Category Archives: Ulster Canal

Saving the nation part 97

Clip_resizeThat’s from the government’s Medium Term Economic Strategy 2010 [PDF]. Not a word about the Clones Sheugh, which would undoubtedly save the economies of both jurisdictions on this island, but perhaps it will qualify for one of the new models of infrastructure funding mentioned hither and yon in the document.

Maybe the Sunbeds Bill would be more interesting – or more important.

PS Folk who write “between both” should be flogged naked through the streets before being hanged in the marketplace.

Our Glorious Leader …

is to address, on Sunday night, anyone who watches television but doesn’t have a choice of television channels. There will be a medium term economic strategy too, promising a new and better future for all our people. But as Finfacts says:

… past experience coupled with signals so far, suggest that [the strategy] will be a promotional brochure for an international audience with some questionable claims and omissions. The expected plunge in services exports by as much as €50bn during the time horizon is not likely to be acknowledged.

There is an urgent need for a credible growth strategy that has an unvarnished assessment of the challenges with an honest analysis of strengths, weaknesses, opportunities and threats, using data that is free of the outsize impact of the foreign-owned exporting sector.

I wonder whether the strategy will include any sheughs.

Sheughery

I wonder why Sinn Féin asks questions when it does. This one [h/t KildareStreet.com] seems to have been asked at a time that the minister might have welcomed.

Sandra McLellan [SF, Cork East]:

To ask the Minister for Arts, Heritage and the Gaeltacht the position regarding the Ulster Canal restoration project; the steps that must be taken to complete the project; the indicative timeline for the completion of the project; and if he will make a statement on the matter.

Jimmy Deenihan [FG, Kerry North/West Limerick] [the third para is the interesting one]:

As the Deputy will be aware, in July 2007 the North/South Ministerial Council (NSMC) agreed to proceed with the restoration of the section of the Ulster Canal between Clones and Upper Lough Erne. The then Government agreed to cover the full capital costs of the project, which were estimated at that time to be of the order of €35m.

It was always the intention that the Ulster Canal project would be funded from the Waterways Ireland annual allocations, as agreed through the annual estimates processes in this jurisdiction, as well as the deliberations of NSMC in relation to annual budgets. It was a key consideration throughout the process that the Ulster Canal project would be supported by a significant level of projected income from the commercialisation of certain Waterways Ireland assets. However, the economic downturn has had a negative impact on those plans.

I am continuing to explore all possible options to advance this project within the current fiscal constraints. In this regard, I established an Inter-Agency Group on the Ulster Canal to explore ways to advance the project and to examine possible funding options for it, including existing funding streams and the leveraging of funding from other sources. The Inter-Agency Group last met on 9th October and will meet again next week, on 9th December.

In the meantime, the Ulster Canal project is progressing on an incremental basis. Planning approvals have now been received for the project in both jurisdictions. Compulsory Purchase Order land maps are in preparation and consideration is being given to how the construction work and other technical aspects of the project will be structured once the necessary lands have been secured. The timeline for completion of the project will be determined when these preparatory steps have been completed.

I welcome these developments, which, I am sure the Deputy will agree, are a significant milestone for the project.

Hmm. The inter-agency group first met on 20 September 2012 and its second meeting was to take place in May 2013 or thereabouts. Now it’s going much faster, with meetings on 9 October and today, 9 December. Does this suggest that the group has found a pot of gold? Is there any link to the cancellation of SEUPB funding for the Narrow Water project?

And what has been going on in (and around) the North/South Ministerial Council? At its June 2013 meeting the Council approved or noted:

  • the business plan for 2012 (which had ended six months earlier)
  • the budget for 2012
  • the annual report for 2012
  • the draft accounts for 2012.

That suggests to me that there was either a major disagreement between the northern and southern ministers or a serious problem that rendered ministers unable to approve the WI budget and business plan until 18 months after the documents were required. Could it be that the northern minister, Carál Ní Chuilín [SF], like other NI politicians, had been looking for something from the waterways sector that hasn’t been delivered so far?

