---

Water Supply

My Lords, with the leave of the House I shall repeat in the form of a Statement the response made to an Urgent Question in another place by my honourable friend the Minister of State, Ian Pearson. ““The UK has seen below average rainfall for 19 months. In particular, the south-east has been much drier than during the notable drought of 1974-76. The Environment Agency believes that the drought in the south-east has the potential to be the worst for 100 years. ““Water planning is on the basis that each water company has a water resource plan looking ahead 25 years. Water companies also have a drought plan setting out how they will continue to meet their duties during a water shortage. ““I recognise the public concern over leakage rates. Ofwat, the economic regulator, sets targets for leakage and, over the past 10 years, leakage rates have reduced by 30 per cent However, there is more to be done, particularly by some companies. Since privatisation, water companies have invested £55 billion in water and sewerage assets and more than £3.5 billion in 2004–05 alone. ““As the House will be aware, water companies in the south-east have introduced hosepipe and sprinkler bans to manage the drought situation. The recent decision to approve the Sutton and East Surrey drought order application is the next step beyond a hosepipe ban. I am currently considering the independent inspector’s reports following the hearings on the drought order applications made by Southern and Mid-Kent Water””. My Lords, that concludes the Statement.