We’re used to hearing about bosses of English Water companies getting rewarded for failure, but north of the border, things are just as bad, if not worse. It’s particularly egregious to see  publicly owned Scottish Water pay out £250,000 in bonuses to senior management when the company’s record is far from unblemished.

Scottish Lib Dem Leader Alex Cole-Hamilton and Emvironment spokesperson Sanne Dijkstra-Downie have written to John Swinney to ask him how such bonuses could be justified. They said:

Dear John,

We are writing to you following the publication of Scottish Water’s annual report, which included the executive members’ renumeration for 2026.

The report shows that executive members have received more than £250,000 in bonuses over the past year. It comes at a time when billions of litres of sewage are being discharged into Scotland’s rivers, lochs and beaches every year. New research has also suggested that almost all raw sewage spills in Scotland could be illegal.

Meanwhile, ongoing pollution incidents at Portobello Beach, a designated bathing water, have led to the Scottish Environmental Protection Agency (SEPA) advising the public against entering the water. Indeed, analysis has found that Portobello Beach recorded E.coli levels ten times above the safe limit. Wardie Bay, a popular wild swimming spot in the north of the city, has also experienced problems with water pollution, with a sewage pollution alert issued this month.

The continued water-quality issues at Kinghorn Beach means that the site faces being stripped of its designated bathing water status if it receives a fifth successive “poor” SEPA rating. The watchdog said that the water could be a risk to human and animal health.

As you will be aware, the bonuses paid to Scottish Water are only to be payable if the organisation meets its performance targets, which includes measures like customer satisfaction and a reduction in incidents. It is extremely difficult, therefore, to understand why such high bonuses continue to be paid when sewage discharges are consistently high and popular beaches are being forced to close.

Indeed, these bonuses will simply seem unjustifiable, especially for the many people who have been directly impacted by sewage problems and pollution at some of the country’s most beloved bathing spots. It is not at all clear how Scottish Water, a public body, is being properly held to account when these bonuses persist despite consistently disappointing performance.

Will you, therefore, explain why such high bonuses continue to be paid out and what, if any, consideration is given to significant factors like sewage dumps and beach closures in the decision to pay them?

We look forward to your response.

Yours sincerely,

Alex Cole-Hamilton

Scottish Liberal Democrat leader and MSP for Edinburgh North Western

Sanne Dijkstra-Downie

Scottish Liberal Democrat environment spokesperson and MSP for Edinburgh Northern

I suspect we may have seen the subject of Alex’s first First Minister’s Question of the new session next week.

Christine Jardine MP used a recent Scotsman column to criticise the bonuses too:

Something the Scottish Government has long promised to do and failed. It had originally committed to updating broken guidance from the 1990s, but earlier this year emails obtained under FOI showed that the Scottish Government and SEPA were no longer looking at updating the 1998 rules.

In my constituency we regularly hear from constituents concerned about burst mains, smelly sewage works and polluted rivers. For them it is little consolation that Scottish Water is still in public hands or, in the oft repeated slogan of the Scottish Government: “Not as bad as England”.

That is not good enough.

That Scottish Water is still in public hands and not been sold off for profit is to be welcomed.

But surely it should also mean that our Government is able to do more to ensure its efficacy.

 

* Caron Lindsay is Editor of Liberal Democrat Voice and blogs at Caron's Musings. You can find her on Bluesky at caronmlindsay.bsky.social