11/03/2003

Water and sewerage charge proposals published

Under government proposals for the future funding of water and sewerage services, it has been revealed that Northern Ireland households could pay an extra £400 per year in charges.

Currently, households in England and Wales contribute on average £1,032 toward the cost of local services through the council tax and water and sewerage charges, which is over and above the level of national taxation. In comparison, Northern Ireland households contribute on average £445 per year through rates.

The final process may also result in the closure of some offices and depots and the relocation or reductions in the number of some posts across the organisation.

NIO Minister Angela Smith said she was "acutely aware" of the need for massive investment in the services. As such there will be a programme of water and sewerage projects implemented over the next three years to comply with EU standards. However, in order to find a sustainable and long-term funding solution for water and sewerage services the government is exploring funding on a "self-financing basis".

She said: "Charges would continue to rise as investment levels increase and, without a major programme of reform and cost reductions in the delivery of services, Northern Ireland households would pay the highest water and sewerage charges in the UK. I want to ensure that the future charges are as fair and affordable as possible. This will require changes in the way that services are managed and delivered.

"The consultation paper considers the relative advantages and disadvantages of five possible business models. It is vital that all possible options are the subject of an open and informed debate before final decisions are taken."

Alliance Finance Spokesman Seamus Close MLA has slammed the move saying it was an attempt "to kill off public debate on metering".

Mr Close said: "Angela Smith wants to introduce yet a 'tap tax' to make water self-financing. Yet despite claims of wanting to be both transparent and fair, why has she not suggested that consultation should take place on the installation of water meters, so that people could see what they are paying for, see how to reduce consumption, save water and thus save money?"

He added: "If her government can set aside £1.75 billion to kill people in Iraq and destroy what infrastructure remains there, just to satisfy the ego of the two 'B's - Bush and Blair - then a few hundred million for transparency and accountability through the provision of water meters makes good economic sense.

"But then who said that economic sense or even common sense was the hallmark of this government?"

SDLP West Tyrone assembly member Joe Byrne also expressed his concerns over the proposals saying the party was "vehemently opposed" to water privatisation.

The consultation on the reform options will run until 20 June.

(GMcG)

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