Chamber and committees

The Government’s approach perhaps justified not putting a target for 2035 in the original legislation, because it is clear that a lot of work has been needed, particularly at a local level and with councils, to really understand, in a granular way, how the target can be met and, indeed, what it should be. I am pleased that the groundwork has been done, and I think that we now have a target that will drive that private investment, which is going to be critical in meeting the gap and ensuring that we have real projects on the ground that are well regulated and protect consumers. Within that, we hope that there will also be opportunities for municipal ownership and public benefit.

It is good to see the stretching target brought forward, but it is good to see that it is going to be based on the reality of what is possible and what is going to be investable and bankable.

Thanks for that. That was a good, clear example of the challenges. I recognise your work in ensuring that externalities get internalised over a number of years, so please do not read anything else into what I am saying.

I have another question about the role of WICS. We are heading towards new legislation on water and sewage. Do you see the role of WICS and the way in which it is set up as fit for purpose for where we are now? Is there a need to look again at the role of WICS and its duties? Are you unable to comment on that, or do you not feel that there is anything worth commenting on?

My question is on the back of that last one. I am interested in getting a sense of whether the consumer research shows that consumers who can afford to pay might be prepared to pay more if it is linked to tangible environmental improvements. The question, crudely put, might be this: would people be prepared to pay an extra 30p if they get improvements in a river, a cleaner beach or whatever? Is that kind of thinking coming through?

Your comments have inspired a further question. Has regulatory innovation from devolved Administrations been useful in this space? You talked earlier about single-use plastics and carrier bag charges. There is the issue of the operation of an internal market, but what is your assessment of policy innovation?

Does that outweigh any potential confusion from consumers when, for example, they go to Wales and say, “I didn’t realise that this wasn’t on sale, because it has been banned”?

It would certainly be interesting to see what the research throws up, given that, as you have said, things have moved on. That is not only because of the pandemic, but because there is now a different narrative about how we use our water resources and the impact of sewage.

I have a question for Alan Sutherland about the role of WICS. Are you having to evolve your regulatory approach because of the challenges of climate change? I am mindful of Audit Scotland’s approach, which involves much more carbon counting and looking at how the public sector is delivering the long-term change that is needed. What does that look like for WICS? You were set up with a very specific remit under the Water Services etc (Scotland) Act 2005 as a predominantly economic regulator, but we are now in a world that is quite different to the one of 2005. How are you adjusting your regulatory approach to meet the challenges that we now face?

Do you still see opportunities for municipal ownership of heat networks? Is that a model that could flourish?

I very much welcome a target being set for 2035. I think that it was on the back of one of my amendments that the provision to set a 2035 target was put into the Heat Networks (Scotland) Act 2021—James Hemphill is nodding. At the time, it was difficult to put a figure on that and there was a lot of discussion with the minister about it. Therefore, it is good to see a figure being set and the work that is being done to construct it.

How does that work relate to the LHEES? It appears that those are on track. A lot of granular work has been done in local authorities to work out exactly where district heating schemes can be put in place. Do we have enough of a picture now through the work that has been done by the 32 local authorities to build the certainty that industry wants and enable us to peg a target to 2035, which is obviously still some way off?

I have a final question. I think that it was Ivan McKee who, in 2021, restated Government guidance at that time in relation to public procurement. That followed on from a report from the Office of the United Nations High Commissioner for Human Rights, which identified about 100 companies with activities relating to illegal Israeli settlements in Palestine, and the implications of that for seeking peace. Can you confirm the current status of that guidance?

Thank you.