MCA Evidence to the Environment, Transport
& Regional Affairs Committee
7.1 AIM, KEY
7.1.1 Work of the Maritime and Coastguard
Agency (MCA) supports the Government's Maritime Strategy set out
in the Transport White Paper (CM 3950). The strategy has four
to facilitate shipping as an efficient
and environmentally friendly means of carrying our trade;
to foster the growth of an efficient
UK-owned merchant fleet;
to promote the employment and training
of UK seafarers in order to keep open a wide range of job opportunities
for young people and to maintain the supply of skills and experience
vital to the economy; and
to encourage UK ship registration,
so as to increase ship owners identification with the UK, to improve
our regulatory control of shipping using UK ports and waters and
to maintain the availability of assets and personnel that may
be needed in time of war.
7.1.2 The Government published "British
Shipping: Charting A New Course" to underline importance
attached to safety and to offering crews reasonable working conditions.
In light of this policy statement the Agency's aims are to:
develop, promote and enforce high
standards of marine safety;
minimise loss of life amongst seafarers
and coastal users;
respond to maritime emergencies 24-hours
a day; and
minimise the risk of pollution of
the marine environment from ships and where pollution occurs,
to minimise the impact on UK interests.
7.1.3 The Agency pursues these aims through
the following programmes:
quality of the UK Flag;
ship safety (Fishing Vessels, Recreational
Safety and Passenger Ships and Cargo Vessels);
survey and certification of UK and
Red Ensign vessels;
inspection and enforcement;
co-ordination and pollution prevention
and counter pollution.
Senior Management Structure and Experience
7.1.4 The Executive Board:
7.1.5 Maurice Storey trained and qualified
as a Naval Architect with Swan Hunter Shipbuilders. He gained
experience in ship operations both with companies in this country
and abroad. Whilst with Stena Line he was the main Board Director
responsible for ship and port operations.
7.1.6 John Astbury has served in every Coastguard
post from the lowest grade to his present position as Director
of Maritime Operations and Chief Coastguard. He is the first to
come through the grades and the only non-Royal Navy Officer to
hold the post in HM Coastguard's 176-year history.
7.1.7 Alan Cubbin is vastly experienced
in the maritime industry having served his apprenticeship at Vickers
Armstrong (now VSEL) at Barrow-in-Furness and spent six years
with the MOD(N) in Bath. He served as Chief Surveyor in charge
of Survey and Inspection Policy and as Principle Marine Surveyor
in the Passenger Ships Section of the Standard Setting Division
of the Marine Safety Agency (MSA).
7.1.8 Dave Lawrence has spent most of his
career in the public sector specialising in personnel and management
training. For five years he was a tutor at the Civil Service College
specialising in inter-personal skills and management training.
In the early nineteen eighties he spent two years as a management
structure analyst contrasting staffing structures in the private
and public sectors.
7.1.9 Tom Allan served as Director of the
Safety and Standards Division of the MSA. He has led the UK delegation
at International Maritime Organisation (IMO).
7.2.1 Key Targets set by the Secretary of
State focus safety.
|Ship and crew safety|
|1.Ensure at least x % operators and crew of UK registered fishing vessels aware of MCA safety standards
||60||not achieved in full
|2.Follow up at least x % of significant breaches of safety and environment to determine whether to prosecute
|Search and Rescue|
|3.Decide on Search and Rescue response to accident and life threatening reports and initiate action within five minutes of being alerted in at least x % of cases
|4.Complete (a) at least x % of y key tasks and
|(b) % of y planned inspections||95/1900
|Implement outcome of organisation review, in particular; job evaluation, pay and grading restructuring
||by Dec||majority achieved
|introduce formal cross training between Coastguard and Marine Surveyors
|achieve Investors in People status||n/a
|Performance against Key Targets 1998-99
7.2.2 While key target 1 was not achieved in full, the
Agency's focus on the promulgation of safety information was well
received and there was encouraging feedback. The Tracking Study
set up in November1998 comprised of three waves of interviews
on the basis of a questionnaire designed to test practical knowledge,
general awareness of safety standards, and awareness of information
sources. The 60 per cent target was consistently exceeded by skippers
on the practical questions related to the Fishing Vessels (Safety
Provisions) Rules, Collision Regulations and fishermen's Basic
Safety Training. Owners and crew members also consistently exceeded
the target on practical questions on Collision Regulations and
fishermen's Basic Safety Training and crew members awareness of
Fishing Vessels (SafetyProvisions) Rules increase over the three
waves bringing them close to target.
