addition, with reference to agenda item 14/008, Manish Chande declared an interest in relation to the business of the meeting of the Investment Committee held on 14th January 2014 due to the involvement of Commercially confidential information removed

14/003 MINUTES

-1 - CRT Trustee Minutes – 23 January 2014

The minutes of the meeting held on Thursday 21st November 2013 were approved.

Matters arising:

Public and Personal Benefit (minute 13/079) Mr Parry undertook to liaise with Jackie Lewis and report to the Trustees at a future date, with reference to the development of guidelines, based upon the principles articulated in the paper presented by the Corporate Services Director, tailored to the range of different activities undertaken by the Trust. RP

Risk dartboard/public safety (minute 13/082) Mr Parry would liaise with the Audit Committee with regard to the inclusion of public safety in future iterations of the risk dartboard. RP

BWML (minute 13/082) Mr Ridal confirmed that an overview of BWML’s business plan would be presented at the next Trustee meeting on Thursday 27th March 2014. PR

Commercially confidential information removed

14/004 HEALTH & SAFETY ANNUAL REVIEW (CRT 69)

Mr Moran presented a report summarising the annual performance on all aspects of health and safety and setting out a series of recommendations to be considered by the Trustees.

Asset management/principal risks: It was noted that the rate of change of improvement in the condition of principal assets in the worst condition grades had slowed in recent years as the challenge of sustaining the improvements gained had mounted, with funding tight. It was agreed that efforts to reduce risk in relation to principal assets in the worst grade conditions should be maintained. VM

Non-principal assets: Condition data gathered in relation to, inter alia, waterway walls and towpaths, indicated that information about the extent of defects had increased,. It was agreed that plans should be produced to reduce this risk over the next five years by targeting investment on non-principal assets categorised in the worst grade, recognising the limit on overall funding availability. VM

Visitor safety: Mr Moran explained that the key challenge in achieving a further reduction in the level of public injuries as proportion of reported incidents was to achieve a balance between public safety and open access to the historic infrastructure. It was acknowledged that there was a need to review the processes required to deliver this policy and that further work was required potentially using the Pontcysyllte Aqueduct as a test case. It was agreed that consideration be given to reducing the percentage of public injuries attributable to infrastructure faults to 5% of reported incidents by 2015/16. VM

Employee safety: Noting that a large proportion of lost time injuries were rooted in individual behaviours, it was agreed to revitalise the Behavioural Safety Improvement Programme during 2014/15 with a plan to be finalised over the next VM

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three to five months.

Volunteer safety: increased numbers of volunteers with an associated growth in the number of tasks undertaken inevitably increased the safety risks to be managed. It was agreed that a review be undertaken to ensure that volunteer safety processes are proportionate to the risks involved. VM

Contractor safety: it was noted that a review was currently underway of the management arrangements for contractors. This was due for completion in April 2014. It was agreed that the current policy of using framework and national contracts enabled good safety performance.

KPIs: it was noted that the disparate range of activities undertaken by the Trust inevitably meant that a range of KPIs were in place to focus management performance of health and safety. However, it was acknowledged that only the headline measures of performance should be reported to the Trustees. Accordingly, it was agreed that two KPIs be reported to the Trustees going forward. First, RIDDOR accident frequency rates together with the inclusion of volunteer statistics and, second, the proportion of public injuries directly associated with infrastructure condition. VM

14/005 PENSION FUND UPDATE (CRT70)

Commercially confidential information removed

14/006 COMPANY SEAL AND CERTIFICATE (CRT71)

Mr Ridal presented a short paper updating the delegation arrangements set out in a memorandum to the Trustees dated 19th November 2013 by the Corporate Services Director to enable the same members who are authorised to use the Common Seal of the Company also to authorise certain documents in compliance with Sections 117 to 126 of the Charities Act 2011.

Following a short discussion, it was resolved that:

i. The persons listed below be and are hereby authorised to affix the Common Seal of the Trust to any document for the purpose of its execution (as a deed or otherwise) on behalf of the Trust. The application of the Seal to a document shall be sufficiently authenticated by any one person so authorised countersigning the document at the place where the Seal is usually affixed; and

ii. The persons listed below be and are hereby authorised to act as representatives of the Trustees of the Trust for the purposes of giving

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such certificates as are required to be given by the Trustees under the provisions of Part 7 (Charity Land) of the Charities Act 2011 for the proper disposition by or in favour of the Trust of land held by it or to be held by it (in either case whether or not as a trustee).

List of authorised persons:

 Names removed

14/007 CHIEF EXECUTIVE’S REPORT (CRT 72)

Richard Parry presented his written report, which incorporated the individual Director reports as appendices to the main report. The following issues were highlighted:

KPI Report: Mr Parry noted that there were two additional measures flagged ‘red’ in relation to (i) Commercially confidential information removed and (ii) car/mileage emissions, which were unlikely to meet the year-end target. KPI’s designated ‘red’ at the meeting in November 2013 (Friends recruitment and employee injuries) had continued to fall short of target.

Operations and Technical: Mr Moran’s report was received and its contents noted.

Finance: Overall financial performance had been strong. Commercially confidential information removed

A contingency had been released to enable an additional £3m to be committed to the waterways and a further £500k to off-side vegetation during the remaining winter months.

Commercially confidential information removed

It was noted that the Managing Director of BWML, had served notice of his intention to retire effective from 31 August 2014. Mr Ridal would update the Trustees in March on the process to recruit Mr Newton’s successor. PR

(Mr Thurley left the meeting at 14:30)

Property: Mr Mills presented his paper and requested the following approvals:

i. In relation to the appointment of Partners Capital LLP (Partners) to advise the Trust in relation to non-property investment, Partners had requested that five executives be designated as approved signatories. It

was resolved that Richard Parry, Stuart Mills, Philip Ridal, Jackie Lewis, SM and Quentin Pickford be so designated; and

ii. Following the resignation of Vicky Jacob, Finance Manager, effective April 2014, it was resolved that Angela Everett be appointed as an alternate director to Quentin Pickford on the board of H20 Urban (No 2) LLP in place of Ms Jacob. SM

Replying to a question from Mr Hales, Mr Mills explained that he was still trying to SM

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agree a date Commercially confidential information removed for a meeting to determine Commercially confidential information removed appetite for the freight project discussed at the Trustee meeting on 21st November 2013 (minute 13/074 refers).

Marketing and communications: Mr Salem’s written report was received and noted.

Volunteering: Mr Salem’s written report was received and noted.

Fundraising: Commercially confidential information removed RP

HR Report: Mr Parry supplemented the first HR report to the Board with a verbal update on a range of matters and invited comments from the Trustees on the level of detail and overall content. It was agreed that future reports would include, as standing items, information on diversity, senior staff movements and succession planning.

It was noted that the staff appraisal scheme was currently being reviewed and would be re-launched on 1st April 2014. RP

Mr Parry updated the Board on the work of the Engagement Board, which was now moving into the implementation phase. Accordingly, the opportunity had been taken to review and refresh the membership following its first year’s work and there would, going forward, be more middle management representation.

Partnership progress: Mr Parry provided a verbal update on the Trust’s activities over the past two months with specific reference to HS2, Commercially confidential information removed

The first of the Chief Executive’s open meetings with boaters was to be held in Birmingham immediately following the Board meeting with more planned. Early indications were that large numbers would attend.

Replying to a question from Lynne Berry concerning the possible expansion of the waterways chaplaincy, Mr Parry replied that the Trust valued the work of the chaplaincy and was in discussions about how to increase the support it provided and/ or other support options. . RP

14/008 BOARD COMMITTEES

The Trustees noted the draft minutes of the Investment Committee meeting on Tuesday 14th January 2014.

The Chairman reported that Frances Done had agreed to take over as chair of the Audit Committee commencing after the Audit Committee meeting in February 2014.

14/009 DATE OF NEXT MEETING

Thursday 27th March 2014 (Cardiff)

14/010 CLOSE OF MEETING

- 5 - CRT Trustee Minutes – 23 January 2014

There being no further business, the Chairman closed the formal proceedings at 15:00.

Chairman

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INFORMATION REPORT

CRT68 ENTIRE REPORT CONFIDENTIAL – RED TEXT

BUSINESS PLAN UPDATE

Report by the Chief Executive/ Finance Director - January 2014

1.0 INTRODUCTION 1.1 The report provides an interim update on the emerging business plan for 2014/15-2016/17 with a summary of the main issues arising thus far, and an explanation of the provisional Net Income figures. The Plan Review Committee met in December and discussed an earlier version of the draft plan.

2.0 RECOMMENDATION AND SUMMARY 2.1 Trustees are asked to note and provide any comment on the information in this report ahead of the final Business plan being presented for approval in March, in particular to consider the distribution of available funding across the Trust’s activities. The Plan Review Committee will meet again in February.

3.0 STRATEGIC CONTEXT 3.1 The Board paper on the Strategy considered by the Trustees at the last meeting in November concluded that we:  Develop the indicators that will drive performance and measure results;  Define the priorities, activities, processes and resources under each objective which are required to achieve the desired outputs;  Work with Cardiff University to scope the brief for designing an outcomes and impact measurement framework and methodology; and  Engage in wider consultation including engagement with the Waterway Partnership Chairs and Advisory Panels on the strategic goals/ objectives.

3.2 Because the process of strategy development is happening in parallel with the creation of the business plan, there are issues emerging which are yet to be fully taken into account in determining short-medium term spending priorities. Further work is needed to consider the Plan fully in the context of the Strategy and also to review the allocation of expenditure to the Charitable Purposes at the next stage of the planning process.

3.3 The key issues arising for the plan to date are:  The scale of our ambition for volunteering and the roles targeted for high levels of volunteering;  Revision of the approach to individual fundraising given the withdrawal of external agencies;  The extent and form of the commitment to localism and community engagement;  The appetite for incurring costs to accelerate growth in awareness of the Trust, the waterways and the benefits they provide;  Our willingness to invest in the digital platform for communication and marketing;  The need for greater capability in Public Affairs and Planning given their role in influencing key decision-makers; and  The consequential need for investment in Trust staff to achieve greater advocacy to support the Trust’s ambitions.

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4.0 DRAFT BUSINESS PLAN 4.1 The Plan process focusses, at this stage of its development, on the income generating areas and the costs of the National Teams. The aim is to arrive at a clear view of the funds available to spend on the Charitable Purpose activities (i.e. waterway infrastructure, plus museums and attractions), to enable those Plans to be finalised and balanced with the funds available. Many of the Plans shown below are in the process of being revised.

