§ Mr. Heddleasked the Secretary of State for the Environment how the Government intend to proceed with their proposals for the restructuring and privatisation of the water authorities in England and Wales.
§ Mr. RidleyI have today published, together with my right hon. Friends the Secretary of State for Wales and the Minister of Agriculture, Fisheries and Food a policy and consultation paper entitled "The National Rivers Authority—a public regulatory body in a privatised water industry." This paper sets out our revised proposals for the restructuring of the water authorities, under which their utility functions of water supply, sewerage and sewage treatment and disposal, will be transferred to public limited companies, which will be offered for sale to the public; and their regulatory and river management functions will remain in the public sector and be given to a new National Rivers Authority. We consider that creating a regulatory body responsible for these functions and answerable to the Government will provide clear and comprehensible framework for the private sector operation of the utility functions which represent by far the largest part of water authorities' business.
The proposals set out in the paper published today are the result of much careful consideration, but there are a number of aspects on which we are keen to receive comment from interested parties. These include of course the water authorities themselves, and we shall consult them closely in taking the policy forward. We intend to make rapid progress in our consultations so that we can draw up and introduce the necessary legislation as soon as practicable.
Meanwhile, we are today introducing a Bill which will clarify the powers of the water authorities to prepare for 578W the restructuring and privatisation which we propose for the industry, and also to facilitate the carrying-out of domestic metering trials.
I have arranged for copies of the policy arid consultation paper to be deposited in the Library of the House.