7.2.3 Key target two was achieved. The Agency followed
up on all six significant breaches reported in the Business Year.
38 criminal investigations were also conducted which resulted
in 13 prosecutions and 11 Official Warnings issued.
7.2.4 Key target three was achieved. The Coastguard Management
Information System (CMIS) database was interrogated to determine
all instances outside the permitted five minute period allowed
to respond. Following this 20 per cent of Rescue Centres were
visited and a manual audit was carried out demonstrating that
an average figure of 4.7 per cent incidents were outside the five
minute response target. This gave an indicative figure for timely
responses within the 95 per cent criteria.
7.2.5 Key target four was met by completing 24 of the
26 tasks set which resulted in a 92 per cent achievement. The
Agency also carried out 1,985 Port State Control inspections in
the year, which represents inspection of 28.9 per cent of the
assumed number of individual ships visiting the UK, within the
range of the 25-30 per cent target set by Ministers, and 104 per
cent of the planned 1,900 inspections.
Performance against Key Targets 1999-2000
7.2.6 All 58 significant breaches reported in the business
year were followed up and substantial action was taken on all
of these breaches which resulted in nine Prosecutions and 18 Official
7.2.7 The Search and Rescue target was subjected to exception
reporting throughout the year and all exception incidents were
subject to a manual audit. A review was carried out on five per
cent of compliant records for quality assurance purposes.
7.2.8 The number of planned inspections of Under 12 million
Fishing Vessels was reliant on the training of Coastguard Sector
Managers. However, this could not be undertaken until the Government's
response10 to the Environment, Transport and Regional Affairs
Committee's report11 on the MCA was issued, therefore, the number
of inspections was reduced and the target achieved.
7.2.9 The job evaluation studies were completed by September
1999 and although negotiations in respect of the pay and grading
restructuring was not concluded by the original due date of 31
December 1999 they were concluded within the business year. The
cross training of Coastguard Sector Mangers to undertake fishing
vessel inspections was introduced in Autumn 1999 and the Agency
also achieved Investor in People accreditation by 31 March 2000
which was a major challenge.
7.2.10 Extracts from the MCA Annual Report1998-99 and
1999-2000 giving further details with explanations and information
in support of our work in achieving the Key Targets is included
at Annex A.
Key Targets For 2000-01
7.2.11 This year's Key Targets have been extended to
cover areas of key concern have been set for the Agency by the
Secretary of State as follows:
1. To agree a new statutory safety regime for under 12
metre fishing vessels by 31 October 2000 for implementation by
30 April 2001.
2. To complete at least 95 per cent of the agreed planned
programme of vessel inspections by March 2001.
10 The Government's Response to the Sixth Report by the Environment,
Transport and Regional Affairs Select Committee: The Maritime
and Coastguard Age.11 Sixth Report by the Environment, Transport
and Regional Affairs Select Committee: The Maritime and Coastguard
3. To decide on the search and rescue response to accidents
and life threatening situations, and to initiate action if necessary,
within five minutes of being alerted in at least 95 per cent of
4. To undertake a review of the UK Search and Rescue Helicopter
coverage as recommended in the National Audit Office report, Civil
Maritime Search and Rescue, and make recommendations to Ministers
by December 2000.
5. Following the Marine Environment High Risk Areas consultation
we will prepare for Ministers a response plan by Autumn 2000 proposing
the most cost effective options for Emergency Towing Vessel provision.