4.2 The table below presents the Group Contribution Summary from the current draft Business Plan 2014-17, and compares this year’s draft Plan with the equivalent years (2 and 3) from last year’s Plan. It shows – despite a higher base position in 2013/14 - a less favourable position than the previous Plan for 2014/15 and 2015/16. Figures in £k

2013/14 2014/15 2015/16 2016/17 2014/15 2015/16 2014/15 2015/16 F8 Forecast Plan Plan Plan Prior Plan Prior Plan Variance Variance Contribution Generated Funds and Investment Income Investment Property 28,306 30,603 28,932 28,771 32,440 31,815 (1,837) (2,883) Non Property Investments - 2,937 2,947 3,105 - - 2,937 2,947 Boating and Moorings 24,758 24,761 25,924 26,982 24,840 25,728 (79) 196 Utilities 22,539 22,947 24,262 24,625 22,763 24,054 184 208 Marinas Subsidiary 698 976 1,152 1,225 1,588 1,776 (612) (624) CRT Share of Joint Ventures 13 4,312 3,538 3,571 3,570 3,640 742 (102) Voluntary Income and Fundraising (334) (558) (33) 686 (522) (441) (35) 408 Net Interest 2,664 (1,071) (1,007) (1,016) 1,676 453 (2,747) (1,459) Total Generated Funds and Investment Income 78,644 84,908 85,715 87,949 86,355 87,024 (1,447) (1,310)

Governance (644) (676) (674) (734) (681) (684) 5 10 National Teams (28,454) (33,863) (33,072) (33,868) (30,855) (31,685) (3,008) (1,387) Total Governance and National Teams (29,098) (34,539) (33,747) (34,602) (31,536) (32,369) (3,003) (1,377)

Contingency - (2,000) (2,000) (2,000) (2,000) (2,000) - - Pension Deficit Funding (7,000) (7,000) (7,000) (7,000) (7,000) (7,000) - - Net Incoming Resources before Defra Funding 42,546 41,369 42,968 44,346 45,819 45,655 (4,450) (2,687)

Defra Funding 39,000 39,000 50,000 51,000 39,000 50,000 - - Total Net Incoming Resources 81,546 80,369 92,968 95,346 84,819 95,655 (4,450) (2,687)

4.3 The main points to note are: Commercially sensitive information removed

 Overall, Total Generated Funds and Investment Income for years 1 and 2 of this year’s Plan is down around £1.4m in each year, compared with last year.

Commercially sensitive information removed

4.4 Summary of National Team Cost – Draft Business Plan 2014-17

Commercially sensitive information removed

R Parry/P Ridal January 2014

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Appendix A – Group Summary

Net Incoming Resources – 2014/17

Figures in £k Statement of Financial Activities 2013/14 2014/15 2015/16 2016/17 2014/15 2015/16 2014/15 2015/16 F8 Forecast Plan Plan Plan Prior Plan Prior Plan Variance Variance Incoming Resources Generated Funds and Investment Income Investment Property 36,070 38,579 35,084 34,585 39,063 38,145 (484) (3,061) Non Property Investments - 3,016 3,154 3,415 - - 3,016 3,154 Boating and Moorings 32,745 33,978 34,928 35,974 32,930 33,927 1,047 1,002 Utilities 24,243 24,186 25,412 25,794 23,866 25,178 320 234 Marinas Subsidiary 6,630 7,245 7,634 7,947 7,864 8,305 (620) (671) CRT Share of Joint Ventures 7,590 30,217 24,156 44,298 26,627 33,341 3,589 (9,184) Voluntary Income and Fundraising 1,094 1,583 2,726 4,080 2,115 2,908 (533) (182) Total Generated Funds and Investment Income 108,372 138,803 133,094 156,094 132,466 141,802 6,337 (8,708)

Governance 14 12 12 12 12 13 (0) (1) National Teams 2,276 2,368 1,916 1,911 1,835 1,780 533 136 Total Governance and National Teams 2,290 2,380 1,928 1,923 1,847 1,793 533 135

Defra Funding 39,000 39,000 50,000 51,000 39,000 50,000 - - Total Incoming Resources before Charitable Activities 149,662 180,183 185,021 209,016 173,313 193,595 6,870 (8,573)

Defra Funding 39,000 39,000 50,000 51,000 39,000 50,000 - - Total Net Incoming Resources 81,546 80,369 92,968 95,346 84,819 95,655 (4,450) (2,687)

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Appendix B – Headcount of “Above the Line” functions only

Commercially sensitive information removed

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DECISION REPORT

CRT69 TEXT IN RED CONFIDENTIAL

HEALTH & SAFETY MANAGEMENT

Annual Report by Operations Director - January 2014

1.0 INTRODUCTION

1.1 This Report summarises the annual performance on all aspects of health and safety and presents the opportunity to examine the levels of risk currently accepted by the Trust.

1.2 Ensuring the safety of employees, contractors, volunteers and the public is the most important priority above all other aspects of our activities, particularly given the open access nature of the waterway network with its inherent water related safety risks, the consequence of failure of our major assets and increasing public and customer expectations of safe use.

1.3 We are proud of our track record and particularly the significant change in safety culture that has been achieved in recent years as a result of clearly placing the safety of all people who interact with the waterways as our top priority. However, we are frustrated at the increase in the number of low severity Lost Time Injuries sustained by our employees and significant effort continues to be committed to improving this trend.

1.4 The challenge to continually improve health and safety performance is relentless particularly given the ageing assets in our stewardship, the nature of the working environment for our people and the anticipated growth in volunteering which will bring new challenges.

1.5 We strongly believe that improving health and safety performance fundamentally underpins the achievement of efficiency improvement and good management and increasing our managers and employees’ understanding of this connection is vital.

2.0 HEALTH & SAFETY PERFORMANCE REPORT 2013

2.1 ASSETS

2.1.1 AIP2008

Asset inspection is the primary infrastructure risk management tool to monitor asset condition and to report defects for repair prioritisation. The inspection of assets is governed by a mandatory standard for asset inspections. This defines responsibilities at all levels, the assets to be inspected, the required cycles of inspection, the standards of reporting, and requirements for review. This process is continuously evolving, building on experience to optimise inspections, and is recognised by many outside organisations as representing best practice, and some organisations have adopted and amended our standard for their own purposes. The hierarchy of cyclical inspections by experienced and certificated internal inspectors is undertaken on all navigation lengths and on each of our 10,000 individual principal infrastructure assets. The results of these inspections feeds vital data into the asset management system on which we identify defects for repair and prioritise major works to assets to ensure their continued serviceability and safety. In 2013, compliance monitoring by the Head of Asset Management as part of the Asset Management Plan processes recorded high and consistent compliance with the standard.

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2.1.2 Asset Risk Grading

The overall condition of the 10,000 principal, higher risk, assets is assessed on a 5-point scale of A to E (where A is an asset in prime condition, and E is an asset in a seriously deteriorated condition). The condition grade is a useful indicator of the likelihood of failure. In order to assess assets in terms of risk, a 5-point consequence of failure scale is applied (where 1 represents very low consequence, and 5 represents a consequence level whereby deaths or serious injuries or significant property damage are the likely outcome should the asset fail – for example many of our large embankment dam reservoirs). The product of these two grades, condition and consequence of failure, represents the risk level to be managed. In 2013, the percentage of our principal assets in the worst two condition grades (D&E) had reduced to 15% from 30% in 2002. The repair focus continues to target assets in the D5/E4 risk categories (there are no assets in E5 condition) with attention now turning to the two waterways – Manchester & Pennine and South Wales & Severn - where the proportion of worst grade assets is higher than the national average.

In addition to principal assets, there are a further 15,000 non-principal assets which make up the total network asset stock. The most significant non-principal assets from a safety perspective are towpaths, waterway walls and bank protection and the canal and river channels.

We have been gathering condition data on these assets in recent years so that the full range of risk management considerations can be better understood particularly as it relates to potential public safety risks from towpath use.

The information we now have indicates that we have long lengths of towpath with defects (20% of total length in condition grades D & E), and also long lengths of waterway walls or bank protection that is either collapsed or close to life expired (38% of total length).

This suggests that public safety risks on some towpaths mainly in the Manchester & Pennine, North West, South Wales & Severn and South East waterways are reaching levels where the risk to public safety are an increasing concern. We plan to address these risks over the next 5 years by more focussed investment on non-principal asset improvement in these waterways and analysis of the likely costs involved is underway.

2.1.3 Property

Compliance with statutory obligations in our operational building and investment estates in respect of building services, asbestos, legionella and fire risk assessments are the key safety risk areas. Robust agreements are used to transfer responsibility for health and safety compliance to tenants across the majority of the let property estate with our teams monitoring the compliance of tenants to ensure that landlord’s responsibilities are discharged effectively. For operational buildings, the application of nationally planned cycles to ensure compliance is achieved are in place and have been embedded in 2013 significantly reducing risk.

2.1.4 Port Management

The Port Marine Safety Code (PMSC) is a non-statutory Standard produced by the Department for Transport (DfT), compliance with which enables harbour authorities to demonstrate that their statutory duties for marine operations have been discharged by using the powers available to them. The PMSC requires the identification of three specific posts; the Duty Holder, discharged in The Trust by the Board, the Designated Person which is fulfilled by the Technical and Operations Director and Harbour Master roles are fulfilled by competent local people. The Trust’s designated ports are:

 London Docklands  Sharpness Docks  River Ouse (in the Goole area)

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Liverpool Docks has not been classified under the PMSC but we apply the same approach to the management of this waterspace. External audits of the ports conducted in 2013 indicate good compliance with the PMSC, with a small number of minor improvements to implement over the coming year.

2.2 VISITOR / USER SAFETY

2.2.1 Infrastructure related incidents

The focus on the consistent application of Minimum Safety Standards (MSS) designed to mitigate the risk of injury to the public (predominantly boating related) continues to have a major positive impact on public and customer safety. We are confident that the programme which commenced in 2007/8 at an initial cost of £20m has had a notable effect on reducing the number of visitor incidents directly related to asset condition.

The target of reducing asset related injury to 10% was set at the beginning of 2007 to measure the impact of Minimum Safety Standard implementation and the following graph illustrates the proportion of infrastructure related injuries to total injuries reported which shows that the target of 10% of incidents caused by infrastructure defect has been consistently achieved for several years.

Total loss & injury incidents % infrastructure related 50.0 368 373 400 349 45.0 320 350 40.0

287 265 262 300 35.0 244

250

30.0 202 related 25.0 200 17.9 19.5 20.0 15.3 150

11.9 Incidents 15.0 11.3 10.2 10.3 9.4 9.4 100 10.0 50

Infrastructure 5.0

% % 0.0 0

The largest proportion of injury type within the target area is slips, trips and falls associated with towpath condition. The chart below illustrates the position based on 2013 data and clearly demonstrates that slips/trips and fall injuries are the most significant injury type to members of the public. Proposals to focus more attention on towpath and water wall maintenance in coming years is directly related to reducing risks from towpath deterioration. At this stage, the cost associated with making significant improvements has not been fully established and detailed analysis is underway.

Incident Type Injured by machinery or Hit fixed object, equipment, 3 Vegetation 2 related, 1

Boat Sink/Hangup, 1 Slip/trip/fall , 14

Structural failure/defect, 4

Hit by moving object, 2 Page 3

2.2.2 Inquest and Legal Challenge Outcomes

The Health & Safety Executive (HSE) concluded their investigation into the accidental death which occurred in June 2011 of a 12 year old boy who drowned at Stourport Basin when he fell into the lock from his cycle when crossing a lock tail bridge with very low parapets. The Health & Safety Executive’s investigation concluded that there was a strong case for a successful prosecution as a result of the failings identified. HSE took legal advice which indicated that it was not in the public interest to pursue a prosecution.

2.2.3 Water related Fatalities

The Trust is active on a range of national bodies which address public and visitor safety to ensure that we contribute and learn from the wide experience of many bodies in the UK. We are leading members of the National Water Safety Forum and the Visitor Safety in the Countryside Group. Both these organisations have a membership drawn from a wide range of owners, users and regulators of the United Kingdom’s inland and coastal waters and countryside. Key activities in 2013 are work on open water swimming, water safety education and the provision of safety signage and rescue equipment.

The following chart shows the trend of water related fatalities on the Trust’s property. The Trust conducts an initial investigation to identify whether there are contributory factors potentially within our control and, where we believe our actions or inactions may have contributed to a death, we advise the Coroner’s court of our interest in the events.

Crime, suicide, natural cause Recorded Fatalities 1999 - 2013 Nature of death unknown Accidental deaths 80 70 65 68 63 59 57 60 57 54 54 56 53 53 49 48 50 45 40 32 30

20 No. of of No. deaths 10 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year

32 deaths were reported in 2013 of which 3 were known to be intentional (suicides and crime) or known to have resulted from natural causes, 16 had unknown causes and there were 13 deaths where the evidence available to the Trust indicated an accident (i.e. unintentional). None were judged to have any fault related to the Trust.

