The reappointment of Alan Sutherland as water industry commissioner (WIC), which was tucked away at the end of an announcement on the Water Services Bill, was agreed despite ministers noting that last year his office overspent by £140,000 “as a result of inadequate financial controls”.
The reappointment has been greeted with astonishment and anger by small business leaders, who accused ministers of manipulating a highly critical report by MSPs into Scottish water regulation.
“I am astounded at the brazen and hypocritical attitude of the Scottish executive towards the findings of the finance committee’s report into Scottish Water,” said Bill Anderson of the Forum of Private Business Scotland.
“It is basically two fingers to them and to those who want to see a new regime of openness and partnership between water consumer, Scottish Water and the new commission.”
The report into Scotland’s water industry by MSPs was accepted by the executive when it was published in April, in particular the recommendation that the commissioner’s role should be transferred “from an individual to a small board of non-executive experts and a chief executive, known as the water industry commission for Scotland”.
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The report was widely seen as condemnation of Sutherland’s insistence on a strict pricing regime. It was also suggested that Sutherland’s uncompromising manner had aggravated relationships between ministers, the regulator and Scottish Water.
Murdo Fraser, the Conservative enterprise spokesman, said he would be tabling questions later this week to Ross Finnie, the environment minister, asking why “someone with such a draconian approach” had been reappointed.
Ministers are believed to have complained privately that Sutherland’s manner has been difficult in tone, and that he regarded himself as independent of ministers. There are also reports of difficulties within the WIC offices, and an industrial tribunal is set to hear a case of dismissal in which allegations of bullying by management have been made.
A spokeswoman for Finnie said a paragraph in the regulations did allow for a first reappointment to be made without open competition.
She said she understood the appointment to be temporary until the formation of the new water industry commission in summer 2005.
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The minister himself was not available for comment.