6. To evaluate and report to Ministers on the effectiveness
of the National Contingency Plan for Counter Pollution by March
7. To evaluate the provision of UK port waste reception
facilities and report to Ministers on this by December 2000.
8. Following an analysis of Headquarters and regional
management costs, produce a specific programme for new efficiency
measures and proposals to reduce such costs, and set targets for
Agency management costs against pay and non-pay costs by July
2000, for each of the years 2001-04.
9. To analyse the first annual cycle of the time-recording
Management Information System (MIS) to agree, by September 2000,
specific national and regional targets for chargeable, other core
and non-core activities undertaken by operational staff for 2001-04.
10. To complete re-location programme by releasing properties
in Liverpool, Great Yarmouth, Plymouth and Newcastle by 31 March
Maritime Outcomes and Trends the Agency Work To Influence
7.2.12 MCA work with the industry to influence the following
Outcome 1: To reduce the rate of accidents and deaths
involving UK registered merchant ships and fishing vessels.
Outcome 2: To reduce the number of accidents and deaths
resulting from accidents, within the United Kingdom Search and
Rescue Region and Coastline.
Outcome 3: To reduce the incidents and effect of pollution
from shipping activities in the United Kingdom pollution control
Outcome 4: To enhance the safety record of the Red Ensign
7.2.13 Data comes from independent sources except for
Outcome 2 provided from the MCA's Regions. All data is monitored
on an annual basis and is presented in the MCA's Annual Report
7.2.14 In support of these outcomes, and in planning
the business activities, consideration is given to trends in marine
safety, search and rescue and counter pollution. The Agency also
considers the effects of the increase of tonnage on the UK register
and takes into account any new policy initiatives in the DETR
Corporate Plan. The Agency takes into account whether any proposals
require primary legislation and identifies areas where it can
take the lead or whether it can provide support to the Department
or other body.
12 The Red Ensign Fleet consists of vessels registered in the
UK, and other British vessels registered in Crown Dependency and
UK Overseas Territory shipping registers, principal of which are
Isle of Man, Bermuda, Cayman Islands and Gibraltar.
7.3 CUSTOMER SERVICE
7.3.1 MCA is committed to continuing the implementation
of the Integrated Coastguard Communications System (ICCS) in the
remaining Co-ordination Centres and to the decommissioning of
the Co-ordination Centre at Tyne Tees.
7.3.2 The Agency plans to review the work for the Fishing
Vessel Safety Trends Initiative which was a joint initiative with
fishing industry operations. This review will determine the Agency's
future approach in the light of casualty statistics and the analysis
of fishermen's safety awareness. A comprehensive review of safety
standards for UK fishing vessels, which takes account of operational
as well as vessel structure and equipment, will also be completed
7.3.3 The MCA will implement the outcome of the joint
DETR/MCA review of the management of the Support for Maritime
Training (SMarT) scheme in 2001. By the end of March 2001 the
scheme will have been running for three years, and at that stage
we will provide an assessment of the scheme's performance.
NAO Report on Civil Maritime Search and Rescue
7.3.4 One of the key recommendations from the National
Audit Office Report on Civil Maritime Search and Rescue (SAR)
was that MCA should consider the scope for rationalising helicopter
coverage. This recommendation was accepted and Key Target 4 to
undertake a review of the UK Search and Rescue Helicopter coverage
was set. Subsequently and in response to an approach from the
MOD to harmonise the provisionof SAR assets, presently provided
by MOD and MCA, the MCA have agreed to consider undertaking a
review of the provision and coverage of UK SAR Helicopters. This
review will take into account all dedicated SAR assets and emergency
helicopters that become involved in search and rescue incidents
and a submission to Ministers will be made in March 2001.
Protection Against Pollution
7.3.4 Maritime Incidents during 1999, notably the MULTITANK
ASCANIA, and ALANDIA STREAM incidents, and the publication of
the MAIB Report into the GREEN LILY incident highlighted the need
for an emergency towing vessel (ETV) to be stationed in the Fair
Isle Channel area. Additionally, the SONIA incident and collision
of the NORWEGIAN DREAM/EVER DECENT highlighted the need for a
review of the current provision of ETVs around the UK. The MCA
set up a Review Team to propose options for the provision of ETVs
over the next 5-10 years and will report to Ministers in Autumn
2000. This will contribute to the DETR Review of measures to protect
the coastline from pollution from ships following the designation
of Marine Environment High Risk Areas (MEHRA).
