HL Deb 24 July 2000 vol 616 cc2-3WA
Baroness Harris of Richmond

asked Her Majesty's Government:

Whether Ofwat's consultation period on the Kelda proposals, which ends on 17 July, will now be extended to the end of September; and [HL3476]

Whether detailed financial information on Yorkshire Water will be made available to customers before any decision on the purchase price is agreed; and [HL3477]

What mechanisms will be put in place to ensure that there is genuine independence in negotiating the sale price of Yorkshire Water; and how customers who are buying will be involved as well as shareholders who are selling; and [HL3478]

Why it is proposed that the new Registered Community Asset Mutual (RCAM) which is to take over Yorkshire Water Services will contract for the first five years of its operation with Kelda, which will subcontract the work to others; and whether instead the new RCAM could subcontract the work itself from the start. [HL3479]

The Parliamentary Under-Secretary of State, Department of the Environment, Transport and the Regions (Lord Whitty)

The Government's prime interest is to ensure that any reorganisation in the water industry will bring direct and long lasting benefits to customers, and that companies can continue to comply with their public health and environmental obligations.

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 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 proposals, including those raised by the noble Baroness, on 25 July. This will set out how best such further consultation should be conducted.

The Lord Bishop of Wakefield

asked Her Majesty's Government:

Whether sufficient opportunity has been given by Ofwat to the people of Yorkshire to express their views regarding the sale of Yorkshire Water. [HL3404]

Lord Whitty

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.