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Commons Chamber

Volume 270: debated on Tuesday 30 January 1996

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House Of Commons

Tuesday 30 January 1996

The House met at half-past Two o'clock

Prayers

[MADAM SPEAKER in the Chair]

Private Business

Allied Irish Banks Bill

Henry Johnson, Sons & Co, Limited Bill

University College London Bill

Read a Second time, and referred to the Examiners of Petitions for Private Bills.

Edinburgh Assay Office Bill

Considered; to be read the Third time.

Oral Answers To Questions

Environment

Drinking Water

1.

To ask the Secretary of State for the Environment what steps he takes to ensure the independent monitoring of the quality of drinking water. [10368]

Before privatisation, there were no proper standards for drinking water and no effective monitoring. Since privatisation, strict monitoring by the drinking water inspectorate has been introduced and standards have risen every year since 1991.

The Secretary of State will probably be aware of the recent red alert on drinking water in the Wakefield area as a result of the discovery of cryptosporidium in drinking water supplies. Given the complete lack of public confidence in the privatised utilities, especially Yorkshire Water, will the Secretary of State ensure that, when there are red alert procedures in future, they automatically trigger an immediate objective evaluation and monitoring of the safety of that drinking water? Why are the Government unable to offer a definition of safe or unsafe levels of cryptosporidium in drinking water?

Before privatisation, there would have been no testing, there would have been no way of finding out about cryptosporidium and companies were not required to report it. Companies are now required to report it at once. The drinking water inspectorate runs independent tests and deals with the matter independently—another advantage of privatisation.

Do we not have the finest drinking water in the world? Is it not acknowledged that 99.3 per cent. of all the tests are passed with flying colours, and is it not disgraceful that, time and again, we find that very high quality being rubbished by Opposition Members?

I do not know of any other country in the world that has such good data and so universal a system of monitoring drinking water. In the whole of Europe, this is the only country to publish properly audited data and we believe—we cannot say for sure because other countries do not publish properly audited data—that we are among the best, if not the best, in Europe.

In Yorkshire, people may consider the Secretary of State's answers to have been complacent. Is he aware that the public health authorities in Sheffield and in the other parts of Yorkshire feel that the cryptosporidium leaks that have been acknowledged in the Elvington and Barmby Moor sewage treatment plants are serious? Is he further aware that they affect 20 per cent. of all Yorkshire Water drinking supplies? Does he realise that there is a possibility that those increased levels of cryptosporidium may be linked to the reduced flow through the waste water system because of the cuts and the drought?

I agree that this is a serious matter and, in that view, we are unlike any other country in Europe. No one except the United States treats the matter with the same seriousness as we do. We are the only country to have a system of monitoring and of dealing with the problems as they occur. It undermines public confidence to suggest other than that we have the safest drinking water in the world and the best services to ensure that it remains that way.

Local Authority Services

2.

>: To ask the Secretary of State for the Environment what plans he has to meet representatives of Unison to discuss the provision of local authority services. [10369]

The Minister for Local Government, Housing and Urban Regeneration
(Mr. David Curry)

None.

My hon. Friend's reply is somewhat disappointing. Will he arrange a meeting with representatives of Unison, and use that as an opportunity to explain to them that compulsory competitive tendering has saved enormous amounts of taxpayers' money and has led to the improvement of many services—benefits that are now widely recognised across the political divide? Will he impress upon them the importance of removing their armlock from Labour party policy so that Labour drops its stupid opposition to CCT, which proves once again that it cares for those who pay for the Labour party and not for those who pay for local services?

I am afraid that my hon. Friend is seriously wrong in one of his statements: that view is not shared across the political divide because the Labour party quite clearly does not share it. Labour is hostile to competition because it is funded by Unison and, if Labour ever came to power, we know that the council tax payer would finance Unison.

Does the Minister recognise that we acknowledge that we meet with trade unions? In the past few weeks, I have met the ex-Tory Member of the European Parliament, whom the Secretary of State appointed to chair the Countryside Commission, people from the City of London and from London First, and the people whom the Secretary of State has appointed to the Audit Commission and to the Local Government Commission. While we are on the subject of ministerial meetings—this is the Department that managed to lose £300 million in taxpayers' money through the privatisation of the Property Services Agency—will the Minister tell us whom Ministers and officials met when they organised that transaction? Did they meet any ex-Tory Ministers when they were deciding to sell off that industry?

I am very reassured to learn that the hon. Gentleman has such a busy social diary. However, he will know that his remarks have nothing whatever to do with the question. We sold that company because it was better in the private sector than in the public sector. The employees have benefited from that sale, and it has become an efficient company.

The hon. Gentleman persists in believing that such bodies are run better by the state than in the private sector. There is no evidence to support that view—and I am not even sure that his leader believes it.

Did my hon. Friend see the report in an edition of The Spectator from last year in which Mr. Leo McKinstry—who was the aide to the hon. Member for Peckham (Ms Harman) at the last general election—said that the unions still have a great deal of influence in Labour town halls? Is it not true that they are more interested in representing the producers than the consumers in our society?

One of the encouraging signs in recent years is the way in which a great many people in local government have embraced the partnership between the public and the private sectors. However, I am not sure to what extent that is followed by the Labour party at Westminster. It seems wedded absolutely to the idea of trade union power and the trade unions finance many of its activities. If my hon. Friend wants to discover what Labour is really like in government, I suggest that he makes some calls on a few local authorities, and he will find out in a very short time. Perhaps he should start with somewhere like Hackney.

City Pride Initiative

3.

To ask the Secretary of State for the Environment what plans he has to extend the city pride initiative to more cities. [10370]

The Minister for Construction, Planning and Energy Efficiency
(Mr. Robert B. Jones)

Birmingham, Manchester and London are making excellent progress in carrying forward their city pride prospectuses. We shall look at what they have achieved before extending the initiative. Meanwhile, there is nothing to stop other cities adopting a city pride approach and I am pleased that Sheffield is doing so.

I am interested in that reply because it appears that the Government do not intend to extend the scheme. We must bear it in mind that most towns and cities have pride. Why must they wait for some sort of lottery, which is governed totally by the Tories at Westminster, before they get the resources that they require? Is not the best and most logical way to allocate resources to establish a proper regeneration programme for all cities and towns and to stop messing about with Government diktats?

I am sure that the hon. Gentleman would be one of the first to recognise that pride is not restricted to one, two or three cities and is felt throughout the country. However, putting a specific programme in place is a different matter. We are assessing what has happened in the first three cities. The single regeneration budget has benefited enormously not only Sheffield, which receives some £200 million from the private and public sectors as a result of its two successful bids, but rural and suburban areas that have responded well to problems.

Does my hon. Friend agree that city pride can work only with efficient local government? Has he read the report in today's Evening Standard that Hackney had a policy, which cost the ratepayers £2 million, to employ officials to do nothing? Is he aware of what is happening in Lambeth, where corruption is rife and the council is renowned for its sheer damned inefficiency?

My hon. Friend is absolutely right. The records of Lambeth and of Hackney, and indeed of Walsall, mean that the alternative to the Government's city pride programme would be Labour's city shame.

Water Conservation

4.

To ask the Secretary of State for the Environment what is his Department's planned expenditure in the current year on measures to promote the conservation of water. [10371]

The Parliamentary Under-Secretary of State for the Environment
(Mr. James Clappison)

Measures to promote water conservation among customers are the responsibility of the water companies.

Is the Minister aware that the north-west has now experienced some 10 months of below-average rainfall? There is growing concern that, if that continues, not only will there be a dry summer, but circumstances could become very bad indeed in 1997? Does he accept that the Government cannot continue washing their hands of the matter, blaming the water companies and suggesting that it is their sole responsibility? It is time that he accepted his responsibility and produced some measures for water conservation.

The hon. Gentleman realises that it is a serious matter and that the north-west has been affected by exceptionally dry conditions. We are taking a serious long-term view of the issue. That is why we imposed a duty on the water companies to promote water conservation and gave the Director General of Water Services additional powers. We are also consulting on future byelaws. As my right hon. Friend the Secretary of State said, the Government are looking carefully to learn the lessons of last year's drought. As for the hon. Gentleman's allegations about the water companies, they are in the best place to promote conservation. They have also substantially increased their investment, which this year is more than two and a half times as much as it was when Labour left office. The hon. Gentleman would do well to avoid the trap that was identified by his own policy makers, when they wrote:

"The Liberal Democrats do not always practise what they preach and are prepared to ditch environmental policies for short-term political gain".
We shall not do that.

Is my hon. Friend aware that Anglian Water has the lowest leakage rate of any water company in the United Kingdom and has spent £110 million on those matters since privatisation? In our area, on this subject as on so many others, we regard the views of the Opposition as total, unmitigated bosh.

I appreciate the comments of my hon. Friend. We recognised in our consultation paper on water services that particular difficulties face Anglian Water and other water companies in the south-east. Those companies have clearly risen to the challenge and provide an efficient service.

This is a serious issue. The Minister may recall that there was a big problem in my constituency earlier this month, when the water supply was lost in half of it because of bursts in the mains system over Christmas and the new year. When those bursts occur in domestic, commercial and industrial premises, the water just drains away. Will the Minister consider, as part of his ministerial responsibility, modifications to the building regulations to include the provision of lagging for water systems, particularly in domestic premises, to minimise that risk?

We would be happy to consider the propositions that the hon. Gentleman has raised when we examine the future of the water byelaws and building regulations.

Single Regeneration Budget

5.

To ask the Secretary of State for the Environment if he will make a statement on the quality of the bids his Department received during the second bidding round under the single regeneration budget. [10372]

The high quality of the bids received in the second round of the single regeneration budget challenge fund demonstrated the value of competitive bidding. Sutton Regeneration Partnerships and the Wandle Valley Partnership have been successful in both rounds of the challenge fund entirely on the quality of the projects put forward.

I am sure that my constituents will be delighted to hear my hon. Friend's commendation of the quality of the bid that came recently on behalf of Roundshaw, South Beddington and Wallington. Does my hon. Friend agree that the distinguishing feature of that successful bid was the way in which it tried to ensure that there would be the fullest co-operation with the private sector, especially with leading firms in my constituency such as Superdrug, Homebase and Canon UK? Will my hon. Friend ensure that this feature of the regeneration process continues to be a dominant one in Government consideration?

I shall certainly do so. First, the essence of our regeneration proposals is that as well as a diverse range of players from the public sector, partners are brought in from the private sector. Secondly, the public sector money that is made available attracts private sector finance. By that approach, we arrive at a much more effective scheme. It is one that is generated by the community and it reflects its priority.