Note also that Jimmy Deenihan said

[…] consideration is being given to how the construction work and other technical aspects of the project will be structured once the necessary lands have been secured.

I understand that the design and construction of the Clones Sheugh was to be put out to tender but I wonder whether keeping the work in house might help WI to meet its increasing wage costs with a declining budget.

 

 

 

Modern management

I’ve just read the minutes (they call ’em joint communiqués, to be posh) of all the North South Ministerial Council Inland Waterways meetings since northsouthery got going again in 2007.

After a bit of catching up in the first couple of years, the NSMC has usually managed to “note” WI’s Annual Reports and Accounts about six months after the end of the year to which they refer: the accounts for 2008 were noted in 7 months, 2009 in 5, 2010 in 7, 2011 in 7 and 2012 in 6. But “noting” doesn’t mean approving: various other bods, including two Comptrollers and Auditors General, then have to look at them, so the citizenry doesn’t get to see the accounts for many months afterwards: the report and accounts for 2012 are still not available.

Nothing to see there, then: both WI and the NSMC appear to be doing their bit as fast as could reasonably be expected. But what is odd is the delay in noting or approving plans and budgets. Knowing litle of management science, I had the naive idea that managers would be working to approved plans and budgets from the start of the year, but WI usually doesn’t get approval until the year is almost over. I do not know why that is.

WI’s business plan for 2008 was approved in October 2007, which is reasonable, although it seems to have been revised in July 2008. But the plans for 2009 and 2010 were not approved until 11 months into the year, that for 2011 until 10 months and that for 2012 until June 2013, six months after the end of the year. I realise that forecasting is difficult, but retrospective planning is surely less than useful.

The same delays apply to the budgets for 2010, 2011 and 2012. So the June 2013 meeting of the NSMC approved or noted:

  • the business plan for 2012 (which had ended six months earlier)
  • the budget for 2012
  • the annual report for 2012
  • the draft accounts for 2012.

I do hope that someone checked to ensure that all the documents accorded with one another: it would be really embarrassing if they didn’t. But as a management exercise this seems to be somewhat less than useful.

The same meeting also

… noted progress on the development of the 2013 Business Plan and budget. Following approval by Sponsor Departments and Finance Ministers the plan will be brought forward for approval at a future NSMC meeting.

It is good to know that, six months into the year, there was progress on the business plan and budget for that year. The minutes of the November meeting don’t mention the 2013 business plan and budget (but do, I am pleased to note, mention the 2014 versions), but there was a disturbing item of information on the previous day, 19 November 2013. Brendan Howlin, Minister for Public Expenditure and Reform, replied to a written question from Gerry Adams [SF, Louth], saying inter alia

The 2013 Budget allocation to the Body are subject to on-going discussion by the two Sponsor Departments.

This is November; 88% of the year has passed and the Irish budget for 2013 was approved long ago — yet WI still hasn’t been told its budget for 2013. WTF is going on?

I note that the same applies to the other north-south body or bodies that share the [RoI] Department of Arts, Heritage and the Gaeltacht and the [NI] Department of Culture, Arts and Leisure as sponsors. An Foras Teanga, which includes Foras na Gaeilge and Tha Boord o Ulstèr-Scotch, likewise still has its 2013 budget under discussion by the two departments.

I have asked DAHG about this, and will no doubt receive a full and frank reply in due course. In the meantime, I can only speculate. Is it possible that one minister wants to spend very much more or less on waterways than the other does? As the total current expenditure is fixed at 85%/15%, it seems to me that one side might very well come up with a figure that the other didn’t like.

Is it possible that DCAL, run by Mr Adams’s party colleague Carál Ní Chuilín, is more keen on cross-border bodies than is DAHG, run by Fine Gael minister Jimmy Deenihan? Or are both of them struggling to find savings to pay for the Clones Sheugh, or at least as a deposit for the SEUPB?

