§ Mr. Denis Howellasked the Secretary of State for the Environment if the Government plan to publish a consultation paper on pension schemes in the event of privatisation for those employed by the water authorities in England and Wales.
§ Mr. John Patten[pursuant to his reply, 27 February 1986]: The future of pension arrangements in the water industry is a matter which the water authorities' management need to consider in the context of privatisation. I have met representatives of the industry to discuss this subject and I know that they attach a high priority to it. The industry recognises that it will need to be satisfied that arrangements fair to all interests concerned are made for pensions.
The rights of existing and deferred pensioners, and rights accrued by existing employees under the local government superannuation scheme will be unaffected by privatisation. The industry is now considering what arrangements should be made for new employees and for existing employees in respect of future service.