Domestic rate reform firmly on the agenda

Reform of the domestic rating system in Northern Ireland has to be put on the agenda if essential infrastructure improvements are to be made, according to NIO ministers.

Regional Development Minister Angela Smith has warned that failure to massively increase investment in Northern Ireland’s water and sewerage infrastructure could have serious implications.

Speaking at the Belfast Waste Water Heritage Centre, she said that £3 billion must be invested during the next 20 years if the Northern Ireland public and business community are to continue to enjoy safe, reliable and quality water and sewerage services.

Earlier this week at a business lunch in Belfast on Tuesday December 3, direct-rule Finance Minister Ian Pearson said that the Re-investment and Reform Initiative offered a real opportunity to address serious infrastructure problems by planning for substantial future investment.

These pronouncements could herald the introduction of water charges to enable revenue raised directly to be used in a bid to stave off possibly hefty European fines if water standards are not met.

Former Finance Minister Sean Farren said: "The whole question of how we pay for the water service goes far beyond the single issue of whether water charges are introduced." While he said that the water service was "badly in need of restructuring and reform," Dr Farren warned that no move should be made to introduce water charges in Northern Ireland without "full, open and transparent consultation with the public".

However, with the average rate in Northern Ireland put at around £400 per annum, and the average UK rate nearer to £1,000 there are fears that the rises may be substantial.

Before the devolved assembly was suspended a review was underway, and many MLAs will be hoping that the issue is resolved while direct rule is in place.

Speaking on Tuesday, Mr Pearson said: “In the coming weeks we will be making further announcements which will show how mainstream public expenditure, along with Public Private Partnerships and the use of enhanced borrowing powers under the Reinvestment and Reform Initiative, can make a key contribution to the major capital investment required over the next decade."

He warned that "reform of the domestic rates must be on the agenda" as a move towards a "fair system where people locally were paying their fair share".

An announcement on further options for possible reform of the overall rating system based on the outcome of the recent consultation on the Rating Policy Review is expected by January next year.

(SP)