HC Deb 03 July 1996 vol 280 cc963-4
9. Mr. Eric Clarke

To ask the Secretary of State for Scotland how much money from the Government has been allocated for capital projects to the East of Scotland water authority. [34179]

Mr. Kynoch

No specific allocation is made for capital expenditure. The external financing limit for 1996–97 has been set at £87 million.

Mr. Clarke

I thank the Minister for that answer. Is he aware that the delay in upgrading the Esk valley sewer is delaying developments in Midlothian? Will he, with others, provide cash to the East of Scotland water authority to allow it to upgrade that sewer?

Mr. Kynoch

I understand the hon. Gentleman's concern about delays on the Esk valley sewer. He should, of course, have addressed his comments to the former Labour-controlled Lothian regional council. The new East of Scotland water authority, within weeks of taking over responsibility, has initiated a private finance initiative scheme for the sewer. It is hoped that tender documents will be issued this month, and I hope very much that work will commence by July 1998. The project is going ahead, utilising the private finance initiative, very much more quickly than it would have done under the former Lothian regional council.

Mr. George Robertson

May I remind the Minister that the East of Scotland water authority, the super-quango that has taken water functions in the east of Scotland from locally elected local government, was created in the face of a referendum in Strathclyde that showed that 97 per cent. of people opposed handing water over to the new super-quango? Will the Government recognise that they cannot demand that referendums are held on major issues and then, with the cavalier, arrogant attitude for which they have become famous, dismiss out of hand the views of the people who have had the chance to express their view through that vote?

Mr. Kynoch

The hon. Gentleman, I know, is a recent convert to referendums-at the instigation, I understand, of those in his party from further south. What he has not yet fully understood is that he is talking about a referendum in Strathclyde on privatisation of the water authority. We now have three manageable water authorities, which are tackling the difficult problems of providing adequate facilities for water treatment and sewage.

The hon. Member for Midlothian (Mr. Clarke) asked about the Esk valley sewage scheme. Without the private finance initiative, that scheme would not go forward as quickly as it is doing. I commend the new water authorities and I believe that the consumers of Scotland welcome the fact that they are getting these facilities under this Government, whereas if Labour was in power they might have to wait for a long, long time or pay even higher tartan taxes.