asked the Secretary of State for the Environment whether he will now direct water authorities not to increase the burden on householders by recruiting extra staff to introduce direct billing of consumers; and how the measures announced by the Prime Minister on Friday 11th July apply to water authorities.

No. The water authority chairmen have recently impressed on me the substantial financial and operational advantages of direct billing. I am seeking the views of the local authority associations before deciding what advice I might issue on this subject. The Government's measures for dealing with inflation apply to the water authorities in the same way as to the nationalised industries.