§ Mr. Skeetasked the Secretary of State for the Environment what assessment he has made of the implications for the quality of services provided by water authorities of the proposed increase in their rate of return on net assets.
§ Mr. MacfarlaneThe effect cannot be precisely assessed, but the higher rates of return will support higher investment in water services. Although priorities differ from region to region, this is expected to include higher spending on renovation and renewal of sewers and water mains, with consequent benefit to service levels, and additional outlays aimed at improving the quality of rivers, estuaries and coastal waters.
§ Mr. Skeetasked the Secretary of State for the Environment what estimates he has made of the effect upon the construction industry of the proposed changes in the financial framework of the water authorities.
§ Mr. MacfarlaneThe financial targets that my right hon. Friend the Secretary of State announced in reply to a question from my hon. Friend the Member for Leominster (Mr. Temple-Morris) on 12 November 1984 at columns 68–69, will allow a significant real increase in capital investment by the water authorities.
The planning investment levels for the authorities in the public expenditure White Paper (Cmnd. 9428) are £852 million (1985–86), £914 million (1986–87) and £964 million (1987–88). This will enable the authorities to maintain and improve services, secure further improvement in the quality of our rivers, estuaries and beaches and make faster progress on the replacement, repair and maintenance of sewers and water mains. As most of this work will be contracted out to the private sector, it will be of direct benefit to the construction industry.