THERE seems little doubt that water bills will rise substantially over the second half of the decade.

The industry regulator Ofwat accepts the case put by the water companies that massive investment is needed to upgrade Victorian mains and sewers.

We urge Ofwat, however, to ensure it is not hoodwinked by the companies. A careful balance must be struck between the interests of the company, its shareholders and its customers.

The regulator must ensure that the customers do not get a raw deal.

In insisting yesterday that it would be wrong for shareholders to bear the brunt of future investment, Ofwat indicated that customers would indeed share the bulk of the burden.

But no effort must be spared in keeping bills as low as possible.

The policy of paying out ever-increasing dividends to shareholders needs to be scrutinised.

Since they were privatised 14 years ago, water companies have provided a progressive income stream for investors. Surely, it is right now for those investors to share the cost of investment programmes which will help secure the long-term viability of the businesses.

Ofwat points to the fact that shareholders have the freedom to take their money elsewhere.

But it should also consider that customers do not have the luxury of shopping around for water supplies. They are stuck with their local supplier, and deserve the most cost-effective service possible.

Genetic stalemate

THE crop trials study by the Scientific Steering Committee has offered nothing to the debate on genetically modified crops.

It managed to find, in equal measure, both benefits and drawbacks to GM crops.

In so doing, the study has hardened the opinion of opposing sides in the debate, ruling out any opportunity for a compromise.

However, the GM issue was never going to be decided according to environmental issues. In the end, GM crops will only be grown if there is a market for them.

And there is so much concern over the safety of GM crops among the general public that it is unlikely a sustainable market will ever be generated.

Commercial, rather than environmental, considerations will keep GM crops in laboratories and out of the farmers' fields.

In such circumstances, we can expect the Government to sit on the fence in the hope that the issue will go away amid the stalemate between GM supporters and opponents.