§ Mr. WilshireTo ask the Secretary of State for the Environment what arrangements are being made under part II of the Environmental Protection Act for waste disposal authorities to divest themselves of their waste disposal operations; whether he foresees an increasing role for the private sector in waste disposal; and if he will make a statement.
§ Mr. HeseltineWaste disposal authorities are currently developing plans under the Environmental Protection Act to divest themselves of their disposal operations.
At the time when public resources are under renewed pressure, it is vital that the private sector plays its full part. I shall now be making WDAs take action by issuing to them, where necessary, notices and directions to set up local authority waste disposal companies. LAWDCs are not the only way WDAs may divest themselves of their operations, but, if they wish to set them up, they must be viable. If not, WDAs will need to arrange for a joint venture or privatise their operations.
Moreover, I intend to seek information from WDAs about the capital investment requirements for the new waste disposal operations in their areas from 1992–93 onwards, and how much of these requirements could be financed outside public expenditure. Higher standards in waste disposal are likely to require higher levels of capital investment over the next few years. But the amounts available for public sector expenditure in this field are inevitably limited. This will mean that LAWDCs will normally have to have private sector involvement if they wish to carry out appropriate capital investment. I shall be consulting the local authority associations about the details. I shall also be looking at further measures in due course.