HC Deb 24 May 1989 vol 153 cc591-2W
48. Mr. Colvin

To ask the Secretary of State for the Environment what aspects will be covered in further leaflets on the Water Bill.

Mr. Howard

Possible subjects for future leaflets on the Water Bill are land, access and recreation; and bathing waters.

63. Mr. Knapman

To ask the Secretary of State for the Environment whether he will seek to amend the Water Bill so that privatisation of the industry is based on the statutory water companies model.

Mr. Howard

No. The 1986 White Paper "Privatisation of Water Industry in England and Wales" explained that we had rejected the statutory company model because it was an outdated method of operating a business. The controls on dividend and reserves do not give any incentive to achieve greater efficiency. We firmly believe that the plc company model with controls on prices and standards of service will provide a better and more efficient service, arid will enable the privatised companies to develop in ways that will benefit their customers and investors alike.