7.3.5 People issues underlie everything the Agency does,
both in respect of its staff and also in the way it deals with
its customers. In becoming more efficient operation staff must
be supported and trained. Having achieved Investor in People accreditation
in March 2000 the Agency plans for an early re-assessment in 2001-02
to ensure standards are being maintained.
7.4 MODERNISING THE
7.4.1 MCA was formed though the merger of the Marine
Safety Agency (MSA) and the Coastguard Agency (TCA). In the first
year the Chief Executive undertook a reviewof the organisation
which identified opportunities for greater integration and presented
options for better use of resources. The review to which all staff
contributed, allowed theAgency to start building the new MCA culture
and the work has undergone significant change.
7.4.2 A new Executive Board (reduced from seven to four)
has been established together with a reduction in the number of
Regions to four (previously six for TCA and three for MSA). Two
new Directorates dealing with policy and operational matters were
created to improve strategic planning and allowed a clearer focus
on decision making.
Select Committee Report
7.4.3 The Environment, Transport and Regional Affairs
Committee reported on the work of the MCA in dealing with the
modernisation of the Coastguard service and the merger of the
former Agencies. The Government's response, issued on 12 August
1999, welcomed the Select Committee's report and was encouraged
by the Committee's support for the introduction of the new communications
technology through the Integrated Coastguard Communications System
7.4.4 Following the Government's announcement, the MCA
has taken forward the implementation of the ICCS, a major investment
of £10 million which replaces obsolete analogue communication
equipment with digital equipment.
7.4.5 In line with Lord Donaldson's recommendation13
that "the MCA should carefully monitor the installation of
the ICCS to ensure that it delivers the expected benefits",
MCA installed the new equipment (supplied by Securicor Information
Systems) in a purpose-designed operational suite at the MCA's
Training Centre in February 2000. The system has been thoroughly
bench tested to ensure that it meets the requirements of the Project's
Business Assurance Group as well as training operators, system
managers and maintenance engineers.
7.4.6 The ICCS equipment for the Maritime Rescue Co-ordination/Sub
Centres (MRCC/MRSC) has been built and installed at Clyde and
Stornoway. All operators were fully trained and the system trialled
before it went live in August 2000. This cleared the way for Oban
to close as scheduled on 29 September with staff re-deployed to
other stations. The installation of ICCS equipment for Shetland
and Aberdeen is underway and will be completed before the scheduled
closure of Pentland in December 2000. The Agency has recruited
two additional trainers to join the installation team to provide
hands-on training for every operator. No system will go live until
local operators are fully trained and competent.
7.4.7 In Autumn 2001, Tyne Tees station is planned to
close following the transfer of communications to MRSC Forth &
Humber. This too will enable the re-deployment of staff and equipment
to other stations.
13 Review of the Five Year Strategy for HM Coastguard by Rt Hon
the Lord Donaldson of Lymington.
Introduction of area One-Stop Shops for all maritime safety
and counter pollution matters
7.4.8 At the launch of the Agency in October 1998 MCA
announced the One-Stop Shop concept which:
from 1 January 1999, provides a 24-hour contact
point service for an immediate response about the range of MCA
work including requests for ship surveys and ship registration:
in the first year the service dealt with 2,500 calls covering
all aspects of our work;
increases MCA presence on the coast where Coastguard
and other operational staff work together, ensuring a prompt and
effective response to threats to people's safety and the maritime
environment: to this end Coastguard Sector Managers have been
trained to provide inspections of fishing vessels, and following
the introduction of ICCS the MCA plans to introduce greater flexibility
for Coastguard Officers, which would allow them to focus on accident
prevention work and to extend the Voluntary Code of Best and Safe
Practice for Leisure Craft Users, as appropriate following the
monitoring exercise undertaken in this Business Plan year;
works to increase the number of merchant vessels
on the UK register. The MCA plans to introduce a 24-hour availability
for vessels wishing to register with the UK and in future years
will start initial investigations to offer an over the phone vessel
name reservation service and simplify registration requirements
for owners where possible.
