White's review concluded that manufacturing and repair facilities should be concentrated to ensure a successful and efficient service to the waterways. In addition, the provision of mechanical and electrical engineering services is being increased at waterway level.

From April 2004, lock gate manufacture will be based at Stanley Ferry in Wakefield, West Yorkshire (broad locks) and at Bradley in Bilston, West Midlands (narrow locks), while steel fabrication, plant manufacture and repair will be concentrated at Newark in Nottinghamshire.

Due to the unsuitability of the Northwich and Bulbourne workshops for the integration of modern machinery, technology, working practices and further health and safety regulation, they will cease production at the end of March 2004. Many staff will move to the waterways to join the core teams there.

The next step will be to explore whether there is a continued operational use for these sites and their facilities.

BW predicts it will need at least 200 lock gates a year as part of the programme to eliminate statutory arrears.

But as these gates can be made at just two centres, rationalisation is necessary to ensure a sustainable future for workshop operations.

Bradley and Stanley Ferry will also be able to meet growing demand from external customers such as The River Wey & Arun (National Trust), Chelmer & Blackwater Navigation and waterways cared for by other navigation authorities and organisations.

The review also identified the capacity for greater preventative maintenance, which will lead to fewer and less costly stoppages and a more effective use of manpower, improving the waterways for boaters and all other users.

BW says these changes will enable it to introduce new manufacturing techniques and improved procurement practices.

Mechanical and electrical engineering services are being increased at waterway level through the introduction of M&E supervisors, the transfer of fitting services and the development of M&E apprentices. BW says it remains committed to waterway apprenticeships and the preservation of traditional skills.

"We must give excellent services to our customers and value for money to the tax payer, " said Robins Evans, BW's chief executive. "These changes mean that we will be able to do more work, to a better quality and at a lower cost."