HC Deb 22 March 1989 vol 149 cc1084-5
13. Mr. Bill Michie

To ask the Secretary of State for the Environment what is his latest estimate of the average percentage increase in water rates in 1989–90.

Mr. Howard

The estimated increase in all water and sewerage charges is likely to be about 11 per cent.

Mr. Michie

How can the Minister pretend that privatisation will not cost the consumer more money when West Kent has put up its rates by 42 per cent. and has informed its consumers that 21 per cent. of that rise is due to the possible cost of privatisation and will have no effect on the improvement of the quality of the services or the water?

Mr. Howard

I have looked carefully at West Kent's figures and most of the increase to which the hon.

Gentleman refers is the result of ownership and accounting changes, which could take place at any time. The proposals in the Water Bill will put in place an entirely new system of regulating prices. If the hon. Gentleman wants to see the prices of such companies controlled he should join me to ensure that the legislation is on the statute book as soon as possible.

Dame Peggy Fenner

Will my hon. and learned Friend assure me that in respect of the charges being made by the West Kent water authority—which the hon. Member for Sheffield, Heeley (Mr. Michie) has no locus to represent —he will make sure that next year it is not able to put on 42 per cent. on the basis that it must pay—I appreciate that it will have to do so—for the EC regulations?

Mr. Howard

I assure my hon. Friend that in assessing any price rise which may be applied for by the West Kent company next year, we shall be able to take into account its increase this year, and we shall certainly do so.

Ms. Walley

Does the Minister appreciate that the need to make profits will be the overriding issue and that that must be borne in mind when considering the level of water rates? Does he further appreciate that it is unfair that the standing charge proportion of the water rate should have been increased so disproportionately that in some cases it has made it more difficult for low-income households to pay their water bills?

Mr. Howard

The Director General of Water Services will be able to look into all such matters when the Water Bill becomes law. Will the hon. Lady join me in ensuring that it is on the statute book at the earliest possible moment?

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