Scottish Water cash boosts development

Investment in Scottish Water by the Scottish Executive is set to increase by
£200 million a year, opening up new areas for the development of affordable
housing as infrastructure improves.Domestic water charges are to be held at the rate of inflation for the next five
years, but capital for future investment in Scottish Water will be raised by
increasing the charge paid by construction firms to connect new developments to
the water mains.

Affordable housing developments are to be exempt from the charge increase,
introduced in the Water Services (Scotland) Bill passed this week.

David Bookbinder, policy coordinator at the Scottish Federation of Housing
Associations, said: ‘The announcement today is giving Scottish Water the green
light to go ahead and provide these vital services which in many cases are the
only thing holding back major developments of affordable housing.

‘We and others have been raising this issue for some time and it is very good
news that the executive has recognised the extent of the problem and is doing
something about it.

Now, Scottish Water must deliver.’ But developers are angry at the charges.
Homes for Scotland executive director Bruce Black said: ‘Ministers have
continued the practice of shifting expenditure from the public purse to the
private sector through the introduction of yet another regime of developer
contributions, this time for the infrastructure costs of new development.’

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*Published: 18 February 2005*