§ 8.42 p.m.
§ Mr. Andrew F. Bennett (Stockport, North)I beg to move,
§ That leave be given to bring in a Bill to provide for rebates on water services (water rates) charges in respect of pensioners and low income families.
§ On 13th June this year I received permission to introduce a similar Bill, although at that time it had very little chance of becoming law. I hoped then that my action would draw this widespread problem to the Government's attention and that, having heard all the arguments and representation, the Government might themselves bring forward a Bill speedily to remedy it. So far there is no indication that the Government will be including this provision in their promised Water Bill. I therefore feel that I must try again to succeed with a Private Member's Bill to deal with the problem.
§ Since I raised the issue in the summer, I have had a large amount of correspondence from the North-West and other parts of the country, all pressing me to continue my campaign to get the Bill through.
§ The problem is simple. In recent years water charges have risen continually, and many people now suffer considerable difficulty in paying them. The increased charges are partly due to general inflation but also to the way in which the water authorities were reorganised in 1972. They no longer are under democratic control. They have established bureaucracies for themselves, and those who have been appointed by Ministers to supervise these undertakings have on the whole opted for excellence of service rather than considered how much people can afford to pay.
344§ In the long run it may be a good idea for the water authorities to invest heavily in better water collection systems, in improving sewage disposal and in carrying out massive schemes to replace old sewers. However, I believe that the authorities must consider the ability of consumers to pay. I received a steady stream of letters from local industry in Stockport complaining about the increase in water charges. If complaints are coming from that direction, it is no wonder that individual consumers on low incomes are suffering real hardship.
§ In letter after letter it has been pointed out to me by constituents that they have general rates amounting to about £120 to £130. When the general rate rebate system applies, they have to pay sums of between £15 and £20. Yet those people are receiving demands for the water service charge—most people know it as the water rate—of about £30 to £35. That means a weekly outlay of between 70p and 80p. In other words, people are having to pay water and sewerage charges twice as high as they pay for all the other services they get from local government. That is most unsatisfactory.
§ The letters I receive point out not only that my constituents cannot afford to pay the water rate but that they use very little water compared to many of their neighbours. That applies particularly to pensioners living alone whose water consumption is small. They may well hear tanks in the houses next door almost continually gurgling as people use automatic washing machines and, with a family with three or four children, run a large number of baths, or perhaps hose the garden in the summer or wash the family car. Those who find it difficult to pay their water rate feel considerable resentment that they use so much less water than many of their neighbours.
§ In a recent parliamentary answer, the Government recognised that people are having difficulty in paying their water rate. However, the Government's only response so far is to urge water authorities to encourage payment by instalments or by the purchase of stamps. I applaud these schemes, which help those who find it difficult to save or those who are poor managers. However, those schemes do little or nothing to help people who cannot afford to pay the bills, whether presented in instalments or in one lump sum.
345§ Such people need a reduced bill which takes into account their ability to pay. When the general rate rebates were introduced, they were not extended to water rates because at that time they were small. Water rates tended to be lower than £5, although at that time the system applied to sewerage charges since those services were then provided by local authorities. One of the disadvantages in 1974 was that when the reorganised water authorities came into being the rebate on sewerage charges was lost.
§ I suggest that there is an overwhelming case for saying that the water rate has become so large that the general rate rebate scheme should be extended to cover water rates or, as they are now called, water service charges. This can be undertaken in one of two ways. It can be done either by slightly increasing other water charges so that one section of water users are subsiding those who are most in need—which would be at no cost to the Government and, although not the fairest way of going about the matter, would represent a considerable improvement—or, preferably, by the Government giving grants to water authorities to cover the rebate in the same way as at present the Government give local authorities grants covering general rate rebate.
§ I hope that the House will agree to the introduction of the Bill. Indeed, I trust that hon. Members will support it not only now but through its remaining stages, so that it will become law in order to relieve the hardship of those who have to pay water service charges. I beg to ask leave to introduce the Bill.
§ Question put and agreed to.
§ Bill ordered to be brought in by Mr. Andrew F. Bennett, Mr. George Rodgers, Mr. Max Madden, Mr. Brian Sedgemore, Mr. Robert Kilroy-Silk, Mr. Frank Allaun, Mr. Mike Noble, Mr. Terry Walker and Mr. James Lamond.
§ WATER SERVICES CHARGES (REBATES)
§ Mr. Andrew F. Bennett accordingly presented a Bill to provide for rebates on water services (water rates) charges in respect of pensioners and low income families: And the same was read the First time; and ordered to be read a Second time upon Friday 19th January and to be printed [Bill 45].