Norfolk Broads: MPs' concerns over 'illegal' use of funds

Two of the region’s MPs, Duncan Baker and Jerome Mayhew, have written to the organisation with concerns over the way it is using money which should be ring-fenced for 'navigation' purposes - maintenance work to allow boats to use the rivers safely.

This year, the Broads Authority (BA) has announced it will be using some of that money - which includes cash from tolls and mooring fees - to help pay for other projects, including its Ranworth visitor centre.

The MPs, as well as boating organisations and some of the BA's own members, have raised fears that such a move could breach the authority's legal requirements.

The BA has insisted this is not the case and that it has carefully allocated funding to ensure it is fulfilling all its responsibilities without breaking its governing rules.

Duncan Baker, MP for North Norfolk (Image: Archant)

The extraordinary row has exposed deep tensions within the BA between two factions which have often found themselves in conflict.

One side is concerned primarily with maintaining navigation on the waterways and supporting boating activities, while the other is more focused on fulfilling its national park obligations, such as conservation and promoting the area.

NAVVIES AND PARKIES

The two sides - dubbed 'navvies' and 'parkies' - have clashed on several issues in the past, but the latest row has even led some to suggest the BA should be split in two, with separate organisations responsible for the different elements.

The most recent controversy was sparked by the decision by the BA last month to put up boat tolls by 13pc.

The rise has caused concern not only among private boat owners, but hire companies who own huge fleets of holiday boats.

The navvies raised questions over where the money was going, with particular light cast on extra funding being put towards the costs of its visitor centre at Ranworth.

RANWORTH RUMPUS

Funding for the Ranworth site had previously come entirely from BA’s 'park' budget, which comes from a government grant it receives as a member of the national parks 'family'.

It has 'equivalent' status, but is not an official national park - precisely because the interests of navigation have to be considered, something which is not an issue for other parks.

Under the BA's complex structure, balancing the sometimes competing interests of navigation and conservation, some income - such as toll money - is ring-fenced, restricting how it can be used.

But the BA has recently announced the Ranworth centre will now be 72pc funded by navigation money, with cash coming from tolls and new charges introduced for mooring.

Toll money will also be used to help fund IT costs for the BA as other bureaucratic functions and rent for its Yare House HQ.

The news has alarmed some navvies, as well as MPs.

Jerome Mayhew (Image: Archant)

MPs TAKING SIDES

In their letter, Mr Baker and Mr Mayhew said the BA was "at risk" of breaching its statutory obligations to ring-fence navigation money.

They said: “Whilst an allowance can be made for a reasonable contribution to overheads, it would be illegal for toll funds to be used to subsidise other activities of the authority.

“There is concern that the current proposals unjustifiably increase the proportion of overheads to be paid from toll funds and that this is in breach of the authority’s statutory obligations.”

The MPs say they are getting involved following concerns raised to them by constituents and the Broads Hire Boat Federation (BHBF), which represents holiday boat firms. 

In their letter, they say the BHBF includes three members of the BA.

James Knight (Image: James Knight)

COST TO YARDS

James Knight, a member of the BA but who stressed was speaking in his capacity as a director of Norfolk Broads Direct - one of the biggest boating holiday firms on the Broads - said: “The cost of navigation has gone up because [the BA] are trying to keep up the national park finances going rather than making savings. They are pushing more onto tolls, which they are not allowed to do.

“Ranworth is nothing to do with navigation but it is now a navigation expense.”

He said the toll increase would cost his boatyard the equivalent of a worker's annual salary and raised concerns about little notice had been given about the rise.

In their letter, the MPs say a consultation on a toll increase would normally begin in November, but that this year's rise was only announced in early January.

Mr Knight said: “As a business, we have set the prices for the year. It’s our largest fixed cost and it went up with no hint that it was coming. I could have budgeted differently, for example not refurbished boats.”

Mr Knight said he would prefer to see the Broads managed by two separate organisations with direct elections for all members.

Bill Dickson chairman of the Broads Authority (Image: Hugh Taylor)

BROADS 'ABOVE BOARD'

The BA’s chairman, Bill Dickson, has responded to the MPs, insisting there has not been a reduced level of consultation, with members consulted as far back as October.

He said members have repeatedly supported the 13pc increase, which would ensure the authority can continue investing in seasonal rangers who respond to safety issues on the rivers.

He also said the allocation of costs was previously examined by the National Audit Office in 2018, which found “no evidence that the ring-fencing requirement had been contravened". He said this had not changed since then.

A spokesman added that the BA was under “intense financial pressure” with its government grant frozen for the fifth year, making it essential to review the share of costs.

“The result of that review is based on evidence," he said.

"For example, the largest item is the apportionment of ranger time. The rangers are rostered and 80pc of their time is spent on navigation activity while only 70pc is currently charged.

“Similarly, the costs of the two yacht stations are currently funded 25pc by National Park Grant and yet their purpose is entirely for the benefit of users of the waterways.”