CONFIDENTIAL
XCC(93)127
tolerated; that a programme of new sewage services including the HPP would provide early relief to the problem; that the public should contribute to the cost of the sewage services programme; that the Government will make a substantial contribution to the programme by meeting the full capital cost of the HPP; that charges will cover only the operating cost of sewage services and charges levied from 1994 will be modest and acceptable especially for households, while a trade effluent surcharge will apply to industry and trade for their more polluting effluents.
PUBLIC REACTION
26
We expect the general public to welcome the Government's commitment to the HPP by meeting the capital cost in full. Many people would be prepared to pay a modest charge, if this will lead to a significant and sustainable improvement in water quality. Green groups and industrial organisations would accept the polluter pays principle and an equitable charging scheme. But some political parties and householders might criticize the new charges. They might argue that the Government should continue to bear the cost of providing public services including sewage services and that the charges would add to the burden of the low-income group. Others might argue that sewage services are already covered by rates, or that the Government need not charge for the services because of its budget surpluses. Some political groups would argue that industry should shoulder the full cost because it generates pollution in the course of profit-making. We expect that the main point of contention in the public consultation would be whether and to what extent domestic households should be charged. The proposal to exempt low-volume water users from charges would be well received but some would still argue that the charges would add to the burden of the low-income group.
PUBLICITY
27
A press conference announcing the public consultation exercise will be held on 15 September 1993. Briefings and the distribution of information leaflets will commence shortly after.
Executive Council