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Chamber

Meeting of the Parliament 04 September 2025

04 Sep 2025 · S6 · Meeting of the Parliament
Item of business
Water Industry Commission for Scotland (2022-23 and 2023-24 Audits)
Beattie, Colin SNP Midlothian North and Musselburgh Watch on SPTV

I begin by thanking my colleagues in the Public Audit Committee, and the committee clerks, whose hard work helped to produce the report. The report is about more than just one public body that has gone wrong; it is about trust—trust that public money is spent fairly and wisely and that Parliament can effectively hold public bodies accountable.

The report’s findings are worrying. For example, the spending of some £77,000 of taxpayers’ money on a Harvard Business School training course was not subject to proper assessment and control procedures. That is simply indefensible. That money could have been spent on our public services—on teachers or apprenticeships—rather than on a costly business course. That may sound like a small amount of money in the grand scheme of the Scottish Government’s budget, but it represents the yearly wages for three entry-level nurses. I am sure that we all know which of those options would offer better value for the public.

There were also incidents involving gift vouchers for staff being issued beyond agreed limits, non-compliant spending on recruitment, very generous hospitality with expensive meals and air travel, and staff pay-offs that were not properly authorised. Those were not simple mistakes or one-offs. They all point to the growth of a culture where responsible monitoring by the board was lacking and management oversight was weak or incompetent over an unacceptably lengthy period. That period ran into several years, during which neither internal nor external audit challenged breaches in either policy or processes. I would encourage the audit process to be revisited so that lessons may be learned to ensure that such a blatantly unacceptable situation does not arise again.

Households across the country are feeling the pinch of the cost of living crisis and cutting back on their outgoings, and they rightly expect public bodies to do the same. Instead, they have seen news reports of irresponsible spending and lavish entertainment. That is why the Public Audit Committee strongly recommended strengthening the WICS board, tightening financial and governance policies and ensuring robust whistleblowing protections.

I welcome the fact that the Scottish Government has listened and responded, but we must not grow complacent. WICS has revised its policies and brought in new board expertise, but vigilance is essential. I am pleased that updated policies will require any international consultancy work to receive ministerial approval and that both the Auditor General and the Scottish Government will continue to monitor WICS’s progress. Oversight cannot be something that we do once and then walk away from; it should be built into the culture of how public bodies are run.

As I stated in my introduction, the report is not only about WICS, as it also carries wider lessons. It is a reminder of why transparency matters and why Parliament must hold public bodies to account. It is also a wake-up call to the Scottish Government on deficiencies in its sponsorship model as it affects WICS. The sponsorship model must be proactive and alert so that potentially questionable practices are challenged at an earlier point.

It is vital that we remember that every pound of public money matters. We all know of the difficult financial situation that not only our Government but our constituents are in. As they are having to tighten their belts, it is more important than ever to reduce public bodies’ waste. The report’s message is clear: never again should we see this failure in oversight. The report lays bare failings at WICS, but it is also a worthwhile lesson for other public bodies and the Scottish Government on the need to reform and improve. We must ensure that the lessons are learned across the board.

Our public bodies must deliver value for the people of Scotland. The people deserve to have public bodies that are transparent, accountable and efficient, and I am grateful that they have a Parliament that challenges and holds our public bodies to account. The public deserve every penny of public money to be spent wisely and fairly, and that is the standard that we must uphold in this chamber.

