IT is easy to see why monster operations such as the Post Office and the BBC were never privatised. With a bit of luck, digital competition will continue to nibble away at them until they are no longer the monoliths the state tried to protect. Yet there are other entities that look so ripe for liberalisation that their continued existence in the armpit of government is baffling.
Let us consider British Waterways, which owns Britains canals. To most of us, it is a remnant of our industrial heritage; a footnote in our bustling freight industries. Yet this is a fine candidate for bringing to the market.
British Waterways is an agency of the permanently dopey and wrong headed Defra, with a courtesy nod to the Scottish Executive for its northerly bits. This curious hybrid, part quango and part state corporation, owns 2,000 miles, or as the European Union insists it be termed, 3,219 kilometres of canals, rivers, docks, wharfs and buildings. It is also custodian of notable engineering structures and some lovely landscapes. Owning 130 Ancient Monuments and 100 Sites of Special Scientific Interest which I assume means rare newts in the water or rare bats under its bridges British Waterways boasts an engaging portfolio of eccentricities.
It also owns superb and vastly underdeveloped property holdings. Like Network Rail it has an extraordinary set of acres in ribbons of land acquired by the canal companies as they gave birth to the Industrial Revolution in the 18th century. In many city centres, British Waterways owns acres that lie mostly underdeveloped.
You cannot talk long about canals before somebody tells you there are more miles of canal in Birmingham than in Venice. Yet look at them. There are some chic bits but most that I have seen are pretty derelict and scruffy. Some have been filled in. Others are little more than DIY rubbish tips. The unused stretches of canal are termed remainders. These could be cherished and dredged and turned into delightful byways.
The Competition Commission has investigated British Waterways twice. Yet it ducked the question of why we need a monopoly. Let us have diversity in ownership as the canals had originally. There are still some heavy freight canal users but leisure Latin for boating, I take it is usually believed to be its sole realistic commercial future. In this sense British Waterways seems characteristic of much of our economy as it evolves towards services and away from manufacturing.
The Competition Commissions investigations into British Waterways faulted the company on its corporate planning, inability to cost projects, board membership and even recording of decisions. It added the canals monopoly was poor at contracting out services. It could be much better at planning applications and was weak at controlling its staff costs too. In other words, British Waterways is a typically flawed public agency that often tries to emulate commercial competence but falls far short of its own ambitions.
This detailed assessment of British Waterways concluded: Heritage and environment have become two of the most overloaded words in the language. However, money spent on the canal system . . . will in town centres do something to mitigate the surrounding dark satanic mills . . . and will give access to our green and pleasant land.
It does not ask why we have to be taxed to run canals. My hunch is British Waterways is run as poorly as all those other nationalised Britishes used to be: rail, steel, coal, airways; I commend instead the happier model of privatised companies.
You can tell so much about a body by its brochures. British Waterways are far too glossy and generously produced.
But I should not knock British Waterways too hard. There are a few surprises. For all its failings, it has evolved from being a subsidy recipient to realising it has lucrativ