HC Deb 06 December 1995 vol 268 cc358-9
8. Mr. Madden

To ask the President of the Board of Trade what representations he has received from companies in West Yorkshire following advice given by Yorkshire Water in respect of relocation. [2606]

Mr. Page

My Department has received no formal representations from companies in West Yorkshire on this point, but I am well aware of the concerns that the local business community has about the prospects of cuts in water supply. My hon. Friend the Minister for Local Government, Housing and Urban Regeneration met local business representatives to discuss their concerns when he visited the area on 29 September and 14 November.

Mr. Madden

Does the Minister understand that the suggestion from Yorkshire Water that firms should relocate outside West Yorkshire was one of the dafter ideas to come from the unfunny comedians running Yorkshire Water? Does he understand that many firms and businesses in West Yorkshire are extremely worried about the security of water supply for the indefinite future, and certainly for next year? Does he also support a wholly independent inquiry to consider all aspects of the management of Yorkshire Water, the activities of the water regulator and the involvement of the Government?

Mr. Page

I have been in the House long enough not to try to defend the indefensible. My right hon. Friend the Secretary of State for the Environment (Mr. Gummer) has stated clearly that the company should have acted much earlier and more comprehensively. I understand that the prospect of cuts is extremely worrying for industry, and my right hon. Friend has said that cuts would be the last resort of last resorts.

I am able to give the House the good news that, from the low point of 11 November, the levels in the reservoirs have started to rise, and a £50 million-plus programme has been introduced to ensure that the situation does not happen again. That programme will be finished by some time in the middle to late spring. On the question of an inquiry, the Government have kept in touch with two independent reports already, but my right hon. Friend the Secretary of State for the Environment announced a wider-ranging review on 1 September to consider issues arising from the drought.

Sir Donald Thompson

Perhaps my hon. Friend cannot agree that it is not Yorkshire businesses that should relocate, but some of the managers and directors of Yorkshire Water who should find employment somewhere else—perhaps running a retirement home. Will my hon. Friend apply pressure on the Department of the Environment and his Department to ensure that the reservoirs are kept as full as possible, and that a proper, sensible grid system for Yorkshire is imposed as quickly as possible?

Mr. Page

I can tell the House that my hon. Friend the Member for Calder Valley (Sir D. Thompson) has been exceedingly active, both publicly and behind the scenes, in pressing the case for Yorkshire companies. I agree that perhaps the shareholders of Yorkshire Water may wish to consider other matters within the company at some time.

I have already mentioned that £50 million-plus is being spent to ensure that the situation does not occur again in the future. I hope that that gives comfort to many Yorkshire companies.