§ 15. Mr. MacdonaldTo ask the Secretary of State for Scotland if he will examine ways of reducing the level of water charges faced by island authorities.
§ Mr. StewartThe setting of water charges in the islands is a matter for the islands councils. It would therefore be for the councils to examine ways of reducing the charges. 185 There is no statutory basis on which my right hon. Friend the Secretary of State can intervene in the setting of charges.
§ Mr. MacdonaldDoes the Minister accept that the island authorities face a particular problem in that they must finance very expensive schemes on the basis of a relatively small population and that this leads to a huge disparity in the costs faced by island consumers compared with those on the mainland? Will he therefore undertake to look at this problem and try to find ways to reduce the disparity and to bring the water charges in the islands more into line with those on the mainland?
§ Mr. StewartThe Western Isles has been allocated £3 million for water and sewerage for 1993–94. That allocation has more than doubled in four years. I can reassure the hon. Gentleman that the Western Isles council qualifies for the top rate of grant of 75 per cent. for rural 186 water supplies. In the past three years, around £600,000 has been paid to the Western Isles in respect of assistance for eligible schemes, and the council will continue to qualify under particular schemes.
§ Mr. Matthew BanksGiven that it was necessary to wait for the advent of privatisation to find the £85 million necessary to invest in a badly needed new sewerage treatment plant in my English constituency, will my hon. Friend join me in my enthusiasm that Scotland should benefit as soon as possible from the very many advantages to be gained from privatisation of the water industry?
§ Mr. StewartAs my hon. Friend says, there are considerable advantages south of the border from water privatisation. My right hon. Friend will, of course, be considering all the representations he has received on this issue.