§ Mr. Bill WalkerTo ask the Secretary of State for Scotland what reduction has been made to the external financing limits of the Scottish water authorities consequent upon the commutation of debt announced on 8 February 1996. [39972]
§ Mr. KynochLocal authority debt of £0.7 billion was commuted before being transferred to the new water authorities on 1 April this year.
As a consequence, a reduction has been made in the authorities' external financing limits to reflect the reduced debt servicing charges. The table shows the external financing limits for 1996–97, pre- and post-commutation, of the three authorities:
£ million Pre-commutation Post-commutation North of Scotland Water Authority 82 65.9 East of Scotland Water Authority 87 70 West of Scotland Water Authority 105.3 83.9 Total 274.3 219.8 These reductions ensure that there is no increase or decrease in public expenditure provision for the water authorities as a result of the debt commutation.