Or could it simply be that WI is having great difficulty in cutting its expenditure to fit within the limits imposed by the RoI budget?

 

Setback for Sheugh

The likelihood that limitless wealth will result from the construction of the Clones Sheugh was reduced recently with the closure of the cruiser-hire base closest to the Ulster Canal: the Emerald Star (Le Boat) operation at Belturbet.

Perhaps, though, it reflects a wider decline in the hire business rather than disappointment at the delay in the canal’s reconstruction.

SEUPBer

SEUPB, the Special European Union Programmes Body, has withdrawn its offer of funding for the Narrowwater bridge about which I wrote here and here.

Perhaps the scheme’s proponents might now consider a Newry Southern Relief Road instead. It might not be iconic, but it would be considerably more useful.

And I really don’t think it needs an opening span to cater for a couple of yachts going up the Newry Ship Canal.

It seems that the SEUPB wants to reallocate the money to a project that could be completed by December 2015. A cross-border sheugh, maybe?

Northsouthery and sheughery

The North South Ministerial Council secretariat has been remarkably quick to publish the joint communiqué from today’s plenary meeting. They must have adopted the Quaker practice of agreeing the minutes before the meeting ends (as opposed to the diplomatic practice of agreeing them before the meeting starts). The short version is that nothing happened; the only excitement was another brainfart from Our Glorious Leader, which occurred before the NSMC meeting.

Cavan-Monaghan FF TD Brendan Smith has been wasting civil service time again, asking about the Clones Sheugh:

Brendan Smith [FF Cavan-Monaghan]: To ask the Minister for Arts, Heritage and the Gaeltacht if he will indicate the current stage of the proposed restoration of the Ulster Canal; and if he will make a statement on the matter.

Jimmy Deenihan [FG Kerry North/West Limerick]: As the Deputy will be aware, in July 2007 the North/South Ministerial Council (NSMC) agreed to proceed with the restoration of the section of the Ulster Canal between Clones and Upper Lough Erne. The then Government agreed to cover the full capital costs of the project, which were estimated at that time to be of the order of €35m.

It was always the intention that the Ulster Canal project would be funded from the Waterways Ireland annual allocations, as agreed through the annual estimates processes in this jurisdiction, as well as the deliberations of NSMC in relation to annual budgets. It was a key consideration throughout the process that the Ulster Canal project would be supported by a significant level of projected income from the commercialisation of certain Waterways Ireland assets. However, the economic downturn has had a negative impact on those plans.

In the meantime, the Ulster Canal project is progressing on an incremental basis. Planning approvals have now been secured for the project in both jurisdictions. I welcome these developments, which, I am sure the Deputy will agree, are a significant milestone for the project.

I am continuing to explore all possible options to advance this project within the current fiscal constraints. In this regard, an Inter-Agency Group on the Ulster Canal has been established to explore and examine ways to advance the project and to examine possible funding options for it, including existing funding streams and the leveraging of funding from other sources, including EU funding options.

What news of the Inter-Agency Group? Has it found a rainbow with a pot of gold buried beneath it?

I do not find the minister’s statement that …

It was always the intention that the Ulster Canal project would be funded from the Waterways Ireland annual allocations, as agreed through the annual estimates processes in this jurisdiction […].

… to be entirely consistent with the historical record or even with his further statement that …

It was a key consideration throughout the process that the Ulster Canal project would be supported by a significant level of projected income from the commercialisation of certain Waterways Ireland assets. However, the economic downturn has had a negative impact on those plans.

The plan seemed to be to sell the WI assets, thus using capital to fund what might laughingly be described as a capital asset (as opposed to a millstone around WI’s neck), rather than to rely on income from the use of its surplus assets. Maybe allowing the Corpo to run the Dublin “docklands” [Irish Times report, which will disappear behind a paywall at some stage; the Corpo’s website doesn’t yet cover this] will restore the overvaluations of the recent bubble and allow WI to flog off its three sites and splurge on the Clones Sheugh.

