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All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
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Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
As we are at the start of this morning’s session, can you remind us how many employees WICS has?
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Thank you very much indeed. I take the opportunity to thank Fulton MacGregor for his brief spell on the committee.
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Under the second agenda item, does the committee agree to take items 4 and 5 in private?
Members indicated agreement.
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Our main agenda item this morning is further consideration of the 2022-23 audit of the Water Industry Commission for Scotland, which involved a section 22 report being issued.
I welcome our witnesses, who are from the Water Industry Commission for Scotland and the Scottish Government. First, I welcome Michelle Quinn, who is here as the Scottish Government’s interim director general net zero. She is joined by Kersti Berge, who is director of energy and climate change in that directorate. We are also joined by Catherine Williams, who is the interim deputy director of water policy in the Scottish Government. From the Water Industry Commission for Scotland, we have David Satti, who is the interim chief executive, and Donald MacRae, who is the chair of the board. We are also joined by Robin McGill, who is the chair of the audit and risk committee as well as being a member of the board of WICS.
We have some questions to put to you, but before we get to those, I invite Donald MacRae and then Michelle Quinn to make short opening statements.
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Can you give us an example?
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Mr MacRae, you were very bullish there, saying that you needed the best legal advice. Did that go out to any procurement process?
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
But, Mr MacRae, you were answering questions in the context of the KC’s retention. Did the position of the retained KC—formerly Queen’s counsel—go through any tendering process?
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Well, no, you called it “pushback”.
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
Thank you very much indeed. I want to place on record the committee’s thanks for the amount of information that has been provided. There was a delay in publication because some of the information had to be redacted, but we will come to the substance of some of those documents and what they tell us.
It was useful for Mr MacRae to remind us at the outset that the whole purpose of the Water Industry Commission for Scotland is to ensure that Scottish Water provides
“long-term value and best-in-class levels of service”.
I am sure that, this morning, we will scrutinise whether WICS lives up to those standards.
Mr McGill, in October 2023, Audit Scotland sent you an email regarding the business case for the Harvard business school course, in which it questioned why expenditure of more than £20,000 required approval by the Scottish Government, when the board’s approval level was for expenditure of more than £100,000. I think that the expression that was used in that email was:
“this seems the wrong way around”.
Have you addressed that issue?
Public Audit Committee
Meeting date: 19 September 2024
Richard Leonard
What do you mean by a “long-standing relationship”?