HC Deb 10 June 1981 vol 6 cc393-5
7. Mr. Peter Lloyd

asked the Secretary of State for the Environment if he will review the powers of water authorities, given to them under the Water Act 1973, to bill their customers directly.

The Minister for Local Government and Environmental Services (Mr. Tom King)

We have no plans to do so.

Mr. Lloyd

As the ostensibly fairer system that is generally introduced with direct billing is simply a flat basic charge plus a rate-related supplement, does my right hon. Friend agree that this could have been introduced far more simply and cheaply if the water authorities had continued to use local councils as their agents rather than set up labour-intensive direct billing departments of their own?

Mr. King

That is certainly a valid comment. The problem is that the departments are now set up. They certainly represent economies for the water authorities, as the system helps their cash flow and results in significant savings. As I said on an earlier occasion, I have some sympathy with the concern about direct billing, but the system is now established.

Mr. Denis Howell

Has the Minister had time to study the report of the Monopolies and Mergers Commission on the subject of the Severn-Trent water authority which was referred by the Government? Is he aware that it approves of direct billing but makes substantial criticisms about parts of the administration as well as of the fundamental concept whereby regional water authorities are established and accountable? How will Parliament be consulted on these matters and how does the Minister intend to proceed with the implementation of that report in conjunction with hon. Members?

Mr. King

I am in the process of studying the report. As the right hon. Gentleman fairly says, it is an important report, which hon. Members will want to study carefully. It will be for the House to decide how it wishes further to consider the report. I hope that we shall be able to make our comments on it within a reasonable time. It will then be for the House to consider how it wishes to take it further.

Mr. Geraint Howells

Will the Secretary of State, when reviewing the powers of the water authorities, consider giving back to the Welsh water authority the land under the jurisdiction of the Severn-Trent water authority now in Wales?

Mr. King

We have no present proposals to do so.

Mr. Neale

Will my right hon. Friend nevertheless consider reviewing the methods by which water authorities bill under the existing system to see whether he can curb the enthusiasm of authorities such as the South-West water authority, which has shown its capacity to send out eight demands to one householder, arriving on the same day, in respect of two properties which have no water supply and no drainage? Each envelope bears an explanation, kindly delivered and inserted by the water authority, of why water charges are so high.

Mr. King

I think that a number of us have suffered from the vagaries of the computer and the mechanised system of billing. These are problems that we face. I thought that my hon. Friend was going to raise the problem of the speed with which some authorities have moved in issuing summonses against people who have not paid their bills. I have taken up that matter with water authorities and a number of them are reviewing their procedures.

Mr. Stoddart

Will the right hon. Gentleman look at water charges completely? Will the Government consider water not as a commodity but as a service? Since it is a service, will they ensure that the rate rebate provisions apply to water as well as to general rates?

Mr. King

The hon. Member will know that his Government were frequently pressed to take just such action and steadfastly refused to do so. On balance, we think that their judgment was right.

Mr. John Wells

My right hon. Friend has mentioned the speed with which summonses are being issued. Will he please look urgently at the habit of some water authorities, particularly the Southern water authority, of charging solicitors' fees by way of court costs at apparently £12 a head, whereas if the man who issued the summons was an ordinary chap such as myself and not a solicitor the scale fee would appear to be £4? All the fellow does is sign his name on a piece of paper. This is absurd.

Mr. King

The water authorities have found problems over the treatment of costs, and a number of the costs have fallen on them. That is causing them to consider the position again. The whole matter is now under review.