§ Mr. Purchase
To ask the Secretary of State for the Environment if he will make a statement on competition regulation in the water industry. 
§ Mr. Clappison
We are keen to encourage direct competition where it is appropriate. The Competition and Service (Utilities) Act 1992 introduced a number of measures to facilitate it in the case of water.
On 4 July the Director General of Water Services published a paper entitled "Competition in the water industry: inset appointments and their regulation", in response to an increasing number of inquiries into the introduction of competition into the water industry.