Will the Minister take account, in future, of bids from urban areas that may be classed as outer rather than inner areas? We are in great danger of separating the two. Good bids come from outer areas. In my constituency, for example, one has come in from Kingstanding and south Aston in Birmingham. I make no complaint about the successful bid in respect of the inner-city area of Birmingham. There is no evidence, however, that the Minister's officials take seriously bids from outer areas, simply because they are outer rather than inner. Is the Minister aware that that approach is building up a great deal of resentment in the populations of our great cities?

I can reassure the hon. Gentleman. I scrutinise all the bids personally to ensure that they are chosen on merit. There are some, however, who would argue that all the bids should be focused on the inner city. Where discrete and sensible programmes can be put together with proper partnerships, however, they can have a major impact on areas that otherwise might be considered to be relatively well off, even though they contain corners or areas that suffer from deprivation. I am determined that the scheme should continue to have national coverage. Where bids succeed on merit, we shall award resources. That can apply equally to outer parts of our great cities as well as to some smaller rural areas where problems need to be addressed.

Is there any method by which unsuccessful bidders can reassess their bids for the next round? Is there any co-operation from his Department to enable such bids to be rejigged to fit the pattern?

There is indeed. If bids have not been successful in one round, we have made it clear that the bidders concerned should contact regional offices and go through their bids with them to ascertain where there are deficiencies. In the second round, there are many schemes that failed in the first round. For example, in Pendle there was a bid of poor quality in the first round that became a very good bid in the second. We work with local authorities and other partners to try to get bids into the best possible state so that they are competitive. Once they are in that condition, we judge them on their competitiveness.

I am sure that the House will be pleased that the Minister is now accepting that quality should be an issue in competitive tendering. That has not been the position to date. Will the Minister tell us how the Government will make the entire system more open? He has implied that Ministers interfere in the process and in decisions and there is no feeling at local level that there is any accountability. Is he aware that it is felt that Government officers are making decisions that should be made openly, properly and accountably in the political process?

I did not say that Ministers interfere. I said that Ministers fulfil their proper constitutional duty to scrutinise because we must take responsibility for the outcome. If the hon. Lady does not want Ministers to do that, it will be done, as she falsely describes, by officials. That would not be an accountable system. A Select Committee gave wide approbation to the regeneration scheme and I shall continue to scrutinise the bids to ensure that we get the best possible value for money and that the best bids receive the funds.

Has my hon. Friend noted the conclusion of the Environment Select Committee, that the single regeneration bids represent extremely good value for taxpayers' money? Does he agree that the local and regional offices of his Department have an important role to play in assisting partnerships to come together, and that partnerships that fail can still sometimes undertake work in future by virtue of the communications that they established in putting in a bid?

My hon. Friend is right. The job of the regional offices is to facilitate bids and assist people who are bidding. We do not ask people to put it together entirely by themselves without any form of a device or assistance. We want to get the maximum number of people into a competitive position. That is why we have had such successful schemes, and one of the most successful regeneration projects in recent times has been the Hulme redevelopment in Manchester. I am glad to see the Leader of the Opposition praising such a Tory initiative in this field.

Private Residential Accommodation (Leaseholders)

6.

To ask the Secretary of State for the Environment what action he proposes to provide redress for leaseholders in private residential accommodation from unfair treatment by (a) freeholders and (b) managing agents. [10373]

We utterly condemn the behaviour of unscrupulous freeholders, and the measures in the Housing Bill will attack wrong where it occurs and thereby ensure that the bad are driven out and that decent freeholders can continue to offer a valuable service.

Given that answer, will the Secretary of State give an undertaking to the House that no matter how people may try to evade legislation as it is introduced, as they have until now, he will not allow the Government's dogmatic attitude about regulation to prevent them from getting justice?

That proposal has already been introduced by the Government. It is tailored directly to meet the real needs of those who have suffered as a result of a small minority of unscrupulous freeholders, one set of which I named in the House yesterday, and we shall ensure that the legislation sticks.

Would my right hon. Friend consider amending the Housing Bill to add a clause whereby costs can be awarded against unscrupulous freeholders who refuse reasonably to negotiate with leaseholders in the lands tribunal?

I hope that my hon. Friend will see that I have suggested that we might move cases to the lands tribunal where there is an argument between the leaseholder and the freeholder about the costs. I hope that, after consultation, that will seem to be the right way forward, because it will make the whole process cheaper for the leaseholder who needs so to do. Freeholders who behave in the way in which some have behaved will be liable, for the first time, to criminal sanctions, and that is right.

The Secretary of State has acknowledged that a number of unscrupulous freeholders and their agents are threatening leaseholders with extortionate service and repair charges, backed by the threat of forfeiture. By all accounts, those pressures are intensifying and will put many leaseholders at risk in the months ahead while Parliament considers the Housing Bill. It is not good enough to wait until that reaches the statute book. The Secretary of State will know that I wrote to him more than a week ago, asking him to introduce a short, streamlined Bill that can go through the House immediately—it would have the support of the Opposition—to give instant protection to leaseholders in difficulty. Will he agree to that request—yes or no?

I note that when we started to legislate, suddenly the Labour party decided that it would have a go. The fact is that it is very complicated legislation, which we have to get precisely right, and the Opposition can help us. If they will allow the Housing Bill to go through the House quickly and expeditiously, as they should—the Bill will give fairness in housing, look after leaseholders and deal with houses in multiple occupation, all of which are good measures—the hon. Gentleman will be seen not to be hypocritical.

Is my right hon. Friend aware that, all too often, leaseholders who attempt to exercise their statutory right to extend their leases or to buy their freehold face a great deal of elaborate and extremely ingenious obstruction from freeholders and their legal advisers? Is he further aware that he will have widespread support in the House for any measures that he introduces to ensure that the will of Parliament as expressed in the existing legislation does not continue to be thwarted in the present way?

I agree with my hon. Friend. That is why I hope that the Labour party will not continue to obstruct the Housing Bill, which will introduce reforms for HMOs and reforms that ensure that those in need get social housing before those in less need. I look forward to the Labour party's support, and then we will get the proposed legislation through.

Sea Pollution

7.

To ask the Secretary of State for the Environment what recent discussions he has had with his European counterparts on reducing pollution of the sea; and if he will make a statement [10374]

My right hon. Friend led the debate in the fourth North sea conference which has agreed a strategy for preventing pollution in the North sea.

Given that this is the third anniversary of the Braer disaster, which showed how vulnerable to pollution our coastline is, will the Minister take further steps to control tanker traffic? Is he aware that the narrow sea route through the Minches daily carries three tankers through an area whose industries are very dependent on a clean environment, and which contains 100 sites of special scientific interest? An accident is waiting to happen. Will the Minister take steps now to prevent that accident?

That is a serious issue for the North sea coast. The hon. Gentleman will know that, following the Braer disaster, the Donaldson report produced 103 recommendations, many of which dealt with this very subject. The Government have accepted a large number of those recommendations, and my right hon. and hon. Friends at the Department of Transport will soon present proposals for their implementation.

The hon. Gentleman will be aware that particular problems are involved in the surveillance and enforcement of oil tankers' discharges and activities. Great care must be taken to protect our coast.

Will my hon. Friend give some support to the campaign mounted in the south-west by Surfers Against Sewage, an organisation which is anxious to improve the quality of sea water? Is he aware that Liberal-controlled Torbay borough council does not appear to be willing to reply to letters from Surfers Against Sewage, having originally campaigned on its behalf and encouraged it? Is that not another classic example of Liberal Democrat cynicism?

I am surprised by what my hon. Friend tells me about the Liberal Democrat-controlled council in Torbay, which would have been expected to take an interest in the subject. My hon. Friend will know that, more generally, there has been a big clean-up of our beaches, as there has been a clean-up of our rivers and other waters. Water quality is now improving in our rivers, as it is at the seaside.

Will the Minister be having discussions with his European counterparts with a view to offering their expertise to the Australian Government, who plan to monitor the seas in the area where the French nuclear tests took place and to measure the levels of radioactive pollution?

It is important for us to learn all the lessons that we can from international environmentalists. The hon. Gentleman will be interested in the judgments reached about this country by many such environmentalists, including David Bellamy, who says that our recent record suggests that we are now on the way to becoming the clean man of Europe.

I am sure that the hon. Gentleman will join me in welcoming the large reduction in the amounts of contaminated substances going into the North sea, such as lead, mercury and cadmium. That is a significant achievement.

Water Supply

8.

To ask the Secretary of State for the Environment if he will arrange to meet the chairmen of the water companies to discuss the quality and reliability of water supply. [10375]

I met leading figures in the water industry earlier this month to discuss how they are seeking to safeguard supplies in the summer in the case of a repetition of last year's weather. I press the importance of those matters on them at every opportunity.

How can the water companies possibly justify raking in more than £3,700 in profits every minute, while allowing more than half a million gallons of water to leak away every minute—largely because they have cut capital investment by £282 million since privatisation? Is it any wonder that, in the Strathclyde referendum, 97 per cent. of people voted against the quangoisation of Scottish Water, which they suspect is merely paving the way for the privatisation that has been an unmitigated disaster south of the border?

If privatisation is such a bad thing, why does the hon. Gentleman not ask the hon. Member for Holborn and St Pancras (Mr. Dobson), Labour's spokesman on water, why the National Union of Rail, Maritime and Transport Workers made such a sizeable investment in Thames Water? If the hon. Member for Holborn and St Pancras says that he does not know, it will be very surprising, because he is a sponsored member of the RMT. What is more, it appears that Thames Water dividends pay for his agent and pay his expenses. Here is another example of "say one thing and do another"; it is hypocrisy from Labour.

Does my right hon. Friend recognise that many of us in Yorkshire look for a much improved service from Yorkshire Water in the years ahead, and for sweeping boardroom changes in the company as the best way of achieving it? Is it not clear that, given the existing drought, but for privatisation and the substantial investment made with it, many of us in Yorkshire would have been on standpipes long since?

My hon. Friend is right. In 1976, when the weather was nothing like as extreme, more than 1 million people depended on standpipes or on rota cuts: in the recent weather, no one was so dependent. There are questions to be asked about Yorkshire Water, but it is now possible to ask them, whereas when it was nationalised there was no chance of gaining redress.

Is the Secretary of State aware that pre-payment meters such as Waterkey, which are being trialled in the poorest households, result in higher charges to the consumer and can and do lead to self-disconnection? Is he further aware that, by providing the means for self-disconnection, water companies' powers contradict local authorities' power to intervene in disconnections on behalf of the most vulnerable people? Will he raise that issue, and its consequences for the poor, when he next meets the people who have become very rich by selling water?

On no occasion when the hon. Lady or other Labour Members have raised these matters have I been unwilling to look into them, and I shall certainly do so, but I hope that she will respect me for displaying characteristic restraint, because I failed to mention the fact that the RMT also has shares in Cable and Wireless, British Gas and electricity companies. When she attacks such people, she is attacking the RMT, nearly 20 per cent. of whose investment is in privatised utilities.

