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Last Updated: Thursday, 21 February 2008, 12:13 GMT
Review ordered into water utility
Tap dripping water

The Scottish Government has agreed to review the national water authority, but the move is unlikely to lead to privatisation or mutualisation.

The move over Scottish Water came following opposition pressure, but ministers are confident the review will back the government's current approach.

Labour, which has not previously backed mutualisation of the publicly-owned utility, agreed to the review.

The Tories and Liberal Democrats support mutualisation.

During a Conservative-led debate in parliament, infrastructure minister Stewart Stevenson promised to keep an open mind, but added: "There is a very clear consensus that Scottish Water is doing well, there is not a particularly robust suggestion that we should change the model."

The minister agreed to support Labour calls to review the structure and operations of Scottish Water, with mutualisation included as a possibility, but within the public sector.

Taxpayers' money

Mr Stevenson also pointed out average water charges in Scotland were lower than those in England and Wales, and would rise by less than the rate of inflation north of the border.

The Scottish Conservatives have long supported a change in ownership and the Liberal Democrats said Scottish Water would operate more efficiently as a mutual company.

The Tories claimed the move would save more than �180m of taxpayers' money each year.

Unison, the largest union representing water and sewage workers, and the Greens, said mutualisation was a smokescreen for privatisation.

Unison Scottish organiser, Dave Watson, said: "To borrow that money at expensive interest rates and allow private companies to extract further profits would add hugely to water charges."

SEE ALSO
Plea to plug a major water loss
17 Jan 08 |  Highlands and Islands
New boss takes on Scottish Water
26 Nov 07 |  Scotland
Report hails water improvements
13 Oct 05 |  Scotland
Minister rejects water plans
19 Jun 03 |  Scotland

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