HC Deb 20 December 1982 vol 34 cc659-61
10. Mr. Wigley

asked the Secretary of State for Wales, pursuant to the answer of 20 October, c. 135, whether he is yet in a position to make a statement on the determination of the dispute between the Welsh water authority and the Severn-Trent water authority concerning the level of payment which should have been made by the latter authority in the financial year 1982–83 for water which it obtains from Wales.

Mr. Nicholas Edwards

My right hon. Friend the Secretary of State for the Environment and I issued our decision on this matter on Monday 13 December 1982.

Mr. Wigley

Is the Secretary of State aware of the complete dismay that is felt in Wales at the failure of his Department, after 15 months of dithering, to obtain a settlement to help Welsh water ratepayers? Is he aware that the implication of that is that there will be an increase of 15p on the water rates next year? How, in all conscience, can he allow the Welsh water authority to go on with its work when he does not stand up and defend it? As he has completely failed to defend the interests of Wales, should he not now resign?

Mr. Edwards

I am not clear whether the hon. Gentleman stands by his party's claim that the Welsh water authority should charge £44 million for the water that is exported to Severn-Trent, when the Welsh water authority believes that the most it can possibly charge, without provoking alternative investment by Severn-Trent, is £2½ million. Is the hon. Gentleman aware that if the full claim were met it would make a difference of about £1 on the average £79 water rate bill in Wales? That is the cost of about one and a half pints of beer.

Mr. Alec Jones

Does the Secretary of State's decision not even to allow the modest claim of the Welsh water authority to increase its charges to Severn-Trent, coupled with the Government's decision to abolish the Water Charges Equalisation Act 1977, mean that the Government have abandoned all attempts to bring the Welsh water authority's charges more into line with the average charge throughout England and Wales? Does it mean that as long as we have a Tory Government there will never he a fair deal for Welsh domestic water consumers?

Mr. Edwards

It means that we have rejected the proposition that the Welsh water authority should be allowed to charge what it could get away with without forcing a major capital investment to duplicate existing resources. The importance of the matter should not be exaggerated when, at the most, we are talking about a difference of about £2 million on running costs of over £150 million. As I say, the difference on the average water ratepayer's bill is the cost of one and a half pints of not very good beer.

Sir Raymond Gower

In a long-term assessment of the problem will my right hon. Friend reflect that for many important public services—electricity, postal, and so on—the charges are uniform throughout the United Kingdom? Is there any valid reason why there should be this wide disparity in water charges in different parts of the United Kingdom?

Mr. Edwards

It is possible to pursue that argument but, equally, the charge to the Welsh ratepayer for sewage disposal might be increased to match that of his English compatriot and the average domestic rate bill would be considerably higher than it is at present. The Welsh ratepayer pays a much lower rate bill than his English compatriot.