1. STUC Water Charter STUC Water Conference 10 May 2004 Dave Watson UNISON Scotland

2. Context Public debate Parliamentary debates and inquiries Calls for structural change Regulatory intervention Investment & charges Environmental concerns

3. 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

4. Structure Scottish Water Scottish Executive Water Industry Commissioner Scottish Environment Protection Agency Drinking Water Quality regulator Water Customer Consultation Panels

5. Charter Objectives Publicly owned and accountable Effective and accessible public service Maintain public health Protect the environment Underpin economic development

6. 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

7. 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

8. Charges Investment has to be paid for –Charges or Grants (other public services) Reform –Harmonisation –Standing charges –Treatment of borrowing –Transparency

9. Regulation Confused structure - economic & customer Comparisons with England –Coastline & Environment –Technical system differences –Investment cycle –Economic models Data - other utility regulation Promoting privatisation?

10. 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

11. 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

12. 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