If my right hon. Friend spoke to the chairman of Portsmouth Water Company he would hear that there has been no hosepipe ban since 1976, that it is top of the water quality league and that its water leakage level and water supply charges are the lowest in the country.

There has been no ban since the last Labour Government. Water companies in the privatised world are subject to tough controls. When the water industry was nationalised, there were no independent controls, so the consumer benefits enormously from privatisation, and the Labour party invests in privatised companies.

Regeneration Policies

9.

To ask the Secretary of State for the Environment if he will make a statement on his current regeneration policies. [10376]

Our regeneration policies will focus on the single regeneration budget, which will continue to be distributed on a competitive basis.

Does the Minister agree that the fact that only one in five bids are successful represents a huge waste in terms of expenditure on consultants' fees and working out schemes? If we could remove that beauty contest element from the policy, the money could be used to improve areas?

The hon. Gentleman is factually incorrect, because the success rate is about 50 per cent. If local authorities are not working out how to regenerate their areas, they are clearly deficient in one of their major functions.

Is my hon. Friend aware that there was great rejoicing in the North Lynn part of my constituency when it was announced that his Department was making available a large amount of single regeneration cash? Will that not make up for the jobs lost at Anglian Canners four years ago and lead to new jobs and welcome environmental improvements? Is it not a good example of the public and private sectors working together?

It is an excellent example and it illustrates one of the points made earlier: that these funds can be spent in regions that are not metropolitan, where considerable needs exist and where they secure considerable benefits. The bid succeeded because it qualified competitively. No one receives an award without qualifying competitively.

Fire Authority Budget

10.

To ask the Secretary of State for the Environment what representations he has received about the fire authority budget for 1997; and if he will make a statement. [10377]

My hon. Friend the Member for Croydon, Central (Sir P. Beresford), the Under-Secretary of State for the Environment, met a delegation from Tyne and Wear fire and civil defence authority on 10 January to hear representations about our proposals for the 1996–97 local government finance settlement.

Is the Minister aware that, as a result of the budget announced yesterday, Tyne and Wear fire authority faces the prospect of having to cut 92 fire-fighters and four appliances, but that we could avoid that if he would set the cap higher? Will he please bear that in mind when he determines the cap?

There is a set procedure if local or other authorities come to determination. The hon. Gentleman will be aware what that procedure is, and we shall of course pursue it scrupulously. There has been a 2 per cent. increase in Tyne and Wear's permitted budget—£500,000—to allow a catch-up because of the circumstances of last year's settlement. The hon. Gentleman will be aware of the local auditor's report, which suggests where certain savings could be made by the fire authority.

Butterfly And Moth Conservation

11.

To ask the Secretary of State for the Environment what representations he has received regarding new measures for butterfly and moth conservation. [10378]

I shall be glad to hear of the hon. Gentleman's support for the biodiversity action plan, which has been widely welcomed and is being copied by others. It contains, among other things, plans for butterfly and moth conservation.

Is the Minister aware that the priority species, the marsh fritillary, has declined by 62 per cent. in recent years, and that there are threats to four more of its habitats from opencast mining? Will he give an undertaking that the Government appreciate that the marsh fritillary and other butterflies are prime indicators of biodiversity, and will he give an assurance that the Government will protect that delicate and most beautiful living jewel of nature?

The marsh fritillary is one of the species that will benefit from a costed action plan under our biodiversity plans. Our plans will address the points made by the hon. Gentleman. I know that he takes a close personal interest in the subject, particularly in moths such as the dingy mocha. I am sure that all the matters to which he referred can be taken into account.

Will my hon. Friend commend to the House the campaign that has been waged on behalf of the Granville fritillary, a butterfly that is found only on the Isle of Wight? Does he agree that urgent action is necessary given the number of endangered Opposition Members with moth-eaten policies?

My hon. Friend is absolutely right. The Isle of Wight produces some remarkable species. Unfortunately, our action plans cannot deal with the problem of the endangered species on Labour's Front Bench—those who practice what they preach.

May I take it from the Minister's comments that the Government are to adopt the biodiversity action plan and implement its recommendations? They have not publicly said that they will.

Our response to the biodiversity action plan will be made very quickly, but the hon. Gentleman should know about the widespread acclaim that our plans have received and the important initiative that we have taken to promote biodiversity in this country and in the rest of the world.

Home Purchases (Right-To-Buy)

13.

To ask the Secretary of State for the Environment how many tenants bought their homes under the right-to-buy legislation in the last year for which figures are available. [10380]

Between October 1994 and September 1995, local authorities and new towns in England reported total sales under the right-to-buy legislation of almost 36,000 homes, while corresponding sales by housing associations totalled almost 700.

I thank my hon. Friend for that reply and congratulate the Government on the success and popularity of their right-to-buy policy. Is not it remarkable that, after all these years, we are still selling more than 100 houses a day?

The only thing on which I would disagree with my hon. Friend is that it is remarkable. Our policy matches the aspirations of the British public, which is why the Conservative party has been in power since 1979 and the Labour party has been in opposition.

Will the Minister confirm that, as an extension of the right-to-buy scheme, the Government introduced a rent-to-mortgage scheme in 1993? Will he also confirm that, by the end of 1995, only 13 houses had been sold under the rent-to-mortgage scheme, at a total cost in promotion of £140,000 of taxpayers' money? Is that not another example of the inefficiency and ineffectiveness of a failed Government and their failed policies?

I can certainly confirm that the hon. Gentleman is critical of every policy that we adopt to give ordinary people a chance to own their home. Over the years, many Labour councillors, and some Labour Members, have taken advantage of the right to buy. The carping attitude of the hon. Gentleman and others is a disgrace.

British Gas Pipeline (Scotland-Northern Ireland)

14.

To ask the Secretary of State for the Environment what conditions the Health and Safety Executive requires to be satisfied before agreeing to the commissioning of the British Gas pipeline between Scotland and Northern Ireland. [10381]

The Health and Safety Executive will need to be satisfied that Premier Transco Ltd. has properly assessed the risks to health and safety and fully meets the standards required.

But how was British Gas able to lay a pipeline along a route that the Ministry of Defence opposed? How did it have a prohibition notice lifted, in spite of the opposition of the Health and Safety Executive? What influence has British Gas in the corridors of power in Whitehall?

As the hon. Gentleman knows perfectly well, the route was moved in response to comments made about it. That is why it is north of where it was originally proposed.

Prime Minister

United Nations Secretary-General

Q1.

To ask the Prime Minister what discussions he had on the election of a successor to Dr Boutros Boutros-Ghali, Secretary-General of the United Nations, when he last met (a) President Chirac and (b) Chancellor Kohl. [10398]

In addition to a new Secretary-General, is there not a need for a deputy Secretary-General, as advocated by Sir David Hannay, to take charge of administration and finance, thereby allowing the new Secretary-General to re-examine most carefully such serious matters as Lockerbie and Libyan sanctions? At the very least, do we not need a public debate on those appointments and on reform of the United Nations?

I certainly agree about the need to reform the United Nations. I raised that at the last meeting of the G7, where there was general agreement about it. In terms of internal reform, I can see some justification for a deputy Secretary-General, and I can certainly see some for a proper reform of the United Nations. By reform, I mean not just a reform of procedures but the abolition of many United Nations bodies that no longer serve a useful purpose.

Engagements

Q2.

To ask the Prime Minister if he will list his official engagements for Tuesday 30 January. [10399]

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

Is my right hon. Friend aware that the vast majority of my constituents strongly support the Government's measures to give the Attorney-General power to appeal against unduly lenient sentences? Is not the fact that the Labour party voted against that yet another example of hypocrisy?

It is a matter of record that the Labour party voted against that measure, but it has voted against many other law-and-order measures over recent months, such as the right to silence. We increased the maximum penalty for cruelty to children from two years to 10—Labour opposed that. We increased the maximum penalty for carrying a gun in crime—Labour opposed us. The reality is that it may sometimes use tough words on crime, but when it comes to actions it is very soft.

Conservative Members should remember that under their party crime has doubled.

Does the Prime Minister share and understand the sense of anger of the British people at the behaviour of the privatised water companies? Given the figures released today showing that the cost of delivering water to customers has risen by almost £300 million and that although water companies' profits rose to a record level last year their investment fell, is not it high time that they were properly regulated in the public interest?

With reference to his earlier remarks, the right hon. Gentleman might also remember that under this Government crime is falling for the first time in 40 years. [Interruption.] Statistics show that quite clearly, across a whole range of crime, and that is something that no previous Government have been able to say.

When he refers to the privatised water industry, the right hon. Gentleman would do well to remember, too, that "Governments cannot run companies". [Interruption.] I am interested to hear that the Opposition disagree with that, because I was quoting the right hon. Member for Sedgefield (Mr. Blair).

Yes, but Governments can regulate those companies, and this Government are not regulating them. Will the Prime Minister confirm that over the past few years investment has been falling, that prices to customers have risen by more than 40 per cent., that 500,000 gallons of water are now being leaked every minute of every day and that customer complaints have doubled? Those are the facts about the water industry under this Government. Why do the Prime Minister, his Cabinet and his other colleagues defend each and every action of the water companies, rather than standing up for the customers who are being fleeced by them?

About £15 billion has been invested in the water industry since privatisation, £1 billion more than originally planned. That is because over several decades in the public sector there were not sufficient resources for investment in the water industry or in other public utilities. Of course, there is investment in them now, not least by the National Union of Rail, Maritime and Transport Workers as a shareholder. That union sponsors the deputy leader of the Labour party; it is one of the stakeholders in the Labour party, and also one of the shareholders in the water industry and in most of the other privatised industries. [Interruption.]

My right hon. Friend will have seen the lead stories in today's editions of the Financial Times and The Times. Will he confirm that universities are, in law, private bodies, that their financial relations with their students are a matter for them to determine and that the Government have no intention of nationalising the universities?

I certainly see no need for universities to introduce top-up fees. They certainly complain about how they have been treated by the Government. Between 1989–90 and 1994–95, university funding rose by 23 per cent. over and above inflation. I hope that the vice-chancellors will recall that when they consider their future policy.

How does the Prime Minister reconcile his claim last night that the Conservative party is the only party interested in law and order with the fact that although he promised at the general election to increase the number of police officers on the streets by 1,000, the latest figures show that the number has fallen by 1,000? Is that what he means by saying one thing and doing another?

