Chamber
Plenary, 01 Feb 2007
01 Feb 2007 · S2 · Plenary
Item of business
Scottish Water
A blow for democracy over there.
The view was also reported that Scottish Water should be freed from state ownership, but that was apparently a misrepresentation of the WIC's view. Perhaps that is why it felt it necessary to get its message across by employing a team of lobbyists, presumably to battle the lobbyists that are employed on the other side by Scottish Water. I know that some competition has been introduced to the water industry, but I do not think that that is the kind of competition that ministers were thinking of. The two bodies certainly do not operate within the same framework to deliver long-term public objectives.
Let us examine a particular quality issue that was raised by the chair of the WIC. Because of leakage, consumers pay for twice as much water as they receive. Leakage creates a cost not only to consumers but to the environment, but we have a regulatory mechanism that uses the regulatory capital value method, the result of which is that it is more profitable to pump water through the system than it is to repair the system as a revenue cost.
It is Scotland's water, not the WIC's. There are models of publicly accountable water delivery, such as Stockholm Vatten, that put public sustainability objectives first. We should benchmark Scottish Water against such models rather than against a private model of water delivery from England that has led to the scandal of billions of pounds being siphoned off for shareholders' profits.
The role of the WIC should be brought into line with those of ministers and Scottish Water. Economic regulation is vital, but it should not sit as the overarching framework for public service delivery. That framework should be sustainable development, which will deal with our needs and those of our children and their children to come, rather than the short-termism of the market. That is the right vision for our public services.
I move,
That the Parliament notes growing pressure for Scottish Water to be privatised; further notes the substantial improvements that have been made in Scottish Water's performance, all of this having been achieved while keeping Scottish Water in the public sector; notes the Water Industry Commission's lack of a wider social and environmental remit and its use of a regulatory model more suited to a private utility than to a public one; considers that improving the service, upgrading the water and sewerage system, reducing leakages and ensuring effective regulation should not centre on short-term efficiency measures but on the quality and safe delivery of services in the long term, and affirms its commitment to keeping Scottish Water under public ownership and control.
The view was also reported that Scottish Water should be freed from state ownership, but that was apparently a misrepresentation of the WIC's view. Perhaps that is why it felt it necessary to get its message across by employing a team of lobbyists, presumably to battle the lobbyists that are employed on the other side by Scottish Water. I know that some competition has been introduced to the water industry, but I do not think that that is the kind of competition that ministers were thinking of. The two bodies certainly do not operate within the same framework to deliver long-term public objectives.
Let us examine a particular quality issue that was raised by the chair of the WIC. Because of leakage, consumers pay for twice as much water as they receive. Leakage creates a cost not only to consumers but to the environment, but we have a regulatory mechanism that uses the regulatory capital value method, the result of which is that it is more profitable to pump water through the system than it is to repair the system as a revenue cost.
It is Scotland's water, not the WIC's. There are models of publicly accountable water delivery, such as Stockholm Vatten, that put public sustainability objectives first. We should benchmark Scottish Water against such models rather than against a private model of water delivery from England that has led to the scandal of billions of pounds being siphoned off for shareholders' profits.
The role of the WIC should be brought into line with those of ministers and Scottish Water. Economic regulation is vital, but it should not sit as the overarching framework for public service delivery. That framework should be sustainable development, which will deal with our needs and those of our children and their children to come, rather than the short-termism of the market. That is the right vision for our public services.
I move,
That the Parliament notes growing pressure for Scottish Water to be privatised; further notes the substantial improvements that have been made in Scottish Water's performance, all of this having been achieved while keeping Scottish Water in the public sector; notes the Water Industry Commission's lack of a wider social and environmental remit and its use of a regulatory model more suited to a private utility than to a public one; considers that improving the service, upgrading the water and sewerage system, reducing leakages and ensuring effective regulation should not centre on short-term efficiency measures but on the quality and safe delivery of services in the long term, and affirms its commitment to keeping Scottish Water under public ownership and control.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The next item of business is a debate on motion S2M-5510, in the name of Mark Ruskell, on Scottish Water.
