Costs and benefits
46. The Department considers that the proposal would
have no associated costs or savings because it would not involve
the imposition of new regulatory requirements. In terms of benefits,
it considers that the proposal would offer the prospect of better
utilisation of public assets and increased competition in the
water industry.[24] The
Department also states that, if successful, the PPP would provide
additional revenue for the operation, maintenance and restoration
of the waterways for which the Board is responsible; the PPP is
projected to have revenues in excess of £50 million by its
tenth year, and the Board will receive an income of "several
millions" once the business is established.[25]
47. We note that, if and when any new canals are
built, the Board will decide whether a new canal should form part
of the Water Grid network—a canal will not automatically
form part of that network.[26]
48. We are satisfied that the proposal has been
the subject of, and takes appropriate account of, estimates of
increases or reductions in costs or other benefits which may result
from its implementation.
Conclusion
49. We conclude that a draft order in the same
terms as the proposal should be laid before the House.
24 See the explanatory statement, Annex F, for the
regulatory impact and competition assessment. Back
25
Explanatory statement, Annex F, para 16 Back
26
Q 23 [Mr Evans] Back
