Proposed NWC General Works and Major Works Business Plan Process

Repairs and maintenance costing over £50k per project covering: -Reservoirs - Embankments and Culverts - Dredging - Water Supply - Major moving structures Centrally prioritised and delivered through the national framework contract (May Gurney) Responsibility of the Operations/Technical Director National average spend - £25m per annum Explanation – Major Works

Day to day maintenance, repairs and risk management - Minor repairs costing less than £50,000 (e.g. lock gates) - Planned Preventative Maintenance - Vegetation Management -Customer Service – lockkeepers, sanitary stations, signage, etc. -Inspections Planned and delivered locally through the direct labour force and contract under the direction of the Waterway Manager Responsibility of the Operations/Technical Director National Average Spend - £55m per annum Explanation – General Works

Stage 1 – Setting of National Targets & Priorities Executive Directors consider macro income and expenditure forecasts Finance Director issues target allocations to Directors October Stage 1 – Setting of National Targets & Priorities

Stage 2 – Setting of Directorate Targets & Priorities Operations/Technical Director confirms national standards, performance targets/priorities for General and Major Works Operations/Technical Director issues target allocations to national Major Works team and each Waterway Manager October Stage 2 – Setting Operations Targets & Priorities

Stage 3 – Preparing draft Major Works Plan National Team – adjust existing 2/3 year plan in light of target allocations Meet with waterways to explain and discuss national and local priorities Needs and views of Local Partnership fed into process by Waterway Manager Programme prepared that addresses priorities and is deliverable within financial year Programme submitted - to waterways for information/comment - to Operations/Technical Director for approval November - December Stage 3 – Preparing draft Major Works Plan

Stage 3 – Preparing draft General Works Plan Waterway Manager discusses local needs/priorities with Local Partnership and local management team Liaises with Operations/Technical Director and other Waterway Managers on national priorities etc. Waterway Manager submits local business plan including commentary on risks to Operations/Technical Director for approval November - December Stage 3 – Preparing draft General Works Plan

Stage 4 – Preparation of draft National Plan for Trustees Operations/Technical Director considers Major and General Works Plans, agrees modifications and adjustments in light of comments and feedback Submits Major and General Works Programme budgets to Finance Director Finance Director consolidates all plans into a draft National Business Plan Draft National Business Plan submitted to Trustees for comment January Stage 4 – Preparation of draft National Plan for Trustees

Stage 5 – Revisions/Refinements to National & Local Plans Executive reconsiders Local and National Plans in light of feedback from Trustees Operations/Technical Director reconsiders GW and MW Plans in light of Trustees feedback and LWP comments LWP invoke right to meet Operations/Technical Director if major concerns remain in respect of Business Plan February - March Stage 5 – Revisions/Refinements to National & Local Plans

Stage 5 – Approval of National & Local Plans Executive adjusts National Plan and resubmits to Trustees LWP Chairmen have right to submit comments directly to Trustees Trustees consider final draft Plan for approval Executive confirm National and draft Plans to business (or continue review of Plan until Trustees approval received) March Stage 5 – Approval of National & Local Plans

Steady State Allocation - £125m

Steady State Comparison 2011/12 Business Plan £'000 Steady State Model £'000 Variance £'000 % Steady State Direct Cost: Repair, PPM and Inspections: Intermediate Repairs (aqueducts; bridges; locks; bank protection) 13,860 13,317(543) PPM (bridges; locks; sluices; weirs) 3,771 7,1403, Inspections (Annual; Principal; Length; Reservoirs) 2,370 2,265(105) ,001 22,722 2, Amenity/Customer Service/Other: Vegetation 6,245 11,5535, Facilities 1,719 2,9391, Litter and antisocial behaviour 1,609 2, Water control 1,319 1, Other (volunteering; manning structures; towpath management; fencing; access management etc.) 9,298 16,9977, ,190 35,065 14, Total Steady State Direct Costs 40,191 57,787 17, Steady State Indirect Costs: People not directly attributable to specific works (includes 20% operational staff as productivity rate set at 80%) 9,598 16,3666, Operational Plant, Craft and Equipment (maintenance; fuel; depreciation) 5,162 8,8023, Operational Buildings (repair; insurance; utilities; depreciation) 1,661 2,8321, Total Steady State Indirect Costs 16,421 28,000 11, Total Steady State Costs (excl Major Works) 56,612 85,787 29, Minor Works Steady State Comparison

Average Steady State Spend by Waterway 2011/12 - £5.2m Average Steady State Spend by Waterway 2011/12 - £5.2m

Operational Focus 2011/12 - £56.6m

BW HQ and Central Services HQ & Central Service cost supporting Operations - £21.8m Total HQ and Central Service cost - £30.9m HQ and Central Services

Major Works 4 year planned expenditure

Major Works focus Year 1 and 2 Year /12 £16.2m Major Works focus Year 1 and 2

Operations focus to manage risk, prioritise expenditure, increase productivity and efficiency to deliver effective customer service Open to suggestions for improving best value for waterways from local/national stakeholders Explanation – General Works Overview