That seems to be what ThemUns in the Northern Ireland Assembly are expecting, if we are to judge by the discussion held on 21 October 2013, when several shinners, and a few others too, enthused about the “potential” of canals:

Phil Flanagan [SF] asked the Minister of Culture, Arts and Leisure [SF] for an update on the current funding position on the re-opening of the Ulster canal.

Carál Ní Chuilín [SF]: I thank the Member for his question. Work by Waterways Ireland on the restoration of the Ulster Canal has been solely focused on the section from Upper Lough Erne to Clones. The project will be advanced in line with available resources. The Ulster canal interagency group has been tasked to examine all possible options for financing the project. DCAL economists are reviewing the business case to update the estimated costs and identify social as well as economic benefits for the first section of the canal. The Ulster canal interagency group is exploring funding options with the Special EU Programmes Body.

Phil Flanagan [SF]: Go raibh maith agat, a LeasCheann Comhairle. Gabhaim buíochas leis an Aire as ucht a fhreagra. I thank the Minister for her answer. I welcome the Minister’s continuing commitment to the Ulster canal, particularly the section from Upper Lough Erne to Clones. However, one of the difficulties that it faces is an absence of funding. Will the Minister provide more information on potential funding options for completing the work on that section of the canal?

Carál Ní Chuilín [SF]: The work of the interagency group is focused not just on funding options but on what we can do with current available funding. It is really important that we look at the Ulster canal with a view to how we can open up waterways to improve tourism and the local economy. It is important that we get started on the restoration of the Ulster canal in that area because it has experienced a lack of investment for decades.

We are looking not just towards the Irish Government, within DCAL and towards Europe but at other opportunities, possibly through the Lottery Heritage Fund and many others to see whether we can get this started by looking at options to bring the work forward, rather than waiting until all the money is in. We can do that only on the basis of secured funding. Once that happens, I will be happy to make a statement to the House that will be a bit of good news that the Member and other Members for that area have been waiting to hear for a long time.

I suspect that “what we can do with current available funding” is “buy a shovel”, there being no large amounts available from the Free State. But perhaps the reason that the Clones area “has experienced a lack of investment for decades” is that it is not possible to make any adequate (legal) return on investment there; a policy of assisted emigration might be best. But it is gratifying to learn that SF is trying to get the Free State government off the hook of its rash promise to pay for the sheugh and is hoping to raise the money from within HM Realm.

There was a hint of a sensible question from the UUP.

Tom Elliott [UUP]: I thank the Minister for that update. Will she tell us how much the overall project was estimated to cost, based on the business case, and what income it projected?

Carál Ní Chuilín [SF]: Overall, it goes into tens of millions of pounds. I believe that the business case needs to be updated, and that will be part of discussions involving me, Minister Deenihan, and Minister McGinley. Some of the work that is being done by DCAL economists is bringing a fresh approach to the economic appraisal. We are sharing that with our Irish Government colleagues and the interagency group. That is because I believe that, rather than waiting for all the money to be secured at once, we need to look at the potential for phased approaches. It is good news that we now have full planning permission across all the councils and from our Planning Service here.

We now need to look at what capital moneys are available, what we can do and our plan to secure additional funds for that area. As I said to Phil Flanagan, it is really important — I am sure that the Member is more aware of this than I am — that we get parts of that canal opened and try to get some construction work done on it.

Unfortunately Mr Elliott did not insist on getting an answer to his question about the projected income, which I expect to be nil.

Joe Byrne [SDLP]: Can this issue be raised at the next meeting of the North/South Ministerial Council? What potential does she expect could accrue to the areas of Fermanagh and Tyrone in future tourism?

Carál Ní Chuilín [SF]: The Member should take comfort in knowing that this is always raised at the North/South Ministerial Council. Certainly, within the waterways sectoral aspect of DCAL’s North/South arrangements, it is constantly brought up. The key here is to look at what we can do now for rural communities and what moneys are available. I appreciate that, when the Irish Government said that they would fully fund the project, they were in different economic circumstances. However, they still remain committed to doing something.

