§ Mr. WelshTo ask the Secretary of State for Scotland what studies he has undertaken in the Scottish water industry to compare build own and operate, and build own operate and transfer schemes with traditional methods of local government financing; and if he will make a statement.
§ Mr. George Kynoch[holding answer 8 February 1995]: In November 1994, a commentary on the benefits of build own and operate schemes was prepared by the 776W Scottish Office in response to a study produced by Strathclyde regional council. A copy of the commentary is in the Library. It concludes that the private sector should offer terms which compare favourably with public funding costs. Under current rules, build own operate and transfer schemes would count as public expenditure.