asked Her Majesty's Government:

Why they decided to reduce the funding available for the canal system.[HL7835]

Defra is having to operate within a tight financial regime. In recent months, it has had to face a number of new pressures, among them the need to develop its emergency preparedness in response to avian influenza and the introduction of a new payment scheme for farmers.

Defra has therefore asked its delivery bodies, including British Waterways, to accept reductions in grant in aid during 2006-07 to help it manage these pressures. Funding for 2007-08 is currently under review.