THE ECONOMICS OF WATER SUPPLY1

AuthorJ. F. Sleeman
Date01 June 1955
Published date01 June 1955
DOIhttp://doi.org/10.1111/j.1467-9485.1955.tb00732.x
THE
ECONOMICS
OF
WATER
SUPPLY'
I
ECQNOMISTS
have in the past given very little altention
to
the water
supply industry. This seems strange
at
first
since it
is
obviously one
of
the country's main services, comparable in importance with
electricity. gas and transport, the problems of which have been
so
intensively studied. The reasons for this neglect might seem
to
be,
first, that the industry is a very small one
in
relation
to
the whole
economy. accounting for only. a small part of consumers' and
producers' expenditure, and, secondly. that in its operation commercial
considerations have tended
to
take second place to those
of
engineer-
ing
and public health.
The industry
is
certainly small. According
to
the Census
of
Pro-
duction of
1950,
the
355
water undertakings with more than
10
employees each had a total net output of only
f38m..
or 0.3 per
cent.
of
the
gross
national product, and employed
36,270
persons. or
0.2
per cent.
of
the occupied population.
If
the
681
public under-
takings employing up
to
10 persons each are added, the total comes
to
about 39.000 persons.' Moreover, there is a good deal of private
water supply. Many industrial
firms
which are large water-users have
their
own
supplies from underground sources or from
rivers.
many
landowners supply their tenants with piped water, and many houses
in country areas rely on springs and wells. But even
if
this were added
in, the total share
of
the water supply industry
in
the national economy
would be small.
The cost of water forms only
a
small part
of
the expenditure
of
consumers and producers.
In
a
pamphlet published in 1951 by the
British Waterworks AssociationJ
it
was pointed out that for domestic
'Acknowledgment
is
due to the Secretary
of
the British Waterworks
Association for his advice and help, and
to
the chief officers
of
the following
authorities who have kindly made information available to the author: the
Metropolitan Water Board. the Durham County Water Board, and the Fylde
Water Board: the Lanarkshire County Council and the Corporations
of
B!rmingham, Cardiff. Coventy, Dundee, Glasgow. Greenock, Leeds, Leicester,
Liverpool. Manchester. Notlingham. Plymouth and Southampton.
a
The
industry
is
more significant relatively
as
a
user
of
capital. According
to the figures given in Mr. Redfern's recent paper to the Koyal Statistical
Society, ('Net Investment in Fixed Assets in the
U.K..
1948-53'.
J.R.S.S..
Part
II,
1955).
water supply accounts for around
If
per cent.
of
annual capital
formation, and for something like
21
pcr cent.
of
the country's net fixed
capital assets.
Organisation
of
the
Water
Supply Induntry in England and Waler,
1951.
23
I

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