Public Sector Financial Cost and Public Sector Manpower Effects
493.The Government expects that most of the provisions in the Act will give rise to either no or negligible additional costs, resulting from an increased administrative burden. But certain measures in the Act will involve some additional public expenditure. The Government anticipates that the additional cost to the EA of implementing the new abstraction licensing scheme will be about £5 million over the first four years. This will be financed through abstraction charges. Long term ongoing costs of about £1 million, are expected be vastly offset by savings arising from administrative changes provided for in this Act. The Government anticipates that the establishment of the CCW will initially amount to £1 million and that the long term increase in funding this body and the new Authority will be minimal, these costs will be covered by an increase in water company licence fees.
494.The Government expects that the overall effects of the Act on public sector manpower will be negligible.