In DCAL, I am looking at a new economic appraisal to see what the real costs are and what parts of the work I could try to start, possibly in conjunction with Ministers Deenihan and McGinley. There is a lot of expectation around the project, and rightly so, no more so than among the people who live and work in the surrounding area and those who are waiting for work on the restoration of the canal.

Anna Lo [Alliance]: Parts of the UK and many other countries have reinvented canals as tourist facilities and attractions. What lessons does the Minister intend to adopt from other people’s experiences?

Carál Ní Chuilín [SF]: Certainly, we regularly receive reports from Waterways Ireland about tourist potential. The royal canal has brought great potential. There are festivals across all the canals and waterways the length and breadth of this island. Unfortunately, those are some of the very few opportunities that people who live in rural communities near waterways have of generating a local economy. So the tourist potential is absolutely huge. Not only is it huge for people who live on this island; it is huge for those who want to visit here and travel. There is big interest, particularly in Europe, in canals and waterways. It is incumbent on us to do what we can to get the project financed. We need to make a start on it. We do not have all the funds yet, but it is time to make a start on it rather than sit and wait on free money coming. People who are looking for tourists and have a tourist product to offer and people who are willing and able to work look to us for opportunities to get this moving. I think that is what it could do.

Ms Lo’s question should be enough to deter people from voting Alliance. Note that Ms Ní Chuilín’s answer was all about potential: we have no cost-benefit analysis of the restoration of the Royal Canal and indeed no idea what the restoration cost, but I do not believe that the economic benefits will be significant. And while it may be that …

There is big interest, particularly in Europe, in canals and waterways.

… the prospect of travelling to Clones by water is not significantly more enticing than that of travelling there by road.

 

 

 

Northsouthery minus northsouthery

I noted here what the Minister for Arts, Heritage and the Gaeltacht had to say about Waterways Ireland’s budget — or at least that portion of it paid by the RoI government — for 2014. The minister listed WI’s “core activities and targets” and various other things it should be doing:

  • promoting increased use of the waterways resource for recreational purposes
  • developing and promoting the waterways
  • attracting increased numbers of overseas visitors
  • stimulating business and regeneration in these areas
  • increasing recreational access along the routes of waterways
  • keeping the waterways open for navigation during the main boating season.

Note that WI is not expected to promote, engage in or achieve anything in the realm of northsouthery. That’s slightly odd when it receives [the larger] part of the northsouthery budget of the minister’s department.

WI’s budget: the minister speaks

I wrote here about the implications of the RoI 2014 budget for Waterways Ireland. The minister, Jimmy Deenihan [FG, Kerry North/West Limerick], spoke about it in the Dáil on Wednesday 16 October 2013 [h/t KildareStreet.com]. At the end of his lengthy contribution he said:

I am committed to developing North-South co-operation within the broader arts, heritage and commemorative activities of the Department as well as through the funding of North-South bodies. A provision of €38.3 million will be made available to support the two North-South implementation bodies, An Foras Teanga, comprising Foras na Gaeilge and the Ulster-Scots Agency, and Waterways Ireland. The provision will enable Waterways Ireland to deliver on its core activities and targets, which include keeping the waterways open for navigation during the main boating season and promoting increased use of the waterways resource for recreational purposes. This expenditure should also assist in developing and promoting the waterways, attracting increased numbers of overseas visitors and stimulating business and regeneration in these areas. Capital funding of almost €4 million will be made available to Waterways Ireland to facilitate the ongoing maintenance and restoration of Ireland’s inland waterways, thereby increasing recreational access along the routes of waterways.

The Government has reaffirmed its commitment to continuing to make progress, to improving the economy, to exiting the bailout, and to helping to create jobs. The Department and the sectors it represents will make a significant contribution to this work over the course of 2014.

