Stevenson Backs Call For OFT Investigation Into Scottish Water

SCOTTISH BUSINESSES ARE OVERCHARGED FOR SERVICE

Local MSP Stewart Stevenson is backing calls for the Office of Fair Trading to investigate Scottish Water for overcharging of Scottish businesses for water and sewerage services.

SNP Shadow Enterprise Minister Jim Mather MSP has written to the Director General of the Office of Fair Trading setting out the case for an investigation under the Competition Act. The letter states that:

• Business charges in Scotland are materially higher that those charged elsewhere in the UK
• Revenue is running at a rate that is 40 to 50% higher than operating costs
• 86.6p in every pound of capital expenditure in the three years to 31st March 2005 has been paid by current water charge payers
• The chairman of the Scottish Water Commission refuses to discuss the Strategic Review of Charges 2002-06 that is at the root of the over-charging regime.

The demand follows an SNP campaign on the issue, including the hosting of a Parliamentary debate at Holyrood on the subject.

Commenting, Mr Stevenson said:

"Scottish businesses are paying too much for this vital service.

"The time has come to shine some more light into the scandalous mismanagement of Scottish Water by the Scottish Government and the Water Industry Commissioner.

"People in Scotland are indirectly paying more for their water for three reasons.

"First businesses are being forced to increase their prices to recover the high water charges that they are facing.

"Secondly many rural water charge payers have their environment blighted by inadequate water systems.

"Third many areas are being denied growth opportunities for the lack of adequate water infrastructure.

"Now we run the risk that the Government has created a situation at Scottish Water, where it has public relations problems, high charges, vast profits and new assets, which is likely to encourage them to table 'Privatisation' as the cure.

"That is why I’m supporting this call for an investigation to clear the air, force the modification of charges and dispel the threat of privatisation.

"For it is clear that privatisation would break the vital link between the provision of water services and the higher objective of optimising both water infrastructure and quality and the Scottish Economy.

"We must deliver a fair deal for Scottish businesses."