This 2013 total is significantly lower than the average over the last 10 years. There is no identifiable reason for this change although the past 5 years has seen a modest downward trend in the long term average. Over the period covered by the chart suicide rates generally in the UK have been falling until 2011 when there was an increase.

Despite the reduction overall the urban areas of northern England remain challenging locations and we have liaised closely with Manchester and Leeds City Councils to address issues which commonly involve antisocial behaviour and alcohol related incidents with young males as the main risk group.

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2.2.4 Boat Safety Scheme (BSS)

The BSS which is jointly run by The Trust and the Environment Agency has continued to improve its service delivery. The Scheme has invested in information technology to streamline the examination system and has been rigorous in reducing overhead costs. As a result of these and other efficiencies, the cost of certificates has been held for 4 years despite constant upward pressures.

Fires and CO poisoning have historically been the major causes of loss of life on the inland waterways. The Scheme’s focus in these areas has led to significant successes with the establishing of industry standards for installation of solid fuel stoves in boats and development of suitable smoke alarms approved for use in a marine environment. Deliberate fire raising continues to be the biggest single reason for loss of boats and person overboard is emerging as a significant contribution to boater fatalities across all navigation authorities covered by the BSS. The BSS is monitoring these events to identify any opportunities there may be to reduce the risks.

The Boat Safety Scheme has conducted a review of Hire Craft and Hirer safety during 2013 including informal consultation with the Hire Boat Industry. This review will feed through to revised BSS requirements for hire craft and inform Navigation Authorities licensing requirements in the future. Final recommendations will be put forward before the end of March 2014 with a proposed implementation date from April 2015, giving the Hire Boat Industry a year to comply with any changes.

2.3 EMPLOYEE HEALTH AND SAFETY

2.3.1 Background

The Trust’s frontline workforce largely operate in small teams away from direct supervision and this self-supervising aspect of the work means we depend on good planning by managers and very much on the good judgement of the workforce about the changing risks of the work they are deployed to undertake. We operate a dynamic risk assessment process which requires our employees to assess the risks of the routine jobs they undertake and take the necessary safety precautions. A further development of this dynamic risk assessment process is being rolled out in 2013/14 and proposals are under advanced development to introduce changes which will improve work planning.

The Trust’s workforce is highly mobile and this necessitates a significant amount of driving for many operatives. We have a substantial fleet of commercial vehicles and have fitted tracking devices to the fleet. This enables us to monitor driver behaviour both in terms of excessive speed and driving hours. The benefits are anticipated to be twofold, improving safety and reducing fuel consumption. We have already reduced the incidences of excessive speed substantially.

2.3.2 Total Incidents

The following chart illustrates the overall injury trends. The effect of bringing Museums and Attractions (M&A) into the Trust is highlighted as the high proportion of low severity injuries (predominantly First Aid cases and injury – no treatment cases) has accelerated a slightly deteriorating trend in 2013 after the record low achieved in 2012. The M&A management team have put significant effort into raising safety performance recently including insisting on improved reporting of all incidents.

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Total Recorded Injuries 12 month totals including M&A M&A injuries

350.0 Injury - no treatment

First aid cases 300.0 LTI

250.0 Riddor reportable injuries

200.0

150.0

100.0

50.0

0.0

2.3.3 Lost Time Incident (LTI) and RIDDOR (reportable to HSE) incident trends

The following chart shows the trend in more serious RIDDOR and LTI injuries which account for very few of the total injuries in the graph above. It shows the most serious RIDDOR injuries at lower levels than previous years mainly because HSE changed the reporting criteria in 2012 from 3 day to 7 day absence. The overall trend in LTIs is broadly stable at between 20-30 per year since 2007, with the current level slightly higher than a year ago.

CRT Lost time injuries (12 month averages) Emp Reportable injuries

40 Emp 1-7 day LTI

35 33 Total LTIs 31 31 3030 29 2929 29 2828 28 28 30 2727 2727 27 27 27 27 26 26 26 2626 26 25 25 25 25 25 2525 25 2525 24 2424 24 24 24 24 24 23 23 23 23 2323 2323 2222 22 22 22 22 22 22 22 22 22 21 21 2121 21 2121 21 21 21 20 20 20 2020 20 2020 20 20 1919 19 19 22 18 18 1818 18 18 18 18 20 21 17 17 16 16 1616 1616 19 16 16 1515 15 16 1515 15 14 18 15 15 14 14 14 18 13 14 13 1313 13 1717 12 12 12 12 16 16 1616 16 1616 13 12 16 11 1212 1515 15 11 15 15 15 11 10 10 10 1010 10 10 10 11 1414 14 14 14 14 10 10 14 13 9 13 9 109 9 1212 8 8 8 8 8 12 12 8 12 12 8 12 10 1111 11 1111 1111 1111 11 11 1111 87 7 7 10 10 1010 10 10 10 6 6 10 10 910 10 10 9 9 9 9 9 9 5 5 9 9 8 9 9 8 8 8 8 8 7 7 7 7 6 6 6 5 0

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2.3.4 LTI Causes

In line with previous years, and most industries, the following chart illustrates that Manual Handling and Slips, Trips and Fall related injuries continue to be the most common. Improving personal safety behaviour together with improved work planning are the main improvement actions required to significantly improve performance in these areas as it is impractical to have closer supervision of the workforce given the resources we have available and the nature of distributed work locations.

Causes of LTIs Jan 13 - Dec 13 Injured by Fall from plant/animal/i Struck fixed height, 1, 4% nsect, 1, 4% object, 1, 4%

RTA, 2, 8%

Struck by moving Manual object, 2, 8% Handling, 9, 36%

Slip/trip/fall on same level, 9, 36%

The severity of injuries sustained continues to reduce from the peak in 2010 when four extremely serious crush incidents occurred which could very easily have resulted in fatalities or long term disability. Unfortunately, some serious near miss incidents continue to occur and where employees knowingly disregard proper working practices disciplinary action is taken as well as using the examples as wider learning case studies. The most notable example last year was the overturning of a crane on the Leeds/Liverpool Canal in February. In this case, a 60 tonne crane contracted to work on a lock stoppage overturned without causing injury. The engineering assessment of methods of work and towpath condition was inadequate. Disciplinary action was taken and significant improvement to our Temporary Works processes have subsequently been introduced.

2.3.5 Behavioural Safety

Our focus on safe behaviour is designed to reduce Lost Time Injuries by encouraging increased personal responsibility, greater risk awareness and challenging the “just get on with it” attitude of many of our frontline employees. Accident data shows that 9 of the 25 Lost Time Injuries in 2013 had very clear behavioural causes at the root of the incidents where individual poor decision making was the key contributing factor.

We have assessed the improvement programme that is in place and benchmarked our approach with other organisations and we are confident that our Behavioural Safety Improvement Programme is the right approach. The challenge is to maintain management and employee focus on the benefits of behavioural change and we are engaged with our partner contractors to exchange good practice and learning from incidents. We are also working with specialist industry experts to identify best practice and find ways to refresh and revitalise the programme for 2014/15. In a time of change, our challenge is to convince our workforce that stopping and thinking before acting is not only good for their safety but the most efficient way of working.

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2.3.6 Safe Behaviour Discussions Engagement of employees and managers in routinely discussing how safety performance can be improved is vital. Recognising the fact that the Trust’s employees work in small unsupervised groups we know that the discussions between employees at the worksite are vital to controlling the “just get on with it attitude” that has historically resulted in some serious incidents. Historically the focus has been on canal bank staff but during late 2013 and continuing into 2014 we are rolling out Behavioural Safety training to other employees.

Proactive conversations (before events occur) between colleagues and between managers and employees are the most powerful interactions to encourage safe behaviour with reactive conversations (which take place following the observation of potentially unsafe acts) being important but less powerful. We are encouraging all conversations but the levels of proactivity are particularly important. The following chart shows the number of safety conversations in specific risk areas undertaken in 2013 and it is encouraging that in the main risk areas the proportion of proactive discussions are increasing:

SSoW (Safe systems of work) Slipped, tripped or fell on same level Injury from machinery/equipment Handling, lifting or carrying Personal Protective Equipment Fall from height Exposure to harmful substance Hit by moving, falling object or vehicle Road traffic incident Boat sink/capsize/hangup Proactive Training/Competence Fire/explosion incident Reactive Threatening/aggressive behaviour Hit something fixed or stationary Electrical contact/discharge Animal/insect incident Structural or equipment failure Accidental damage property/asset/equip Injured by vegetation/plants 0 200 400 600 800 1000 1200 Number of Conversations

2.3.7 Occupational Health

The Trust provides mandatory occupational health screening for our frontline employees. Bankside workers are exposed to noise and vibration from the equipment they use and our surveillance program identifies those who are developing symptoms of industrial diseases before they get to a point of causing significant long term harm and accompanying compensation claims. Office based employees are now offered voluntary 2 yearly lifestyle health checks which have been well received.

There has been 1 reported case of occupational ill health. An employee in North Wales and Borders has been diagnosed with symptoms of Carpel Tunnel Syndrome (HAVS) and is subjected to restricted exposure to vibration. HSE conducted an investigation into the case and asked the Trust to improve the control measures we have in place but are not taking any further action. We have introduced a revised process of risk assessment which is less reliant on employees controlling their own exposure.

2.4 VOLUNTEERS

2.4.1 During 2013 we have put considerable effort into aligning our approach to volunteer safety with that of employee safety. Volunteers working directly for the Trust undergo a similar induction to paid employees. Our belief that there is no task that a volunteer cannot undertake means we must continually ensure the health and safety arrangements offer the same level of protection to volunteers as our paid employees.

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2.4.2 Groups who volunteer to work on the Trust’s property are being supported to supervise their own activities with a lighter touch in terms of assessed formal management systems than previously. This ensures that their activities are properly managed but the controls are proportionate to the risks.

2.4.3 There were no volunteer reportable injuries and 7 minor injuries during 2013. There has been a potentially serious volunteer injury in the first week of 2014 which is under investigation. The volunteer involved seems to have fallen from a workboat injuring his shoulder.

2.5 CONTRACTORS

2.5.1 The duty of care required for contractor safety is equivalent to that required for employees and all our processes take due consideration of this significant responsibility.

2.5.2 In 2004, British Waterways suffered 3 fatalities involving contractors and significant changes to contractor safety management were introduced. The processes for managing contractors that were introduced following the deaths continue to evolve and during 2013 further consolidation of national contracts occurred and a review of management arrangements is underway with a completion date of April 2014. This review will ensure our process is simplified where possible and remains appropriate for the revised contractor management arrangements

2.5.3 There were no Riddor reportable contractor injuries in 2013.

2.6 BENCHMARKING

2.6.1 The Trust benchmarks its safety performance against a range of organisations. It is evident that many organisations engaged in maintaining network and civil engineering activities have substantially improved their safety performance over the past 5 years but experience the same challenges we face to further improve performance. We are working with our major contracting partners to share experience and work out strategies to address the common problem.

2.6.2 Accident Frequency Rates (AFR)

AFR is a calculation of accident frequency based on 100,000 hours worked which is broadly equivalent to a typical working lifetime. This metric is widely used in industry for safety performance benchmarking. The Trust’s Accident Frequency Rate (AFR) resulting from the data is 3.77 for All Injuries and 0.21 for RIDDOR injuries

2.6.3 The table below illustrates the Trust’s Accident Frequency Rates compared with or main framework contractors at the end of December.

