Scottish Water has made more than 25,500 new connections to the public water network in the last year, according to the annual report and accounts for 2006-07 for the public corporation, which were laid before Parliament today.

The accounts of the past year also show a five per cent reduction in Scottish Water's regulated operating costs on a like-for-like basis, and that a further £413 million has been invested in the improvement of assets making a significant improvement in customer services.

Stewart Stevenson, the Minister for Transport, Infrastructure and Climate Change, said: “Scottish Water's Annual Report and Accounts report improved performance and a significant reduction in running costs.

“The report shows a year during which Scottish Water has outperformed its delivery plan and made good progress with targets set.

“I am particularly pleased to note that Scottish Water has made dramatic improvements in customer service and made particular efforts to address development constraints by allowing a further 25,500 new properties to be connected. These improvements and those made to drinking water quality and the environment are good news for customers.

“I recognise that Scottish Water has an ambitious programme of work planned from now until 2010. This programme will continue to improve vital water services to the public."

Commenting on the report, Alex Johnstone MSP, the Conservative Shadow Minister for Infrastructure, said: “Scottish Conservatives have always said that for Scottish Water to be able to deliver the best service available, it must be taken out of state control and opened up to competition. That is why it was so disappointing to hear the Finance & Sustainable Growth Secretary explicitly rule out this recommendation when it was made in the Howat Report – the only recommendation from the Report to suffer this fate.

“Only the Scottish Conservatives have a clear plan as to how to move Scottish Water on to be able to provide highest quality water services at competitive prices – namely, mutualisation.

“Ultimately, if Scottish Water is to deliver the safe, high-quality service that the public deserves, and if it is to attract the investment needed, then it must be taken out of state control.”

Related news items:

• Action urged on housing crisis
• Affordable housing investment announced for Borders
• Audit of Scots language announced
• Brown to make housing a political priority
• Call for more affordable housing