More efficient, better targeting of manpower
7.4.9 The Government's initiative of promoting the UK
as a quality flag and giving MCA a new role as an Inward Investment
Agency has been welcomed by the Agency and is a positive step
forward. MCA has worked to facilitate the growth of the UK shipping
industry and 95 vessels over 500 gross tonnes have joined the
UK Register since April 1998, which represents a net increase
of 25 and a net tonnage increase of 1,173,063 gt. MCA made registration
procedures simpler whilst maintaining standards, and in this way
will work towards retaining the quality of the UK flag whilst
attracting more ships to register to it.
7.4.10 The introduction and development of the Support
for Maritime Training (SMarT) scheme is also encouraging better
standards of seafarer performance. This is the basis for future
expansion of the industry and provides investment in future safety
and for the resourcing of important shoreside industries. By the
end of March 2001 the scheme will have been running for three
years, therefore, one of the MCA's key Business Plan activities
during the present year is to undertake with DETR a joint review
of the administration of the scheme and to recommend possible
improvements. This new career opportunity for the new generation
of young British seafarers lies at the heart of the Government's
determination to secure the UK's maritime future.
Customer Service Managers
7.4.11 MCA has built a higher profile with the industry
and is customer focussed, with the establishment of Customer Service
Managers (CSMs). Management teams from headquarters and the regions
have been relocated to enable them to work more closely than was
previously possible. This, along with the increasing co-location
of Marine Offices and Coastguard stations has resulted in increased
efficiency and a better customer service.
7.4.12 MCA is committed to a high level of service through
publicised service standards, and has a well-established integrated
complaints procedure; following the merger the standards were
reviewed, refined and combined to offer a comprehensive service
its customers. MCA continue to monitor and report on performance
against these standards and encourage and welcome feedback at
all levels. Any new ideas and suggestions will be taken forward
where it is considered they will improve the quality and effectiveness
of the service provided.
7.4.13 Cross training for Coastguard Sector Managers
to undertake fishing vessel inspections has now been introduced.
Progress towards full integration has continued with "job
shadowing" introduced to help Coastguards and Marine Surveyors
gain a better understanding of each other's role. Administrative
staff are also starting to accompany surveyors on inspections
and are carrying out visual spot checks of local small passenger
vessels and reporting findings to surveyors for follow up action
7.4.14 MCA continue to work towards a reduction in the
number of incidents to which a Search and Rescue response is required.
In March 2000, following a number of major Search and Rescue incidents
involving fishing vessels, the Minister for Shipping launched
a presentational campaign to increase fishermen's safety awareness
and to promote positive safety culture in the fishing industry.
This reinforces the SAFEFISHING campaign, launched in March 1998
to mark a three-year joint venture between MCA and the industry
to reduce accidents.
7.4.15 MCA has worked closely with the fishing industry
and has undertaken tracking studies to help identify areas of
concern.Whilst Maritime Safety Guidance is freely available, tracking
studies have indicated that improved means of promulgation are
needed, such as information in trade journals which would help
raise safety awareness among the fishing industries and communities.
Safety articles have been placed in Fishing News to promote safety
awareness on a regular basis. All parts of the MCA will play a
full part in the Government's efforts to promote the safety message
that improved safety depends on the industry itself adopting a
precautionary approach in its operations.
7.4.16 The poor safety record for recreational craft
is being actively tackled through the Voluntary Code of Best and
Safe Practice for Leisure Craft Users, which was launched in January
2000. This Code is addressed to owners of Non-Regulated PleasureVessels
(NRPVs) and provides guidance on best and safe practice. MCA will
continue to promote the Code and in Autumn 2000 shall commence
monitoring the effectiveness of the voluntary approach to improve
recreational safety over the following two-year period.
