Water (Hansard, 23 May 1990)

§ 2. Mr. Hague
To ask the Secretary of State for the Environment what sums of investment are planned in improved water standards over the next 10 years.

§ The Secretary of State for the Environment (Mr. Chris Patten)
On present plans the water industry will be investing £26.3 billion over the next 10 years to improve standards and to repair and renew its infrastructure.

§ Mr. Hague
Does my right hon. Friend agree that that figure is the strongest proof that water privatisation has been extremely good news for the environment? Can he 269 confirm and emphasise that in contrast to the days of state control, such expenditure is no longer subject to the uncertainties of the annual public spending round?

§ Mr. Patten
My hon. Friend is entirely right. There is now a massive investment programme in the improvement of the water environment. We look forward to hearing tomorrow the Labour party's plans for renationalising the water industry. I am sure that that programme would enable Labour, if it were ever in office, to do what it did on the last occasion when it cut investment in water and sewerage by 50 per cent. in real terms.

§ Mr. Win Griffiths
Will not the Minister admit that the Government's record on investment in the water industry has been pitiful and is one reason why there are a number of cases pending in the European Court of Justice? Would not it be far better for the Government to make sure that more investment was put into the water industry so that those cases may be withdrawn?

§ Mr. Patten
I am more than happy to stand on the record, which is that since 1980 investment in water has risen by 50 per cent. in real terms. Under the previous Labour Government investment in water fell by 50 per cent. in real terms. In so far as I understand the Labour party to have any plans for the water industry, it wants to spend taxpayers' money on buying back water shares.

§ Mr. Charles Wardle
To facilitate future capital investment more than £5 billion of water authority debt was written off ahead of privatisation. How will the taxpayer bear the cost of that write-off? The obligation to repay £5 billion does not disappear into thin air. How will the taxpayer be required to meet that obligation?

§ Mr. Patten
The taxpayer has made an important investment in the improvement of water quality. We were able to secure a green dowry for the water industry when we privatised it. As I said, we shall spend over £26 billion on investment in water quality over the next 10 years. It will be interesting to see whether Labour plans to increase that investment programme or whether it will follow past practice which is, whatever it says about infrastructure investment, to cut such investment.