Rate/100,000 hours worked AFR - All injuries AFR - RIDDOR

CRT 3.77 0.21 Kier May Gurney 0.99 0.25 Land & Water 3.87 0 Fountains 6.19 0.48

2.6.4 National contract delivery of works is now the equivalent to 500 full time employees working for the Trust with robust safety information provided by all our main contractors. In line with industry best practice it is recommended that from 2014/15 a combined Trust and main contractor AFR is reported to reflect the overall safety performance of people undertaking work for the Trust. Under this approach the overall RIDDOR AFR would be 0.18. In the longer term it may be appropriate to consider including volunteer performance in the measure and target improvement in this metric as a key performance indicator. Page 9

2.6.5 The Chart below benchmarks the Trust against a range of companies which subscribe to an Intra-industry Benchmarking Association. It is based on employee only RIDDOR AFR. The Trust position on the chart is among the better performing group of organisations but with clear room for further improvement in this metric as a key performance indicator.

Riddor Accident Frequency Rate/100,000hrs

2.7 TARGETS AND PERFORMANCE BENCHMARKING

2.7.1 Targets

Each year we set challenging safety improvement targets to measure our performance. The targets for employee safety for 2013/14 and current outcome levels to end December 2013 are below. This data is calculated on a rolling year basis and final assessment of overall performance will be undertaken at the end of March. Whilst we are missing our targets for the year to date, if we suffer two employee injuries each month to the end of March the annual outturn will be the same as 2012/13 performance:

- Target -10% reduction in lost time injuries to CRT employees (start point 21) – Outcome (in rolling 12 month period to end December):- 25 – 19% Increase

- Target -10% reduction in Manual Handling injuries (start point 21) – Outcome (in rolling 12 month period to end December) :- 26 - 25 % Increase

- Target -10% reduction in Slip/Trip/Fall injuries (start point 34) – Outcome (in rolling 12 month period to end December) :- 40 for 12 months to end of December 2013 – 20 % Increase

- A more wide ranging performance indicator which includes the effects of volunteer, contractor and public safety is our Lead/Lag Indicator metric. This measures the combined effect of positive safety inputs (leading indicators of performance) against negative safety outcomes (lagging indicators) across all groups affected by our activities. Leading indicators are made up of, for example, safety audits, near miss reports, safe behaviour conversations, % completion of driver risk assessments etc. Lagging indicators included are the injuries and serious near miss incidents involving employees, volunteers, contractors and the public and overdue safety actions. Good leading indicator performance drives the chart upwards and poor safety performance drives it to the left. The target to achieve a position towards the top right is expected. Tracking performance over the last three years produces the following chart: Page 10

Health & Safety Lead/Lag 2011/14 330 Good Input Good Input and Output

310 Poor Output

290 Apr 13

270

250 Apr 12

230

safety safety are plotted

210 Apr 11

Leading Indicators 190 managing 170

150 Inputsto Poor Input 130 Good Output and Output Poor Input 110 60 50 40 30 20 Lagging Indicators The adverse events are plotted along this axis -

The overall trend is clearly very positive but within this the deteriorating employee safety performance outlined earlier is countered by good contractor, volunteer and public safety performance measures. We intend to develop this reporting tool further as although it is a good way of visually representing safety performance it can be complex to explain and a more simpler method may be helpful.

3.0 KEY RISK APPETITE CONSIDERATIONS AND RECOMMENDATIONS

3.1 Asset Management

3.1.1 Principal Assets

We have been continuously tracking principal asset grades since 2001/02 and there has been a marked improvement in the safety risk associated with the 10,000 assets involved as the proportion of principal assets in the worst condition grades (D&E) has reduced from 30% to 15%. However it should be noted that the rate of change in improvement has been slowing over the years from 3.2% p.a. to around 1% p.a. as the funds available have been squeezed and costs of repairs have increased. The commitment to increase customer service in areas such as dredging and vegetation management is reducing the proportion of investment on principal asset repair.

This improvement in principal asset condition during a long period of reducing funding is the result of focussed asset repair investment, improved risk management skills and transferring expenditure from non-principal asset repairs and customer service provision.

Overall safety risk has undoubtedly reduced as a result of this improvement in overall condition grades but the position is not uniform across the network. Manchester & Pennine and South Wales & Severn waterways have much higher than average proportions of principal assets in the worst condition grades.

3.2 Recommendation

It is recommended that and our focus should now turn to actions to reduce principal asset risks in the waterways with higher than average proportions of assets in the worst condition grades. Page 11

3.3 Non-Principal Assets

Robust risk management monitoring gives an overview of the condition of waterways in addition to principal assets and covers the many thousands of non-principal assets which make up the stock of total waterway assets. The most significant non-principal assets from a safety perspective are canal and river channels, waterway walls and bank protection and towpaths.

This suggests that public safety risks on towpaths are increasing mainly in the Manchester & Pennine, North West, South West and South East waterways.

3.4 Recommendation

It is recommended that plans are produced to address the risk of deteriorating towpaths and waterway walls over the next 5 years by more focussed investment on non-principal asset improvement in the waterways with worst condition assets.

3.5 Visitor Safety

The target to reduce infrastructure related incidents (public injury) to 10% or less of reported incidents has been achieved mainly as a result of the introduction of Minimum Safety Standards (MSS). As indicated above the largest proportion of injuries sustained by the public in using the waterways occurs due to poor towpath condition. If it is accepted that greater investment should be made to improve poorer condition waterway assets it may be appropriate to target a lower level of acceptable public injury due to asset condition.

A key challenge is meeting growing public expectations of a safe to use network within the constraints of preserving the important heritage aspects of the network. Low bridge parapets and the potential for falls from height on lock quadrants are examples of the risks presented by the historic fabric which fall well short of any recognised modern standards. Another high profile example is the risk associated with safety railing width on the Pontcysyllte Aqueduct.

The policy we follow to balance the risks of open public access is minimum intervention in the interest of preserving the nature and attraction of the historic infrastructure monitored by specific risk assessment taking account of the duty of care placed upon the Trust and changing use.

Exercising an appropriate duty of care responsibility can bring us into conflict with users of the network who have higher risk thresholds without carrying any responsibility. This came into sharp focus following the death of the young boy at Stourport Basin when many boaters had difficulty accepting the need to install handrails on historic lock crossings. The potential risk of a child climbing through the wide railings on the Pontcysyllte Aqueduct is currently the subject of intense debate as some heritage experts (Welsh Heritage and our own Heritage Advisory Group) have asked to see more information to convince them that the level of risk we have identified could materialise sufficient to require physical changes to such a prized heritage asset. Trustees will be informed of the outcome of the discussions that are underway.

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We will continue to take advice and discuss options with all heritage experts where there are conflicts – real or perceived - between heritage protection and safety improvement. We will look to find ways to better explain our policy of balancing minimum intervention with active visitor risk assessment and emphasising carefully that ultimately public safety must take precedence.

3.6 Recommendations

It is recommended that from 2015/16 we consider targeting no more than 5% of public injuries directly associated with infrastructure condition following full analysis of the potential cost involved in achieving such a target

It is recommended that our policy of minimum intervention balanced by active risk assessment is clearly articulated to the Heritage Advisory Group using Pontcysyllte as an important test case.

3.7 Employee Safety

The recent trend upwards in the number of injuries is concerning mitigated to some degree by the significantly reduced severity of injuries compared to the situation that existed in 2010 when four extremely serious incidents occurred where the employees involved were very fortunate to survive. These incidents prompted the major review of safety practices and the design and introduction of our behavioural safety programme focused on front line employees. A large proportion of lost time injuries have a root cause of individual decision making where on site risks are either not recognised or ignored. Best practise indicates that focussing on improving work planning and individual safe behaviour are essential particularly in situations such as ours where employees work largely unsupervised in changing outdoor work locations.

Our approach to behavioural safety will be revitalised during 2014/15 and we are working with a number of experts in the field to identify improvements we can introduce in addition to our existing systems. The alternative of significantly increasing supervision is not affordable and we are developing plans to improve the quality of work planning which we believe will make improvements to safety and efficiency.

3.8 Recommendation

It is recommended that the Behavioural Safety Improvement Programme is revitalised during 2014/15 with a plan finalised over the next three months. Proposals to improve work planning will also be completed and presented for review shortly as part of the Strategic Review.

3.9 Volunteer Safety

Positive levels of safety performance have continued in relation to all aspects of volunteering. The anticipated growth in volunteer numbers and an increasing variety of tasks undertaken will increase the safety risks to be managed. The challenge is to ensure proportionate health and safety arrangements for volunteers treating their health and safety no differently from that of paid employees. We recognise that all our safety processes and procedures need to be suitably rigorous but not overbearing for both volunteers and employees and a programme of review will take place in 2014/15 aimed at simplifying processes where possible.

3.10 Recommendation

It is recommended that a review is undertaken to ensure that volunteer safety processes, whilst not compromising on applying the same safety standards to volunteers as applied to the paid workforce, are proportionate to safety risks involved.

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3.11 Contractor Safety

Following the deaths of 3 contractors in 2004, a rigorous process standard was introduced for the engagement of contractors on all types of work together with a significant push to use more framework and national contracts to ensure safety and quality standards. The management arrangements for contractors are currently under review with a report scheduled for April 2014. We want to ensure that as a result of much greater use of national contracts that our working processes are streamlined as much as possible.

3.12 Recommendation

It is recommended that the policy is maintained to continue to benefit from the high safety standards and performance achieved by national contractors and where new contracts are introduced or changed a key selection criteria will be the expectation of excellent safety performance in addition to other value factors.

3.13 Key Performance Indicators

The management of the variety of aspects associated with safety improvement across the wide range of the Trust’s activities inevitably means that a comprehensive range of safety performance indicators are in place to drive management performance.

For 2014/15 we will attempt to identify no more than two safety performance KPI that will be our headline measures of safety performance with other measures used to support the drive for improvement.

The importance of monitoring performance and driving improvement in the key areas of employee and contractor safety performance to which volunteer input will increasingly be important suggests that a combined Accident Frequency Rate should be used.

Public safety performance is best measured by the proportion of injuries associated directly with poor infrastructure condition with a challenging potential target to achieve no more than 5% of injuries and this should also be a key measure.

The Lead/Lag indicator approach which seeks to combine performance across the range of activities is also a useful way to demonstrate overall performance. It can be a difficult concept to explain and a less complex way of presenting may be worth exploring.

3.14 Recommendation

It is recommended that the combined employee and contractor RIDDOR Accident Frequency Rates (with future inclusion of volunteer statistics) and the proportion of public injuries directly associated with infrastructure condition are used as main safety KPI’s for reporting to Trustees.

V P Moran Operations Director

January 2014

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INFORMATION REPORT

CRT70 CONFIDENTIAL

WATERWAYS PENSION FUND – VALUATION

Report by the Finance Director - January 2014

1.0 INTRODUCTION

1.1 The report provides an update of the triennial valuation of the Waterways Pension Fund as at 31st March 2013 and makes recommendations to agree the Actuary’s valuation assumptions and the future service contribution rates.

2.0 RECOMMENDATION

2.1 Board Members are asked to approve the following proposals:

 that the Employer agrees the assumptions set out in the Actuary’s valuation reports, as amended and as summarised in the letter from the Chair of the WPF Trustees dated 17th December 2013, with the result that the pension fund was fully funded as at 31st March 2013 as regards past pensionable service;

 arising from this, that the Employer accepts the proposed increase in the future service contribution rate by at least 1.7% of pensionable pay;

 that the increase is rounded up to 2% and borne equally by the employer and the active members of the fund, and;

 that the increases take effect from 1st July 2014.

3.0 DISCLOSURE OF INTERESTS

3.1 In considering this item Trustees should note the following interests; John Bridgeman, Jane Cotton and Stuart Mills are Employer Nominated Trustees of the WPF; Philip Ridal, Simon Salem, Stuart Mills and Vince Moran are members of the pension scheme.

