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Northern Ireland householders could face water bills next year

By Noel McAdam
Wednesday, 1 July 2009

Deferring water charges would cost over £1bn

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Hard-pressed Northern Ireland householders have been warned they are increasingly likely to face water and sewerage charges — possibly from as early as next year.

With the Stormont Executive due to meet tomorrow, Ministers have been told a further three-year deferral of the charges will leave a £1bn hole in the budget.

Regional Development Minister Conor Murphy favours a further delay, but ministers may prove unable to justify maintaining the deferral without even harsher spending cuts elsewhere.

“This is a ticking time bomb,” Fred Cobain, chair of the Stormont committee monitoring water charges, said. “I cannot see how they can avoid having to go ahead with charges.”

He said the all-party committee was “very concerned” at the potential impact on pensioners and families already in poverty and on benefits.

The Department of Regional Development (DRD) confirmed: “The costs of deferral for a three year period...are of the order of £1bn. That is, the total projected cost for water and sewerage services/investment over the 2010/13 period is of the order of £1.6bn.”

And if the existing agreement to freeze VAT on the Northern Ireland Water company and capital charges ends, the cash gap could grow closer to £2bn.

A letter seen by the Belfast Telegraph says DRD shares the committee’s concerns “but the problem we face is that the department does not have the answers”.

A DRD spokeswoman conceded: “If there was further deferral of direct household payments the Executive would have to fund water and sewerage services from its resources. How it determined this would be a matter for the Executive.”

DECISION NEEDED WITHIN EIGHT WEEKS

Executive Ministers may debate the water charges issue tomorrow at their fourth meeting in four weeks.

But senior sources were unable to confirm any decision might be taken because the agenda has yet to be finalised.

Regional Development Minister Conor Murphy (right) tabled a paper two months ago but so far there has been on detailed discussion.

Even if ministers reach agreement, however, it may not be announced publicly immediately. But senior sources indicated NI Water needs a final decision in the next six to eight weeks so it can begin to organise billing.

A DRD spokeswoman said, however: “If there was further deferral of direct household payments the Executive would have to fund water and sewerage services from its resources. How it determined this would be a matter for the Executive.”

‘I don’t think they have a clue what they’re doing, but they can’t close their eyes and hope this will go away’

Ministers must spell out how they plan to fund a further delay of water charges, a senior Stormont politician has demanded.

Fred Cobain, who heads the scrutiny committee overseeing the department which would implement the charges, said: “It is not good enough just to make a decision to defer and leave the worrying about the implications until later.”

But the UUP MLA said: “At this point in time I don’t think they have a clue what they are doing. But they just cannot close their eyes and hope this will go away.”

The Department for Regional Development Committee, on which all parties apart from Alliance are represented, has been taking evidence from Northern Ireland Water, the billing firm Crystal Alliance and others in recent months but members are angry that key questions remain unanswered.

“There is at the most between eight and 10 weeks for this decision to be taken, at least if Crystal Alliance is to have the time it says it needs to prepare bills to go out,” Mr Cobain said. The North Belfast MLA, who opposes water charges, said: “The Executive appears to be paralysed on this issue.

“The Regional Development Minister (Conor Murphy of Sinn Fein) announced he was bringing forward proposals for another three-year deferral in April for the Executive, but so far it appears this has not even been discussed.

“The fact is they have had two-and-a-half years to think about this. The original plan was to introduce the charges on a one-third, two thirds and then full charge basis. But now we just don’t know where we are.

“I am very concerned at the potential impact of this on pensioners in particular, and families already in poverty.

“A responsible government has to plan properly for the future. They should not just be making announcements and planning policy on the hoof. If they are going ahead with a further three-year delay to the introduction of water charges we are entitled to know where the money to pay for that will come from.”

Mr Cobain declined to comment on internal correspondence seen by the Belfast Telegraph but confirmed his committee had held a behind-closed-doors briefing with DRD officials who indicated the frustration of MLAs was shared.

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25 Comments

Are you having a laugh? Every other part of the UK pays for their water, with NI once again wanting and apparently getting theirs for free! There is only one fair way to charge and that's meter every house and to help with wastage fix all the leaks. That way hose pipe bans and droughts should be thing of the past.

Posted by Donkey, London | 05.07.09, 06:52 GMT

what happened to all the empty promises from stormont last election? oh, vote for us, or else water charges will come.
bs. as usual. what a waste of money and time. get rid of stormont and the money grabbing leeches within it.

Posted by stephen 1 | 03.07.09, 11:38 GMT

Put a meter in all houses, where i live there is a large family living beside us, using a lot mroe water than we do, as well as constantly washing lots of cars and taxi's. If they put it on the house value we would end up paying the same as them even though they use considerably more water than we do, put a meter in fair and square for all including benefit claimants, they can afford their carry outs and their constant coffee's and lunchs in cafe's if they can that they can afford water.

Posted by Sarah | 02.07.09, 13:00 GMT

Quite simply this was always going to come in because there just is not enough money to go round and politicians knew it when they promised no water bills because it was popular! However it should definitely be metered or discounts should be given for houses with only 1 or 2 occupants as in England. To those saying its in our rates well even then our rates are still less than England and they pay water rates on top and my mother in law in Kent is a pensioner so wage levels dont come into it!

