Allan Wilson: Rates relief

The row came when the committee was scrutinising details of the Water Industry (Scotland) Bill, which sets up the new body Scottish Water.

Charities and voluntary bodies argue that they face massive increases in water charges through the phasing out of the charity relief scheme.

In response to this criticism, Deputy Environment Minister Allan Wilson last week disclosed plans for a new scheme which exempts from water charges small local groups with an income of less than �10,000.

He argued this was a simple and straightforward scheme which would help bodies like lunch clubs, parent and toddler groups and scout groups, all operating on a shoestring.

But charities argue his scheme is too restrictive, and will apply only to a handful of small organisations while doing nothing for thousands of care homes, hospices, youth clubs and village halls.

Widespread alarm

Launching the SNP move to preserve the existing relief scheme, Richard Lochhead, MSP for north East Scotland, told the committee that organisations like hospices regarded it as "absolutely essential" that they get the current levels of relief.

Warning of widespread alarm within charities and voluntary bodies at the loss of relief, he said: "They all have the same message.

"If this amendment is not passed by the committee today, they will have to cut back their services.

"They will have to pull out the stops to rattle collection cans to raise more cash.

"I don't think there is any member of the Scottish Parliament who would want to see legislation passed by this parliament that would allow such a situation to arise."