HC Deb 20 January 1998 vol 304 cc809-10
9. Mr. Canavan

If he will return Scotland's water services to local authority control. [21720]

Mr. Macdonald

My right hon. Friend the Secretary of State made a statement to the House on Tuesday 16 December 1997 on the future of the Scottish water industry. It dealt with the issue of local authority control and provided for stronger and better links between local authorities and water boards under the overall democratic supervision of the Scottish Parliament.

Mr. Canavan

When will the Government deliver the Labour party manifesto commitment to return Scotland's water services to local democratic control, instead of playing musical chairs with the quangos left to us by the Tory Government? In the Falkirk area, for example, when water services were in the ownership and management of local government, we had good, forward-looking investment programmes, combined with the lowest water charges in western Europe. Will the Government intervene to prevent the East of Scotland water quango from imposing a 58 per cent. increase in domestic water charges, which would mean an even more exorbitant increase of 144 per cent. over two years?

Mr. Macdonald

As my hon. Friend will appreciate, the existence of 32 local authorities after the previous Government's reorganisation means that it is simply not possible or practical to have the kind of direct local authority control that he would like. However, we have increased accountability to local authorities through better links between them and water boards. As for possible price increases, they are a matter for negotiation between the water boards and the customer councils. If there is no agreement, the matter will go to the Secretary of State for arbitration, so I cannot comment further.

Ms Roseanna Cunningham

Consumers in Tayside face a 38 per cent. increase in water charges in the near future. That is a swingeing increase—the highest in the whole of the North of Scotland area. In view of the Government's pre-election promises, can the Minister not understand the disenchantment of people in my constituency and neighbouring constituencies with both the North of Scotland Water Authority and the Government on that matter?

Mr. Macdonald

For the reason that I have just explained, I cannot comment on particular price rises. However, speaking generally, we have always said that water services will cost more. There are many years of underfunding and under-investment to make up for; that will have to be done through a combination of public and private investment, but also through price increases.