Abstract
Since the late 19th century, some elements in British society have been argued that the state has a responsibility for providing environmental benefits and amenity. Since the second world war, the state itself has accepted a duty in this area. It has been recognised that the government action may be needed to compensate for the failure of the market to provide acceptable environmental standards, especially where the public goods are concerned.
However, after 1979 successive conservative party's administrations have sought to return this duty to the private sector, both because of their underlying economic philosophy and because of the budgetary restraint. That is to say, if a demand for environmental goods exists, the market should supply it.
This article looks at the activity of one environmental organization, the Groundwork trust, under this policy regime from the viewpoint of finance. Because the state support has been available on a reducing basis : the Groundwork trust being expected to be fully independent of the state grants within five years. Therefore the Groundwork trust should be evaluated in terms of the finance.
I have chosen the Blackburn Groundwork trust, one of the Groundwork in the U. K., which reveals some of the weakness and contradictions in the aim the Groundwork trust's activity. A positive feature is that the trust has been forced to develop closer links with the local community, including the local government authority and the local business. But since the trust works mainly in the derelict areas, it has had difficulty raising the funds. Indeed such areas are, by definition, poor and deprived. This could mean that it migth be difficult for the Groundwork trust to be fully independent of the state grants. The withdrawal of these funds means that the trust can not allocate money to the areas where the environmental regeneration is required. This article concludes that although there is much of interest to learn from the Groundwork trust, some fundamental issues including the proper role of the state in supporting the initiative, the Groundwork trust, remain unsolved.
