§ Mr. Dalyellasked the Secretary of State for the Environment if he will now make a statement on the financial difficulties that have been encountered in the prototype freeze-process desalination plant on the Deben Estuary.
§ Mr. Peter WalkerIn March, 1971, I authorised the Water Resources Board to spend £1.5 million on this project, the balance of some £¾ million being contributed by the United Kingdom Atomic Energy Authority and Simon Engineering Ltd. In November, 1971, Simon Engineering decided to withdraw from the financial participation in the project.
As Simon Engineering no longer considered the process commercially viable and as the estimated cost of the project had risen by about £1 million, I decided, in agreement with my right hon. Friend the Secretary of State for Trade and Industry, that it would not be right to continue the project with the whole cost falling on public funds. The amount actually spent on the project by the Water Resources Board was £60,000.
I am, however, supporting further work on this process in order to get the maximum value out of the development already done; and I would always be prepared to consider assistance to the development of other desalination processes that are potentially efficient and economic. I am considering the possibility of working with European countries to obtain a breakthrough in desalination.