Posted by Stephen | 01.07.09, 21:01 GMT

Doc I'm a pensioner and have worked hard all my working life and because I have a works pension which I payed for I get nothing free ie gasses dental and full rent, there not much money left if any, water charger will cripple me too.

Posted by Des | 01.07.09, 19:54 GMT

Hold on a minute when i suggested charges on benefit claimants myself include i was ignored so give us a break
I am not adverse to paying my way However not to fill the boots pockets and other appendicitis off N.I.W nor the Crystal Alliance

The way in which the tap tax will be introduced but as usual it is easier to have a go at benefit claimants
What is the old maxim divide and conquer

Posted by kevin | 01.07.09, 19:51 GMT

I agree with Doc, people on benefits here get everything handed to them on a plate, whilst low paid workers foot the bill. When I was a civil servant, I actually had friends on the dole tell me they wouldnt work for my money! My mate next door got a free roof put on his house and free guttering because he was on income support. The British government created this benefit trap, let them either pay for the water or raise our wages to English levels.

Posted by Jim | 01.07.09, 18:39 GMT

No surely not, didnt ALL our politicians tell us if we voted for them there would be NO WATER RATES.
It must be a mistake. I mean they wouldnt lie just to get into power would they?

Posted by Merit | 01.07.09, 18:24 GMT

People - we need to say no to this extra tax. Look at the mistake Thatcher made with the poll tax. The reaction should be the same from the people of Northern Ireland. We are already on our knees and paying more things (oil, gas etc) than the rest of UK. Time to say enough is enough. If not our faces will be shoved further into the ground and it is your children who will suffer most. Just say No to the tap tax!!!

Posted by JustSayNo | 01.07.09, 18:05 GMT

Surely we already pay for water via the rates!
I would agree with Liz that we should be metered and would also agree with Don that those on benefits will not suffer as it's likely that they will not be billed, as usual.
Pensioners, on the other hand, can not be placed into the same category as benefits claimants but metering would partially solve their largely fixed income problems.

Posted by robbo | 01.07.09, 16:54 GMT

If they are determined to introduce water charges then it needs to be metered. All other utilities are metered - water should be the same. I don't see as single person why I should pay the same as a family. I won't use anywhere near the same water as them! Can you imagine if they tried to introduce a blanket charge for electricity!

Posted by Liz | 01.07.09, 15:57 GMT

I thought we were already paying for water through our taxes/rates etc purhaps im wrong? and what better time could they spring this on us than in the middle of a recession, in reference to Doc's comments perhaps they should cut benefits for these people and use that to fund water charges that way they can solve two problems at once........

Posted by AndyD | 01.07.09, 15:45 GMT

There's nothing bizarre about it, it's been like this for 25 years.

Posted by --The--New--Mule-- | 01.07.09, 15:44 GMT

As far as I am aware veryone in the rest of the UK has to pay water charges. pensioners, single parents and working class alike. As a single parent working to support my family I pay £37 a month for water whichI would not even consider drinking from the tap its so bad, so be warned

Posted by Liz | 01.07.09, 15:33 GMT

Well said Doc. Not many comments on the water bills/tap tax here. People would prefer to wait until the bills start dropping through their doors. Then they will start moaning. We are already paying for water - that is why we pays rates. So now we will paying for it twice. We are also paying for most expensive oil and gas in the UK but have the worst wages. We are being bent over.

Posted by Hydrogen Oxide Man | 01.07.09, 15:19 GMT

Public services should be paid for by the taxpayer. Simple as that.

Then you get English people saying 'why should we have to pay for your water if we don't drink it???'

Well let me explain. We are part of the same country! The UK.

By the same logic, then, why should MY taxes be used to improve the infrastructure and road network etc etc in London for the Olympics.

I will never set foot in London. So it's of no benefit to me.

Posted by We already pay for water. | 01.07.09, 15:03 GMT

If I to be charge for using water. I want meter, not follow size of house, this would be fair and square.

By why not use this under Rate????

Posted by Michael | 01.07.09, 13:43 GMT

And can anyone remember the cost for settling the cancellation of the contract to the operator appointed to run the billing system - it was certainly many millions of pounds - wasted so that the Minister, (and to be fair the entire Assembly at the time), could pretend to be doing us all a 'favour'! Some favour, now we are two years behind in the anticipated budget for improving our schools, hospitals and roads, never mind being in a downwards economci crisis teh assembly can't or won't addres

Posted by Not fooled | 01.07.09, 13:05 GMT

How long after we start paying for water and sewerage will it be till our rivers and shorelines stop being open sewers? Will the water and sewerage provider pay up if they fail to deliver this clean up? Why are we being asked to pay for this before the work has been done?

Posted by Rob | 01.07.09, 12:41 GMT

And what if we all refuse to pay? Will they cut of the water? I live on my own. Why should I have to pay as much as the house next door that has 2 adults and 4 children. They use much more water than I do. If we all refuse to pay I would like to see what action they take. Stop wasting money on MLA's and use it for the water if the work is so important.

Posted by Andy | 01.07.09, 09:02 GMT