§ Mr. WigleyTo ask the Secretary of State for Wales when and for what reasons the safeguards to prevent the takeover of the company undertaking water services in Wales in a manner that is contrary to the public interest have been withdrawn; and if he will make a statement. [122685]
§ Mr. Paul MurphyUnder the Water Act 1989, the appropriate Secretaries of State were awarded a special share in the privatised water companies, empowering them to prevent anyone owning more than 15 per cent. of a company's shares. All such shares, including that held by the Secretary of State for Wales in Welsh Water, were to be redeemed on 31 December 1994, five years after privatisation, and this duly took place.
In addition, and uniquely, the Articles of Association of Welsh Water plc continued to provide for the 15 per cent. limit on individual voting share rights following redemption of the Golden Share. The removal of this provision required the approval of 75 per cent. of the company's shareholders. At an Extraordinary General 47W Meeting on 21 March 1996, shareholders resolved to remove the 15 per cent. limitation from the company's Articles of Association.
I note that the Assembly has passed representations and comments on public interest principles to the Office of Fair Trading, who are evaluating bids and advising my right hon. Friend the Secretary of State for Trade and Industry.