Funding Environmental Compliance Assurance - Lessons

0,56

MB

Learned from International Experience

101

stron

4993

ID

Organisation for Economic Co-operation and Development

2005

rok

TABLE OF CONTENTS

EXECUTIVE SUMMARY.9

1. INTRODUCTION. 15

1.1 Purpose of the report. 15

1.2 Context for the study 15

1.3 Study approach 16

1.4 Structure of the report. 16

1.5 Contributors. 17

2. INSTITUTIONAL PROFILES OF INSPECTORATES, REFORM TO INCREASE EFFECTIVENESS

AND EFFICIENCY AND ITS IMPACT ON FUNDING POLICIES . 19

2.1 Functional diversity of environmental inspectorates . 19

2.2 Impacts of major administrative reorganisation . 20

2.2.1 Introduction of modern management methods across the government . 20

2.2.2 Introduction of institutional autonomy 22

2.3 Impact of vertical organisation 22

2.4 Key lessons from international practice 24

3. FUNDING PRINCIPLES FOR ENVIRONMENTAL COMPLIANCE ASSURANCE 25

3.1 Funding Principles 25

3.1.1 Polluter and User Pays Principles 25

3.1.2 Principles of full cost recovery and prevention of conflicts. 27

3.1.3 Other principles. 29

3.2 Key lessons from international practice 29

4 FUNDING SOURCES, VARIATIONS, AND LIMITATIONS. 31

4.1. Overview of Funding Sources 31

4.1.1 General Taxation/Budget Transfers . 31

4.1.2 Earmarked Environmental Taxes and Charges . 31

4.1.3 Revenues from administrative fees and services. 32

4.1.4 Recovery of remediation measures, voluntary contributions, and other sources . 32

4.2 Patterns and trends in funding enforcement systems. 33

4.3 Trade-offs between revenue and compliance: the case of permit fees 35

4.4 Key lessons from international practice 35

5. BUDGET PLANNING AND MANAGEMENT. 37

5.1 Performance-oriented budgeting. 37

5.2 Evaluation of costs and funding needs 38

5.2.1 Operational cost. 38

5.2.2 Personnel-related costs 38

5.2.3 Non-personnel operational costs . 42

5.2.4 Planning for capital investment. 43

5.2.5 Dealing with “new burdens” 44

5.2.6 Unexpected new burdens. 45

5.3 Role of inspectorates and other authorities in budget planning and approval 45

5.4 Allocation of funds 46

5.4.1 Allocation of funds to specific activities 46

5.4.2 Funding trends. 47

5.5 Strategies to safeguard against budget cuts during the budget approval process 48

5.5.1 Preparing robust budget proposals 48

5.5.2 Creating confidence that budgets are used effectively 48

5.5.3 Commissioning external audits 50

5.6 Key lessons from international practice 50

6. TACKLING BUDGET SHORTFALLS 52

6.1 Re-allocating funds 52

6.2 Raising efficiency 54

6.3 Compliance promotion as a means to reduce budget needs. 55

6.4 Generating additional funds. 57

6.5 Outsourcing . 58

6.6 Key lessons from international practice 58

ANNEXES. 61

ANNEX 1. EXAMPLES OF TRENDS IN COST RECOVERY APPROACHES. 64

ANNEX 2. EXAMPLES OF FUNDING FROM GENERAL TAXATION 69

ANNEX 3. EXAMPLES OF FUNDING FROM COMBINED SOURCES OF REVENUE 71

ANNEX 4. EXAMPLES OF TRANSITIONAL SOURCES OF FUNDING 75

ANNEX 5. EXAMPLES OF HISTORICAL ESTIMATES TO ASSESS THE WORKLOAD. 77

ANNEX 6. EXAMPLES OF BUDGET ALLOCATION APPROACHES . 80

ANNEX 7. EXAMPLES OF PROCEDURES TO APPROVE BUDGETS. 83

ANNEX 8. EXAMPLES OF APPROACHES TO TRACK REVENUE AND EXPENDITURE. 86

ANNEX 9. EXAMPLES OF BUDGET ALLOCATION FOR CAPITAL INVESTMENT . 89

ANNEX 10. EXAMPLES OF APPROACHES TO DEAL WITH NEW BURDENS. 91

ANNEX 11. EXAMPLES OF TRADITIONAL AND INNOVATIVE APPROACHES TO CLOSE BUDGET

GAPS92

ANNEX 12. SUMMARY REPORT OF THE EXPERT MEETING ON FINANCING ENVIRONMENTAL

COMPLIANCE ASSURANCE (4-5 MAY 2004,OECD HEADQUARTERS, PARIS) 97