Subscribe to this blog's feedThe arrival of the competitive market in Scotland has coincided with the revival of the debate among Members of the Scottish Parliament about the status of Scottish Water.
Should it remain in public ownership, be made a mutual company owned by customers (often compared to Welsh Water, though its parent Glas Cymru
is not a true mutual but a company limited by guarantee) or be privatised like the English water companies?
The debate was triggered by the Tories, spearheaded by shadow cabinet member Mary Scanlon MSP, more as a means of embarrassing Alex Salmond’s ruling Scottish National Party and Labour than as a realistic attempt to force a change-round.
The Tories have dreamt up a figure of £100 a year that they claim each Scottish taxpayer would save by removing Scottish Water from the public sector borrowing limit. This certainly seems to have set the cat among the pigeons.
Water minister Stewart Stevenson MSP has been forced to agree to yet another review of the water company’s future after Scottish Labour leader Wendy Alexander made a U-turn by saying she was “sympathetic” to the idea of mutualisation, if not privatisation.
Scottish Water is used to operating in the goldfish bowl that comes with public ownership but would doubtless love to be left to get on with offering a service to customers rather than being a political football.
Disconnector notes that there is a risk that the SNP’s spending and tax plans might come unstuck, forcing a sale of assets (including Scottish Water).
If that were to happen, would Business Stream be the first under the hammer? The great man (Disconector, not Stewart Stevenson) is well aware that the Scottish water regulator has hinted that the retail operation might thrive under private ownership, and while it wouldn’t fetch much compared with asset-rich Scottish Water it would be a useful test of public sentiment on privatisation.
Makes you think, eh?
