Calls for Scottish Water to be privatised

3 May 2006

The Scottish Council Foundation is arguing that Scottish Water should lose the public monopoly position that it enjoys and should be privatised in order to improve the service it offers to its customers.

Jo Armstrong, a former advisor to finance minister Angus MacKay and other Labour Executive ministers in Scotland, said that Since its establishment in 2002, Scottish Water has considerably enhanced the productivity of Scotland's water and sewerage system but the financial pressures facing Scottish Water now raise doubts about its ability to remain a publicly-owned monopoly.

Writing on behalf of the Scottish Council Foundation, Ms Armstrong said that privateising Scotland's water industry would allow for greater competitive pressures and would give customers increased savings, while also allowing Scottish Water access to private capital so reducing or eliminating the need for scare Scottish Executive funding.

Over the next four years Scottish Water is forecast to spend at least £2.2 billion (2003-04 prices) upgrading and enhancing its infrastructure.

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