4.0 BACKGROUND

4.1 This paper describes the latest position on the triennial valuation of the Waterways Pension Fund (WPF) as at 31 March 2013 following discussion with the WPF Trustees. The first draft valuation report prepared by the Scheme Actuary was presented to WPF Trustees in September 2013. To ensure that Trustees have full disclosure of the issues, the following are attached:

 first draft valuation report dated 11th September 2013;

 the revised valuation report dated 11th October 2013 (post valuation market movements);

 the WPF Chair’s letter dated 17th Dec 2013; and;

 the Actuary’s valuation update dated 1st November (further consideration of contribution rates).

4.2 The two main issues arising from the valuation for the employer are:

 the valuation deficit on the fund, and;

 the contribution rate for future pension accrual

The employer’s contribution rate is currently 14% of pensionable pay and is dealt with in the accounts as a payroll on-cost whereby it is allocated, with the payroll cost, to the appropriate cost centre. Accordingly, it does not appear as a separate item in the accounts.

4.3 Commercially sensitive information removed

5.0 CONSULTATION BETWEEN WPF AND EMPLOYER

5.1 The WPF Trustees then opened discussions with the employer for the purpose of agreeing the contribution rate. In these discussions CRT’s opening negotiating position was that:

Commercially sensitive information removed

5.2 On receipt of the full valuation report, and the market update, CRT took advice from Deloitte’s actuarial team and subsequently sent a letter to the Chair of the WPF Trustees setting out the Employer’s views on the assumptions used in the valuation. The objective of the letter was to identify areas where the assumptions might be unduly prudent and to compare against other pension fund valuation assumptions being used elsewhere.

Commercially sensitive information removed

6.0 FUTURE CONTRIBUTION RATE

6.1 In considering this, it should be noted, that as a soft closed fund the average age of the active membership is increasing. Pensionable service of older active members typically costs more to fund (as a % of salary) than for the younger members, for all DB pension schemes.

6.2 To gain a better understanding of this we have asked the Scheme Actuary for an estimate of how the cost of funding the active membership’s pensions will increase over the next 12 years to indicate the likely extent of the issue for CRT as the average age of the active membership rises. In summary, the Actuary’s advice is as follows:

Commercially sensitive information removed

P Ridal January 2014 DECISION REPORT

CRT71 TEXT IN RED CONFIDENTIAL MEMORANDUM TO THE BOARD

COMPANY SEAL AND CERTIFICATES Report by the Company Secretary January 2014

1.0 INTRODUCTION

1.1 This item is additional to the revision of the delegation arrangements set out in Memorandum to the Trustees dated 19 November 2013 by the Corporate Services Director.

1.1 A proposed Board resolution is attached to deal with the sealing and certification of documents on behalf of the Trust and brings together in one resolution the delegation from the Board for sealing and certifying documents.

2.0 RECOMMENDATION 2.1 Board members are asked to approve the resolution

3.0 DELEGATION

3.1 Part of the revised scheme of delegation approved by the Board at the November 2013 meeting deals with authorising certain individuals to apply the Common Seal of the Trust to documents. The new Company Secretary plus certain new members of the Legal department were added to the persons authorised to use the Common Seal of the Company to documents implementing approved transactions.

3.2 In addition, the Trust is required in certain documents to give certificates in compliance with sections 117 to 126 of the Charities Act 2011. Those sections concern regulatory due diligence in respect of dispositions of land by or to the Trust. Charity Commission guidance CC28, (section F4) confirms that “In a corporation the trustees can delegate the giving of the certificate to the person signing the document on behalf of the corporation”.

3.3 The Board is asked to resolve that the same members who are authorised to use the Common Seal are also authorised to certify documents in compliance with sections 117 to 126 of the Charities Act 2011.

3.4 A combined resolution is proposed to deal with both the use of the Common Seal and the certification of documents for the purposes of enabling the Trust provide a copy of this resolution to third parties where evidence is requested that the individuals using the Common Seal and certifying documents are duly authorised.

A company limited by guarantee registered in England & Wales under number 7807276; and a charity registered with the Charity Commission under number 1146792.

The Board of Trustees of Canal & River Trust (the Trust) passes the following resolution as a written resolution in accordance with article 17 of the Articles of Association of the Trust:

1. The persons named in the Schedule to this resolution are authorised to affix the Common Seal of the Trust to any document for the purpose of its execution (as a deed or otherwise) on behalf of the Trust. The application of the Seal to a document shall be sufficiently authenticated by any one person so authorised countersigning the document at the place where the seal is affixed.

2. The persons named in the Schedule to this resolution are authorised to act as representatives of the Trustees of the Trust for the purposes of giving such certificates as are required to be given by the Trustees under the provisions of Part 7 (Charity Land) of the Charities Act 2011 for the proper disposition by or in favour of the Trust of land held by it or to be held by it (in either case whether or not as a trustee).

SCHEDULE

Philip Ridal; Jackie Lewis; Anna Barton; Tom Deards; Paul Fendrich; Julie Smith; Thami Nomvete; Steven Holder. End

INFORMATION REPORT

CRT72

TEXT IN RED CONFIDENTIAL MEMORANDUM TO THE BOARD

CHIEF EXECUTIVE’S REPORT – JANUARY 2014

1.0 INTRODUCTION & OVERVIEW 1.1 This is my third report to the Board, coinciding with the start of the ‘stoppage’ season in the run up to Christmas. A highlight has been a series of successful and popular Restoration and Repair ‘open’ days at a range of locations across the network.

2.0 KPIs 2.1 The latest version of the KPI report is attached at appendix 1.

2.2 The main issues in the KPI report are:  Our two ‘red’ status measures, as reported in November – Friends recruitment and Employee injuries - have continued to fall short of our target: o The full year forecast for Friends recruited has been revised down to 7,250 from 8,776 at F6 (below the Plan target of 12,375), with only our ‘in house’ London agency team operating for the rest of this year whilst our approach is re-planned.  There are two additional ‘red’ status measures: o Commercially confidential material removed o In the Green Plan, car mileage/ emissions are now highly unlikely to meet the year end target.  There are two ‘Amber’ status measures that are behind plan but which should be able to be recovered by the year end if management action is effective: o High Priority defect repairs are below the ‘run rate’ needed to meet the target but Waterways believe they can recover the position by the year end. o Overtime is exceeding the target at present, as unplanned overtime has been incurred to support the transition to the new Annualised hours arrangements.

3.0 DIRECTOR REPORTS 3.1 The individual Director reports feature as Appendices 2 to 8 to this Report. (This month the Health and Safety report has been subsumed into the separate Annual Review paper.) For the first time I have included an HR report to update the Board on our progress with organisation and people. The main points to draw to the Board’s attention are: - Operations delivery remains on target, notwithstanding the slight delay in High Priority defect repairs, with relatively little serious damage caused by the adverse weather thanks in part to our effective water management systems; a crack in the towpath on the Mon & Brec is being carefully monitored. - Financial performance is healthy and a further tranche of additional money has been released to address more off-side vegetation growth during the winter.

- Commercially confidential material removed - Following the conclusion of a legal process to recover a significant debt owed to the Trust, we have served notice on the owner of Pillings Lock that we are terminating their Network Access Agreement requiring the connection to the navigation to be eliminated before the summer. - Commercially confidential material removed - A successful phase of political engagement at Westminster led the Government to adopt amendments to the Water Bill that provide protection to the Trust’s existing water sales agreements. - Commercially confidential material removed

4 UPDATE ON MAIN ACTIVITIES 4.1 The Waterway Partnerships have continued to progress their Strategic plans with many hosting their Annual meetings since the last Board and most are close to publishing their final plans in the next few months. The All Wales Partnership Prospectus was successfully launched at the Senedd in Cardiff by the Minister for Economy, Science and Transport. A summary of progress for each of the Partnerships is attached at Appendix 9.

4.2 The new engagement programme with Boaters has been well-received; the first of my ‘open’ boater meetings is to be held on 23 January in Birmingham, immediately following the Board meeting, and further dates are scheduled. Early responses suggest large numbers will attend.

4.3 The removal of a boat at the end of November prompted a campaign by activist website 38 Degrees condemning the Trust’s approach to such cases based on an emotive and inaccurate account. Whilst over 4,000 ‘signatures’ were achieved, the Trust has responded to set out the facts and has received support from many boaters commenting in social media. I have initiated a ‘case conference’ review of such cases in future to support the Enforcement team, outside of our formal enforcement process. Legally privileged information

4.4 Commercially confidential material removed

4.5 Our work on HS2 has continued with the draft Side Agreement in an advanced state and responses to both consultations on the Phase 1 Bill and Phase 2 route alignment being prepared for submission later this month. A final review meeting with IWA Chair prior to submission, to follow up our positive joint working with them and the canal societies involved, is also planned.

4.6 Following informal discussions with the heads of the Environment Agency about the desirability of progressing with the transfer of the EA Navigations in light of their current funding pressures and priorities, the EA team have agreed to put together a schedule of issues in order of complexity and priority for resolution to enable a view on the feasibility of a transfer to be taken.

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4.7 Commercially confidential material removed

RICHARD PARRY Chief Executive January 2014

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Infrastructure Risk Management - Number of Inspections

Year to Date (30 September 2013) Full Year Status Actual Due Still to Deliver Due Still to Deliver Monthly Length Inspections 1,842 1,868 26 3,946 2,104 Quarterly Length Inspections 460 467 7 1,158 698 Annual Length Inspections 326 336 10 508 182 Principal Asset Inspections (Waterway Units) 199 196 (3) 418 219 Principal Asset Inspections (Technical Teams) 137 189 52 365 228 Total Number of Inspections 2,964 3,056 92 6,395 3,431

Year to Date (30 September 2013) Actual Principal Asset Inspections Still to Deliver (Technical Teams) Principal Asset Inspections (Waterway Units)

Annual Length Inspections

Quarterly Length Inspections Monthly Length Inspections

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

High Priority Defects Repaired

Year to Date Still to (30 Nov 2013) Full Year Deliver % Delivered Status Actual Original Plan Plan - Actual Actual High Priority Notifications 2,777 4,965 2,188 55.9%

Annualised Hours

Year to Date (30 Nov 2013) Full Year Status Actual Target Variance Overtime Cost as % of Base Payroll 4.3% < 4.0% (0.3%) Number of Overtime Hours Worked 34,406 < 58,260 % 59.1%

INFORMATION REPORT

CRT72 TEXT IN RED CONFIDENTIAL

APPENDIX 2: OPERATIONS/TECHNICAL REPORT

This Report is for information only and no decisions are required on this occasion.

1.0 Major Works

1.1 The Major Works programme continues to progress to plan including additional funds recently allocated.

1.2 The following photographs illustrate a number of typical projects underway and recently completed:

Sutton Weaver Bridge refurbishment – repaired and repainted section

Cheddleton Towpath - Caldon Canal Overall Project Cost £231k with £143k Externally Funded

Page 1

Boshtail Arm Bridge – West Midlands Cost £66,000

(Before)

(After)

1.3 During the period, good progress has been made to deliver the commitment given to significantly reduce overgrown offside vegetation. During December, the first tranche of the project involving expenditure of £500k was delivered mainly in the South East waterway. A further £500k tranche commenced in January with a further £500k recently approved for delivery before the end of March. If the project is not disrupted by poor weather over the next two months, over 200km of vegetation clearance across all 11 waterways will be achieved.

2.0 General Works

2.1 Waterway Units continue on plan to deliver the key objectives of High Priority Defect repair, Planned Preventative Maintenance, general customer service delivery and reacting to urgent arising works. The achievement of the maximum target number of approximately 5000 High Priority Defect repairs will be impacted by flooding and other urgent arising works. It is likely that around 90% of target will be achieved by year end.

