§ Mr. Roderickasked the Secretary of State for Wales if he will indicate the 166W change in central Government aid towards water charges in Wales.
§ Mr. Peter ThomasDirect central Government aid towards the cost of water supplies is restricted to grants available under the Rural Water Supplies and Sewerage Acts and the Local Employment Acts. These grants will continue to be available to the new water authorities after 1st April 1974. Indirect aid has been given in most cases where water undertakings have been run at a loss and deficits made good by subventions or precepts on local authority general rate funds. Such subventions and precepts have been included in the relevant expenditure taken into account in calculating the resources element of rate support grant and, to that extent, water supply costs have been aided by central Government.
These calls on general rate funds will cease after 31st March 1974 and as a result the charge to some water consumers will reflect the loss of rate support grant subsidy. The Government have promised to introduce a differential application of the domestic element of rate support grant which would among other things mitigate the effects of this change.