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5.58 pm
Sir Jim Spicer (West Dorset): I am usually fairly naive, and I had the impression that we were going to have a good debate that would focus the attention of the House and of the general public on the fact that last year was quite dreadful, possibly the worst for a century--
Mrs. Anne Campbell indicated dissent.
Sir Jim Spicer: It is no use the hon. Lady shaking her head. We had our worst summer followed by a bad winter with low rainfall. We can see outside today exactly what the countryside, and particularly the south-west, might have to face this summer. We must all pull together and put out the warning orders now to everyone.
Instead of a constructive debate, the hon. Member for Holborn and St. Pancras (Mr. Dobson) returned us to old Labour by bashing privatisation. The hon. Gentleman's aim is to attack not just the water companies, but the evils of privatisation. He believes that if we still had nationalised industries we would be much happier and much better off. I will remind Opposition Members of what has happened to some of our major companies since the privatisations of the 1980s which--thank God--are continuing in the 1990s.
British Airways, for example, is a world leader which other countries envy. The House should think back to the state of British Telecom, which was a disaster before it was privatised. It is now an efficient service, with prices 20 per cent. lower than before privatisation. In the electricity industry, prices are down by 9 per cent. and, as we have heard, a further 1 per cent. cut is to be made next year. The gas industry has had problems with its public relations, but prices have gone down by 22 per cent. in real terms. Finally, BP stands head and shoulders above all its competitors in the world. All those companies were a drag on the Government and a disgrace to this country before they were privatised. In every case, customers are receiving better services across the board. Prices are coming down all the time, and everything is far better than it was.
That does not suit old Labour. The Opposition, aided by the media, made a great song and dance about the horrors of the water shortages last year. I am one of the few Members--together with you, Madam Deputy Speaker--who can remember what happened in 1976. We remember the constant attendance at the Dispatch Box of the rainmaker--a very nice man who did his best, but could not disguise from us the awfulness of the situation and the then Government's inability to do anything at all about it. My right hon. Friend the Secretary of State made full use of the examples of what happened at that time.
In 1976, 50 per cent. of the population suffered a hosepipe ban. That may not be the end of the world, but there were also standpipes everywhere and disconnections were carried out, causing real hardship on a scale that has not been seen since and will not be seen again in this country. We all know that that is true. Last year, we had a longer and drier summer. The House should remember that at this time last year, the temperature was 15 degrees higher than it is now. As a result, the drying out was not just on the surface, but deep down. That created problems very much earlier in the year. However, only 15 per cent. of the population suffered a hosepipe ban last year. All of us, including most of the water companies, have a lot to
be proud of with regard to last summer. The contrast with 1976, when water was a nationalised industry under a Labour Government, is stark.
Hon. Members have referred to leakages, and I shall refer to my local company. In 1976, Wessex Water's leakages amounted to about 40 per cent. By 1990, the figure had gone down to 29 per cent. and by 1995 it had decreased further to 25 per cent. The target for 2005 is 15 per cent. There may be some people who do not look at the cost-effectiveness of getting below that target and who may say that there should be no leakages at all, but there comes a point when the cost of reducing the amount of leakages by 1 per cent. becomes absolutely exorbitant. Those of us in the south-west--I live in the Wessex Water area, and my bills are more respectable than those of South West Water's customers--do not want to pile on the agony by going for perfection. We want a sensible approach to leakages, and I think that we shall achieve that.
A lot has been said about investment. In the 1970s, the level of investment was appalling, due largely to the savage cuts made particularly in 1977. Wessex Water has stated that only £100 million was invested in its area throughout the 1970s, and the same applies in the South West Water area. As a consequence of the lack of investment, a backlog of schemes was created, and many of those schemes are only now being carried out. In the 1980s, investment rose to £500 million, and in the 1990s Wessex will spend £1.2 billion on water quality, beaches and sewerage improvements.
My right hon. Friend the Secretary of State mentioned South West Water's scheme in Lyme Regis. That scheme is drawing people from all over the world, but the cost has been enormous given that the population of Lyme Regis is only 3,000 to 4,000. The total amount of investment will be between £15 and £20 million but, as in other parts of the south-west, we had to improve our beaches and sewerage schemes. If we had not carried out those improvements, what a disgrace we would have been. I would like to have taken the hon. Member for Holborn and St. Pancras to Lyme Regis to see a short outflow pipe pumping out raw sewage because of a break in the pipe 50 yd offshore, but it is not there any more. Lyme Regis has clean beaches, and it is once again the pearl of the south-west.
