Mersey Barrage

HC Deb 01 July 1992 vol 210 cc641-3W

Mr. Pike

To ask the President of the Board of Trade what financial assistance was given from public funds by Her Majesty's Government towards the Travers Morgan economic study for the Mersey Barrage Company; and what percentage that was of the total cost.

Mr. Sainbury

The information is shown in the table.

Sales2
SIC1	3301	3302	3441	3443	3453	3454
	£millions
1987	268	4,352	1,669	2,958	1,168	1,079
1988	270	5,229	1,970	3,189	1,335	1,199
1989	295	5,695	2,137	3,171	1,487	1,203
1990	251	6,388	1,883	3,335	1,619	1,501
1991	..	..	..	..	..

Home demand3
SIC1	3301	3302	3441	3443	3453	3454
	£millions
1987	607	4,900	1,945	2,812	1,752	1,810
1988	295	6,120	2,321	2,868	2,129	2,020
1989	272	7,059	2,374	3,013	2,334	2,023
1990	147	7,710	2,045	3,101	2,220	2,010
1991	..	..	..	..	..	..

Mr. Eggar

The Government's contribution to the Travers Morgan Economic study for the Mersey Barrage Company was £77,391.50. This was 50 per cent. of the total cost of that study.

Mr. Pike

To ask the President of the Board of Trade what guidance he has given to the Mersey Barrage Company on cost benefit analysis, including the likely environmental costs, in assessing the viability of any future barrage scheme.

Mr. Eggar

The Mersey Barrage Company commissioned the consultants Travers Morgan Economics to undertake a cost benefit analysis of the Mersey barrage. The methodology adopted for assessing environmental costs reflected the consultant's views, at that time, of the most appropriate valuation mechanism. The analysis included an evaluation of the cost of creating lost habitat for wildfowl and some plants caused by the Barrage scheme. The Mersey Barrage Company has discussed these costs with its Environmental working party, which includes statutory organisations and environmental interest groups. Government officials have been in discussion with the Mersey Barrage Company on the methodology and results of the cost benefit analysis. The Government consider a proper assessment of the environmental impact of the barrage a key issue in appraising the scheme.