I suggest that the right hon. Gentleman looks more carefully at what is happening in law and order. If he does he will see that right across the range, for the first time in 40 years, crime is falling. He will also see the resources there for an extra 5,000 police officers—

There is no point in the right hon. Gentleman's living in some Disneyland of his own and waving his hands about; those are the facts. It is the Conservative party that has toughened the law and order position time and again, and his party, and the Labour party, have been in the Opposition Lobby whenever we have sought to do that.

Will my right hon. Friend give the House a firm undertaking that he will not take advice on law and order from the party that would change the meaning of the Sunday joint?

Q3.

To ask the Prime Minister if he will list his official engagements for Tuesday 30 January. [10400]

To return to education, does the Prime Minister recall that his Government slashed school budgets by £500 million last year, causing great difficulty to school heads? Does he recognise that the Government have slashed the higher education budget by £300 million this year, causing great difficulty to vice-chancellors? Why should our institutions and their students suffer because of the Government's economic failure?

On the hon. Gentleman's last point, the Government's economic policy is exceeding in a more spectacular fashion than that of any other Government in western Europe. Spending per pupil in the mainstream sector has risen by about 50 per cent. over and above inflation since 1979.

The hon. Member for Sheffield, Brightside (Mr. Blunkett), Labour's education spokesman, is shouting from a sedentary position. It is a novel relief for him to do so, rather than be undermined by the Labour leader in every single thing that he says about education.

On higher education, the hon. Gentleman would do better to refer to his party's policy document, which says that
"Labour is looking to raise funds from individuals using"—
[Interruption.] I apologise for my cold, Madam Speaker, but the reference to Labour's policy document stands. It reveals that
"Labour is looking to raise funds from individuals using and directly benefiting from higher education."
That is Labour's own policy document—I hope that it will not deny that policy.

Q4.

To ask the Prime Minister if he will list his official engagements for Tuesday 30 January. [10401]

Will my right hon. Friend confirm that selective schools will remain a part of our education system? Did he hear the Leader of the Opposition yesterday ducking and diving on his party's schools policies?

Not only yesterday. I am not surprised that the right hon. Gentleman ducks and weaves. The hon. Member for Brightside says that he has no truck with middle-class, left-wing parents who preach one thing and do another. I cannot think who he might have had in mind. The hon. Gentleman tells us to watch his lips—there will be no more selection under a Labour Government. The party's education spokesman says one thing, while the leader says another. Labour is split on education from top to bottom.

Q5.

To ask the Prime Minister if he will list his official engagements for Tuesday 30 January. [10402]

How would the Prime Minister describe someone who, before the general election, promised not to extend the scope of VAT, but after the election extended VAT and imposed it on fuel at 8 per cent.? Would he describe that person as a hypocrite or a liar?

The hon. Gentleman should look at the economic performance that has been achieved under this Government. If he does so, I defy him to find any western economy that can match the current performance of this economy under this Government.

Has my right hon. Friend had time today to read of the four children aged 11 in Handsworth in Birmingham, who have been put through the fast-track education system and who have received the praise of the Leader of the Opposition? Is my right hon. Friend aware that all four have won places at a grammar school, and will he reassure the parents of those children that, under this Government, their grammar school places will be safe?

I can certainly offer my hon. Friend that assurance. He highlights yet again the shambles of the Opposition's policy. They say that they support grammar schools, but they oppose selection. They say that they support special treatment for pupils, but they oppose streaming. They say that they support parental choice for the shadow Cabinet, but for no one else.

Q6.

To ask the Prime Minister what plans he has to visit Saudi Arabia to discuss human rights. [10403]

Does not the Prime Minister think that it is time that the British Government put human rights before arms sales, sought an urgent meeting with the Saudi Government on the abuses of human rights there, explained why BBC broadcasts to Saudi Arabia have been censored and explained why the British Government, with their craven attitude towards that autocratic regime, are trying to deport Dr. al-Masari from this country?

We and our European partners regularly discuss human rights with the Saudi Arabian Government and with others. I seem to recall that the hon. Gentleman has a rather unusual version of human rights, because it was him who said:

"We assert the right of all people to follow their own conscientious beliefs even if it involves them in breaking the law."

Points Of Order

3.31 pm

Just a moment—I have a point of order from the hon. Member for Congleton (Mrs. Winterton).

On a point of order, Madam Speaker. I seek to raise an important point of principle and seek your advice and clarification. Is not it a breach of parliamentary privilege that matters decided upon by the courts, for example by an anonymity guaranteeing order, should be raised in the House by means of an early-day motion, thereby exploiting parliamentary privilege to undermine our courts?

I was asked early yesterday morning to consider the early-day motion to which I know the hon. Lady refers. I have considered it very carefully, and I am satisfied that it does not breach any existing rule of the House. Specifically, there is no rule of the House to prohibit reference to matters subject to injunction.

I have, however, made it clear on many occasions that all hon. Members must use the freedom of speech that we enjoy in the House, and the freedom of the notice paper, with the greatest care. I think that it might be appropriate for this issue, which has not been looked at by either the Privileges Committee or the Procedure Committee for about 10 years, now to be considered by the Procedure Committee and I am making a reference to that effect.

I have given a ruling. There is now no further point of order on that issue.

On a point of order, Madam Speaker. My point of order relates to the conventions and traditions of the House. I understand that my hon. Friend the Member for Hamilton (Mr. Robertson), the shadow Secretary of State for Scotland, will be replying for the Opposition on the water debate. I also understand that the Secretary of State for Scotland will not be here in the House, because he is in another part of the country. I wonder whether you could give us a ruling on that matter, Madam Speaker, because I understand that it has long been the tradition of the House that, when a shadow Secretary of State is speaking in a debate, the Secretary of State is normally the person who replies.

I have no authority whatever to determine which hon. Members, which Ministers, or which Secretaries of State attend the House. That is for hon. Members and their parties to determine. The Speaker of the House has no authority in those matters.

On a point of order, Madam Speaker. This might seem an odd request—

The next time that we have Environment Questions, could you remind the Secretary of State that he should address the House? I do not suppose that we Opposition Members missed much, but we could not hear what he was saying.

It is not such an odd request. Many Secretaries of State and Ministers tend to speak to the Member who has asked the question, which is not the way we proceed. All Ministers and all hon. Members speak to this House through the Speaker and they must refer to the Speaker the entire time. They must speak through the microphone at the Dispatch Box and not turn to any individual Member. To do so is a discourtesy to the Speaker and to the House and, moreover, the speech cannot be properly recorded by Hansard.

Delegated Legislation

Motion made, and Question put forthwith, pursuant to Standing Order No. 101(4) (Standing Committees on Delegated Legislation),

Merchant Shipping

That the Merchant Shipping (Port State Control) Regulations 1995 (S.I., 1995, No. 3128) be referred to a Standing Committee on Delegated Legislation.—[Mr. Brandreth.]

Question agreed to.

Access To The Countryside

3.35 pm

I beg to move,

That leave be given to bring in a Bill to amend the law of trespass and to enable members of the public to resort on foot to open country in England and Wales for their recreation; and for connected purposes.
The Bill's principal aim is to amend the law of trespass to enable members of the public to resort on foot to open country in England and Wales for their recreation.

There is a long parliamentary history of such legislation. The reforming Liberal Member of Parliament, James Bryce, introduced the first access Bill in 1884. Unfortunately, that Bill and many successors have been blocked or emasculated by landowning interests in Parliament. Despite that fact, the demand and need to protect and extend the freedom of the public to wander on foot over uncultivated land is greater than ever.

Walking is today's most popular leisure activity. This is a time of pressure and stress. People need space in which to walk, unwind and reflect. The Bill will benefit walkers throughout England and Wales, from the chalk downlands of Sussex to the Cheviot hills of Northumberland, from the Cumbrian mountains in Wales to the Sussex coastline. In the forest of Bowland in Lancashire, the Arran hills of Wales, parts of the Pennines and the Chiltern escarpment, local people have been pressing for many years for a right to roam over uncultivated land.

There and in other parts of the country, there has been a tradition of open access—a de facto right to roam. Those rights have gradually been eroded. The piecemeal disposal of Forestry Commission woodland has meant that in recent years the public have lost the right to roam over an area about the size of the Isle of Wight.

Some months ago, my family and I were asked to leave woodland called Cotgrave forest in Nottinghamshire. Those woods have been walked by local people for years. The sale of the woods by the Forestry Commission to landowners has put an end to that access. The Bill will tackle that.

Against that background, it is important to stake out the rights and responsibilities of both walkers and landowners. The Bill gives a right to roam in the remote places—mountain and moorland, commonland, woodland and beside rivers. It is not an unrestricted right to roam. Exclusions are to be granted to take into account shooting and conservation interests. I fully recognise that there are a wide variety of stakeholders in the countryside. The Bill attempts to balance those needs.

Rights and responsibilities are linked under the Bill. It sets out responsibilities and a new standard of behaviour for the public while walking on open country. The first schedule describes in detail the prescriptions and restrictions put on walkers. It includes, for example, control of animals, litter and fires. Walkers will be regarded as trespassers if they break the restrictions.

The Bill is not set in tablets of stone. I see it as a vehicle for debate about the way forward, as it is a subject that can be riddled with prejudice. These are hard issues, which need careful thought and analysis.

Consultation on the Bill will be wide and has, indeed, already started. Conservation groups have an interest in the Bill. Walkers, like conservationists, want to lift the landscape and enhance the environment. We need to protect animal, bird and plant life.

I am grateful for the time and interest that landowning organisations have already given to the Bill. Meetings have taken place with the Country Landowners Association and the National Farmers Union. While there is a commonality of interest and both organisations accept that there is a need for even greater access to the countryside, there are differences of view about how that should be achieved. I understand that the Country Landowners Association will produce its proposals on access later this year. I look forward to seeing them and I know that they will receive careful consideration and close scrutiny.

Suffice it to say that negotiated access—the voluntary approach—has failed to deliver substantial new access. I am pleased to report that both farmers and landowners have shown a willingness to take such discussions forward. They have reservations about the Bill and I acknowledge that it may be possible to refine and improve it. At this stage, the Bill should be regarded as the first step on a route to allow greater public access to open countryside. I hope that when it crosses its first stile today, it will be viewed as offering a signpost to the future.

I look forward to the day, perhaps under a different Government, when the Bill will become law. I believe that it is practical, reasonable and follows English legal precedent. It is practical in the sense that it provides draft legislation, which can be implemented on the ground. It is reasonable in that is not a utopian demand for everything that the access lobby would wish for in an ideal world.

Opponents of the Bill should accept it at face value and in good faith. To characterise it, as some have, as allowing unrestricted access reveals prejudice and vested interest. It is an attempt to address all countryside interests without causing substantial harm to any. It is a balancing act. Consultation will reveal whether that balance is right.

