HC Deb 19 February 1979 vol 963 cc85-6W
Mr. Peter Hordern

asked the Secretary of State for the Environment how much of current expenditure of water authorities in England and Wales is made up of servicing the debt charge of these authorities; if he will publish figures showing the effect of servicing overdrafts and short-term facilities at current rates of interest, compared with one year ago; and if he will show by what proportion wages and salaries would have to rise to reach the same level.

Mr. Denis Howell

In 1977–78 the interest paid on debt represented about 31 per cent. of the total revenue expenditure of the water authorities in England and Wales. The amounts of water authority overdrafts and short-term borrowing, and the relevant interest rates, vary throughout any year, and it is not possible to illustrate the effects of the use of such facilities between one year and another. Employee costs currently represent approximately 23 per cent. of water authority expenditure, but no useful comparison can be made between increases in these costs and debt profiles because of the diversity of factors influencing debt servicing and borrowing.

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