§ Mr. Robert B. Jonesasked the Secretary of State for the Environment whether he has agreed performance aims with regional water authorities.
§ Mr. WaldegravePerformance aims are agreed between Government and nationalised industries as targets for improvements in efficiency. It is a major plank of the Government's policy for the water authorities that they should improve their efficiency while maintaining their generally high levels of service. The unacceptable rise in costs and manpower to 1979 has been reversed and water authorities deserve credit for reducing their manpower by some 10 per cent. since then.
In 1982 performance aims were agreed with regional water authorities which were limits on most operating costs in real terms in 1983–84. The current forecast is for the authorities collectively to achieve these aims very closely.
A further set of performance aims has now been agreed with most of the authorities. The agreement is that total operating costs in 1986–87 (in 1982–83 prices) should not exceed the following figures:
Authority Performance aims £ million
North-West 160.0 Northumbrian 41.2 Severn-Trent 168.9 Yorkshire 103.5 Anglian 110.0 Southern 67.0 Wessex 41.0 South West 34.5 Consideration of performance aims for the Thames water authority has been deferred until March.
These figures represent an effective reduction in real terms costs of about 3½ per cent. below 1982–83, despite some expected improvement in water services, and build on what has been achieved since 1979. The Government welcome the continuing efforts by the authorities to improve efficiency, which are reflected in these figures and look to the authorities to achieve and wherever possible to surpass them.