The Bill offers nothing alien. There is already a long-standing tradition of freedom to roam in Britain. Unfortunately, in many places it is under threat or has already disappeared. The Bill follows legal precedent. I praise the Ramblers Association and its legal advisers for all the hard work that they have put into drafting it. Wherever possible, it draws on existing legislation, principally the National Parks and Access to the Countryside Act 1949.

I am conscious that I have concentrated on the restrictions and exemptions in the Bill. That reflects my desire to reassure the many differing interests involved. However, in essence the Bill is about lifting restrictions. Its principle is freedom. It offers the prospect of substantial new access to the general public.

I was born in an industrial community in the West Riding, a place where "dark satanic mills" really existed. I can still recall the joy and exhilaration of walking, as a boy, over the tops of the Yorkshire dales. I truly felt that I had discovered England's "green and pleasant land" and, to a small extent, I felt that I shared Blake's vision.

Thirty years ago I was ordered off the moors in Yorkshire by gamekeepers even though I was on a public footpath. Yesterday I was in the hills and snow in the south Pennines between Sheffield and Manchester. There was barely a building in sight, but we were not allowed to walk on open moorland. Large signs that said "Keep out" and "No public access" made progress impossible. I want those signs confined to the dustbin of history. They should be museum pieces.

People are looking forward to the year 2000 and the next millennium—a time of renewal, of hope and, perhaps, of increased spirituality. The Access to the Countryside Bill draws on the old, traditional rights to roam and puts them into a new legislative framework. Its passage would indeed be the way to celebrate the next millennium.

3.44 pm

I rise to oppose the Bill.

The hon. Member for Sherwood (Mr. Tipping) by his speech, and the Bill prepared by the Ramblers Association by its text, have demonstrated how little the hon. Gentleman and his party understand the countryside and the needs of those who live, work and seek to enjoy recreation there. In pursuit of an aim that is widely shared among Conservative Members and among those outside the House, of greater access to the countryside—an aim, incidentally, on which we are making substantial progress, although the hon. Gentleman did not acknowledge that in his speech—he has produced a legislative dinosaur, a monstrosity that is flawed in five serious respects.

The Bill would give local authorities massive and totally unnecessary new powers. It would create a vast new bureaucracy with almost unlimited scope for disputes between parties and for delays in decision making. It emphasises the rights of the public without mentioning corresponding responsibilities. It threatens to criminalise innocent citizens who seek only to protect their property. It also damages the cause of conservation.

Significantly, those are the proposals not just of the hon. Member for Sherwood; he has the express endorsement of the Opposition Front Bench in the form of the hon. Member for Dewsbury (Mrs. Taylor), who was quoted yesterday as saying that she fully supports the Bill and hopes that it may lead to the passage of legislation. As the Bill's approach is based on old Labour's attitudes, it is surprising that it has slipped past the notice of the right hon. Member for Sedgefield (Mr. Blair), but perhaps his attention has been diverted elsewhere recently as he agonises whether to preach the education policy that he and the hon. Member for Peckham (Ms Harman) already practise.

The tragedy is that the Bill is totally unnecessary. The Government are already working towards greater public access. For example, in the past five years alone, land management schemes have produced agreement for managed access to more than 90,000 hectares of land. Under the countryside stewardship scheme, statutory bodies have made available another 13,000 hectares, and substantial progress has been made towards the target set in the 1990 environment White Paper to bring up to a good standard the 140,000 miles of rights of way and footpaths that already exist, much of which is under-utilised at present.

The target of improving access to the countryside was specifically re-endorsed in last October's White Paper, "Rural England". Against that background, I deeply regret that the hon. Gentleman has chosen to introduce the Bill now because, in so doing, he rejects the principle that better access to the countryside must be based on voluntary managed schemes. Overturning that principle, on which all recent advances have been made, is a recipe for dispute, delay, conflict and, ultimately, damage to the rural environment.

My first objection to the Bill is that it gives vast and completely unnecessary new powers to local authorities. Clause 6 places a duty on local authorities to secure access to any open country from the public highway if any person, regardless of whether he or she has local connections or not, considers that the existing access is somehow inadequate. Local authorities may require landowners to construct bridges, cut down ancient hedges or demolish stone walls, all at their own expense, to satisfy the whim of a council officer whose interest in the subject may have been aroused by a passing motorist or disgruntled neighbour. The mind boggles at the potential for local authorities hostile to local interests—as all too many, including the disgraceful Labour-Liberal Suffolk county council, now are—to intrude on private property and make mischief with valuable habitats and natural features.

My second objection to the Bill is that the extra bureaucracy involved and the inevitability of disputes about interpretation will cause countless problems. Clauses 2 and 3 purport to define what is and is not open country, but they raise more questions than they answer.

Years of argument will ensue before agreement is reached about specific areas of land. The onerous obligations placed on landowners—including, for that purpose, someone who may have only a quarter of an acre of rough grazing on the edge of a village—mean that there will be inevitable resistance to the designation of land as open country under the legislation.

The interminable delays already experienced when minor variations to existing footpaths are proposed, sometimes with universal local support, but objected to by some individual from a remote area, will be nothing compared with the delays that the Bill is likely to cause. The effect will be to halt, for a generation or longer, the steady current progress towards more access.

My third objection to the Bill concerns two new criminal offences that it creates; the first is obstructing access to open country, and the second is erecting notices that might deter the public from entering open country. Criminalising in that way landowners who may merely be innocently seeking to protect their property, or to keep people away from hazardous areas, may appeal to the hon. Member for Sherwood and his allies, but it is utterly irrelevant and deeply inimical to the needs of the countryside. Rural dwellers in Suffolk and other similar areas want help in protecting their property, not threats that may put them on the wrong side of the law.

My fourth objection to the Bill is that it imposes all those obligations on landowners, but—apart from references that the hon. Member for Sherwood made to not dropping litter or starting fires—it makes no mention of any corresponding duties on members of the public. That may well be what Labour means by a stakeholder society, and it reflects old Labour's tendency to emphasise rights while overlooking responsibilities, but the Bill even fails to acknowledge that the countryside is used for other recreations apart from walking. Activities such as riding or bird watching are legitimate uses of the countryside, but they may sometimes come into conflict with unrestricted walking.

To curtail the right to roam over a specific piece of land, an application to the local authority would be required under the Bill. The Bill would thus involve, for example, a Riding for the Disabled group going on bended knee to a council lackey for permission to use rough grazing land made available for that purpose free of charge by the landowner. Similarly, a small tenant farmer hoping to enjoy a day's shooting with a few neighbours would have to apply to the local authority each time he wished to do so.

My final objection to the Bill is that nothing in it promotes the cause of conservation. Indeed, the strong probability is that conflicts will arise as the unrestricted right to roam affects areas that have hitherto enjoyed considerable protection and undisturbed peace. Even English Nature, the statutory body entrusted with great responsibilities by the House, will have to apply to the local council for land to be accepted for the right to roam, and such applications can be granted only temporarily and may subsequently be overruled at the whim of the local council.

Time does not permit a fuller explanation of the many other reasons for resisting the Bill. In conclusion, I return to the central issue of principle.

Good progress is currently being made towards improving access for everyone so that they may enjoy more of our countryside. That progress is achieved voluntarily, by agreement between the parties concerned, and generally involves landowners and others in the continuing management roles.

The Bill would bring all that progress to an immediate halt. Its consequences for everyone interested in the future of the countryside would be disastrous, and I urge the House to reject it by a huge majority.

Question put, pursuant to Standing Order No. 19 (Motions for leave to bring in Bills and nomination of Select Committees at commencement of public business):—

The House divided: Ayes 144, Noes 60.

Division No. 38]

[3.53 pm

AYES

Ainger, NickCann, Jamie
Ainsworth, Robert (Cov'try NE)Chisholm, Malcolm
Alexander, RichardClapham, Michael
Anderson, Ms Janet (Ros'dale)Clwyd, Mrs Ann
Armstrong, HilaryCoffey, Ann
Austin-Walker, JohnCohen, Harry
Banks, Tony (Newham NW)Corbett, Robin
Barnes, HarryCorbyn, Jeremy
Battle, JohnCousins, Jim
Bayley, HughCox, Tom
Bennett, Andrew FCummings, John
Benton, JoeCunliffe, Lawrence
Blair, Rt Hon TonyCunningham, Jim (Covy SE)
Bray, Dr JeremyDalyell, Tam
Brown, N (N'c'tle upon Tyne E)Davies, Chris (L'Boro & S'worth)
Burden, RichardDavies, Ron (Caerphilly)
Byers, StephenDenham, John
Callaghan, JimDewar, Donald
Campbell, Mrs Anne (C'bridge)Dixon, Don
Campbell, Ronnie (Blyth V)Dobson, Frank
Campbell-Savours, D NDonohoe, Brian H
Canavan, DennisDowd, Jim

Eagle, Ms AngelaMartlew, Eric
Eastham, KenMichael, Alun
Etherington, BillMichie, Bill (Sheffield Heeley)
Evans, John (St Helens N)Morley, Elliot
Faulds, AndrewMullin, Chris
Foulkes, GeorgeMurphy, Paul
Fyfe, MariaOakes, Rt Hon Gordon
Gapes, MikeO'Brien, William (Normanton)
Garrett, JohnO'Hara, Edward
Gerrard, NeilOlner, Bill
Godman, Dr Norman AOrme, Rt Hon Stanley
Golding, Mrs LlinPickthall, Colin
Griffiths, Win (Bridgend)Pike, Peter L
Grocott, BrucePope, Greg
Gunnell, JohnPowell, Ray (Ogmore)
Hanson, DavidPrentice, Bridget (Lew'm E)
Hardy, PeterPrentice, Gordon (Pendle)
Heppell, JohnQuin, Ms Joyce
Hill, Keith (Streatham)Radice, Giles
Hinchliffe, DavidRaynsford, Nick
Hodge, MargaretRobertson, George (Hamilton)
Home Robertson, JohnRobinson, Geoffrey (Co'try NW)
Hood, JimmyRoche, Mrs Barbara
Howarth, George (Knowsley North)Rogers, Allan
Howells, Dr Kim (Pontypridd)Rooker, Jeff
Hoyle DougRowlands, Ted
Hughes, Robert (Aberdeen N)Ruddock, Joan
Hughes, Roy (Newport E)Sheerman Barry
Illsley, EricSheldon, Rt Hon Robert
Ingram, AdamSimpson, Alan
Jackson, Glenda (H'stead)Skinner Dennis
Jackson, Helen (Shef'ld, H)Smith, Llew (Blaenau Gwent)
Janner, GrevilleSpearing, Nigel
Jones, Barry (Alyn and D'side)Spellar, John
Jones, Jon Owen (Cardiff C)Steinberg, Gerry
Jones, Lynne (B'ham S O)Strang, Dr. Gavin
Jowell, TessaStraw, Jack
Kaufman, Rt Hon GeraldTaylor, Mrs Ann (Dewsbury)
Khabra, Piara SThompson, Jack (Wansbeck)
Kilfoyle, PeterTimms, Stephen
Lloyd, Tony (Stretford)Tipping, Paddy
Lynne, Ms LizWalley, Joan
McAllion, JohnWareing, Robert N
McAvoy, ThomasWelsh, Andrew
Mackinlay, AndrewWilson, Brian
MacShane, DenisWise, Audrey
Mahon, AliceWray, Jimmy
Marek, Dr JohnWright, Dr Tony
Marshall, David (Shettleston)

Tellers for the Ayes:

Marshall, Jim (Leicester, S)

Ms Rachel Squire and

Martin, Michael J (Springburn)

Mr. Mike Hall.

