HC Deb 25 March 1982 vol 20 c419W
Mrs. Renée Short

asked the Secretary of State for the Environment (1) what has been the capital allocation for the water industry for the replacement of old water mains and sewers for each of the last five years at constant prices; what is the allocation for the current financial year and how much has been spent of this to date; and what are the proposals for 1982–83;

(2) if he will examine the current capital allocations to water authorities with a view to ensuring that they are able adequately to maintain and replace their water mains and sewers.

Mr. Giles Shaw

The authorities' capital allocation for the current year—£644 million—took full account of the need to maintain and replace water mains and sewers.

Authorities are given overall allocations and it is for them to determine their own priorities and decide the amount to be spent on any particular purpose.

Water authorities' capital expenditure over the last four years has been as follows:

million
1977–78 £437
1978–79 £461
1979–80 £495
1980–81 £569

The latest forecast of capital expenditure in the current year is £573 million. The allocation for 1982–83 is £640 million.

Mrs. Renée Short

asked the Secretary of State for the Environment what is his latest estimate for the cost of replacing old water mains and old sewers.

Mr. Giles Shaw

The National Water Council in its report "Water Industry Review 1982" estimates that the gross replacement cost for water mains is £14,000 million and for sewers £31,000 million. These figures exclude water companies' assets. However, water authorities and their auditors are agreed that these figures must be abated by 40 per cent. to take account of obsolescence, technological advances in renovation techniques and the fact that some mains and sewers will no longer be needed. On this basis, the estimated net replacement cost for water mains in £8,400 million and for sewers £18,600 million.