§ Mr. BlunkettTo ask the Secretary of State for the Environment, pursuant to his reply to the hon. Member for Sheffield, Brightside of 24 May,Official Report, column 951, if he will make a further statement concerning the treatment of outstanding debt of the water authorities.
§ Mr. HowardShortly before flotation, we will be writing off the £4.4 billion National Loans Fund debt transferred from the English water authorities to the new English water plcs. This will be replaced with new securities issued to the Government, including new debentures, but mostly in the form of shares to be sold to the public. This substantial capital reconstruction which involves a sizeable cash injection will enable the companies to finance the major investment in the future which we all want to see.