§ Mr. Lyellasked the Secretary of State for the Environment whether performance aims have been agreed with the regional water authorities.
§ Mr. KingThe purpose of performance aims agreed between the Government and nationalised industries is to set targets for improvements in an industry's efficiency. They are particularly important where an industry's monopoly position would enable it to meet financial targets by raising charges or lowering standards of service. The performance aims agreed with the regional water authorities are on the basis that operating costs in 1983–84, in 1979–80 prices, for water supply, sewerage and sewage disposal should not exceed the following figures:
Authority Performance Aids £million North West 104.7 Northumbrian 27.1 Severn-Trent 114.4 Yorkshire 68.5 Anglian 69.6 Thames 162.0 Southern 43.0 Wessex 26.5 South West 21.7 These figures represent lower costs in real terms in 1983–84 than in 1979–80, despite the increased output of water services. The Government welcome the efforts that these authorities are making to improve the efficiency of their operations which are reflected in these figures, and look to the authorities both to achieve and build on these improvements.