§ Mr. Ray PowellTo ask the Secretary of State for Wales what instructions have been given to the chairman of the Welsh water authority in respect of setting up shadow114W organisations to implement plans for privatising the water industry in Wales; who will be responsible for the costs related to this; and on what authority such costs will be incurred.
§ Mr. GristThe Public Utility Transfers and Water Charges Act 1988 gave the Welsh water authority the power to act in relation to proposals for privatisation. The costs incurred are a matter for the authority. I wrote to the chairman of the Welsh water authority on 11 May 1988 inviting him to submit, on behalf of the authority, in accordance with guidelines issued with my letter, a scheme to provide for the separation of the utility functions from those to be transferred to the National Rivers Authority. Copies of the guidelines were laid in the Libraries of both Houses.