In a paper in the January 2006 issue of this Commentary, [Cuthbert and Cuthbert, 2006], we identified a number of errors in the financial control of the water industry in Scotland. These errors had resulted in serious overcharging in the strategic review 2002-06, with, we argued, knock on effects to the 2006-10 period. A meeting with the Chairman of the Water Industry Commission, Sir Ian Byatt, was held on 22nd February at the Scottish Parliament to discuss one particular symptom of this, the high levels of new capital expenditure funded out of revenue in the water industry in Scotland
