9 Valuing TMfS
9 Valuing TMfS
Key Achievements
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9.1.1 Before assessing the value of TMfS in 2008, it is necessary to provide a brief context of the activities during the year and the valuation of the previous year.
9.1.2 The demand for the use of TMfS across a diverse range of areas is growing and this needs resource to be supported. Additionally, it is important that TMfS is kept up-to-date and indeed is at the leading edge of strategic transport and land-use modelling, which again requires resources to be supported. Consequently, there has been an increase in the finance and human resources needed to meet the requirements of TMfS. As these are public funds, it is right that the question of value for money is reviewed. Quite simply, is continued investment in TMfS worthwhile? This chapter will seek to provide a response to this.
9.1.3 The value obtained during the previous year was largely driven by key projects such as the Strategic Transport Projects Review (STPR), the Toll Impact Study and the Forth Estuary Transport Authority Main Cable Replacement. The assessment of value in 2008 will reflect on the qualitative benefits derived from such ongoing application work, but will also include a quantitative estimate of the value of new applications within this year.
9.1.4 2008 can also be largely seen as an investment period. During 2008, a significant amount of resources have been dedicated towards the essential updating and development of TMfS:07 and TELMoS:07, the development of the Forth Model and data collection. Such investment will not add value until the model and its functionality are used. Consequently, a steady stream of value can be expected in 2009 onwards as organisations make use of the new modelling suite within TMfS.
9.1.5 The emerging use of the transport and land-use models in other policy areas, such as planning, the environment and health, is a particularly welcome development to emerge from 2008. An additional encouraging factor is that there have been a greater number of new applications of TMfS throughout 2008. Furthermore, synergies with existing transport models within Scotland and the part TMfS has to play in UK National Models (such as the National Transport Model (NTM) and GB Freight Model (GBFM)) have also been explored.
9.2 Valuing TMfS — Methodologies
9.2.1 As part of the ongoing user engagement programme, the methodologies by which the value of the Commission is calculated have been reviewed, largely with the aim of producing a more contextualised view of the value of TMfS.
9.2.2 Given the multi-faceted nature of TMfS, it offers value on a number of different levels and to a number of different stakeholders. Perhaps most importantly however, TMfS is a key tool in ensuring that the public interest is advanced through its contribution towards delivering the Scottish Government’s Purpose. TMfS provides a consistent, Scotland-wide analysis and appraisal framework. Such a facility allows for an assessment of schemes and policies on a like-for-like basis, thus minimising risks and ensuring value for money.
9.2.3 In order to reflect the diverse nature of the value of TMfS, four independent but valuable methodologies have been developed, each assessing its value in a different light. These methodologies are outlined Table 9.1 below.
Table 9.1 TMfS Valuation Methodologies
Methodologies |
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Transport Scotland Investment — assessment of the value obtained from each "stage" of our investment Policy Context — the role of TMfS in supporting the policy context Qualitative Assessment of ‘Added Value’ — discussion of the qualitative benefits of having a consistent ‘off-the-shelf’ model available for use by model applicants Quantitative Assessment of ‘Added Value’ — quantitative valuation of having TMfS available ‘off-the-shelf’ (in terms of the cost savings from having to develop a ‘new’ model) |
9.2.4 It should be noted that while each of these methodologies offers a legitimate means of looking at different aspects of how TMfS adds value, there is an element of overlap and they should not simply be added up to obtain an overall value. Figure 9.1 presents these methodologies in a graphical format:
9.2.5 A detailed description of each of these methodologies and their application can be found in Appendix D. However, in the interests of brevity, the remainder of this chapter focuses only on the key results from 2008.
9.3.1 It can be strongly posited that TMfS has continued to deliver good value for money during 2008. In addition, a significant amount of marketing and development of TMfS has also been undertaken during 2008 and it is expected that the dividend from this investment will be realised in 2009 and subsequent years thereafter.
9.3.2 The key benefit of TMfS is that it has allowed for a consistent and robust appraisal of a range of local, regional and national transport and land-use schemes and policies. Such interventions often involve substantial investments of public money and thus require to be very carefully scrutinised. TMfS has enabled detailed analysis of the impacts of particular schemes to be carried out on a consistent basis and has informed the decision making process and scheme prioritisation. It has also enabled decision makers to consider the social, environmental and economic impacts of interventions and review their contribution, or otherwise, against the Government’s Purpose. In short, TMfS has been employed on a significant number of headline Scottish transport projects such as the STPR and Replacement Forth Crossing, whilst also contributing to regional and local schemes. This has been supplemented by the increasing use of the model in other policy areas such as planning, demographics and climate change. This will continue to be the case in the future, something which is discussed further in Chapter 10.
9.3.3 TMfS and its data have also realised added value in line with that of 2007. This value derives from having an off-the-shelf model ready for use on various applications — i.e. it is equal to the cost savings from developing a model and collecting the relevant data to conduct a similar appraisal to that which would be undertaken using TMfS (see Appendix D for details). This figure has been supported by qualitative feedback from users whose ‘alternative-to-TMfS’ approach appeared significantly less robust than using the model.
9.3.4 TMfS has also delivered value through the realisation of synergies with key partner directorates and agencies. For example, the TMfS data collection facility has been used to collect data for the Forth Team and Concessionary Fares Team. In addition, we have continued to encourage links with agencies such as the General Register Office for Scotland and Scottish Water. These links will continue to be proactively promoted, particularly in light of the development planning Common Statement. Such synergies allow for both cost savings and the use of a robust and consistent tool in the development of policy.
9.3.5 In all, significant value has been derived through TMfS in 2008. This will continue to be promoted in light of the development planning Common Statement. However, the challenge going forward remains the same as that presented in the pervious Annual Report:
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