07 November 2008
By David Scott in Edinburgh
Scottish Water should be privatised to free up £182m of devolved government funds each year, business leaders have said.
In a report published on October 29, CBI Scotland also called for the scrapping of the Scottish Government's plans to introduce a local income tax. The £20m preparatory and start-up costs should instead be deployed for 'gross domestic product-enhancing investments', it stated.
CBI Scotland chair David Thorburn said: 'The proposals... will require decisive political leadership and bold steps, but that is exactly what is required in these uncertain times for businesses and our economy.'
He added: 'The significant remit and budget of the devolved government gives ministers a key role to play in helping firms and the economy through the slowdown and in preparing Scotland to take full advantage of the recovery when it comes.'
CBI Scotland's 15-point plan – which was a response to the Scottish draft budget for 2009/10 – pointed out that Scotland does not receive any Barnett Formula monies to fund the annual taxpayer support for Scottish Water, a public sector facility, as English water authorities are already in the private sector.
This was an added incentive 'for moves to either privatise or mutualise the ownership of Scottish Water', the submission stated.
It also called on the Scottish Government, agencies and local authorities to review capital expenditure plans with a view to speeding up infrastructure projects that would encourage economic growth.
The business leaders also urged ministers to obtain better value for money by ensuring greater private sector delivery of public services.
PFnov2008
