§ Mr. Skeetasked the Secretary of State for the Environment if he will introduce legislation to enable water authorities to borrow on the open market.
§ Mr. MacfarlaneWater authorities are enabled by virtue of section 2(1) of the Water Act 1983 to borrow on the open market, subject to the consent of the Secretary of State and the approval of the Treasury.
§ Mr. Skeetasked the Secretary of State for the Environment what proportion of the additional funds generated by the increased rate of return set for the water authorities will be retained by the authorities for their own use.
§ Mr. MacfarlaneAs the following table shows, the higher rates of return to be achieved by the water 555W authorities in England in 1985–86 will enable £76 million more investment to go ahead with £71 million less borrowing:
*Capital Expenditure †External Finance Limit 1984–85 (Cmnd. 9143) 686 ‡240 1985–86 (Cmnd. 9428) 762 ‡169 * Excluding land drainage. † Excluding land drainage grants. ‡ Consistent with EFLs for England and Wales (including land drainage grants) published in Cmnd. 9143 and Cmnd. 9428.
§ Mr. Rookerasked the Secretary of State for the Environment in what precise form he has communicated to water authorities their financial targets for 1985–86.
§ Mr. MacfarlaneMy hon. Friend, the Minister for Housing and Construction has written to the Chairmen of the English Water Authorities to tell them their financial targets for 1985–86. They will also have copies of an order under section 29 of the Water Act 1973 which has been laid before the House.