§ 29. Mr. William PowellTo ask the Secretary of State for the Environment what advice the Monopolies and Mergers Commission has given about the most effective way of transferring the water industry into the private sector.
§ Mr. HowardThe Monopolies and Mergers Commission stated in its report on Southern water authority in April 1985 that it did not regard the existing private statutory companies as a useful model for the privatised industry. It took the view that the statutory form of regulation, which limits profits and dividends, conspicuously failed to provide adequate safeguards for the consumer and a profit incentive to management to reduce costs and increase efficiency. I am confident that the Water Bill's chosen route to privatisation on plc lines offers a far more attractive future for the industry, the consumer and the investor.