§ Mr. Hannamasked the Secretary of State for the Environment if he will hold an immediate inquiry into (a) the proposals of the South West Water Authority for a new headquarters complex at Exeter and (b) the sharp increase in expenditure incurred by the water authority.
Mr. Dennis HowellI understand that the authority has made outline planning application for headquarters premises, and this will enable its proposals as a whole to be considered by the local planning authority. Its first stage proposals for development are limited to accommodation for its computer section. The authority has made it clear that the second phase of the development, if planning permission is granted, would be phased over a number of years and would crucially depend on the economic situation. The need for the accommodation is essentially a matter for the authority itself to decide and to defend.
On levels of charges, these again are a matter for the authority to decide, subject to consideration by the Price Commission, in the light of its statutory obligations, particularly the requirement to break even on revenue account. This means that increased costs for wages, materials and debt charges, all of which have been severe, can only be reflected in increased charges. And this year 374W exceptionally there have also been the effects of the Daymond judgment.