The hon. Gentleman makes a fine point. That would be the case if, say, Northumbrian Water sells to Yorkshire Water: there are different prices in different parts of the country, depending on the economics of the transport of water. The moot point about water is that it is in some ways a transport business rather than a water supply business, because water is extremely heavy and difficult to move about. It would be a matter of negotiation. As I pointed out, however, Welsh Water does not have control of some of the more significant water resources in Wales—the water sources in mid-Wales. Incidentally, I do not want to stray from the water industry, Madam Deputy Speaker, but fracking might take place in south Wales and possibly not in north-west Wales—the part I represent. Someone has to say that, I suppose—start at home.
Ofwat addressed the matter of realigning legislative competence in its evidence to the Silk commission. People who frighten the horses over the costs would do well to listen to what Ofwat had to say about the “potential impacts” of moving away from the “wholly or mainly” boundary—that is, the current situation. It said:
“During our evidence session I was asked about any possible impacts of moving away from the current policy boundary definition. We believe that there are likely to be some administrative costs to companies (and customers) from such a change and that there could be some incidence effects on customer bills (which could be positive or negative for different customers).”
In other words, it will impact differently, but Ofwat says:
“Generally we would expect both of these to be relatively minor.”
I do not think that there is a reason to be particularly frightened of any costs that might be involved.
5.15 pm
More significantly, perhaps, I point out to those on the Opposition Front Bench that the Labour party’s stance on the matter is clear. In their submission to the Commission on Devolution in Wales, the Labour Welsh Government stated that they wanted the National Assembly to have full legislative control over water up to the geographical boundary with England. They also stated that they wanted to remove the London Government’s power to intervene in Welsh affairs in relation to water, which I referred to earlier as the London veto. Interestingly, that is a complete volte-face from the stance taken by the Labour Secretary of State for Wales in 2006, who was insistent on the veto.
In its evidence to the Silk commission, Labour said that
“the Assembly’s legislative competence should henceforth extend up to the geographical boundary with England”
and, on page 9, that competence should be
“extended to the geographical boundary with England in line with the legislative competence for other acts of the Assembly.”
Labour also said:
“We also propose removal of the existing Secretary of State unilateral intervention power in the case of functions relating to water”—
that is, the veto. It went on to say:
“There is an important interdependency between Wales and England in terms of water resource management, water supply and water quality. We consider that any concerns about potential adverse impact in England in relation to these matters would be more appropriately addressed through inter-governmental mechanisms that set out the basis for co-operation and joint working between the respective Governments.”
That is the Labour party’s stance.