Highlands and Islands Labour MSP Maureen Macmillan has written to Communities Minister Margaret Curran and Environment and Rural Development Minister Ross Finnie over the failure of Scottish Water to provide infrastructure for a small housing development proposed by the Orkney Housing Association for Seafield, Finstown.

Initially, the housing association acquired their site in 2002 and had expected to have the necessary sewerage infrastructure in place by 2003, as advised by Scottish Water.

Following delays in the proposed date for sewerage services being available, Orkney Housing Association were advised this summer that all parts of Scottish Water's programme were under review.

Commenting on the situation Mrs Macmillan said, " This is clearly unacceptable. There is a crying need in islands areas for affordable housing, especially in smaller communities.

"Orkney Housing Association are trying to provide four much needed homes in Finstown and finding their planning procedures in disarray due to the problems they are experiencing with Scottish Water.

"As I travel across the Highlands and Islands I am repeatedly told of the desperate need for affordable housing and this has been acknowledged by the recent announcement of £10 million funding for rural housing by the Scottish Executive. If we are to retain and expand the population in the islands we must have not only jobs but also accommodation for workers and their families. This is a basic requirement and the role of housing associations in delivering such infrastructure is crucial.

Scottish Water should be able to provide an accurate date regarding the provision of water and sewerage infrastructure for a particular project and not hinder the work of those trying to provide rural housing. Scottish Water was brought into existence over a year ago by the Water Service Bill and at that time I was assured by the Environment and Rural Development Minister that rural housing would not suffer as a result of the demise of the previous water authorities and the creation of Scottish Water."

Mrs Macmillan added, " Orkney Housing Association are now likely to lose their grant approval for their Finstown project and the scheme will be postponed yet again. I have urged the Communities Minister to intervene and see what can be done to save the development."