Prescott Holds Emergency Water Summit

The summit is being seen as a signal of the new Government's determination to tackle the growing problem of falling water supplies after the two lowest rainfall years since records began.

Mr Prescott is to warn the companies that they could face tough new statutory targets for cutting leakages unless they take urgent action to repair leaking pipes.

Speaking on BBC Radio 4's Today programme John Prescott said he will issue a ten point plan for the water companies to follow. This will be a "tough new regulatory framework" which will help to guarantee supplies into the next century.

"There's been enough talk of crisis management in the short term and 'this problem will soon go away if the rain comes back'. It's not that, it is the long term management of a vital resource, water. It is not being used effectively and efficiently - what we've got to do is bring about the proper regulatory form and be quite tough with an industry that is not doing quite enough to meet the target set for them by the regulator," he said.

The ten point plan includes:

• Setting leakage targets for a five year period
• Legislating to ensure water companies have a duty to conserve water
• Improving compensation rates for customers
• Offering free water efficiency audits for homes

The water companies also likely to be pressed to offer free leakage repair services to householders and to promote "water efficient" appliances.

Environment minister Michael Meacher has said he will be working towards imposing mandatory leakage targets on water companies, backed up with the threat of penalties which will include hefty fines.

Mr Prescott said that Labour are against compulsory water metering for domestic use, but he said there are many thing that people can do to conserve water. He emphasised that there is a role for government, industry, the regulator and the customer, all working towards using water more efficiently.

The water companies were bitterly attacked by Labour when they were in Opposition, with chiefs condemned as 'fat cats' because of the high profit levels. However Mr Prescott said he had not called today's conference to "condemn or shout" at them.

John Green: we have a programme in place

Speaking on BBC Radio 4's Today programmeJohn Green, chairman of the Water Services Association and managing director of Anglian Water said, "We recognise leakage as a high priority, as does the Government, and we have a programme in place to reduce leakage significantly over the coming years."

The industry says it has been investing hundreds of millions of pounds in improving a mains network and infrastructure and they are seeking to play down the prospect of severe restrictions this summer.

The summit will also be attended by representatives from consumer and environmental organisations. Environmental campaigner Jonathon Porritt has accused the water companies programme of not going far enough.

"In many respects the water industry has fallen short of the standards it should have set itself and there is no doubt whatsoever that Mr Prescott will be pushing extremely hard on the water companies today to get them to improve their act," he said.