Issue details

1.1Funding for the GM CAZ Service Agreement has been secured via the initial tranche of £36m of funding awarded by Government and written commitment from the Government’s Joint Air Quality Unit (JAQU) to provide the required additional £12.1m with risk and contingency being drawn down on an as needed basis. This funding will cover the GM CAZ Service supplier costs, the TfGM and Local Authority costs and other ‘third party’ costs required to successfully deliver the GM CAZ Service element of the GM Clean Air Zone. JAQU have been kept up to date with procurement activity and they are aware of GM’s intention to enter into contract with Egis Projects SA.
1.2In regards of operational costs, it is expected that revenue generated from the daily charges and penalty notices will cover all the operational costs. If the CAZ revenues are not sufficient over the life of the CAZ to cover the operational costs, as agreed with JAQU, the New Burdens Doctrine would cover any net deficit.