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Scottish Water ownership debated Scottish Water ownership debated
(about 4 hours later)
A change in the ownership of Scottish Water is to be considered by the Scottish Government.A change in the ownership of Scottish Water is to be considered by the Scottish Government.
BBC Scotland has learned that Finance Secretary John Swinney will agree to review the company's future during a Holyrood debate on Thursday. BBC Scotland has learned Finance Secretary John Swinney will agree to review the company's future during a Holyrood debate on Thursday.
It is understood ministers are willing to consider public sector alternatives to government ownership, including mutualisation.It is understood ministers are willing to consider public sector alternatives to government ownership, including mutualisation.
This would allow Scottish Water to borrow from financial institutions.This would allow Scottish Water to borrow from financial institutions.
It could mean an additional £200m of public money would be freed up annually for other priorities.It could mean an additional £200m of public money would be freed up annually for other priorities.
'Taxpayer savings'
The proposal had previously been rejected by both the SNP and the Labour Party, but both are now backing a review.The proposal had previously been rejected by both the SNP and the Labour Party, but both are now backing a review.
The Scottish Conservatives have long supported a change in ownership. Water charges
Derek Brownlee MSP, Tory spokesman for finance and sustainable growth, said: "Scottish Water costs each family around £100 a year, above and beyond their water bills. 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.
To borrow that money at expensive interest rates and allow private companies to extract further profits would add hugely to water charges Dave Watson Unison Tory finance spokesman, Derek Brownlee, said: "Scottish Water costs each family around £100 a year, above and beyond their water bills.
"Every year over £180m of taxpayers' money which could be spent on schools, hospitals or reducing the burden of tax is instead spent on Scottish Water. "Every year over £180m of taxpayers' money which could be spent on schools, hospitals or reducing the burden of tax is instead spent on Scottish Water. "
"In contrast, Welsh Water - a mutual rather than a private model - does not cost the taxpayer a penny." However, Unison, the largest union representing water and sewage workers, said the plan was "crazy" and claimed it was simply a smokescreen for privatisation.
A mutualised Scottish Water would be better for customers, taxpayers and the company itself, he added. 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."
However Unison, the largest union representing water and sewage workers, said the plan was "crazy" and claimed it was simply a smokescreen for privatisation. Green MSP Patrick Harvie said the "sudden shift" by Labour and the SNP was worrying, adding: "We believe mutualisation will begin an inevitable slide toward privatisation."
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.
"All around the world communities are rejecting water privatisation yet here the Tories are promoting it."