The Scottish National Party said that more than 5,000 people would be taking part in the event to "envisage the future" of the new organisation.

It is calling on Environment Minister Ross Finnie to disclose the full cost of the exercise.

I will now be demanding answers in the Scottish Parliament from Ross Finnie

Bruce Crawford SNP spokesman

However, Scottish Water defended the exercise and said the hotel had won the contract on the basis of cost and availability.

SNP environment spokesman Bruce Crawford has hit out over the seminars.

"Is there really any need for almost the entire staff of a public body to be treated to hospitality at a luxury hotel at the public's expense?" he asked.

"Glasgow's water crisis demonstrated that Ross Finnie does not have his department under control but extravagance on this scale is quite unacceptable.

Water charges

"I will now be demanding answers in the Scottish Parliament from Ross Finnie.

"At a time when people's water supply is being poisoned because of under-investment and water charges are going through the roof, he must now tell us exactly how much of the public's money is being spent on these seminars."

A spokeswoman for Scottish Water said that 25 venues in central Scotland were given the opportunity to tender for the chance to host the event.

Ross Finnie apologised to MSPs

Crieff Hydro won the contract on the basis of cost and the availability of facilities.

She said it was vital that every member of staff knew about the challenges set by the Scottish Executive and the regulator and about their roles in achieving these goals.

She argued that the seminars were a wholly appropriate investment in the organisation's future.

The organisation has been under fire over an outbreak of the cryptosporidium parasite in the water supply to parts of Glasgow and Clydebank last month, which affected more than 150,000 people.

They were advised to boil their supplies because of higher than normal levels of the parasite in water from Mugdock Reservoir in Milngavie, East Dunbartonshire.

Misleading parliament

Mr Finnie defended the handling of the incident in the Scottish Parliament, while admitting that there were "serious shortcomings" in the way information was dealt with.

However, his attempts to reassure the public over the safety of the water supply were overshadowed when he was forced to apologise for misleading parliament.

He had said that sheep were no longer grazing around Loch Katrine, which supplies water to Glasgow, when in fact there were still 3,000 on the shore of the loch.