HC Deb 06 June 1996 vol 278 c534W
Mr. Gordon Prentice

To ask the Secretary of State for Scotland what considerations led him to specify 6.5 per cent. as the rate of return he believes to be reasonable for the water and sewerage authorities. [30836]

Mr. Kynoch

The required rate of return reflects an assessment of the opportunity cost to the economy of new investment in activities such as the provision of water and sewerage services which involve low risk.