Our consumption of water has increased because of rising living standards and higher expectations, and it has increased by more than 20 per cent. in the past 15 years. I do not agree with those who are opposed to water metering, as there is a case for it. Where else in the world can one turn on the tap and, no matter how much water one uses, one does not pay any more for it? Metering would also provide a check on people with larger gardens who in a dry summer perhaps use water to excess.
In the decade before privatisation, Wessex Water's charges were 4 per cent. above the retail prices index. Since then, the figure has fallen to 2.9 per cent. and I know that it will be reduced further. There are no restrictions in the Wessex Water area for this year, and there will be none. Wessex Water is an efficient company, which has shown other water companies a clean pair of heels.
Since privatisation our water companies are in demand world wide as consultants--something we do not give them credit for very often. People come here because of
the quality of our water and the way in which our water companies operate. In Turkey, Africa and wherever major sewerage and water projects are being undertaken, our people are involved. According to the hon. Member for Holborn and St. Pancras, they ought not to be bothered with such projects, but should stay in their little isolated area looking after their own people. They should not bother reaching out to other parts of the world. That applies not just to the water companies, but to BP and British Airways.
Mr. Gerry Sutcliffe (Bradford, South):
I shall not speak for too long because I know that other hon. Members wish to contribute to the debate. Like my hon. Friend the Member for Sheffield, Hillsborough(Mrs. Jackson), I shall complain about Yorkshire Water, about the Government and about the regulator. In west Yorkshire, all we want is a guarantee that we shall have water. Hon. Members have asked what will happen this summer. At the moment, there is still a drought in west Yorkshire. There are hosepipe bans, people cannot use car washes and there are certain water restrictions.
In years gone by, the authority planned for the future of water by building reservoirs. We were therefore extremely angry last year because the whole of west Yorkshire was threatened. In Bradford, in particular, we were threatened with standpipes and 24-hour rota cuts. There has been great public anger because of the way in which Yorkshire Water has operated as a privatised company. If it is an example of privatisation, the people of west Yorkshire do not want it because they have not received the services that they expected.
We had the ridiculous situation where the chief executive of Yorkshire Water claimed that he had not had a bath for three months and that people ought to conserve water. In August last year the Secretary of State told us to stop whingeing and to enjoy the weather--that is how seriously he took the impact of the drought crisis in west Yorkshire. Yorkshire Water wrote to companies in my constituency and told them to relocate temporarily. There was an enormous effect on our industry and companies could not believe the lack of professionalism of Yorkshire Water.
Today, we have heard that the United Kingdom has the finest quality water in Europe. The quality of the water in Yorkshire is questionable as a result of privatisation. Companies have had to install purification plants because of the lack of attention that Yorkshire Water gives to the quality of the water. Yorkshire Water cannot be blamed for the lack of rainfall and there is the issue of global warming, of which we have heard much today. Should we not have looked at those issues in terms of the investment that was needed at the time of privatisation? The Government gave Yorkshire Water and its assets away to a privatised company at a ridiculous price.
We are heading towards the 21st century and water should be readily available. Last year we had the ridiculous situation where the local fire authority had to
write to Yorkshire Water to say that it was concerned about not being able to meet its requirements in cases of emergency. The health authority was concerned about public health in relation to gastroenteritis and other diseases caused as a result of a lack of water. Yorkshire Water did not consult the community about its concerns. The emergency offices of local authorities begged Yorkshire Water to say what it was going to do. Last year many hon. Members had to come to the House and raise issues relating to water in the Adjournment debate and in questions to Ministers. We should learn from the lessons of Yorkshire Water.
Yorkshire Water is now under new management.Dr. Kevin Bond, from the National Rivers Authority, is now the chief executive and managing director of Yorkshire Water. He has promised that things will be different. He acknowledges that what Yorkshire Water did last year was unforgivable. We hope that he will keep his promises.
We could not understand the role of the regulator in allowing Yorkshire Water to increase its prices by 5.2 per cent.--the maximum increase allowable under the formula that was negotiated. Yorkshire Water increased its prices by 5.2 per cent.; yet it threatened consumers and business users with a lack of water. I hope that the Government will not abdicate their responsibility--as they have in the past--but will look at a national position in relation to water. People in Yorkshire are going through a living nightmare at the moment because of the failures of Yorkshire Water.
We need a sustainable national grid system so that we do not have this difficulty again. We are heading towards the 21st century and it is inconceivable that the Government have not had the foresight to protect our water resources. We have heard about environmental damage. Yorkshire Water kept going by taking water from the River Wharfe, which affected the environmental conditions in that area. The people of Yorkshire were outraged.
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