§ Mr. GowTo ask the Secretary of State for the Environment what proposals he has for the future of the water companies after the water authorities have been privatised.
§ Mr. MoynihanThe Government intend to bring the statutory water companies under the same system of regulation as the privatised water utilities and to remove current controls over dividends and related restrictions. It is also proposed to give the companies the option of becoming public limited companies. Last year the Department sent the Water Companies' Association two consultation papers on these matters:
- (i) Statutory water companies: removal of financial controls
- (ii) Statutory water companies: conversion to public limited companies.
Copies of these papers have been placed in the Library of the House.