STUC Water Charter

STUC Water Conference

10 May 2004

Dave Watson

UNISON Scotland

Context

• Public debate

• Parliamentary debates and inquiries

• Calls for structural change

• Regulatory intervention

• Investment & charges

• Environmental concerns

STUC Response

• Water trade unions– Amicus, GMB, TGWU & UNISON

• Concern over direction of industry

• Public misinformation

• Joint initiatives through STUC Water Campaign - STUC Water Charter

Structure

• Scottish Water

• Scottish Executive

• Water Industry Commissioner

• Scottish Environment Protection Agency

• Drinking Water Quality regulator

• Water Customer Consultation Panels

Charter Objectives

• Publicly owned and accountable

• Effective and accessible public service

• Maintain public health

• Protect the environment

• Underpin economic development

Structure

• Support public corporation model– Accountability without day to day interference– Efficient public borrowing– Public interest - Not for profit

• Can be strengthened and refined• Alternatives - Privatisation or mutualisation

• International threat - GATS & Internal Market Reform

• Focus on making Scottish Water work

Investment

• Huge investment in infrastructure– Network?

• Three options– Middle option was correct compromise– But not the end of investment need

• PPP – Failures, poor value, flexibility & accountability

Charges

• Investment has to be paid for– Charges or Grants (other public services)

• Reform– Harmonisation– Standing charges– Treatment of borrowing– Transparency

Regulation

• Confused structure - economic & customer

• Comparisons with England– Coastline & Environment– Technical system differences– Investment cycle– Economic models

• Data - other utility regulation

• Promoting privatisation?

Employment

• Scale of job losses– one-third to one-half

• Linked to financial models not investment

• Safety & customer service

• Experience of other utilities– Experienced staff & re-employment

• Good employment practice

Water Services Bill

• Competition exclusions

• Welcome prohibition on common carriage and retail competition

• Oppose non-household competition– Business separation– Systems - billing and switching– Cherry picking - supplier of last resort

• Regulation

Next Steps

• Draft Charter - welcome views

• Build a broad based consensus

• Improve quality of information– research, transparency

• Legislation & consultations

• Campaign

• Develop positive model of Scottish Water