Economic Evaluation of the UK Decommissioning Schemes

117. An assessment of value for money for the 1993 to 1996 decommissioning scheme can be measured against a number of criteria. These include a further examination of what capacity would have been reduced in the absence of decommissioning (additionality both in actual and net cost terms), contributions to decommissioning expenditure from the Government, the European Commission and from fishermen. What has it achieved for the money? Has it reduced capacity? Has it improved the efficiency for those remaining in the fleet? Has it reduced effort? This assessment concentrates first on the capital elements of fleet reduction by comparing the cost of decommissioning with the actual cost of capital deployed. In addition, comparisons are made between the potential utilisation of the EU scheme (what if?) and the tendering scheme adopted by the UK Government.