§ Mr. Biffenasked the Secretary of State for the Environment by what statutory authority water undertakings have been requested to freeze their present levels of rates; what is the estimated effect on the finances of water undertakings of such a freeze; what compensation is being offered from Exchequer sources for lost revenues; and if he will circulate in the OFFICIAL REPORT the text and purport of the order he has made relieving water undertakings of certain statutory obligations to enable them to freeze rates.
§ Mr. Eldon GriffithsWater rates and charges are prices or charges within the meaning of the Counter-Inflation (Temporary Provisions) Act 1972. Water rates chargeable from 1st April would begin to be payable within the standstill period and, like prices in general, ought 455W to comply with the standstill. Because water rates have to be made for fixed periods, the minimum convenient period for which the standstill could run, in this case, was six months. The effect on the finances of water undertakings will differ from area to area. No Government grant is available to make up the loss of revenue. A copy of the Counter-Inflation (Water Charges Enactments Modification) Order 1973, with an accompanying explanatory note, is available in the Library.