A massive £450 million programme to improve water quality and update the sewage system of Yorkshire was announced today.

Yorkshire Water plans to end at last the backlog flooding of the county's underground sewage system every time there is a deluge.

And villagers near Selby who have battled for 40 years to get their own sewage treatment plant are victorious at last.

About £75 million will be earmarked for ensuring that homes in Cawood, Ryther, Wistow and Kelfield will be among 70 villages in North and East Yorkshire can at last dismantle their septic tanks.

The breakthrough has come about because of European legislation insisting that untreated sewage cannot be pumped into watercourses of the county as in the past.

Another £75 million will be included to improve water treatment works throughout the whole of Yorkshire, including recently-acquired York Waterworks.

The enormous investment programme affecting 4.5 million people and 139,000 businesses will be a major boost for the regional economy, underpinning the security of around 12,000 jobs, mostly in the construction industry.

Contracts are being awarded on a "target-cost" basis - in other words if contractors beat Yorkshire Water's financial targets they share in the spoils. If they overshoot on cost they share the debt.

Richard Sears, spokesman for Yorkshire Water, said: "This investment, which has already been budgeted for, will not affect how much the consumer pays.

"Indeed, there has been a one-off price reduction of between nine and 12 per cent as a result of which £80 million has been wiped off our income. The challenge is to carry out this capital programme in spite of that loss."

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