HC Deb 19 October 1994 vol 248 cc267-8
7. Mr. Hanson

To ask the Secretary of State for the Environment what recent discussions he has had with the chairmen of the privatised water companies about the future of the water industry.

Mr. Atkins

My right hon. Friend and I have discussions with water company chairmen from time to time on matters of current and future interest to the water industry.

Mr. Hanson

Is the Minister aware that, more than a year after Ofwat issued guidelines on disconnections, only four companies have complied with them? Disconnections in England and Wales are now twice as high as before privatisation. Is not this another example of woefully inadequate regulation, which results in high disconnections, high prices and high salaries?

Mr. Atkins

Disconnections have decreased by 33 per cent. on last year, so the hon. Gentleman is talking nonsense. I know that the Labour party is committed to doing away with disconnections, but it should realise that it is out of touch with people. In the area represented by the hon. Member for Blackburn (Mr. Straw) and myself, North West Water conducted a poll of its customers and found that an overwhelming majority wanted to retain the right to disconnect, bearing in mind that the process, which goes up to a court order, is exhaustive and necessary to protect proper customers from bad payers.

Mr. Clifton-Brown

When my hon. Friend next meets his counterparts in the European Council, will he urge them to adopt European water directives that are based on proper scientific evidence? Our constituents are very concerned about the rate of increase in their water bills, which can be inflated unnecessarily by directives being based on unscientific evidence.

Mr. Atkins

I have considerable sympathy with my hon. Friend. There is a suggestion in Europe that water should be of a pristine quality, which seems to be going much too far. The cost of ensuring such water quality would lead to extremely expensive bills in some areas and my right hon. Friend and I are ensuring that our colleagues in the European Union understand that point.

Mr. Burden

The Minister spoke of the reduction in the number of disconnections. Does he share my concern about the increase in the number of what are called self-disconnections as a result of the introduction of prepayment water meters by water companies? Does he agree that the legality of these devices is questionable and that the system needs rapidly to be reviewed?

Mr. Atkins

I have said many times from the Dispatch Box that it is my view, that of the regulator and, I think, that of many people across the party divide, although I recognise some dissension, that metering is one of the answers, if not the answer, to the payment of water bills in the future. I remind the hon. Gentleman that it is only one option— there are others. I take the point that he made about prepayment, but the overriding concern—expressed synthetically by the Opposition — is about disconnections. I remind the House, however, that the disconnection facility was written into a Bill in 1945 that was promulgated by a Labour Government.

Mr. Nicholls

When my hon. Friend next meets the chairman of South West Water, will he remind him that water charges were eventually pegged in the south-west only because of the efforts of Conservative Members of Parliament and because of the actions of Ministers in the Department of the Environment? Will he further tell the chairman that he would do better to spend his time welcoming that development instead of scuttling off to the Monopolies and Mergers Commission to see whether, even now, he can impose greater price rises on the south-west than is justified?

Mr. Atkins

I spent some time in the west country during the recess and wherever I went I was astonished at the reaction of many people to the immense efforts of Conservative Members of Parliament, such as my hon. Friend the Member for Teignbridge (Mr. Nicholls), to make the case most strongly for the amelioration of water bills, commensurate with the remedial work necessary to improve quality. As ever, my hon. Friend is quite right.