There is already a proposed solution to the question of how to fund water infrastructure, but ministers appear to be ignoring it

(The editorial can be read here: ‘We need a proper debate on how best to fund safe water systems in Northern Ireland’).

It is sometimes assumed that this would mean introducing water charges on top of our existing rates bills, but there is a better solution.

During his time as minister for Regional Development in 2007, the current finance minister commissioned a review panel to initiate precisely such a debate.

The panel was chaired by Professor Paddy Hillyard of Queen’s University.

They published their first report, on Costs and Funding, in October 2007.

This was followed by a second, on management, governance and delivery, in January 2008.

The panel considered evidence from all key stakeholders.

The first report recommended that direct rule ministers’ proposal for water charges should be dropped as regressive and expensive to administer.

They rejected metering on similar grounds and recommended instead that payments from households should be collected through the same system as rates.

The second report recommended that the minister should consider restructuring NI Water as a not-for-profit company, similar to Welsh Water.

It would then have a duty to reinvest any profits in service improvements or price reductions.

Most importantly, under Treasury rules it would be permitted to borrow money in the financial marketplace, something which NI Water is not currently able to do.

It would enjoy the flexibility of a private company while remaining in community ownership.

Welsh Water is one of the few success stories to emerge from the restructuring of water services in these islands.

It has the highest rating for customer service of any water company in Britain.

It also has ambitious plans for infrastructure investment which, unlike NI Water, it is able to finance independently.

The Board of NI Water has recently described Northern Ireland as the only region in the UK and Ireland with ‘a broken funding model’. They have estimated that they need over £2 billion for capital investment over the next six years, which they can get only from central government.

It is a sorry reflection on our executive’s efficiency and transparency that 12 years on ministers have still not acted on recommendations from a panel which they themselves commissioned — either by implementing them or by explaining why not.

We don’t so much need another debate on the subject as a positive response to long-standing recommendations which appear simply to have been ignored.

Bill Smith (Dr), Belfast 15

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