HC Deb 30 July 1980 vol 989 cc1502-4
11. Mr. Temple-Morris

asked the Secretary of State for the Environment if he will make a statement of progress on his monitoring of the water authorities.

Mr. King

I am currently considering a number of issues arising from my meetings with water authority chairmen and chief executives, including issues of accountability and manpower levels. I am also considering the performance aims to be set for next year. The most recent batch of references to the Monopolies and Mergers Commission included a major water authority.

Mr. Temple-Morris

As a result of my right hon. Friend's inquiries, has he been made further aware of the unsatisfactory situation whereby water charges in some parts of the country greatly exceed those levied in other parts? This is largely unrelated to the efficiency or otherwise of the individual water authorities. What is the Government's approach to this not unimportant matter?

Mr. King

My hon. Friend will have noticed that I referred in my answer to performance aims. One of the approaches that we are adopting is the introduction of performance indicators—initiated by the previous Government—following on to performance aims, to start to get a real measure of the performance of individual water authorities. It is true that they vary. This is due partly to the geographical situation and the availability of cheaper resources and partly to the incidence of smaller sewerage plants, as opposed to major, more economic plants. This is a matter of the general efficiency of the industry, to which we are giving particular attention.

Mr. Crowther

Is the Minister aware that one of the most useful actions that he can take is to ensure that the authorities have adequate resources for capital expenditure so that they can do their job of reducing pollution in the nation's rivers, especially in the industrial areas? Does he realise that the progress that was being made in improving the badly polluted rivers Don and Rother in South Yorkshire has come to a stop because of the Government's attitude to public expenditure?

Mr. King

I do not know what justification the hon. Gentleman has for the instance that he cites, of which I am not aware. We have broadly tried to safeguard the capital investment programme of the water industry, but it is a substantial programme. More than £100 million is being spent, for instance, on one sewerage scheme in Tyneside. The scale of resources required is massive to catch up with years of neglect and the acceptance of levels of pollution that are no longer acceptable. We shall do the best that we can within the resources available.

Mr. Rathbone

Will my right hon. Friend accept that, because of the scale of expenditure by water authorities, it is crucial that they manage their own finances better? Is he aware that the Southern water authority, for instance, does not even have a finance committee to supervise those expenditures? I hope that he has taken that factor into consideration in his talks with them.

Mr. King

My hon. Friend and a number of hon. Members came to see me about the Southern water authority. I am seized of the point that he made about its structure and how it operates without a finance committee. Water authorities have wide responsibilities and deal with substantial sums of public money. This is one of the aspects that I shall consider with the chairmen concerned.