The government has asked BW to ‘consider and investigate’ whether it is being run in a manner ‘optimal for the long term security and success of BW’s inland waterways’. Or whether alternative options might be better to achieve this.

The Inland Waterways Association (IWA), reacted angrily, issuing a statement outlining its concerns regarding any future threat to privatise BW, or any scheme that involves the further fragmentation of the management of the system.

BW’s responded to the government’s dictat by running a beauty parade of top City names, including Rothschild, J P Morgan and Morgan Stanley. BB understands BW has asked for proposals from each firm to undertake the government-inspired review.

BW says it expects to appoint an advisor this summer. According to The Times, the review will examine all options for the business, including a sale of all or parts of the portfolio, a possible stock market listing or other partnership or funding structures.

Evans’ letter concedes the review will consider the full range of possible options for BW, stating: ‘these could include the status quo with a long term government funding contract, or a more contemporary structure within the public sector’.

The IWA welcomes moves to resolve the long term funding of the waterways, but chairman John Fletcher pointed out this is not the first time privatisation has been raised.

‘Over the years there have been a number of political proposals and press speculation about a full or partial privatisation of BW,’ he said. ‘Unfortunately most of these schemes rely on only the commercial value of BW’s property, whilst completely failing to recognise BW’s core function of running the central part of the nation's waterways for the benefit of the nation.’

● The IWA has also strongly condemned BW’s decision to go ahead with a 12-month trial of tendering mooring vacancies against the express wishes of all the major user groups.

Mooring customers themselves will directly influence the value of BW’s long term moorings by tendering for those that become available, says BW.

With the current shortage of mooring spaces, such a trial is unnecessary and creates additional expense and bureaucracy for BW when it is under funded by government, says the IWA.