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2.2 The winter restoration and repair programme involving lock gate replacements and repairs, lock chamber repairs and various general works has been delivered to plan. The programme includes presenting selected lock works as public open events and these are proving very successful at increasing public awareness of the Trust’s activities.

2.3 During December, the UK was affected by severe high winds and fortunately the network was only lightly impacted with a small number of tree falls in London, the South East and K&A. Tidal surges in the North Sea created the highest recorded tidal levels at the Tees Barrage overtopping the barrage gates. No damage or excessive flooding occurred.

2.4 Post Christmas saw the onset of flooding from high rainfall and coastal tidal surges. The South Wales & Severn waterway was particularly impacted together with the K&A and the Oxfordshire area of the South East. The SCADA system together with our frontline water control staff working in support undoubtedly played a significant role in reducing the potential impact of flooding, overtopping and infrastructure damage.The photographs below and overleaf show the impact of significantly high water in the Severn Estuary at Sharpness and lock inundations on the River Severn and K&A. At the time of writing this report, costs of flood damage were still being assessed:

Sharpness Port entrance in normal conditions

Sharpness Port entrance under tidal surge

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Harford Lock, Droitwich canal – normal conditions

Harford Lock with River Severn inundation

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County Lock, Kennet & Avon

2.5 On the Monmouthshire & Brecon canal saturated ground conditions caused some slippage to a steep high consequence of failure embankment in the Llanfoist area. The canal was drained down to reduce risk of collapse and to enable detailed investigation of the condition of the concrete canal lining. A repair solution is under development and costs are not fully established at this stage. The photograph below shows the fracture in the towpath at the slip location:

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3.0 Civil Engineering Framework contract re-tender

3.1 The process has commenced for the re-tender of the civil engineering framework contract. This significant contract in terms of value and strategic importance will be subject to a detailed assessment process over the next six months with the aim of concluding negotiations in time to allow a transfer and mobilisation period should a new contract provider be selected.

4.0 Volunteering

4.1 Despite moving into the winter period volunteer input has continued at good levels. A number of the seasonal volunteer lock keepers have stayed on to undertake general maintenance tasks in several waterways.

5.0 Waterway Partnerships

5.1 The development of Strategic Waterway Plans and local consultation is progressing well in all Partnerships, with all Engagement Prospectus work completed - aiming for Final Prospectus completion by March.

VINCE MORAN Operations/Technical Director

January 2014

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INFORMATION REPORT

CRT72 CONFIDENTIAL TEXT IN RED

APPENDIX 3: FINANCE REPORT

Report by the Finance Director - January 2014

1.0 INTRODUCTION

1.1 The report provides an explanation of:

 results for the eight months to November 2013 and the F8 full year forecast;  the cash position and forecast;  an update on the negotiations for a revolving credit facility and overdraft.

2.0 RECOMMENDATION AND SUMMARY

2.1 Trustees are asked to note and provide any comment on the information in this report.

2.2 Commercially confidential material removed

3.0 INCOME AND EXPENDITURE

3.1 The schedule overleaf shows contribution by activity area for:  the actual results for the eight months to November 2013,  the F8 forecast for the full year to 31st March 2014; (the F8 forecast is compared with the Plan and also the previous F6 forecast so that changes since the last forecast can be seen).

3.2 As requested, a summary schedule of the cost centres that make up the National Teams is included in the appendix, together with a commentary.

3.3 A summary of the Group results is shown overleaf. Commercially confidential material removed

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3.4 Group Contribution Summary – 8 months to November 2013 and F8 Forecast

Commercially confidential material removed

3.5 Overall, Net Incoming Resources are now forecast to be £4.5m better than Plan with no contingency held back (the £2m Contingency has been released in full in the forecast). The forecast shows the existing additional commitments of £3m of works, being £2m on Principal Assets and £1m on off-side vegetation works. Subsequent to the F8 forecast, a further £0.5m has been committed to off-side vegetation to make £1.5m for the full year which is in line with the public commitment given.

3.6 The £147k worse out-turn forecast in Museums is due to a shortfall in income across all units and various small increases in costs as the operations are reorganised.

3.7 Appendix A shows the full income statement including Income by activity area.

4.0 CASH POSITION

4.1 Commercially confidential material removed

5.0 BORROWING FACILITIES

Commercially confidential material removed

P Ridal January 2014

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Appendix A – Group Summary

8 month period to 30th Nov 2013 and F8 forecast for 2013/14

Figures in £k Statement of Financial Activities Year to Date Full Year Actual Original Plan Variance F8 Forecast Original Plan Variance F6 Forecast Variance Incoming Resources Generated Funds and Investment Income Investment Property 23,669 23,493 176 36,070 35,831 240 35,684 387 Boating and Moorings 22,007 20,943 1,064 32,745 31,774 971 32,498 247 Utilities 16,306 16,200 106 24,243 23,900 343 23,977 266 Marinas Subsidiary 4,422 4,967 (546) 6,630 7,302 (673) 6,829 (199) CRT Share of Joint Ventures 6,918 8,311 (1,393) 7,590 15,398 (7,808) 16,532 (8,942) Voluntary Income and Fundraising 450 913 (463) 1,094 1,450 (356) 1,088 6 Total Generated Funds and Investment Income 73,772 74,827 (1,056) 108,372 115,654 (7,283) 116,607 (8,235)

Governance 10 8 2 14 12 2 5 9 National Teams 1,558 1,139 418 2,276 1,891 385 2,210 65 Total Governance and National Teams 1,568 1,147 421 2,290 1,903 387 2,215 74

Defra Funding 26,000 26,000 - 39,000 39,000 - 39,000 - Total Incoming Resources before Charitable Activities 101,339 101,975 (635) 149,662 156,557 (6,896) 157,822 (8,161)

Charitable Activities Waterway Maintenance and Repair 3,694 2,911 783 5,525 4,375 1,149 5,155 369 Major Works 119 - 119 137 - 137 316 (180) Enterprise (Third Party Funded Projects) 3,486 6,162 (2,676) 8,859 9,090 (231) 9,214 (355) Museums and Attractions 1,000 1,095 (94) 1,156 1,266 (110) 1,182 (26) Total Charitable Activities 8,299 10,167 (1,868) 15,676 14,731 945 15,867 (191)

Total Income 109,639 112,142 (2,503) 165,338 171,288 (5,951) 173,689 (8,352)

Year to Date Full Year Actual Original Plan Variance F8 Forecast Original Plan Variance F6 Forecast Variance Contribution Generated Funds and Investment Income Investment Property 18,370 18,388 (18) 28,306 28,581 (275) 28,577 (271) Boating and Moorings 17,240 15,628 1,612 24,758 23,823 935 24,425 333 Utilities 15,013 14,676 337 22,539 22,043 496 22,202 337 Marinas Subsidiary 363 916 (552) 698 1,259 (560) 850 (152) CRT Share of Joint Ventures 236 (228) 464 13 270 (257) 1,232 (1,219) Voluntary Income and Fundraising (252) (571) 319 (334) (492) 158 (349) 14 Net Interest 2,001 1,936 65 2,664 2,667 (3) 2,531 133 Total Generated Funds and Investment Income 52,971 50,744 2,227 78,644 78,151 493 79,469 (824)

Governance (410) (440) 31 (644) (665) 21 (644) (0) National Teams (18,869) (20,300) 1,431 (28,454) (30,453) 1,999 (28,447) (7) Total Governance and National Teams (19,278) (20,740) 1,461 (29,098) (31,118) 2,020 (29,091) (7)

Pension Deficit Funding (3,333) (3,333) 0 (7,000) (7,000) - (7,000) - Contingency - - - - (2,000) 2,000 (2,000) 2,000 Net Incoming Resources before Defra Funding 30,360 26,671 3,688 42,546 38,033 4,513 41,377 1,169

Defra Funding 26,000 26,000 - 39,000 39,000 - 39,000 - Total Net Incoming Resources 56,360 52,671 3,688 81,546 77,033 4,513 80,377 1,169

Charitable Activities Waterway Maintenance and Repair (38,083) (40,591) 2,508 (60,049) (60,181) 132 (59,108) (941) Major Works (14,127) (14,023) (105) (21,656) (18,552) (3,104) (21,652) (4) Enterprise (Third Party Funded Projects) (1,052) (1,341) 288 (1,661) (1,795) 134 (1,690) 29 Museums and Attractions (826) (832) 6 (1,652) (1,505) (147) (1,599) (53) Total Charitable Activities (54,088) (56,786) 2,698 (85,018) (82,033) (2,985) (84,049) (968)

Surplus/(Deficit) 2,272 (4,114) 6,386 (3,471) (5,000) 1,529 (3,672) 200

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Appendix B - National Teams Cost Centres

Period 8 YTD and F8 Forecast for 2013/14

Figures in £k Income Year to Date Full Year Actual Original Plan Variance F8 Forecast Original Plan Variance F6 Forecast Variance Operational Property, Wayleaves etc. 73 76 (3) 114 113 1 113 1 Recharges 924 663 261 1,472 1,269 203 1,426 46 Third Party Contributions 93 (1) 93 152 (1) 154 157 (4) Other 468 401 67 537 509 27 514 23 Total Income 1,558 1,139 418 2,276 1,891 385 2,210 65

Contribution Year to Date Full Year Actual Original Plan Variance F8 Forecast Original Plan Variance F6 Forecast Variance Marketing National Marketing (1,013) (1,320) 308 (1,882) (1,977) 94 (1,882) (0) Community Engagement (320) (340) 20 (562) (496) (66) (557) (5) Volunteering (188) (258) 69 (345) (343) (2) (345) (0) Corporate Affairs (631) (650) 20 (991) (945) (45) (990) (0) Total Marketing (2,151) (2,568) 417 (3,780) (3,762) (18) (3,774) (6)

Operations and Technical Safety (260) (286) 25 (535) (563) 28 (549) 15 Workshops (74) (99) 25 (6) 0 (6) 27 (33) Waterway Unit Management Costs (1,449) (1,459) 10 (2,212) (2,222) 11 (2,226) 14 Engineering (1,578) (1,589) 11 (2,454) (2,383) (71) (2,470) 16 Asset Management (418) (432) 14 (645) (639) (7) (641) (5) Water and Environment (2,284) (2,409) 125 (3,559) (3,627) 68 (3,592) 33 Heritage (275) (298) 23 (459) (454) (5) (461) 2 Canal Rates 29 (226) 255 1,273 (300) 1,574 1,272 1 Third Party Claims - 0 (0) - 0 (0) - - Total Operations and Technical (6,309) (6,798) 488 (8,597) (10,189) 1,591 (8,640) 43

Executive and Support Functions Chief Executive, Directors and AINA (1,102) (1,113) 11 (1,631) (1,590) (41) (1,630) (1) Legal (674) (486) (188) (938) (724) (214) (938) (0) HR (767) (881) 114 (1,181) (1,252) 71 (1,182) 1 Information and Communication Technology (3,456) (3,714) 258 (5,552) (5,567) 15 (5,552) 0 Shared Service Centre (870) (996) 126 (1,435) (1,474) 38 (1,436) 0 Financial Control (1,400) (1,719) 319 (2,311) (2,574) 263 (2,297) (14) Offices (1,419) (1,565) 146 (2,317) (2,353) 36 (2,296) (20) Carbon Reduction Commitment 26 (1) 27 26 (261) 287 27 (1) Town Planning (463) (420) (43) (655) (627) (28) (641) (14) Other (284) (40) (244) (81) (80) (1) (86) 5 Total Executive and Support Functions (10,408) (10,934) 526 (16,076) (16,502) 426 (16,033) (44)

