HC Deb 25 May 1999 vol 332 cc84-5W
Mr. Kidney

To ask the Secretary of State for the Environment, Transport and the Regions what powers his Department retains to ensure that the plans of the water companies for asset replacement are consistent with public safety. [84892]

Mr. Meale

The Government require water companies to operate in ways which are consistent with public safety through a variety of regulatory requirements, such as those concerned with health and safety at work and the quality of drinking water, rather than through control of their asset replacement policies.

The Director General of Water Services is required to exercise his powers and duties in the manner that he considers is best calculated to secure that the functions of water and sewerage undertakers are properly carried out as respects every area of England and Wales, and that undertakers are able to finance the proper carrying out of their functions.

The Deputy Prime Minister and Secretary of State for Wales have published "Raising the Quality", giving guidance to the Director General of Water Services on the environmental and quality obligations to be achieved by the water industry in England and Wales 2000–05. That guidance covered such public health matters as tackling deteriorating raw water quality and reducing the risk from cryptosporidium. Ministerial guidance has also been given in "Maintaining Public Water Supplies" on issues arising in the preparation of water resources plans by the water companies in England and Wales. The Director General will take this guidance into account in determining water company price limits in the current Periodic Review of water prices.

Ministers also have power, under Section 208 of the Water Industry Act 1991 to give directions to water undertakers covering emergencies and in the interests of national security.