NOES

Aitken, Rt Hon JonathanHamilton, Rt Hon Sir Archibald
Allason, Rupert (Torbay)Hamilton, Neil (Tatton)
Arnold, Jacques (Gravesham)Harris, David
Atkins, Rt Hon RobertHawksley, Warren
Banks, Robert (Harrogate)Hayes, Jerry
Beggs, RoyHowell, Sir Ralph (N Norfolk)
Bottomley, Peter (Eltham)Hughes, Robert G (Harrow W)
Brown, M (Brigg & Cl'thorpes)Jessel, Toby
Budgen, NicholasKellett-Bowman, Dame Elaine
Butterfill, JohnKing, Rt Hon Tom
Carrington, MatthewLawrence, Sir Ivan
Chapman, Sir SydneyMcCrea, The Reverend William
Cope, Rt Hon Sir JohnMaginnis, Ken
Davies, Quentin (Stamford)Maitland, Lady Olga
Dover, DenMills, Iain
Durant, Sir AnthonyMoate, Sir Roger
Emery, Rt Hon Sir PeterMonro, Rt Hon Sir Hector
Fowler, Rt Hon Sir NormanNeubert, Sir Michael
Fox, Sir Marcus (Shipley)Nicholls, Patrick
Gill, ChristopherNicholson, David (Taunton)
Grant, Sir A (SW Cambs)Onslow, Rt Hon Sir Cranley
Greenway, Harry (Ealing N)Powell, William (Corby)

Shaw, David (Dover)Thompson, Patrick (Norwich N)
Shaw, Sir Giles (Pudsey)Townsend, Cyril D (Bexl'yh'th)
Shepherd, Sir Colin (Hereford)Wardle, Charles (Bexhill)
Sims, RogerWiggin, Sir Jerry
Smyth, The Reverend MartinWinterton, Nicholas (Macc'f'ld)
Spicer, Sir Michael (S Worcs)Yeo, Tim
Spring, Richard
Stephen, Michael

Tellers for the Noes:

Thomason, Roy

Mr. John Greenway and

Thompson, Sir Donald (C'er V)

Sir Kenneth Carlisle.

Question accordingly agreed to.

Bill ordered to be brought in by Mr. Paddy Tipping, Mr. John Battle, Mr. Andrew F. Bennett, Ms Ann Coffey, Mrs. Helen Jackson, Mrs. Jane Kennedy, Mr. Gordon Prentice, Mr. Stephen Timms and Ms Joan Walley.

Access To The Countryside

Mr. Paddy Tipping accordingly presented a Bill to amend the law of trespass and to enable members of the public to resort on foot to open country in England and Wales for their recreation; and for connected purposes: And the same was read the First time; and ordered to be read a Second time upon Friday 8 March and to be printed. [Bill 49.]

Opposition Day

[3RD ALLOTTED DAY]

Privatised Water Companies

I have selected the amendment standing in the name of the Prime Minister.

4.5 pm

I beg to move,

That this House notes the deplorable record of the privatised water companies in England and Wales who have been allowed to use their monopoly position to drive up prices, profits and the pay and perks of directors while reducing investment, wasting water and harming the environment; and calls upon the Government not to proceed with setting up water agencies in Scotland which are clearly precursors of the same things happening in Scotland and to abandon its secret agenda to force metering on every household.
Every week, 721 million gallons of water leak from the pipes owned and operated by Yorkshire Water, yet Yorkshire Water has been spending just £211,000 a week to identify and mend these leaks. Recently Yorkshire Water has been forced to spend about £3 million a week tankering water into West Yorkshire to make up for the water that is leaking away. It is spending 14 times as much on tankering as it is on stopping leaks. Nothing could better illustrate the wasteful short termism of Yorkshire Water. It is having to cough up £3 million a week for tankering because it did not spend enough on plugging leaks and did not have the forethought to prepare for the crisis that occurred in West Yorkshire last summer, which still continues.

It is not only in Yorkshire that the bosses of the privatised water monopolies have been mismanaging the country's water supplies and ripping off the public for the benefit of their shareholders and themselves. It has been happening everywhere. We could not expect anything better. Water privatisation has been a rip-off from start to finish.

Let us consider the basic facts. For a start, the Government gave the industry away to its new owners. When the Government sold the shares they obtained £5.2 billion for the taxpayer. But they gave the new owners much more than that in exchange. The new owners were given a debt write-off worth £5 billion and a green dowry worth £1.5 billion. In exchange for the £5.2 billion that they paid in, they received £6.5 billion of taxpayers' money plus the capital assets of the industry, a highly skilled and dedicated work force and a guaranteed income stream from being monopoly suppliers of water, something which none of their customers can do without.

What has happened since then? Prices have increased. The main reason for that has been charging customers more so that more and more can be paid out to shareholders. The average delivered cost of water—

I shall give way to the hon. Gentleman provided that he asks a sensible question. If he does not, I shall not give way again.

I wish to ask the hon. Gentleman a simple question. Does he expect that the charges for water will be less under a Labour Government?

In real terms, yes.

The average delivered cost of water is made up of three factors: first, the cost of operations; secondly, the cost of capital maintenance; and, thirdly, the return on capital. The average delivered cost to customers of a cubic metre of water has risen by 14 per cent. from 55p to 62.8p in the past three years. That is not the result of massive increases in the cost of operations, which has increased by only 3.8 per cent. Nor is it the result of capital maintenance costs, which have increased by 8.3 per cent. The massive change is because the return on capital has shot up by 32 per cent. In other words, customers are paying extra because more of their money is being siphoned off to the shareholders.

That disgraceful situation does not seem to have been noticed by the regulator or the Government. If they have noticed, they must approve of it, because they have done nothing about it. But, of course, that is true about practically everything else to do with the water industry. The water companies have been allowed to get away with practically anything. Just look at the profits. The profits of the 10 privatised water companies have shot up to almost £2 billion a year. Average dividends to shareholders have shot up by no less than 55 per cent. There are some even more startling individual performances and pay-outs. Northumbrian Water's profits have almost doubled. They have increased by 91 per cent. No wonder it was targeted by the French, who wanted to buy it.

Just as startling is South West Water, where profits have fallen but dividends have shot up by 41 per cent.

How lucky for the shareholders that South West Water is not on performance-related pay-outs.

In view of Yorkshire Water's appalling performance, not just now but over several years, its customers will find it hard to stomach the 60 per cent. increase in dividend that it paid out.

I shall not give way to the hon. Gentleman.

Then, of course, there is the massive increase in pay and perks that water company directors have paid themselves. The best paid boss in each water company is now paid more than three times as much as when the companies were owned by the public. A really breathtaking example of boardroom greed is that of Thames Water. Before privatisation, the chief executive was paid £41,000 a year. The present chief executive, Mr. Mike Hoffman, is paid £371,000 a year—a cool 806 per cent. increase.

If it is such a terrible thing, why does the union that sponsors the hon. Gentleman have a large shareholding in Thames Water, take the profits and use it to pay for the hon. Gentleman's research and his agent?

Will the right hon. Gentleman withdraw half of what he said? [Laughter.] I am in favour of accuracy when these accusations are being thrown around. The RMT, I am glad to say, pays part of the costs of my agent. The RMT makes no contribution to anyone doing research in my office, and I now expect the Secretary of State to get up and withdraw that allegation.

I am happy to withdraw the second part if the hon. Gentleman will answer the main claim—that the RMT has money in a former nationalised industry called Thames Water, which, the hon. Gentleman said, was ripping off the public for the benefit of its shareholders. Its shareholders in this case are the RMT, which sponsors the hon. Gentleman. He says one thing and does another. It is hypocrisy again.

I expect the RMT—and I say this without consulting anybody—if it is a direct shareholder to make representations at the next annual meeting to reduce the dividends and to reduce the pay of this overpaid chief executive, because that is what it should do.

I shall give way to Donald in a minute, because he is a sensible person, but when we get to Yorkshire Water.

At North West Water, the chairman's pay shot up by 667 per cent. from £47,000 to £360,000, although the present chairman is always quick to point out that he is not the same man. He certainly would not have turned out for just £47,000 a year.

If North. West Water is as bad as that, why does Labour-controlled Derbyshire county council have very large shareholdings in North West Water? Why does it also have very large shareholdings in South West Water, which is nowhere near Derbyshire?

I simply do not know the details of the case [Interruption.] Whatever the Secretary of State may do, for example flinging false accusations against me, I do not try to comment on matters about which I do not know the detail. What is fairly likely—although I do not know—is that Derbyshire county council has a pension scheme for its staff and its pensions advisers say, "You get a lot of money if you invest in these things," and that is what they have done.

Let us be quite clear about the position. Four things have shot up since privatisation: profits, dividends for shareholders, bosses' pay and bosses' perks. All those increases have been paid for by another increase—the rise in water prices that customers have been forced to pay. Last year, the water industry made the highest profits since privatisation, while investment fell to its lowest level since privatisation.

The Government claimed that investment had gone up, and it did at first, but it has fallen by 10 per cent. since 1990–91. That, of course, is the average; over that period, North West Water cut investment by 19 per cent., Thames Water by 29 per cent. and Northumbrian Water by 30 per cent. Almost inevitably, Yorkshire Water out-performed the rest, cutting its investment by 34 per cent. That is indefensible behaviour, but it is worse than that: it is a fraud on the customers.

Order. The hon. Gentleman has now addressed the hon. Member for Calder Valley (Sir D. Thompson) as "Donald" on two occasions.

I accept the hon. Gentleman's apology. I am sure that he will see that it does not happen again.

I will indeed, Madam Speaker.

As I was saying, that cutting of investment is a fraud on the customers. Part of the price formula agreed by the regulator allowed the companies to charge customers more to fund investment in maintaining the system. Needless to say, they have been allowed to charge the customers, but have not got round to spending all the takings. Anyone else who did that would be open to the charge of obtaining money by false pretences, but the regulator and the Government do not seem to mind, so the companies have got away with it.