Total Contribution (18,869) (20,300) 1,431 (28,454) (30,453) 1,999 (28,447) (7)

Interest Payable (398) (381) (17) (623) (539) (84) (685) 62 Interest Receivable 209 200 9 333 320 13 319 14 Gains/(Losses) on Disposal 2 - 2 2 - 2 2 (0) Contribution before Tax (19,056) (20,481) 1,425 (28,742) (30,671) 1,929 (28,811) 69

Operating Costs Year to Date Full Year Actual Original Plan Variance F8 Forecast Original Plan Variance F6 Forecast Variance Payroll 11,583 11,837 254 17,460 17,674 214 17,462 2 Internal Time Recharges (188) (301) (112) (362) (451) (89) (392) (30) Staff Related Costs 1,828 1,770 (58) 2,932 2,634 (298) 2,943 11 Materials and Contract 478 646 169 783 751 (32) 746 (37) Plant and Machinery 53 79 26 97 118 21 93 (4) Premises and Office Costs 1,817 2,448 631 1,814 3,651 1,837 1,850 36 Professional Fees 2,804 3,108 304 4,762 4,633 (129) 4,788 26 Marketing 466 623 156 962 933 (29) 942 (20) Other Costs 620 276 (343) 868 973 105 801 (67) 19,461 20,487 1,026 29,318 30,917 1,599 29,234 (84) Depreciation 965 952 (13) 1,411 1,427 15 1,423 12 Total Operating Costs 20,426 21,439 1,012 30,729 32,343 1,614 30,657 (72)

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INFORMATION REPORT

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APPENDIX 4 : PROPERTY Report by the Property Director

1.0 Knostrop depot

Commercially confidential material removed

1.2 Manchester Tippers, Salford

1.2.1 Trustees were advised in the September and November Board reports of concerns around the above Trust-owned site at Salford. This is a consented waste site which has been used for this purpose for a number of years and the tenant is in breach of the terms of his environmental permit. Commercially confidential material removed

2.0 JOINT VENTURES

2.1 The Isis joint venture is presently on site with a scheme to build 150 residential units at Brentford in West London. Commercially confidential material removed

2.3 The H2O venture is still anticipated to deliver slightly ahead of its targets for 2013/14.

3.0 BOATING MATTERS

Commercially confidential material removed

4.0 UTILITIES MATTERS

Commercially confidential material removed

5.0 INVESTMENT STRATEGY UPDATE Commercially confidential material removed

5.2 Meanwhile, property investment activity continues pursuant to the strategy to dispose of smaller, high management cost properties and reinvest the proceeds in better quality assets. The investment market remains challenging with a significant weight of money competing for a relatively few high quality assets. Commercially confidential material removed

6.0 FREIGHT

6.1 At the November Board, it was agreed to prepare a fully-costed budget and terms of reference to undertake further investigative work on the project. Commercially confidential material removed

S. Mills January 2014 INFORMATION REPORT

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APPENDIX 5 : MARKETING AND COMMUNICATIONS Report by the Marketing & Fundraising Director

1. INTRODUCTION

This report provides an update on the Trust’s marketing and communications activities over the past two months

2. MEDIA

All Trustees receive the weekly news round-ups highlighting interesting news and features. During November and December the Trust was mentioned in over 370 episodes of coverage with more than a quarter appearing in national or regional media. Because coverage is directly linked to the proactivity of the press office (approximately two thirds of coverage is proactively generated), episodes of coverage in December were because of the shorter working month. Over 80% of coverage was positive and approximately 2% was negative.

The top stories during the period were the launch of the restoration & repair programme (November), followed by the repairs to Rudyard Lake (December), Google Trekker project (November), leisure-related stories related to the Trust’s Hidden Gems campaign and Canal Laureate Jo Bell featuring on BBC Radio 4’s Midweek.

3. MARKETING

We ran two successful main campaigns and one ‘no cost’ supporting one in 2013 achieving 6.2 million opportunities to see (OTS) for a budget of £315,000. In summary:

Hidden Gems Based on 100 waterside destinations nationwide and designed to inspire more people to enjoy canals and rivers and support our work and offering a free app to download: • Target: Families with children aged 5-11years • Total reach – 4.8 million

Love your canals Door drop leaflets to 500,000 targeted households and other email etc., activity. As well as stimulating visits, generated email leads for newsletter and fundraising also more than 2500 superb competition photographs for us to use in publicity: • Target: ABC1, 45+, interested in walking, cycling, nature conservancy, outdoor pursuits, who have given to charity in the last year and live near a canal/river • Total reach - 1.4 million

Advertising paid for map guides • Inspiring more people to enjoy canals and rivers and support our work • Total reach – 60,000

4. PUBLIC AFFAIRS

There will be an update on public affairs strategy from Champollion our agency as part of the Board day on Thursday.

Water Bill

The Government tabled amendments to the Water Bill to address concerns raised by the Trust on the potential impact of the Bill on its historic water sales agreements and the renewal of existing agreements. This followed:

 Meetings held by Richard Parry, Tony Hales and Trust staff with the Waterways Minister and senior Defra officials.  20 supportive MPs being briefed by the Trust on its concerns and helping through: tabling a Parliamentary Question, contributing to Second Reading debate and raising the matter directly with the Minister.  Interventions from four MPs during the Second Reading of the Water Bill: Jessica Lee, Roger Williams, Joan Walley and Andrew Miller.  Written question tabled by Michael Fabricant MP regarding the Trust and the impact of the Water Bill.  MPs Richard Benyon, Andrew Miller and Joan Walley raising the Trust’s concerns directly with the Waterways Minister.  Shadow Defra Minister, Thomas Docherty tabling an amendment to the Water Bill on behalf of the Trust.  Richard Parry meeting with Matthew Offord MP, member of the Water Bill Committee, to raise the issue of future water sales agreements with the Minister at Report Stage of the Bill

The Trust will be consulted on any secondary legislation which could affect future water sales agreements.

MP Briefings

As part of a continued programme of introductory meetings with senior members of Government and the Opposition, Richard Parry and Tony Hales have met with:

 Dan Rogerson, Waterways Minister, Defra  Maria Eagle, Shadow Secretary of State for Defra  Baroness Kramer, Minister with responsibility for HS2, Department for Transport  Louise Ellman, Chair of Transport Select Committee  Mary Creagh, Shadow Secretary of State for Transport

Tony Hales hosted dinners for Richard Benyon and Caroline Spelman to thank them for their support in creating the Trust.

Waterway Partnership event

The first Waterway Partnership reception with the West Midlands and Central Shires was held in Parliament on 19th November and sponsored by Caroline Spelman MP. Partnership members and chairs, Richard Parry, Tony Hales and other representatives of the Trust were all present. 27 MPs and Peers attended the event to find out more about the Trust and four MPs offered their assistance with raising the Trust’s concerns about the Water Bill.

Parliamentary Exhibition

Harriet Baldwin MP (Conservative) is sponsoring our submission to exhibit in a public space in Parliament with the support of Defra Minister for the Waterways, Dan Rogerson. We are due to enter the ballot in February for this.

Upcoming activity

We are liaising with the All Wales, North Wales & Borders and South Wales & Severn Partnerships to arrange a Wales briefing in Westminster for February/March, sponsored by Lord Knight. Invites will be issued to MPs and Peers once a date is confirmed

The Trust is hosting a visit by Owen Paterson, Secretary of State, Defra, in Shropshire on 31st January.

5. INTERNAL COMMUNICATIONS

Ten year strategy

An internal communications plan has been agreed for the vision, values and ten year strategy. A two phase approach will see the start of comms around the vision and values in February followed by the strategy in April.

As well as sharing information through video, handouts, posters and our established communication channels such as The Source, at the heart of the plan is giving colleagues the opportunity to think about how their role fits in with our vision, their role as ambassadors for the Trust and their personal connection to our values. We want to use their own stories about caring for the waterways to bring the vision and values to life.

Employee survey results and action planning

The 2013 employee survey results were shared during December both through our established communication channels and face to face briefings. Every team is working on a local action plan for completion by the end of January and the employee engagement board is working on the national actions.

Simon Salem Marketing & Fundraising Director January 2014 INFORMATION REPORT

CRT72

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APPENDIX 6 : ENGAGEMENT REPORT Report by the Marketing & Fundraising Director

1. INTRODUCTION

The report provides an update on the Trust’s engagement activity in the last two months.

2. VOLUNTEERING

In the nine months from April to end of November, volunteers have contributed over 254,000 hours, equivalent to around 36,000 days (39,000 achieved days for full 12 months last year). We are currently just slightly below target to achieve 50,000 days this financial year. Over 1800 individuals have directly volunteered with the Trust and more than 250 groups have engaged in volunteering activity in the past 12 months. We have started a quarterly survey of regular volunteers to gain a better understanding of satisfaction. Currently, 90.5% volunteers would recommend their experience to others. Over 200 lock keeper volunteers recently responded to a more detailed satisfaction survey:

 The highest motivation for gifting their time was ‘keeping fit and active’, followed by ‘being a part of the waterways heritage’.  80% found the application process easier than average.  93% found the training gave them all that was needed.  86% are giving a day a week (29% more than 2 days per week).  96% plan to return next year with 78% of these planning to continue to volunteer for the Trust over the winter.  98% would recommend their volunteering with the Trust to a friend or relative.  There are some improvements around communication which we need to consider.  When asked what the most enjoyable thing about being a volunteer lock keeper was, the overwhelming response was meeting and helping people, on boats and the towpath alike. Some of the less enjoyable elements included ‘grumpy boaters’, the weather and communications within the Trust.

Over 35 Towpath Taskforce events are being organised each month giving plenty of flexible and local opportunities for members of the community to join in whenever they can. These are being increasingly celebrated by volunteers and employees alike through the CRT Volunteers Facebook group and on Twitter.

3. COMMUNITY ADOPTIONS

The Community Adoption concept continues to attract interest from community groups, societies and local people. Currently there are 35 fully fledged adoption schemes, all established within the past 12 months. New active groups include Wargrave Guides and Burland Parish Council in the Kennet & Avon and North Wales & Borders waterway units respectively with new interested groups including Leicester Rowing Club and Hanover School in Central Shires and London Waterways respectively.

The young leader of the Ford Towpath Action Team, Lucy Irwin has been nominated for a vInspired youth volunteering award Bringing Communities Together. We understand that she has been shortlisted to a small number of finalists and results are expected to be announced in late January.

4. CORPORATE VOLUNTEERING

Since April, 31 companies have participated in corporate volunteering opportunities. These include United Utilities starting an adoption at Hurleston Junction early 2014. Yorkshire Water’s adoption is under way and they have confirmed that they are happy with level of staff engagement.

M&S have confirmed that they will again be working with us in 2014. In the week commencing 7th April we expect to see 1000 M&S staff litter pick 40-45 locations across all WW’s.

5. EDUCATION EXPLORERS

Explorer education volunteers are continuing to deliver more sessions than planned.

Target Outputs - Education Volunteers 2012/13 April - Dec 2013/14 Targets Number of trained and active volunteers 84 94 150 Number of children involved in sessions 9976 22,993 20,000

6. YOUTH ENGAGEMENT

The first meeting of the Trust’s Youth Engagement Advisory Group was held on 27 November. The meeting provided an opportunity for the group to find out more about the Trust and our youth engagement work to date as well as sharing ideas, opinions and recommendations regarding the development of our future programme and strategy. The group also had a lively discussion around a key question, ‘Why should youth engagement be a priority for the Trust in the next three years?’

The next meeting of the group is scheduled for February 2014.

