To ask the Secretary of State for Environment, Food and Rural Affairs what assessment he has made of the implications of the failure of Thames Water to meet its leakage targets for the regulatory year 2005-06; and if he will make a statement. (80613)

The failure of Thames Water to meet its leakage targets for the regulatory year 2005-06 is disappointing. The Economic Regulator, Ofwat, has already said that it views the issue as serious and will carefully scrutinise the company's annual return before deciding on regulatory action. Ofwat is responsible for setting leakage targets and has powers to deal with poor performance. I will not pre-empt Ofwat's response on this issue.