Living With Our Rapido 963f Le Randonneur Motor Home.

Tuesday, 2 October 2012

C+RT appeal for breach repair funds

Yesterday, 1st October, the Canal and River Trust, the charity that recently took over the running of the British Waterways system, launched a public appeal for funding to assist in the repair of the major breach of the Trent and Mersey Canal, which happened on the 26th September.

They state that 'although they have a contingency fund for the £1.5 million cost of repairs, this will undoubtedly divert funding from other canal related essential maintenance'. Am I missing something again, but I thought that a contingency fund meant 'additional' funding to any normal budget already in place meant for routine maintenance? Perhaps some higher power is testing the ability of the new trust to carry out its statutory duties by causing this catastrophe so early in its control. There are many who predicted failure. Only time will tell.

Read the C&RT appeal here:  http://canalrivertrust.org.uk/news-and-views/news/emergency-appeal-launched-for-the-trent-and-mersey-canal-breach

2 comments:

  1. It's quite simple. If you don't spend your contingency, you can carry it over to the next year. If you do spend it, it'll need to be topped up -- and that means money will have to be diverted from next year's maintenance budget.

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  2. When I was an infrastructure manager the budget finance was divided into the following blocks
    Major capital works (new)
    Minor capital works (new)
    Major preventative maintenance
    Routine maintenance
    Special maintenance


    A breach in the canal would have been classified as special maintenance and the funds taken from the contingency fund. The fund would have then been topped up the following year. But certainly not from the routine maintenance as that just creates more problems in the future.

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