Cost efficiency is not dealt with in the Southern and Eastern Regional OP evaluation and dealt with in only a cursory way in the BMW OP evaluation. Nevertheless, it is useful to briefly review the main findings of the BMW OP evaluation.
Under the Local Infrastructure Priority the consultants only present unit costs for roads, and point out that these costs are substantially above the projected unit costs for the Specific Improvement Grants, while the opposite holds for the Restoration Programme. The majority of Measures investigated are being delivered at below planned unit costs.
Delivery
The OP evaluations identify a number of constraints that affect delivery of the local infrastructure Priority. There has been slow progress in the Rural Water measure due to resistance to the Design Build and Operate contracts, but these problems appear to have been overcome. The Waste Management measure has been affected by resistance to facilities development, failure to adopt waste management plans and the need for new legislation. The timing of financial allocations under the Urban/Village Renewal measure has hindered progress as these were made too late and projects needed to be completed by the end of the year. Furthermore, there are also constraints due to the lack of public sector finance for this measure. Delivery of the E-Commerce and Communications Measure has been delayed as a result of the downturn in the telecommunications sector. This has major implications as “the majority of planned expenditure 2003-2004 will involve a much greater reliance on local authority involvement to cover a shortfall in private sector investment (BMW OP evaluation page 36). The Recreation and Sports facilities measure has been delayed due to late publication of the NSS, which was necessary in order to decide upon the correct centres in which the facilities are to be located. Finally, there have been some delays due to statutory planning regulations.
For the Local Enterprise Priority a number of Measures were very slow to get started. These delays are surprising as the same implementing bodies as in the previous programme are involved. Furthermore, a number of Measures were affected by reductions in the funding allocations. The tourism measure was affected by delays in state aid approval. The selection criteria may be too restrictive
and the selection process was too slow. These Measures may suffer from a possible reduction in funding. The Regional Innovation Strategies were progressing slower than anticipated and one college has withdrawn its project. The Forestry measure was affected by the restrictions due to foot and mouth disease. The Forestry Harvesting Sub-Measure has been suspended. The Fishery and Gaeltacht/ Islands harbour Measures have slower physical progress due to longer lead in times. Finally, the Aquaculture measure was late to start up, with first approvals only being made in October 2001. Further constraints involve delays in licensing and lower annual funding than anticipated.
The Agriculture and Rural Development Priority has been affected by a number of general constraints, namely the restrictions due to foot and mouth disease, which have particularly affected all areas of on-farm investment, and delays in getting state aid approval. Furthermore, the Animal Welfare Standards for pigs Sub- Measure was subject to delays due to delays in legislation. The Animal Carcass Disposal Sub-Measure has suffered delays as tighter environmental requirements with regard to facility location are being enforced. The Rural Development Fund has suffered from a lack of good projects.
A constraint, which affects a number of Measures/Sub-Measure under the Social Inclusion and Childcare Priority, is the reduction of funds. Furthermore, the Childcare Capital measure has been affected by the buoyancy in the construction sector and related inflation. This is especially problematic as the measure is very heavily subscribed. The Equality measure was slow to get started and the Family Services Projects measure was subject to staff shortages. The Prison Services Training and Development measure has been suspended and the Probation and Welfare Services measure has not been able to secure premises (BMW). The latter is further affected by insufficient funding to meet targets. The Young People’s Facilities measure has suffered from lack of demand.
Conclusions – Border, Midlands and Western Region
The Border, Midlands and Western region OP evaluation makes specific recommendations regarding the funding allocations for all Measures going forward. In most cases the changes suggested in terms of re-allocation are quite modest.
For the Local Infrastructure Priority, a reduction is recommended for the Habitat Protection and Conservation measure, while Non-National Roads and E-Commerce and Communications are recommended to have an increased allocation. Among the Measures contained under the Local Enterprise Priority only the Forestry Harvesting measure, which is suspended, is to receive no allocation. In the case of the Agriculture and Rural Development Priority a number of Measures are to receive a reduced allocation. These are Improvement in Animal Welfare, Improvement in Dairy Hygiene and Housing and Handling Facilities for Alternative Enterprises. Finally, for the Social
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Inclusion and Childcare Priority, Childcare Capital Projects, Childcare Quality, and Youth Information Centres are recommended to receive an increased allocation, while the Prison Service Training and Development, Young People’s Facilities and Services Fund are to receive a smaller allocation. All other Measures are to receive the same allocation.
The Border Midlands and West OP evaluation makes a number of other important recommendations. First, it suggests that it is vital that there be a particular focus on five Measures and Sub-Measures which have had very poor progress, but which together account for 31 per cent of their original planned spending over the duration of the NDP. These are Waste Management, E-Commerce and Communications, Regional Sports Facilities, Tourism and Farm Waste. For these Measures a greater urgency is needed to ensure sufficient progress. This should involve the drawing up of actions plans, which contain specific proposals as to how progress can be speeded up.
The publication of the NSS has a number of direct implications for the NDP. First, the Regional Economic Plans/Planning Guidelines will identify strategic projects at the NUTS III level, and these should be prioritised. In the meantime local authorities should identify such projects and ring-fence funding for these. The implementing bodies should report on how they are incorporating the NSS in their Measures. In general a greater urgency is needed in incorporating the NSS.