I pointed out last year that Waterways Ireland is part of northsouthery and that, at budget time, we don’t get a breakdown of the northsouthery budget between An Foras Teanga and Waterways Ireland. In 2011, WI got roughly 60%, but I don’t know what happened after that. Here’s what I thought was happening last year:

Current spending (WI)

2010 Estimates: €25 585 000
2011 Estimates: € 24 335 000
2012 Estimates: €22 929 600 (60% of €38 216 000)

Capital spending (WI)

2008 Estimates: €11 000 000
2009 Estimates: €10 300 000
2010 Estimates: €8 000 000
2011 Estimates: €6 000 000 (or €6 002 000)
2012 Estimates: €4 500 000 (or €4 502 000) (100%)

In his speech, above, the minister said that northsouthery is going to get €38.3 million and that Waterways Ireland is to get capital funding of €4 million. However, the €4 million is included in the €38.3 million. The expenditure report [PDF; see page 160] gives these details:

  • for 2013 northsouthery had €36 210 000 of current spending; for 2014 it will get €34 425 ooo
  • for 2013 northsouthery had €4 080 000 of capital spending (all, or almost all, of which was for Waterways Ireland}; for 2014 it will get €3 958 000
  • the overall budget for northsouthery is down 5%.

We can calculate that the capital budget is down about 3%; the much larger current budget is down 5%. If WI gets 60% of the total, its current expenditure contribution from RoI will be €20 655 000, down over €2 000 000 from the previous year and about €5 000 000 since 2010, and its total current expenditure (85% RoI, 15% NI) will be €24 300 000.

The other interesting part of the minister’s speech is what WI is expected to do:

  • promoting increased use of the waterways resource for recreational purposes
  • developing and promoting the waterways
  • attracting increased numbers of overseas visitors
  • stimulating business and regeneration in these areas
  • increasing recreational access along the routes of waterways.

That should keep them busy. But I omitted one activity:

  • keeping the waterways open for navigation during the main boating season.

Emphasis mine, but does this mean that winter boating (at least if it involves staff time, eg at locks) will become a thing of the past?

 

WI budget

In 2014 the Department of Arts, Heritage and the Gaeltacht [.pdf: go to page 51] is to cut its current expenditure on North–South Co-operation by €2.1 million:

Savings, in excess of the agreed 3% per annum efficiency savings, for the North-South Implementation Bodies will require the approval of the North-South Ministerial Council.

The 85% of Waterways Ireland’s current budget that comes from the [Republic of] Ireland government is in there somewhere; the NI executive pays the other 15% and, in theory, the North–South Ministerial Council will have to give its blessing, but in practice the NI ministers can hardly force the RoI ministers to pay up.

There’s a list of 14 High Level Programme Activities [mustn’t hurt anyone’s feelings by leaving out their favourite fodder] of which No 13 is

Development of inland waterways within the context of the implementation of the Good Friday and St. Andrews Agreements.

Translation: Ulster Canal, even if there’s no money for it. But there is half a million for a

20-Year Strategy for Irish with a range of concrete measures, including supportive actions to roll out the language planning process on the ground, in line with the Gaeltacht Act 2012. These actions will include direct support to community organisations to enable them to prepare and implement practical and deliverable Irish language plans – not only in the Gaeltacht itself but also in selected towns and areas in other parts of the country.

Do they ever give up? They’d be better off supporting Ulster Scots, which has at least some chance of showing a growth in the number of speakers. But page 51 has a long list of imaginary measures to allow the department to claim that it will save €15 million in 2014: more efficient working, review, examining the scope for achieving further efficiencies … waffle.

On the capital expenditure side, RoI and NI each pays for works within its own jurisdiction. The RoI spending will be down from €4071000 in 2003 to €3858000 for 2014: a cut of just over 5%.

Maybe the money is being put aside to pay for the Clones Sheugh, although it’s not specifically mentioned in the document.