HC Deb 21 July 2000 vol 354 cc353-4W
Mr. Willis

To ask the Secretary of State for the Environment, Transport and the Regions what representations he has received concerning the proposal by Kelda Group to mutualise the assets of the former Yorkshire Water company. [131464]

Mr. Meacher

[holding answer 19 July 2000]: My Department has received several written representations on this proposal from customers and others.

The Director General of Water Services issued a public consultation document on the issues raised, inviting comments by 17 July. The Director General has received written representations in response. The proposals were also discussed at a meeting in Leeds on 6 July, arranged by the Yorkshire Customer Service Committee, to which the public were invited, addressed by representatives of Kelda, the proposed Yorkshire Water Mutual, the Drinking Water Inspectorate, the Environment Agency and Ofwat.

Mr. Willis

To ask the Secretary of State for the Environment, Transport and the Regions what powers he has to stop the Kelda Group from selling the assets of Yorkshire Water. [131466]

Mr. Meacher

[holding answer 19 July 20001: Under the Water Industry Act 1991 the Director General of Water Services has a duty to act in the manner he considers best calculated to secure that the interests of customers are protected. The Director General has powers to modify the conditions of appointment of Yorkshire Water Services as a statutory undertaker by agreement with the company. If agreement cannot be reached between the Director General and the company he can refer the case to the Competition Commission. The Secretary of State can also require the case to be referred to the Competition Commission, which would consider whether modification of the licence were needed in the public interest.

Mr. Willis

To ask the Secretary of State for the Environment, Transport and the Regions what plans he has to order Kelda Group to extend the period of consultation over its plans to mutualise the assets of the former Yorkshire Water. [131465]

Mr. Meacher

[holding answer 19 July 2000]: The Director General of Water Services has said that he considers that more consultation with customers is necessary before the proposal by Kelda could go ahead. Following receipt of responses to his earlier consultation paper, he intends to publish a position paper on the issues raised by Kelda's proposal before 31 July, including how best such further consultation should be conducted.