I will now give way to the hon. Member for Calder Valley (Sir D. Thompson).

The hon. Gentleman is on a good point, and I thank him for his courtesy in giving way. He and I share a photocopying machine. As I passed it this afternoon, I saw a huge wodge of Labour water documents. Who will be paying for those? Will the hon. Gentleman be sending money to the Serjeant at Arms, or will he be writing to you, Madam Speaker, with an apology? We all use photocopiers for one or two documents, but, as the hon. Gentleman is highlighting the problem of fraud, may I ask who will pay for that huge wodge?

I must tell the hon. Gentleman—if it is appropriate to say this to a former butcher—that what is sauce for the goose is sauce for the gander.

On a point of order, Madam Speaker. I am a butcher, but the hon. Gentleman has the tripe. [Laughter.]

I see that that was enjoyed by Opposition Front Benchers, but it was not a point of order.

It was funnier than most points of order, I must admit.

The Government also claim that the water industry is paying a lot of tax. That is not true either. The total mainstream corporation tax paid in the five years since privatisation is just £106 million; over the same period, the companies have made profits of more than £7,838 million. That is a tax rate of 1.3 per cent. The companies have paid another £580 million in advance corporation tax, but that can be set off against their future liabilities.

The cumulative effect is that the water companies are rolling in money. One sure sign of that is the takeovers, and the rumours of takeovers. The cash in the coffers of the water companies makes them both potential predators and potential victims. They are rolling in money, so they are worth taking over; alternatively, they are rolling in money and so can afford to mount a takeover.

Northumbrian Water fell into the first category. It was worth so much, both in terms of assets and as an "income stream", that Lyonnaise des Eaux took it over to combine it with North East Water, which it already owned. So what is happening now? More than 3,000 hard-working staff from two companies face losing their jobs, while the boss of Northumbrian Water receives a payoff in excess of £1 million.

Then there is North West Water. That is the company that managed to spend millions of pounds on a computerised billing system that did not work. It is the company that leaks most water—158 million gallons every day. It is the company that can only manage to find £8 million, spread over five years, to combat those leaks. Yet North West Water was so swilling in money that it could find no less than £1.7 billion to buy up Norweb. It has tried to tell me that none of that money comes from its water customer, but if you believe that you will believe anything. North West Water has water company assets, including real estate, that it got for nothing after privatisation, together with the guaranteed monopoly income stream from its water customers. Without that capital and guaranteed income behind it, every penny of which was paid for by people and businesses in the north-west, it would not have been able to afford the takeover.

One of the ways in which companies have saved money has been to get rid of staff, and it shows in the constituency of the hon. Member for Calder Valley, the tripe merchant. Some of Yorkshire's problems were caused by reservoirs silting up and the channels that feed the reservoirs getting blocked because the company had got rid of the maintenance staff who used to clean them out. After the freeze and the thaw in the north-east, water companies there could not respond quickly enough because they too had reduced staff numbers in the name of efficiency.

Talking of North West Water brings me back to the matter of leaks. As the National Rivers Authority stated:
"Leakage is an area where in expertise the UK is without doubt a world leader".
How true. No one is more expert than North West Water and Yorkshire Water, which waste about one third of their whole supply. Wessex Water, South West Water, Severn Trent and Thames Water lose one quarter of theirs.

No, not Anglian Water.

All that water has been collected and purified, ready for use by domestic customers and industry, so customers have paid for all that process—they are just not getting the water.

For a long time, the Government told the House that customers wasted more water than the companies. The only possible explanation for that was ignorance or lying. On average, companies are responsible for 78 per cent. of all the water that is leaked—on average, customers leak 22 per cent. If people are looking for a water waster, they need look no further than the nearest water company. Yorkshire Water, almost inevitably, is the worst, wasting 87 per cent. of its water supply, while careful Yorkshire customers lose only 13 per cent. Either Ministers did not know or they tried to mislead the House and the public. We are entitled to know why from the Secretary of State, especially as Conservative Ministers have mocked both myself and several of my parliamentary colleagues when we have said, truthfully, that it was companies that wasted most water.

That suited the Government's secret policy agenda, which they share with the regulator. They want to push for everyone to have a meter. Apparently, again, either they do not know or do not want to know that it would cost between £4 billion and £5 billion to install meters in every home, and an extra £500 million a year to run the new billing system. Apparently, they do not care about the consequences of forcing meters on poor families and pensioners, and they cannot say that they know about that because it has never been studied, not even in the pilot scheme on the Isle of Wight. They are just obsessed with the idea of introducing metering.

The Government always try to blame customers. They gave the industry, when it was privatised, a code of practice for leaks. It refers only to customers' leaks. In the last Environment Bill, they slipped through a late amendment to require water companies to promote the efficient use of water, but not by the companies, only by their customers. It is all part of the push for compulsory metering.

I thought I heard the hon. Gentleman say a minute ago that Yorkshire Water had reported that 87 per cent. of its water was wasted due to leakage. I do not believe I heard the right figure. Would he like to rephrase what he said? Secondly, he must understand that a number of water companies, such as the York Waterworks company in my constituency, have been private companies for many years. It has been a private company for 150 years and it has an excellent record to report.

There are two points there. First, I think that the hon. Gentleman must have misheard me. I said that, of the water that is leaked in the Yorkshire Water region, 87 per cent. is leaked by the water company's pipes. As he would expect in Yorkshire, only 13 per cent. is leaked by folks who are rather careful and do not want leaks on their premises. Secondly, he is right: there are statutory water companies. They have existed for more than a century and they have provided a good service, generally speaking. They have proved to be infinitely more efficient at their jobs than were the privatised water companies, and, I must say, they pay their directors a hell of a lot less than do the privatised companies. Last summer, we revealed—for the first time in figures that people can understand—the scale of the leakage. The water companies leaked 826 million gallons a day, or 500,000 gallons a minute. We called for action to cut the leaks and to protect customers from the drought, but the industry's response was a statement by the Water Services Association which said:

"Frank Dobson is not treating customers seriously—customers want the facts."
The trouble for the water companies was that, for the first time, customers were getting the facts, and they did not like them.

The water industry and the Government then issued a briefing, off the record, to the effect that the industry was investing £4 billion to deal with leaks. That was simply not true, so we put out more facts which showed what the companies were really spending on leaks. They were based on figures that we received from each company apart from Southern Water and South West Water, which either could not or would not tell us. The total amount spent in England was £86 million, which is rather a long way short of the £4,000 million that the Government had originally claimed.

At that point, the Secretary of State organised a photo-opportunity, said that he was very impressed by what the water companies had done and told us all to stop moaning and say what wonderful weather we were having. After an interval that the Daily Mail described as
"10 Days that shook John Selwyn Gummer",
the Secretary of State published a document that acknowledged the need to conserve water. As usual, however, he put the onus on the customers. A week later, he boldly stated that he might have to take action, but that he could not make up his mind until he had seen the National Rivers Authority report.

Two months later, the NRA published its report. It vindicated our campaign and said that cutting company leaks was twice as useful as installing meters, and that the water regulator was not doing enough to require the companies to reduce their own leaks. Soon afterwards, even the water companies admitted that leakage levels were unsatisfactory, but said that they would set their own targets for reducing the leaks. The hapless Secretary of State agreed and said that he would not set mandatory targets. On the instructions of the Tory chairman, he still did not dare criticise the companies because that would be to admit that the Tory sacred cow of water privatisation was suffering from its own version of mad cow disease.

Everyone now realises that the water companies are letting people down. Customers and businesses realise that they have been let down. The NRA has criticised them and, though a little late in the day, so has the water regulator.

I am sure that the hon. Gentleman wants to paint a fair picture of the industry. If so, is he aware that, as well as improving water quality by 34 per cent., Anglian Water has in the past five years spent no less than £1.715 billion on improving water and sewage services? That is why customers in the Anglian Water area are receiving a much better deal, a fact with which I am sure the hon. Gentleman would agree.

It has to be said that the average bill for people in the Anglian Water area is considerably more than that for other people. However, in fairness to Anglian Water, customers receive a fair bit in return. My only objection to Anglian Water is that it is absolutely obsessed with the idea of water metering and wants everyone forced on to a meter.

The chairman of Yorkshire Water has decided that he is giving up; the chief executive of South West Water has decided to give up; and the boss of Wessex Water, after his rather harrowing year as chairman of the Water Services Association, has taken his company out of that association because he no longer wants to be tarnished and tormented by the scandalous record of most of the other companies, in particular North West Water and Yorkshire Water. The boss of Northumbrian Water has, of course, disappeared altogether—which brings me back to Yorkshire Water.

Yorkshire Water's record on leaks is the worst in the country, as is its record on practically everything else. Even before this year, it had 69,000 unplanned interruptions of supply compared with the next highest number of interruptions, which was the 32,000 imposed by Thames Water. However, those figures do not give the full flavour of Yorkshire Water's gross incompetence. It has shown that it is simply not up to the job. The people of Yorkshire know that, and so do the businesses in Yorkshire. I suspect that the bosses of Yorkshire Water know that it is not up to the job, hence the premature but unlamented departure of Gordon Jones, the chairman.

Yorkshire Water has been seeking drought orders to give it the right to abstract more water and cut off supplies to customers. After the most recent inquiry, the Government inspector said:
"I listened to many experienced and qualified people on the likely effects of confirming this…order. These embrace such topics as health, emergency services, education, tourism and leisure, the implementation and operation of the Order, the effect on individuals, and particularly vulnerable members of society, and the implications for other primary legislation. One thing became clear. No-one felt able to predict with confidence or even appreciate the extent of the damage to the fabric of life and society if rota cuts were imposed. That public health would be threatened, education lost, employment opportunities denied, the vulnerable and public placed at increased risk and emergency services unable to fill their obligations were not matters of particular dispute."
Everybody present accepted that
"the lack of quantities of potable water for even those uses such as hospitals, together with the individual needs of dialysis patients adds to the concern."
The Government inspector criticised Yorkshire Water not only for not knowing the answers to those questions, but for not having even addressed them before they were raised at the inquiry by the other people making representations. Having received the report, he eventually sent a letter to the Secretary of State on the matter. Despite that, the Secretary of State—ever complacent—has decided that because the drought order applications have been withdrawn for the winter,
"it would serve no useful purpose to go further into these questions."
The only person who does not seem to realise that Yorkshire Water is not up to the job is the Secretary of State. At the outset, he praised the company, saying that it was deploying its expertise in China and north America—not a popular line in my native county. Yorkshire people seem to think that to live up to its name, Yorkshire Water must first and foremost deploy its expertise in ensuring that Yorkshire people get the water that they need and have paid for.

