Water Supply

Regional Development

Northern Ireland Assembly debates, 19 October 2009, 3:15 pm

Photo of Leslie Cree

Leslie Cree (UUP)

4. asked the Minister for Regional Development when he expects to make a decision on the future funding for water provision.      (AQO 248/10)

Photo of Conor Murphy

Conor Murphy (Sinn Féin)

I have frequently to explain that it is not for me alone to decide the future of funding arrangements for water and sewerage services. It is a matter for the Executive collectively. Over the coming months, the Executive will make decisions on the funding of public services generally for 2010-11, and this will include the funding of water and sewerage services. We remain committed to consulting publicly on any decisions we take arising from the Independent Water Review Panel’s strand two report.

Photo of Leslie Cree

Leslie Cree (UUP)

I thank the Minister for his answer. Will he give the House a full breakdown of the cost of a further deferment of water charges, were such a decision to be taken?

Photo of Conor Murphy

Conor Murphy (Sinn Féin)

The financial implications of a further deferral of water charges beyond 2009-10 are as follows. The Department is providing about £270 million for 2009-10. Initial estimates suggest that deferring charges over the period 2010-13 would extend the departmental expenditure limit by something like £1 billion. However, those costs could vary, depending on the nature of any Executive decision.

Whether or not households pay an additional contribution, if we want a world-class water and sewerage service, it must be paid for. As I said in answer to a previous question, it costs around £1 million each working day to deliver water and sewerage services. Were there no additional contributions, money would have to come out of the Executive’s overall Budget, because there is a legal obligation under article 213 of the Water and Sewerage Services Order 2006 to meet those costs in 2009-2010. It would increase the pressure on the Budget and limit the money available for other public services. As I have said, it is a matter for the Executive to decide how that should be done. If it agrees to deferral, the Executive will have to balance competing demands, as with any expenditure.

Photo of Tommy Gallagher

Does the Minister accept that, although we are led to believe that domestic charges have been deferred, some people are being billed for the use of water in their homes? Given that those concerned are mainly vulnerable people in supported housing developments, will the Minister undertake to ensure that they do not receive any further bills for their water? Will he work with his colleagues in the Executive to sort out the problem that has given rise to those domestic charges?

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Conor Murphy (Sinn Féin)

Following a decision taken by the Executive some time ago and supported by all the parties represented in the Executive, bills have been introduced for all non-domestic properties. That has led, in some instances, to mistakes in the system for identifying which properties should be billed. The Member has raised the issue of bills issued to vulnerable adults; I regret that that has happened, and I regret any distress that that might have caused.

I constantly emphasise to NIW that its information systems must be as accurate as possible to ensure that both the properties to which it sends bills and the amounts charged are correctly identified. It is inevitable that mistakes will occur in a new system. This is the result of an outworking of a decision taken by the Executive some time ago. It is incumbent on NIW to correct the mistakes as quickly as possible and so ensure that people feel more confident in the system.