7.4.17 MCA adopted the new role of Secretary of State's
Representative for Maritime Salvage Operations (SOSREP) in October
1999. The post was created as part of the Government's response
to Lord Donaldson's Review of Salvage and Intervention and their
Command and Control. On behalf of the Secretary of State the post
will oversee, control and, if necessary, intervene in salvage
operations within the UK waters involving vessels or fixed platforms
where there is significant risk of pollution. SOSREP represents
a new integrated concept in the field of Maritime Salvage Control,
and the level of power and authority invested in SOSREP is intended
to remove confusion and conflicts of interest involved in any
incidents. The National Contingency Plan sets out the operational
and administrative arrangements for an integrated response for
dealing with such incidents and in the last year, formal interventions
led to control being assumed by the SOSREP on five occasions.
Customer Satisfaction Survey
7.4.18 A customer satisfaction survey to monitor the
quality of Coastguard Co-ordination was also undertaken and the
conclusions found there was a high level of satisfaction amongst
all the types of customer. The MCA now plan to undertake smaller
more specific surveys where further work was needed to address
areas of concern and to meet the requirements of ISO 9001:2000
as part of the Quality Management System. The results of these
surveys flow naturally into management planning of the Agency.
7.5 MODERNISING GOVERNMENT
Improved Business Planning
7.5.1 The MCA Business Plan 2000-01 presented to Parliament
on 30 March 2000 for the first time included a forward look. The
Plan sets out how the work of the MCA links through to the Government
Maritime Strategy to improve maritime safety and the Outcomes
that the MCA, and the industry work to influence. This is a fundamental
development in the light of the Investor in People accreditation
that the MCA was awarded in March 2000 and feeds into individual
development plans. The MCA is also extending Quality Assurance
procedures to the whole Agency, and aims to achieve certification
to the ISO 9001:2000 standard during 2001.
7.5.2 MCA have adopted the recommendations and checklists
in the NAO Guide to Good Practice in Performance Reporting and
this has already been reflected in the MCA Annual Report 1999-2000.
Developing and valuing staff
7.5.3 A job specific Competency Framework identifying
job specific knowledge and skills for Coastguard Officers has
been developed. A full review has been undertaken of the technical
training available, culminating in the introduction of a progressive
technical training package which leads logically from entry level
to Watch/Sector Management. Following on from the success of this,
a Working Group was set up to develop a similar framework covering
all aspects of work undertaken by Surveyors and consideration
is being given to the development of a framework for all other
7.5.4 Whatever discipline a member of staff joins the
MCA, whether as a Surveyor, Coastguard or Administrator, there
are opportunities to change discipline at any stage throughout
a person's career. This is actively encouraged, for example, Coastguard
Sector Managers are now undertaking fishing vessel inspections,
are part of teams undertaking safety drills and port State control
inspections and training to become Surveyors. Also, Administrators
have been appointed to posts previously held by technical staff.
7.5.5 MCA is in the course of delivering new tailored
management workshops for its managers, which provide an opportunity
to discuss a variety of management and business issues specific
to individual managers.
Recruitment and diversity
7.5.6 The Agency is undertaking a wide-ranging review
of its recruitment programme and entry criteria with the aim of
increasing opportunities and identifying new entrants to meet
the changing demands of the integrated Agency. This review commenced
in June 2000 and a draft report is in preparation. MCA is looking
at how best to develop the knowledge and skills of all staff,
enabling the Agency to improve career development and the flexibility
of staff to meet the challenges ahead with confidence. Work has
started on producing an internal staff charter that focuses on
a set of corporate values for the entire Agency.
7.5.7 The Chief Executive regularly visits all 21 Coastguard
Stations and 17 Marine Offices, with each visited at least once
a year, to give a presentation to the staff on progress including
details of Key Targets, budgets, MCA achievements and any forthcoming
changes. This is followed by an open discussion to give staff
the opportunities to discuss any issues with him.