May I advise my hon. Friend that there are still restrictions on the use of water in my constituency and the Yorkshire area even though the orders have been withdrawn? Those restrictions apply to all water users in certain areas, regardless of whether they have meters or not. So there is no advantage in this case of water metering.

I certainly take note of that. In recent times anyway, the supply of water to people in Yorkshire has been restricted more often that it has not been restricted.

Before my hon. Friend leaves the point about the Secretary of State's complacency, may I ask him whether he is aware that the reservoirs supplying the Calder valley, Halifax and Kirklees are only one third full, even though they should be up to about 80 per cent. full at this time of year? Is he also aware that the £100 million that Yorkshire Water is belatedly going to spend on pipes is no long-term solution? We could be faced with exactly the same problem next summer. Nothing has changed, yet the Secretary of State does not seem to realise it.

My hon. Friend, who together with my hon. Friend the Member for Sheffield, Hillsborough (Mrs. Jackson) has campaigned a great deal on this issue to the great benefit of the people of Yorkshire, makes exactly the point that I was about to make. Before I do so, I return to the question of Yorkshire folks and money. They want the services that they have paid for. They would like all that water that has been cleaned and shifted around the county and that is leaking away, and they would like it without having to pay anything extra for it.

The other thing that Yorkshire people do not like is seeing the money that they have paid for water being invested abroad, or in shopping malls in Leeds or refuse tips in Doncaster. They think that the money they pay should be spent on ensuring that Yorkshire people get water. That may be a rather old-fashioned point of view, but I certainly share it.

I warn the Secretary of State today that Yorkshire Water's problems seem far from over. There are still restrictions and, as my hon. Friend the Member for Halifax (Mrs. Mahon) has said, the reservoirs in Halifax and Bradford should be almost full at this time of year. At the moment some contain less than 30 per cent. of their full capacity. Next summer there could be even more serious trouble than last year, unless Yorkshire Water is forced to act. Clearly it will not take adequate action voluntarily.

In view of what has been happening in Yorkshire, my right hon. Friend and hon. Friends from Scotland are right to try to resist water privatisation there. In England and Wales we need a new system, with a water industry regulated effectively in the interests both of customers and of the environment. But we shall not get that until there is a Labour Government.

4.34 pm

I beg to move, to leave out from "House" to the end of the Question and to add instead thereof:

"welcomes the higher water quality, the improved standards of service to consumers, the increased availability of information and the increased exports which have been achieved as a result of substantially higher levels of investment and the removal from political control of the water industry through privatisation in England and Wales; looks forward to improved services in Scotland from the new public water authorities; and contrasts this with the arbitrary cuts from the investment plans of the nationalised water companies by the last Labour Government, including the six month moratorium on the letting of new construction contracts.".
We have now heard a great deal about Yorkshire Water, so it would be helpful to make some comparisons. We could look back to how the water industry was run before privatisation, and compare that with what happened afterwards.

Before privatisation, the water industry was starved of capital. It invested less than half the sum now being invested. When the hon. Member for Holborn and St. Pancras (Mr. Dobson) talks about leakage in Yorkshire, he is talking about pipes and infrastructure that Yorkshire Water inherited from the many years when the water industry was starved of capital. That happened not after privatisation but before, especially when there was a Labour Government.

When Mr. Healey had to turn round in his taxi and come back because Britain was in such a mess, what did he do? He cut the already ludicrously low investment in the water industry so much that there had to be a six-month moratorium, during which nothing was spent on water infrastructure. That is the story of water in the public sector.

My right hon. Friend will recall that for a time I was the Minister responsible for water in Northern Ireland, where water is still in state ownership. One of the problems that confronted me was exactly the one that my right hon. Friend mentioned. During the 1970s there had been a moratorium on investment for some time. As a result, great sums needed to be invested, and if water was not to be privatised in Northern Ireland, because some concern had been expressed there, that money had to be found from somewhere by the taxpayer. The difference is that the privatised water companies can invest private sector money, whereas in Scotland and Northern Ireland the money still comes from the taxpayer.

My right hon. Friend is right. One must consider exactly what the sums would be. As the water companies are investing twice as much as before privatisation, if a Labour Government were to find that money somewhere else they would have to find £1.5 billion. Would it come from the schools programme, or from some other aspect of government?

The Labour party must decide what it really means. If it wants investment, that can come only from the private sector; otherwise the money would have to be taken from other areas, and if Labour were in power it would find that impossible. The first question that we must ask the Labour party is: if it were in government, would it renationalise the water industry? I notice that the hon. Member for Holborn and St. Pancras did not answer that question. He has not been able to say, "Yes, we would renationalise" or "No, we would not renationalise."

Since I took over this job I have said on innumerable occasions that, like most people in this country, I would rather like to take the water industry back into public ownership, but that the money to buy it back is not there, so we need a properly regulated system.

While I am on my feet, I shall ask the Secretary of State a question, if I may. May I remind him that it was not the Labour party that nationalised the water industry in the first place? It was owned and operated successfully by our big cities and towns. The Tory party nationalised water in 1973—and the Secretary of State voted for that.

I have talked to my right hon. and noble Friend Lord Howell—then Denis Howell—about what happened next, and he tells me that he went to the Treasury—

Order. I am sorry to interrupt the hon. Gentleman, but I would have stopped him by now if he were a Back Bencher as his intervention has been too long. What is good enough for Back Benchers should be good enough for Front Benchers.

We now know where we are. The water industry would not be nationalised under Labour, but it would be regulated in such a way as it to make it unable to raise the investment necessary to do the job. The hon. Gentleman says that he would politicise the water industry so that it would be under the control of a Labour Government, but what does the leader of the Labour party say? He says clearly that Governments cannot run companies. That is true of the water industry, too.

The hon. Gentleman is offering the worst of every world. The industry would not be nationalised, but it would not be in private ownership either. It would not be able to raise money, and it would not be able to invest. It would not be able to replace pipes or stop leaks. It would not be able to offer higher standards, or do any of the other things that the hon. Gentleman knows must be done. The industry would be in real trouble because the hon. Gentleman would not he able to read the balance sheet to understand what was going on. When he explains how the finances work, it is clear that he cannot read a balance sheet. [Interruption.] The hon. Member for North-West Durham (Ms Armstrong) is leaving because she cannot read a balance sheet either, but she does not like to be told about it. It is not surprising for someone who cannot read a balance sheet to get the figures wrong.

Let us consider investment.

I shall finish this point first.

In the years immediately after privatisation, investment was particularly high because it had been so low before privatisation. The rules of the European Union and the Government were such that they demanded immediate investment to meet bathing water directives—

On a point of order, Madam Deputy Speaker. Earlier, Madam Speaker instructed hon. Members to speak into the microphone. The Secretary of State is not at the London Palladium, and we would like him to address the Opposition.

The hon. Gentleman is not quite right. The instruction was that all hon. Members should remember that they are addressing the occupant of the Chair.

Thank you, Madam Deputy Speaker.

A considerable amount of investment was made to meet demands to improve water standards, some of which came from this Government and some from measures to which we had rightly agreed in the European Union. We have now met most of those demands, but a further £24 billion of investment is needed between now and 2005. Under the previous system, that investment would not have been made and we would not have been able to meet either our own requirements or those of the EU. We can meet them only because of the present high investment, which is twice as high in real terms as under Labour.

I shall continue my argument.

It is a question of not just investment but of what happens if there is no investment. Without investment, we will have dirty beaches. Labour Members object to dirty beaches, but when we say that we must pay to get rid of the muck they do two things: first, they suggest that we do not have to pay for it, and, secondly, they pretend that it is not their fault that the beaches are so dirty. Treating problems with beaches in the south-west is costing so much because, under Labour, there was no investment, and raw sewage went into the sea.

On a point of order, Madam Deputy Speaker. The Secretary of State has had his back to you for quite a long time—

Order. This matter can be left in my hands. I have noted when the Secretary of State's back has been turned to me, but it has not been for a long time. The right hon. Gentleman has swung about a little bit, and I take this opportunity to remind him that he must address me as the Deputy Speaker.

I apologise for my natural athleticism, Madam Deputy Speaker, and I shall do my best to ensure that it is curbed.

The necessary investment would not occur under Labour, and it did not occur when the industry was in public ownership. Labour knows very well that it cannot suggest that the industry should be taken back into public ownership—not for the reason the hon. Member for Holborn and St. Pancras advanced but for a wholly different reason. It is because it would result in dirty beaches, lower-quality water and a failure to improve the infrastructure and to repair all leaks.

Is the Secretary of State really suggesting that there were no investment plans for the water and sewerage industry before 1990? What credit does he give the countless people who served on and chaired water boards for nothing in the years before privatisation? Those people planned investment, read the balance sheets and understood every figure.

Before privatisation, investment was half its present level and, under a Labour Government, it would stop entirely. Some of the hon. Lady's friends may have sat on water boards, for which I honour them. They will have seen what the balance sheets said and will know that a Labour Government will not provide the money. They also know that, under Labour, the money will be stopped altogether.

I will not give way to the hon. Gentleman, as I have already said that I will give way to my hon. Friend the Member for Teignbridge (Mr. Nicholls).

Is my right hon. Friend aware that when the hon. Member for Holborn and St. Pancras (Mr. Dobson) was asked whether water charges would fall under Labour, he said, "Yes"? Therefore, the investment that is clearly still necessary will have to be raised from general taxation. The hon. Gentleman did not give me the opportunity to ask him by how much tax would have to go up under Labour, but perhaps he has already given that information to my right hon. Friend.

The hon. Gentleman has not yet given that information to me, but I was coming to precisely that point. Labour says that the industry would not be renationalised, but that it would be put under political control and that prices would fall. Therefore, none of the investment that we are debating would be made—certainly not at current levels. Labour would decide whether one beach or another was cleaned up, and whether there would be leakage controls or not. It would make those decisions by pushing down prices and investment. The hon. Member for Holborn and St. Pancras has explained to us precisely why the Leader of the Opposition said that Governments cannot run companies; I would add only that Labour Governments cannot run anything.

Why must the Government privatise the water industry in England to get private investment, but not in Scotland, where the industry—which is not being privatised—is to raise private money? Why is it impossible to cap price increases in England, when the Secretary of State for Scotland has just capped the increase in water prices for next year at 6 per cent.?

I am interested to hear that, because the price increase cap in England has been reduced from 4 per cent. to 1.4 per cent. The hon. Gentleman is wrong: it is perfectly possible for the regulator to reduce the cap for the privatised water companies. Labour is in favour of devolution, which evidently means that Scotland can do something that England does not and vice versa. It seems perfectly reasonable for Scots to make their own decisions. All I can say is that in England, before privatisation, investment was half what it has been since. The sadness is that Labour thinks that there is something odd about that, although it will not pledge itself to renationalise the industry.