§ Mrs. GilroyTo ask the Secretary of State for the Environment, Transport and the Regions (1) what representations he has received and what research he has commissioned on the likely effect of the periodic review of water prices in England and Wales on those employed(a) directly and (b) indirectly within the water industry; and if he will make a statement; [95553]
(2) what representations he has received and what research his Department has (a) evaluated and (b) commissioned, on the implications of the loss of further jobs in the water industry in England and Wales for (i) safety, (ii) customer service standards, (iii) continuity of supply and (iv) environmental standards; and if he will make a statement; [95554]
(3) what discussions he has held with (a) the Director General of Ofwat and (b) other organisations over likely job losses in the water industry in England and Wales as a result of the periodic review of water prices; and if he will make a statement. [95555]
§ Mr. MullinMy Department has received representations about possible job losses in the water industry, from some water companies, from Water UK, from employees of water companies and from the union, UNISON. My Department has not undertaken or commissioned research on employment in the water industry, nor discussed this with the Office of Water Services.
The examination of the water industry's costs and efficiency assumptions is a matter for the Director General of Water Services. He has a statutory duty to secure that water companies properly carry out their functions and are able to finance them. These functions must be carried out in full compliance with all legal requirements, including drinking water quality (regulated 872W by the Drinking Water Inspectorate), health and safety (regulated by the Health and Safety Executive), environmental standards (regulated by the Environment Agency) and customer service and continuity of supply (regulated by the Director General himself). In conducting his periodic review of water price limits the Director General is expecting companies to improve on efficiency savings that they have already achieved. It will be for water and sewerage undertakers to ensure that they maintain the necessary staff and other resources to meet these obligations in full.
The Government believe that it is possible to deliver substantial quality improvements and reductions in customers' bills, for the benefit of consumers. The environmental and water quality improvement programmes will create significant new employment opportunities.