Members:

Jon Boagey – Operations Director & Deputy Chief Executive, National Youth Agency Gillian Bolt – Youth Development Coordinator, Inland Waterways Association Danny Brennan – Chairman, Waterways Partnership Board, East Midlands Hugo Brookes – Policy & Campaigns Officer, British Youth Council Andrew Chaloner – Volunteer Environmental Assistant (Young Volunteer), Canal & River Trust (TBC) Chloe Donovan – Young Facilitator, National Council for Voluntary Youth Services Keji Okeowo – Youth Participation Manager, National Council for Voluntary Youth Services Nicholas P Gair - Chief Executive of the Association of Surgeons of Great Britain and Ireland (Education and Outdoor Activities background)

Youth Social Action Journey Fund (Cabinet Office Funding) successful bid – We are one of three delivery partners (along with RSPB and Young Farmers) in a consortium led by the National Council for Voluntary Youth Services (NCVYS) Following an interview at the Cabinet Office in December 2013 attended by NCVYS and the Trust, our joint application for just under £500,000 has been successful and delivery is due to start in late January 2014. The project is based on the Action Squad model developed by British Waterways and The Waterways Trust and will see the creation of 1500 new social action opportunities over the next two years. 10 Young Facilitators (employed by NCVYS and seconded to partners including the Trust) will lead on the development of a range of environmentally focused opportunities for pre-NCS (aged 14-16) and post-NCS (aged 16-18) cohorts. In addition to the outputs, organisational cultural change, increasing capacity and sharing skills, knowledge and best practice across the sector are key outcomes for the project.

Simon Salem Marketing & Fundraising Director January 2014 INFORMATION REPORT

CRT72

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FUNDRAISING REPORT – JANUARY 2014 Report by Marketing & Fundraising Director

1. PURPOSE

To inform Trustees of progress and issues relating to fundraising, and to brief them about future developments.

2. HEADLINES

 Commercially confidential information removed

3. BACKGROUND

3.1 Potential of voluntary income strategy paper

Voluntary fundraising has proved harder in our first 18 months as a charity than we anticipated in the original plan. We have faced challenges in terms of brand awareness, securing suppliers for face to face fundraising, and opening doors to charitable trusts, although this is now starting to progress well.

Commercially confidential information removed

4 SUMMARY OF PROGRESS

4.1 Individual Giving

4.1.1 Friends

Commercially confidential information removed

4.1.2 Individual Giving – appeal income

Commercially confidential information removed

4.1.3 Events Fundraising

Commercially confidential information removed

4.1.4 Individual Giving – In memory

Commercially confidential information removed

4.2 LEADERSHIP GIVING

4.2.1 Corporate Partnerships

Commercially confidential information removed

4.2.2 Trust Fundraising

Commercially confidential information removed

4.2.3 Major Donor Fundraising

Commercially confidential information removed

5 ENTERPRISE (Statutory Funding, External relationships and Partnerships)

5.1 Funding Highlights

Commercially confidential information removed

5.2 Strategy, Monitoring & Evaluation  The Mayor of London has launched his London Grid proposals for cycling, The Trust is working closely with TfL on Quietways included in this strategy.

 LEPs submitted their Strategic Economic Plans to government at the end of December which will shape the allocation of the £6 billion to be invested through Local Growth Deals from 2015 until 2021. This includes the £100 million of capital available for the Local Sustainable Transport Fund in 2015/16 which the Trust will seek to access.

 All Wales Strategy: Beyond The Towpath. The ten year plan was launched at the Senedd on 12th November with strong support from Welsh Government

5.3 Restoration The two new team members have made good progress with our new initiatives, these are;

 Developing a contact list for approx. 80 different restoration projects, contact is being made with each group to confirm the contact and other details. We will also be identifying key local authority canal restoration contacts.  Setting up a professional network for canal restoration through a new Linked in group  The economic benefit of canal restoration research is progressing well. Northampton University have completed a comprehensive literature review and are developing a matrix of indicators that can be used to demonstrate these benefits.  A date has been set for the first National Restoration Group Workshop in May 2014.

Simon Salem Marketing & Fundraising Director January 2014

INFORMATION REPORT

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APPENDIX 8 : HR REPORT Report by the Head of HR – January 2014

1. INTRODUCTION This is the first HR report for the Board, describing the Trust’s performance and key activities regarding its people and organisation.

2. PERFORMANCE As shown in the main report, our People KPIs are ‘green’ status with attendance levels much improved on 12/13 and headcount in line with the plan.

3. PAYROLL OUTSOURCE The outsourcing of payroll to our new provider ADP was completed in November 2013 and two payrolls have now been run with minimal issues. Work is now underway to test the new interfaces that have been developed to improve our internal processes between HR and Finance. This will reduce the amount of manual intervention currently required within the HR Pay and Admin team and therefore improve efficiency.

4. EMPLOYEE ENGAGEMENT The results of the employee survey carried out in November 2013 have now been gathered and published (HR appendix 1). Overall the survey shows some improvement across most measures, with a 3% increase in overall engagement [from 38% fully engaged employees a year ago to 41% now].

In order to drive further improvements we are taking a two pronged approach. The Engagement Board, with some new membership, will develop clear actions to address the general issues identified, which include: - Review of our performance management process - Line Manager development - Informal recognition and award schemes - Business process review

Line Managers will also be using their own survey results to develop local action plans that focus on specific issues within their teams. To support this we have produced toolkits and guidance to assist with the communication of results and action planning process. Local action plans across the organisation will be completed by the end of January 2014.

5. VALUES AND BEHAVIOURS As part of the strategy work we have been developing the new organisational values and behaviours which will also be integral to the new performance management process.We are identifying a defined set of behaviours with positive and negative indicators that align with and make tangible each value. They are currently at draft stage and awaiting wider internal consultation prior to roll-out. A proposed internal campaign is being planned for February/ March.

6. RECOGNITION Work is currently underway to develop a new employee recognition scheme. The scheme will both encourage and give Line Managers the ability to recognise and reward employees in a more spontaneous way. The scheme will be voucher based and be administered by a third party to reduce stock risk and improve the overall selection of awards available. It will be launched in February 2014 and piloted for 3 months after which a review will be undertaken prior to a decision being made on progressing for 2014/15.

7. LINE MANAGER DEVELOPMENT As a result of feedback from the employee survey and through the performance management process we have identified an opportunity to improve the development of our Line Manager population (especially at our first line and middle management levels) particularly in respect to people management, business planning and communication skills. As a result of this we are currently undertaking a full training needs analysis of our management population through a variety of methods including workshops, one to one meetings and an on-line survey. This is due to be completed by the end of January when we will then review the outputs and prioritise to inform our organisational development plan for 2014/15.

The intention is to develop a suite of development tools that line managers will be able to access which will be a mixture of workshops, e-learning and webinars to support on- going development.

8. PERFORMANCE MANAGEMENT During October and November we have conducted a full review of our current performance management process. As a result of this we are now working on improvements with the objective of launching this in March 2014 in readiness for the new financial year. The main areas of focus are; - Simplifying the paperwork to be more user friendly and improve the consistency of application - Introduce new performance ratings that are easy to understand and give employees a clear indication of their current level of performance within their role - Measure total performance through the introduction of our new values and behaviours to ensure we are measuring ‘how’ people carry out their role as well as ‘what ‘they deliver, this will also support the ‘embedding’ of the organisational values - Give more focus to individuals development and career aspirations as part of the performance management process - Introduction of pre-review consistency check meetings as a way to calibrate ratings across the organisation and improve consistency. - Introduction of a potential matrix to enhance the identification of internal talent and support succession planning - Improve the direct link between performance ratings and pay progression to support performance led culture - Improve the performance improvement process to ensure we have a consistent approach to managing underperformance throughout the organisation - System improvements that will enable us to capture and report on performance ratings across the organisation, this will also support improvements to our succession planning processes.

To support the launch of the new process we are developing line manager briefing packs, guidance, toolkits and workshops. Top down leader led briefings will commence in late February 2014

9. LOOK FORWARD During the early part of 2014 we will commence work on the following key HR projects: - Grading and job evaluaton - Succession planning and talent management - Full review of our induction programme

Simon Patton Head of HR January 2014 2013 Employee Survey Results

2013 2012 Question (combined agree/ (combined agree/ strongly agree) strongly agree)

Overall, I am satisfied with my current job 68% 70%

I feel motivated to give my very best at work right now 61% 56%

Overall, I am satisfied with the Canal & River Trust as an 65% 63% employer

I am fully committed to the Canal & River Trust and what 74% 73% it is trying to achieve

I would recommend the Canal & River Trust to other 56% 54% people as a great place to work

I am proud to work for the Canal & River Trust 68% 65%

I am satisfied with how changes are managed at work 35% 37%

I understand how my job fits in with and contributes 71% 69% towards achieving the Canal & River Trust's vision

I feel valued and appreciated for my contribution at work 47% 53%

The Canal & River Trust provides good customer service 54% 51% to its customers 2013 2012 Question (combined agree/ (combined agree/ strongly agree) strongly agree)

Overall, I am satisfied with the opportunities I have to 55% 51% learn and acquire new skills at the Canal & River Trust

I am satisfied with the opportunities I have at the Canal & 41% 42% River Trust to achieve my career aims

Overall, I am satisfied with how I am managed at the 64% 65% Canal & River Trust by my immediate manager

My line manager takes time to listen to my views and 69% - opinions'

Overall, I am satisfied with communications within the 50% 56% Canal & River Trust

At Canal & River Trust health & safety is a top priority 84% 87%

Overall, I am satisfied with the leadership of the Canal & 47% 39% River Trust

I believe volunteer involvement in the Canal & River Trust 63% - is a good thing

I am proud of the fundraising work that the Canal & River 53% - Trust does

Employee engagement* 41% 38%

*This is derived from six of the survey questions. It shows the percentage of employees who are fully involved in, and enthusiastic about, the Trust and their work here.

CRT72 APPENDIX 9 Strategic Plans Summary of progress 11 January 14 J Sharman

Waterway Engagement Final On Comments Action Plans Technical Partnership Prospectus Prospectus for Website internal Appendices Directors review Yet? circulation East Mids Complete Feb/Mar Yes Consultation complete, first draft presented to Chair 95% complete May not be required South Wales Complete Feb/Mar Yes Completed engagement phase and workshops, now completing plan 85% complete 10% complete & Severn North West Complete Feb/Mar Yes Final plan in production Circulation 50% complete January Central Complete Feb/Mar Yes Engagement completed. Plan in preparation 95% complete 50% complete Shires West Mids Complete Feb/Mar Yes Consultation complete. Plan in preparation 95% complete 85% complete South East Complete Feb/Mar Yes Completed engagement phase and workshops, now completing plan 60% complete 25% complete London Complete Feb/Mar Completed engagement phase and workshops, now completing final 85% complete 10% complete prospectus North Wales Complete Feb/Mar Yes Next meeting in January to discuss final prospectus In circulation 25% complete & Borders All Wales Complete Feb/Mar Yes Consultation complete, action plan complete but being tidied up and In circulation Not required. correlated with NWB and SWS prior to launch – Communities being done this month for launch end January, Others to follow in Feb, Mar. North East Complete Issued Yes Now looking at action plan delivery In circulation 50% complete K&A Complete 23th Feb Two engagement workshops complete , one remaining in Bath on 22nd 85% complete 10% complete Jan. Level 1 complaint received due to perceived short time for ‘consultation’ and contrary to Gov. Code of Practice for consultation. M&P Complete Issued Yes Technical document near completion In circulation 70% complete Museums Planning to skip End February Meeting scheduled to complete prospectus for conference in March 30% complete TBC and this phase Action Plan meeting end of January Attractions

Notes: Web page for the partnerships has been updated to make it much easier to locate the plans Final plans will incorporate new Strategic Goals, Vision etc