Clause 42 - Objectives and duties under WIA
Water Bill [Lords]
7:15 pm
Mr Bill Wiggin (Leominster, Conservative)
Amendment No. 76 is extremely important and I am sorry that we have to debate it at such a late hour. It would ensure that what the Government regarded as a reasonable return on capital was in line with reality, because I have tied that in with the term ''market expectations''. That is a fairly general term. It may not be the most precise one, but it would ensure that the Secretary of State did not choose an arbitrary figure to suit budgetary pressure, but considered a figure in line with what companies might reasonably expect to raise on their capital if they had invested it in other markets. It is vital that the legislation takes into account proper returns on capital.
Amendment No. 93 would take things further. It would take performance into consideration and perhaps change the emphasis of the Bill slightly.
Hon. Members will recall from earlier debates that the time scale envisaged by Government is different from that on which water companies, and indeed quarrying and bottling companies normally base their capital projections. Both amendments would be extremely helpful in providing stability and a realistic business basis for anyone investing in water companies.