Memorandum submitted by the Ministry of
Agriculture, Fisheries and Food (F1)
FUNDING ARRANGEMENTS
AND PROGRAMME
EXPENDITURE
18. Funding of the programme is divided
into the following broad components (1997-98 figures in brackets):
Revenue Support Grant (£225.4m).
This is paid by DETR to local authorities and
is in turn used by them to fund:
— levies payable to the Environment
Agency;
— levies payable to IDBs;
— their own flood and coastal defence
spend.
MAFF grant (£69.4m).
Grants towards expenditure by operating authorities
on capital works of the type mentioned in paragraph 17.
MAFF Supplementary Credit Approvals (£12.0m).
Used to support the balance of capital works
undertaken by local authorities.
Drainage rates payable by farmers to IDBs (£11.0m).
Used to fund IDBs' expenditure.
General drainage charges payable by farmers (£2.8m).
Used to fund Environment Agency expenditure—collected
in the Agency's Anglian Region only.
Contributions from beneficiaries (£3.0m estimate).
Used to fund operating authorities' expenditure.
19. More details of the funding mechanisms
for operating authorities are contained in Annex C.
20. Annex D shows the funding of the programme
over the period 1990-91 to 1998-99.
21. MAFF and the operating authorities are
currently investigating the scope for alternative forms of procurement
as a means of achieving improved value for money. The alternatives
include the Public Private Partnership (PPP), incorporating the
Private Finance Initiative. There is unlikely to be scope for
a developer to collect revenue from beneficiaries or users of
the development; public sector funding would still be required.
Studies have indicated some scope for PPP for flood defence works
of sufficient size and involving significant operational management
throughout the life of the scheme. This possibility is being tested
by the Environment Agency, with MAFF support, in two pilot projects;
Broadland in Norfolk and Pevensey on the South Coast.
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