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-18680, in the name of Richard Leonard, on behalf of the Public Audit Committee, on the 2022-23 and 2023-2...
Richard Leonard (Central Scotland) (Lab) Lab
Being the convener of the Public Audit Committee is a privilege, and it is one which I will never take for granted. So I am grateful to be opening this after...
Graham Simpson (Central Scotland) (Reform) Reform
On that last point, does the convener agree that the committee never had an adequate explanation as to why the limit was removed?
Richard Leonard Lab
I thank Graham Simpson, who has been a very active member of this inquiry by the committee. I agree with him that there are still many unanswered questions. ...
The Cabinet Secretary for Climate Action and Energy (Gillian Martin) SNP
I am grateful for the opportunity to speak about the matters that are raised in the Public Audit Committee’s report on the Water Industry Commission for Scot...
Jamie Greene (West Scotland) (LD) LD
I make this intervention as a member of the Public Audit Committee rather than as its deputy convener. What do the failures of governance at executive or sen...
Gillian Martin SNP
Jamie Greene makes a fair point, which is one of the reasons why we carried out a review of the sponsorship arrangements between the Scottish Government and ...
Douglas Lumsden (North East Scotland) (Con) Con
Has there been any review of other organisations to see whether there have been other breaches of policies and processes similar to those that we have seen a...
Gillian Martin SNP
As I said, the sponsorship arrangements between the Government and public bodies have been completely reviewed. As part of that, we are ensuring that there a...
Sarah Boyack (Lothian) (Lab) Lab
One of the committee’s key recommendations was that a robust whistleblowing policy should be put in place for staff. It is one thing to have a sponsorship te...
The Deputy Presiding Officer SNP
It would be helpful if you could bring your remarks to a close soon, cabinet secretary.
Gillian Martin SNP
Sarah Boyack makes a very good point. One issue that was uncovered was that those in the lower ranks at WICS were afraid to speak out. That was part of a cul...
Douglas Lumsden (North East Scotland) (Con) Con
It gives me no pleasure to make this my first speech after recess. I thank the committee for its forensic analysis of what went wrong at WICS. I welcome the...
Gillian Martin SNP
I invite Douglas Lumsden to tell me what was missing in my speech. What more would he like to see from me by way of answering any of the questions in the rep...
Douglas Lumsden Con
The first thing that I would like to hear is an apology to the people of Scotland for all the money that has been wasted. WICS was under the remit of the Sco...
The Deputy Presiding Officer SNP
Always speak through the chair.
Douglas Lumsden Con
I would like to know whether the Scottish Government is doing a full review of all organisations to see whether such a culture exists in other places. Outsid...
Mark Ruskell (Mid Scotland and Fife) (Green) Green
Made a request to intervene.
The Deputy Presiding Officer SNP
The member is concluding.
Douglas Lumsden Con
That is set against the SNP Government’s never-ending preaching on what it thinks is best for the Scottish public. The cabinet secretary should hang her head...
Sarah Boyack (Lothian) (Lab) Lab
I thank the members of the Public Audit Committee for their work, and the clerks to the committee for their support. This is a damning committee report. Th...
Mark Ruskell (Mid Scotland and Fife) (Green) Green
I join members in thanking the Public Audit Committee. I am not a member of the committee, although I sit on the Scottish Commission for Public Audit. The wo...
The Deputy Presiding Officer SNP
We move to the open debate. I advise back benchers seeking to speak in the open debate that I require speeches of up to four minutes. 16:14
Colin Beattie (Midlothian North and Musselburgh) (SNP) SNP
I begin by thanking my colleagues in the Public Audit Committee, and the committee clerks, whose hard work helped to produce the report. The report is about ...
The Deputy Presiding Officer SNP
I call Tim Eagle, who is joining us remotely. 16:18
Tim Eagle (Highlands and Islands) (Con) Con
I apologise for not being able to be present in the chamber for this debate. I intend to keep my remarks brief, as Douglas Lumsden outlined perfectly the man...
Monica Lennon (Central Scotland) (Lab) Lab
I suspect that most of my constituents had never heard of WICS until this scandal erupted. Many more of them are now aware of this important regulator becaus...
Elena Whitham (Carrick, Cumnock and Doon Valley) (SNP) SNP
I, too, thank the committee for its dogged investigation into the matter. Proper spending of public money is of the utmost importance. The principle is not o...
Graham Simpson (Central Scotland) (Reform) Reform
Let us be clear: this was a major scandal. We have had some robust meetings, but these were some of the most astonishing meetings that I have ever been invol...
Douglas Lumsden Con
Will the member take an intervention?