A critical examination of subsidy to catchment works and proposals for reform

Abstract

Current subsidy arrangements make it impossible to decide rationally upon an appropriate level of subsidy to catchment works: it is unclear what the subsidies achieve and it is unclear what the consequences of a reduction in financial assistance would be. A change is proposed from the present system of allocating the annual catchment-works budget amongst individual projects to one which allocates the budget amongst individual catchment authorities. Under such a system, catchment authorities would be required to prepare annual work plans describing the problems they confront in their districts, their proposed programme of work for the following three years, and the reasons why central Government should assist with this work. These annual work plans would allow central Government to make informed decisions upon funding. Although central Government assistance should initially be maintained at its present level, it would become subject to an annual three-year rolling review.