Welsh Water Authority (Privatisation)

Part of the debate – in the House of Commons at 4:16 pm on 5 February 1986.

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Photo of Mr Dafydd Wigley Mr Dafydd Wigley , Caernarfon 4:16, 5 February 1986

May I bring the Secretary of State to the bottom line of this question? Is it not the truth that the net assets of the Welsh water authority are £1,600 million, and the current return 1·5 per cent., giving a profit of £24 million? Thus, to obtain a return in the market place that will make the investment attractive, will it not be necessary either to double the charges made by the authority to bring in an additional £140 million a year or to sell the assets at a fraction of their real value, making it an asset-stripping giveaway? Which of those does the Secretary of State think is likely to happen?