Chisholm33. Mr. To ask the Secretary of State for Scotland what is his policy on the continued funding of water investment by public borrowing.
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§ Sir Hector MonroUnder the present administrative arrangements, capital expenditure by water authorities will continue to be subject to public expenditure controls. In addition to the capital consent allocations issued by the Secretary of State, which in effect limit the extent to which authorities may borrow to fund capital expenditure, authorities can augment capital spending by the use of capital receipts and by revenue and private sector contributions. Beyond this, funding arrangements will depend on the future structure of the water and sewerage services, which my right hon. Friend is presently considering.