HC Deb 31 October 1988 vol 139 cc648-50
3. Mr. Ron Davies

To ask the Secretary of State for Wales when he next intends meeting representatives of trade unions in the water industry to discuss the privatisation of the Welsh water authority.

The Secretary of State for Wales (Mr. Peter Walker)

I have received no request to do so.

Mr. Davies

Will the Secretary of State give an assurance that if he receives such a request he will accede to it? If he accepts such a request, will he discuss with the trade unions the recent Public Accounts Committee report, which was critical of the privatisation of the Royal Ordnance factories? Will he give the unions guarantees with regard to water privatisation that we will not witness another spectacle of public assets being sold off at knock-down prices to the private sector? In particular, what guarantees is he prepared to give that Welsh water authority's 100,000 acre holding in Wales, much of which consists of incomparable landscape of great recreational value, will not end up as the private playground of foreign water companies?

Mr. Walker

I am certain that there will be no question of foreign water companies having the kind of interest suggested by the hon. Gentleman. The negotiations on the manner in which it will be sold off and the price that will be paid will be made public. If there are any criticisms of the way in which that is carried out, the hon. Gentleman will be free to express his views. I am certain that the employees in the Welsh water authority will benefit from privatisation.

Mr. Livsey

Does the Secretary of State agree that the Government's proposed privatisation of water is utter folly? Is he not concerned that staff are already being transferred to the proposed National Rivers Authority before a Bill has come before the House? Is that not a cause of great concern? What mechanisms will the right hon. Gentleman provide to prevent foreign water companies taking over Welsh water authorities?

Mr. Walker

The mechanisms will emerge as a result of the detailed proposals that will eventually appear about privatisation. With regard to the hon. Gentleman's point about the National Rivers Authority, I am sure he will rejoice in the fact that a body responsible for the river system will continue with the necessary authority and with professional and skilled staff.

Mr. Rogers

How many times has the Secretary of State for Wales been consulted by the Secretary of State for the Environment about water privatisation, or must he just carry out the diktat of the Secretary of State for the Environment?

Mr. Walker

The hon. Gentleman will be relieved and delighted to learn that I was present at all the talks and negotiations and that I played a very active part in them.

Mr. Raffan

Does my right hon. Friend agree with Mr. Gordon Jones, the chairman of the Water Authorities Association, that privatisation should give the water authorities greater freedom to manage the business better? Does he also agree that in Wales the freedom from a whole battery of Government-imposed controls and the freedom to borrow, or not borrow, as the business requires will enable the Welsh water authority to accelerate its capital programme?

Mr. Walker

One of the factors that caused great damage to our river systems was the manner in which a whole range of bodies, many of which were publicly owned, were allowed to pollute the rivers with low-investment programmes. I am glad to say that with heavy investment over recent years the situation has improved. I believe that the freedom to borrow and carry out capital investment programmes free of Government interference will he a great advantage.

Mr. Wigley

Against the background of reports of possible interest from overseas companies in stakes in the water industry, can the Secretary of State give an assurance that he has had discussions with the chairman of the Welsh water authority to try to find a formula to ensure that the control of the authority remains in Wales, even after privatisation?

Mr. Walker

I have had many talks with the chairman of the Welsh water authority, and we are agreed upon the type of formula that will be necessary.