Allan Wilson: Rates relief

Deputy environment minister Allan Wilson had intended to announce the proposal publicly when he gave evidence to the Transport and Environment Committee, where MSPs are scrutinising the Water Industry (Scotland) Bill.

But committee business went slower than expected as MSPs and the minister dealt with other aspects of the bill, and the planned committee debate on water rates relief for charities will now take place next week.

Details of the concession, which Mr Wilson had already given privately in a letter to committee members, appeared briefly on the executive website during the morning but were hastily removed.

A spokesman described the premature website announcement as an "administrative error".

Phased out

For organisations like Scotland's biggest hospice - St Margaret's in Clydebank - the loss of rates relief could mean a four-fold increase in bills, from �3,378 to �14,500 per year.

The Scottish National Party is demanding that rates relief is restored to charities, but critics say such a move would mean the public having to pay more to offset an estimated �11m in lost revenue.

The concession announced by Mr Wilson would exempt local groups with an income of under �10,000 and who qualify for the relief scheme which is now being phased out.

It is aimed at bodies like lunch clubs, parent and toddler groups, and scout and guide groups on limited incomes.

It is technically unworkable, muddling organisations with the premises they occupy.

Lucy McTernan of SCVO

The Scottish Council of Voluntary Organisations (SCVO) said that while it was pleased that the executive acknowledged there would be an impact from the loss of water charge relief, the new concession would do "practically nothing" to help.

"It is technically unworkable, muddling organisations with the premises they occupy," said Lucy McTernan, corporate affairs director of the SCVO.

"It will apply only to the handful of charities which have incomes of under �10,000 and who occupy premises.

"It will not cover thousands of care homes, hospices, women's aid refuges, playgroups and nurseries, youth clubs and village halls that are the very fabric of our communities."

It is estimated that without restructuring to the water industry, charges in Scotland's central belt would be 10% higher by 2005-6, and charges in the north around one third higher.

Scotland Water, which will be based in Dunfermline, will take over from the three existing authorities on 1 April.