§ Mr. WelshTo ask the Secretary of State for Scotland what subsidy will be provided to each of the three new Scottish sewerage authorities to cover the costs of sewerage services in the years 1996–97, 1997–98 and 1998–99. [33312]
§ Mr. Kynoch[holding answer 11 July 1995]: I refer the hon. Member to the answer that I gave to the hon. Member for Ayr (Mr. Gallie) on 15 June, Official Report, column 679. The new public water and sewerage authorities will not receive a subsidy as such from the Government for the services they provide. In recognition of the change in financing of domestic sewerage, however, my right hon. Friend the Secretary of State will make regulations to reduce charges for domestic sewerage in 1996–97. He will give grant to the authorities to compensate for the income forgone. The amount of grant will be determined later this year, and the full charges will be phased in over a period of time.