Water Quality

HC Deb 13 December 1989 vol 163 cc985-7

10. Mr. Win Griffiths

To ask the Secretary of State for the Environment when he expects to receive a response from the European Community on the programmes presented to it to implement the tap water quality and bathing water quality directives.

Mr. Howard

I have received no indication from the Commission as to when it expects to respond.

Mr. Griffiths

Does the Minister agree that there is a good possibility that the Commission will insist on the implementation of both directives at an earlier date than many of the schemes that have been put before the Commission suggest that the Government are prepared to accept? Given that on the bathing water directive alone, the Government intend that £760 million worth of work will be done after 1993, does he agree that if the Commission insists on 1993 as the date, there will be a big shock for those people who are making short-term gains from the water privatisation?

Mr. Howard

No, the hon. Gentleman is wrong on all counts. Our programmes, which are very detailed, provide for the work that can be done to be done as soon as is practicable. I cannot believe that the Commission would be so unreasonable as to insist on earlier dates. In any event, that would not be to the disadvantage of investors, who are entitled to a reasonable return on their capital in accordance with the provisions of the legislation.

Mr. Steen

Is my hon. Friend aware of the bad quality of the sea water along much of the coastline of south Devon, where a young lady swimmer caught hepatitis A last summer as a result of swimming in the sea? Does he agree that lengthening the outfall pipes will not solve any of the problems because it will simply divert the sewage right along the coastline to other beaches?

Mr. Howard

I agree that much needs to be done to improve the quality of our bathing waters, but the proposals of South West Water plc, in common with other plcs, amount to much more than simply lengthening the outfall pipes. Their proposals are carefully considered and prepared and will achieve compliance with the European Community's directive.

Mr. McGrady

Will the Minister discuss with his EEC colleagues the rise in pollution in the Irish sea, which is so damaging to the marine aquasystem? Will he suggest setting up a tripartite commission involving the Governments of the United Kingdom, the Republic of Ireland and the Isle of Man to study pollution and to make suggestions for its eradication?

Mr. Howard

These matters receive careful and continuous attention by those of my hon. Friends within the Department who have responsibility for them.

Mr. David Shaw

Is my hon. Friend aware that in the run-up to water privatisation Southern Water announced that it would invest heavily to improve the sewage situation in the English Channel in the Deal, Dover and Folkestone area? Is he further aware that the privatisation will bring that investment forward and that more money will be available to improve the quality of the water in that area?

Mr. Howard

My hon. Friend is absolutely right. Both his constituents and mine will benefit in precisely the way that he has identified.

Mrs. Ann Taylor

But if there are to be extra costs to meet EEC standards, who is to pay? Is the Minister aware that some stockbrokers are already warning the new shareholders that extra spending may require another rights issue? Will the Government allow that to happen or will Ministers step in again to put the interests of shareholders first? Will Ministers make taxpayers or consumers foot another bill on top of the £3 billion that the privatisation has already cost the taxpayers of this country?

Mr. Howard

The limits on price rises that I announced in August provide for the £24–6 billion investment programme which will take place during the next 10 years and accounts for the industry's predictable investment needs. The success of the privatisation lay behind part of the hon. Lady's question. The hon. Member for Dagenham (Mr. Gould) said in the Financial Times of 14 September that Success … will be measured in terms of how enthusiastically the small investor goes for the issue. I am content to accept his criteria, and on that test it is clear that the issue was a resounding success.

Miss Emma Nicholson

Does my hon. and learned Friend agree that this hostage to fortune matches in its eloquence and efficiency the hostage to fortune put forward earlier this summer by the hon. Member for Dagenham's colleague who said that South West Water would not be a triumph when it was offered for privatisation? That is now selling superbly.

Mr. Howard

My hon. Friend is absolutely right. The Labour party was determined to wreck the privatisation, did everything it could to wreck it and manifestly failed to do so. All we have from it now are the sourest of sour grapes.