7.5.8 Within the MCA there is an open door policy for
all staff which is beginning to be well used and opinions and
comments on any aspect of improving the service they provide are
encouraged at all levels. Any concern or complaint received is
treated with confidentiality and feedback given.
7.6 MAJOR REVIEWS
7.6.1 The Government maintains the view that merger of
the two previous Agencies was worthwhile, not in terms of saving
money, but as a way of improving the range of services it offers
to the marine community and in the public interest. The £10
million investment in the ICCS project will provide opportunities
to introduce more flexible use of resources and this new technology
is needed to enable the Search and Rescue co-ordination response
to become even more efficient.
7.6.2 The Key Targets set for us by the Secretary of
State together with the developments in new technology have allowed
the Agency to be more responsive to the needs of industry. The
general consensus received from the industry is that the focus
of the MCA and the new Government Maritime Strategy is greatly
encouraging. The new role of the MCA as an inward investment agency
to facilitate the growth of the shipping industry whilst maintaining
a quality flag is a positive step.
Staff communications and attitude survey
7.6.3 A Staff Communications and Attitude survey was
undertaken in Autumn 1999. Areas covered by the survey included:
Communicationwhere most employees consider
that communications within the Agency are satisfactory;
Management Stylewhere overall the trend
suggested reasonable satisfaction with management;
Job Satisfactionwhere the conclusion was
that there is a reasonably high level of job satisfaction;
Options for Changewhere there were differing
views on whether MCA has become more business like.
7.6.4 The results were made available to all staff and
actions are being addressed with specific smaller surveys planned
eg stress monitoring and internal MCA newsletter reader survey
7.7 CONTINUOUS IMPROVEMENT
7.7.1 The Agency has undergone significant change, with
the focus on making the Agency a more customer focused and efficient
organisation. This has only been possible with the support, dedication
and commitment of all the staff, namely Coastguards, Surveyors,
Administrators and Auxiliaries who have continued to provide a
good service and who have responded positively to the changes
7.7.2 Having completed the restructuring of the organisation
the Agency will continue to identify opportunities for greater
integration such as co-location of offices in order to improve
efficiency and effectiveness. With the continuing commitment shown
by the staff, the Agency is confident that it will meet the challenges
ahead and that it will be able to improve the safety record of
the maritime industry.
7.8 KEY FACTS
7.8.1 Trends in Running Costs, Capital & Programme:
|Figures in £k based on Cash Accounting|
Reporting to DETR
||1999-2000 Actual||2000-01 Budget
|Programme (net of A-in-A Income)||36,962
7.8.2 The Agency has shown annual running cost growth
of approximately 3 per cent over the three years. Running cost
VAT credits and income derived from Wider Market initiatives have
been utilised to offset the Agency's expenditure on pay, non-pay
7.8.3 In the first year capital investment was fairly
low. Since then the Agency has developed long-term strategies
for IT, estates, and operational vehicle and boat policies, and
capital expenditure has increased at a commensurate rate in these
areas.The Agency will also be spending around £4 million
on the ICCS project during the latter two years. It is anticipated
that capital expenditure will peak during 2000-01.
7.8.4 Programme expenditure has increased to meet the
operational requirements of the business, and to meet demand-led
expenditure. Thus over the period above, spending on helicopters,
ETVs and HMCG communication infrastructure increased by over £3
million, and the costs of SMarT and Crew Relief by over £2
million. The Agency also absorbed during 1999-2000 expenditure
of some £500k on clearance of offshore pollution and ex-gratia
payments, rather than passing these on to DETR.
7.8.5 MCA is controlled on a gross running cost (GRC)
basis. Day to day management of running costs is delegated to
the MCA's Chief Executive in his role as Agency Accounting Officer.
7.8.6 In 1998-99 the MCA slightly exceeded its GRC limit
by 0.6 per cent, solely as a result of a change in accounting
for VAT. In 1999-2000 the MCA managed its expenditure to just
0.5 per cent beneath its GRC limit. The Agency is expected to
operate within its GRC limit in the current financial year.