Mr Mark Ruskell (Mid Scotland and Fife) (Green):
Green
This debate is an opportunity for all of us in the chamber—apart from the Tories—to restate our commitment to public ownership and control of Scottish Water ...
Dave Petrie (Highlands and Islands) (Con):
Con
Does the member agree with the water industry commissioner's report that, for every million gallons of expensively treated water that is produced, half a mil...
Mr Ruskell:
Green
I argue that the regulatory system is at fault. We can trade figures throughout the debate, but South West Water's charges for the coming year will be 40 per...
Alex Johnstone (North East Scotland) (Con):
Con
Hear, hear.
Mr Ruskell:
Green
A blow for democracy over there.The view was also reported that Scottish Water should be freed from state ownership, but that was apparently a misrepresentat...
The Deputy Minister for Environment and Rural Development (Sarah Boyack):
Lab
I very much welcome the debate. We have systems of managing our water networks in Scotland that are different from those in the rest of the United Kingdom. T...
Mark Ballard (Lothians) (Green):
Green
Will the minister take an intervention.
Sarah Boyack:
Lab
No thanks. I want to get started.We have a unique model: it is a third way that provides a public sector company that is directed by ministerial policy, that...
Dave Petrie:
Con
Does the minister accept that in all Scottish Water's new works it is in partnership with private companies such as Miller Group, Babtie Group and so on and ...
Sarah Boyack:
Lab
No. Scottish Water is using private companies to deliver our investment programme, which is set by Scottish ministers. It is using the best system of deliver...
Jim Mather (Highlands and Islands) (SNP):
SNP
Will the minister take an intervention?
Sarah Boyack:
Lab
No, thank you. I want to get on.That means that Scottish Water is delivering more for less. Our constituents are benefiting from lower charges, Scotland is b...
Murdo Fraser (Mid Scotland and Fife) (Con):
Con
We started this morning with a consensual debate on procurement from the Greens. I am disappointed that this debate will not produce the same cross-party con...
Stewart Stevenson (Banff and Buchan) (SNP):
SNP
Is the member aware that Banff and Buchan College's Peterhead centre, which is in my constituency, has just received a bill for £39,000, which represents use...
Murdo Fraser:
Con
I am sure that the private sector will make errors in many cases.I was going to talk about the Welsh Water model, which of course has support from Mr Stevens...
Rob Gibson (Highlands and Islands) (SNP):
SNP
If we are to believe Murdo Fraser, privatisation is built into the model that has been delivered by the Scottish Executive. He also wants us to believe that ...
Sarah Boyack:
Lab
Would Rob Gibson like to explain specifically what model the SNP supports and how it would deliver that?
Rob Gibson:
SNP
Certainly.
The Deputy Presiding Officer:
Con
You have one minute.
Rob Gibson:
SNP
We need a Government that is prepared to direct the process to the WIC and Scottish Water and which sets priorities that can be achieved by the accountancy m...
The Deputy Presiding Officer:
Con
Your time is up.
Rob Gibson:
SNP
There is a large sewage plant at Seafield that affects 30,000 people because of the unbearable smells that come from it in the summer.
The Deputy Presiding Officer:
Con
Mr Gibson, you must wind up.
Rob Gibson:
SNP
I am winding up.The Green party motion suggests that it is possible to have the current model and, with direction, ensure that it works.
The Deputy Presiding Officer:
Con
I am sorry, Mr Gibson, but you must stop now. You are way over time.
Mr Andrew Arbuckle (Mid Scotland and Fife) (LD):
LD
On the way to Parliament today, I was, for a short time, critical of Scottish Water. There was a hold-up in the traffic, and it was only when I read the expl...
Mr Ruskell:
Green
Will the member give way?
Mr Arbuckle:
LD
No. I have only four minutes; otherwise, I would.Twenty years ago, the total proposed capital spend on water services and sewage works in Fife was some £5 mi...
Stewart Stevenson:
SNP
Will the member take a 10-word intervention?